Written Answers Nos. 41-59
41. Deputy Éamon Ó Cuív asked the Minister for Transport when he plans to approve funding for a feasibility study of a rapid transit service through the heart of Galway city; if this will include an examination of the advantages of light or very light rail over advance bus rapid transport; and if he will make a statement on the matter. [13849/21]
View answerTransport investment in all the major cities is guided by the development of metropolitan area transport strategies. Since 2016, transport strategies have been published in respect of the Greater Dublin Area, Galway and the Cork Metropolitan Area, with work continuing on the draft transport strategies for the Limerick-Shannon and Waterford Metropolitan areas.
This move toward evidence based, plan-led transport planning for our major cities is to be welcomed and allows for consideration of all relevant issues and the potential role all modes of transport can play in addressing those issues. I would also note that providing this type of long-term investment framework represents international best practice in the area of transport planning.
In relation to Galway, the issue of light rail in Galway city was comprehensively examined as part of the development of the Galway Transport Strategy. The Strategy concluded that a bus based public transport system, supported by various active travel and public realm improvements, represents the most appropriate system for Galway over the period considered by the Strategy.
I am eager to see progress on the delivery of the Galway Transport Strategy and welcome the non-statutory consultations held last year on two of the key Galway BusConnects corridors. I look forward to the delivery of much improved active travel infrastructure in the next few years as well as improvements to the commuter rail network, such as the proposals in relation to Ceannt Station, Oranmore Station and indeed the Athenry to Galway rail corridor generally.
I have met with advocates of, what is termed a ‘very light rail’ system in Galway, which I understand is technology at a very early stage of development in the United Kingdom and which is not currently in operation.
I believe that its potential, or otherwise, could best be considered within the context of a review of the Galway Transport Strategy generally to allow for a multi-modal perspective and importantly integration within an overall land-use plan. As it is now six years since the publication of the Galway Transport Strategy, a review is likely warranted and I believe that such a review could commence next year.
42. Deputy Sorca Clarke asked the Minister for Transport the engagement he has had with Westmeath County Council regarding the possibility of reopening Killucan train station. [13856/21]
View answerAs Minister for Transport I have responsibility for policy and overall funding of public transport. The operation, maintenance and renewal of the rail network and stations on the network including the former station referred to, is a matter for Iarnród Éireann in the first instance.
I can advise the Deputy that I met with members of Westmeath County Council and Iarnród Éireann last December regarding the possibility of reopening said station and I understand that the Council are considering the matter further.
43. Deputy Catherine Murphy asked the Minister for Finance the amount a company (details supplied) has received in fees from the NTMA in each of the years 2014 to 2020 and to date in 2021; and if he will make a statement on the matter. [13620/21]
View answerIt was not possible for the National Treasury Management Agency to provide the information sought in the time available and, therefore, I will make arrangements to provide the information to the Deputy in line with Standing Orders.
44. Deputy Catherine Murphy asked the Minister for Finance the amount a company (details supplied) has received in fees from the Central Bank in each of the years 2014 to 2020 and to date in 2021; and if he will make a statement on the matter. [13621/21]
View answerIt was not possible to provide the information sought in the time available and, therefore, I will make arrangements to provide the information to the Deputy in line with Standing Orders.
45. Deputy Catherine Murphy asked the Minister for Finance the amount a company (details supplied) has received in fees from his Department in each of the years 2014 to 2020 and to date in 2021; and if he will make a statement on the matter. [13622/21]
View answerI can inform the Deputy that my Department has no record of any fees paid to the company named in the years 2014 to date.
However, I should point out that arising out of the admission in 2018 of AIB’s shares to the Irish Stock Exchange, the London Stock Exchange and the international offering by the Minister for Finance of his shares in AIB, fees of €12m were payable by AIB to the joint global coordinators and bookrunners.
The company in question was a member of this syndicate. The fees involved were negotiated by Departmental officials and represented approximately 0.4% of the value of the transaction based on the base deal size (€3 billion). This was very competitive by reference to comparable transactions in Europe. While the fees payable were discharged by AIB, this was done at the direction of the Minister as selling shareholder.
46. Deputy Neasa Hourigan asked the Minister for Finance if the NTMA has reviewed the position of a company (details supplied) as a primary dealer of Government bonds against the NTMA's own criteria for primary dealers most notably the organisational resources criterion. [13686/21]
View answerThe Deputy will by now be aware of the decision by the Board of the National Treasury Management Agency (NTMA) on Monday, 8th March, to withdraw J&E Davy’s authority to act as a primary dealer in Irish Government bonds. The NTMA wishes to maintain both Ireland's reputation as a sovereign issuer in the bond market and also the orderly functioning of the market for Irish Government debt. In this context, the NTMA believes that the behaviour described by the Central Bank falls substantially short of the standards expected from market counterparties, peers and colleagues in the bond market and is potentially damaging to Ireland’s reputation as a sovereign issuer.
I am informed that the NTMA Board reached its decision based on its assessment of last week's Central Bank of Ireland findings and also as a result of engagement with investors in Irish Government debt. As such, I note and support this decision. I believe that it is the appropriate course of action in the current circumstances.
47. Deputy Colm Burke asked the Minister for Finance the measures he is taking to ensure lower interest rates for Irish mortgages; and if he will make a statement on the matter. [13715/21]
View answerI am aware that the general level of lending interest rates in Ireland are higher than is the case in many other European countries, though it should also be noted that recent trends indicate that certain mortgage rates have been falling. For example, the interest rates on new fixed rate mortgages (excluding renegotiations) have fallen from 4.11% in December 2014 to 2.67% in December 2020.
However, Irish mortgage and other loans can have different characteristics from those offered in other countries. For example, many Irish banks include incentives such as cash back offers, which reduce the effective Irish mortgage interest rate. Also Irish mortgages are also generally not subject to upfront fees which are typically charged by banks in some other EU jurisdictions.
Nevertheless, there are a number of important factors which will likely influence the interest rates charged on Irish mortgages such as:-
- credit risk and capital requirements which in Ireland are elevated due to historical loss experience;
- the level of non-performing loans which is higher in Ireland relative to other European banks;
- there are lower levels of competition in the Irish banking market compared to other jurisdictions.
The Central Bank has a range of measures to protect consumers who are taking out a mortgage. The consumer protection framework requires lenders to be transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle; through protections at the initial marketing/advertising stage, in assessing the affordability and suitability of the mortgage and at a time when borrowers may find themselves in financial difficulties. In particular, the Central Bank introduced of a number of increased protections for variable rate mortgage holders which came into effect in February 2017. The enhanced measures, which are provided for in an Addendum to the Consumer Protection Code 2012, require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an increase. The measures also improve the level of information required to be provided to borrowers on variable rates about other mortgage products their lender provides which could provide savings for the borrower and signpost the borrower to the CCPC’s mortgage switching tool.
The Central Bank also introduced additional changes to the Consumer Protection Code in January 2019 to help consumers make savings on their mortgage repayments, provide additional protections to consumers who are eligible to switch, and facilitate mortgage switching through enhancing the transparency of the mortgage framework. Consumers can reduce average pricing in the mortgage market by availing of switching options to ensure that recent and potential future price reductions through increased competition pass through to the greatest number of customers possible. Indeed the Central Bank advises that a recent study by it estimated that three in every five ‘eligible’ mortgages for principal dwelling homes stand to save over €1,000 within the first year if they switch and €10,000 over the remaining term.
Ultimately, however, the price lenders charge for their loans is a commercial matter for individual lenders. As Minister for Finance I cannot determine the lending policies of individual banks including the interest rates they charge for loans including mortgages. Nevertheless, I will continue to work with the Central Bank and also engage with lenders to encourage, within a framework which seeks to maintain overall financial stability, greater benefits for borrowers.
48. Deputy Marian Harkin asked the Minister for Finance if he will request the banking industry to offer an extension of time to those who have received mortgage approval in principle but where as a result of the current restrictions, the offers are not being progressed or withdrawn; and if he will make a statement on the matter. [13730/21]
View answerI have maintained contact with the BPFI and lenders on the measures they have put in place to assist their customers who are economically impacted by COVID-19. In relation to new mortgage lending, the main retail banks previously confirmed that they are considering mortgage applications and mortgage drawdowns in relation to their customers who were impacted by COVID-19 on a case by case basis and that they are taking a fair and balanced approach.
Regarding the issue of extending the period of a mortgage 'approval in principle', the Central Bank has advised that there are no specific regulatory requirements relating to the duration of an 'approval in principle'. That is a commercial and business matter for individual lenders. However, the Central Bank advises that when a lender offers a mortgage to a consumer, the Consumer Protection Code provides that the lender must include the length of time for which the mortgage offer is valid in the offer document.
Therefore, if mortgage applicants have any queries or concerns about the status of their mortgage application or a mortgage 'approval-in-principle' they should, in the first instance, contact their lender directly on the matter.
More generally it should be noted that there are certain consumer protection requirements which govern the provision of mortgage credit to consumers. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which are necessary, sufficient and proportionate.
In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation. Furthermore, where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.
If a mortgage applicant is not satisfied with how a regulated entity is dealing with them, or they believe that the regulated entity is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated entity. If they are still not satisfied with the response from the regulated entity, the response to their complaint from the regulated entity is required to include details for the borrower on how to refer their complaint to the Financial Services and Pensions Ombudsman.
49. Deputy Marian Harkin asked the Minister for Finance the remedies available to those who have been refused mortgage protection insurance (details supplied); and if he will make a statement on the matter. [13731/21]
View answerAs the Deputy will appreciate, while I have taken note of the situation as set out in the details supplied by the Deputy, it is not appropriate for me to comment on specific cases. Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct such companies to provide cover to specific individuals or businesses. This position is reinforced by the EU's Solvency II framework. Consequently, I am not in a position to direct insurance firms as to their business activities, including requesting them to provide cover to such individuals.
It is my understanding that insurers use a combination of rating factors in making individual-level decisions on whether to offer life insurance, including mortgage protection insurance, and what terms to apply. These can include age; health; family medical history; occupation; and lifestyle. In addition, these may be determined or linked to the policy duration. In the case of mortgage protection, these tend to be over the lifetime of the repayment schedule. In addition, my understanding is that different insurers use different combinations of rating factors. Accordingly, prices and availability of cover varies across the market, and will be priced in accordance with specific firms’ prior claims experience.
Having said the above, I am aware of reports of some customers experiencing issues in obtaining mortgage protection cover as a result of having higher risk conditions particular in the context of COVID-19. The Deputy will be aware that both I and Minister of State Fleming have consistently stated that in the context of COVID-19 we expect insurance firms to treat their customers fairly, honestly, and in accordance with the Central Bank’s Consumer Protection Code. Accordingly, the Government will continue to engage with the insurance industry in relation to how it responds to, and works to protect its customers needs. This commitment is included in the Programme for Government.
My officials recently contacted Insurance Ireland, the representative body for such providers, on the issue of mortgage protection insurance. It stated that while most customers are still able to get life; critical illness; or mortgage protection insurance at this challenging time it is aware of a small number of individual cases where a final decision on some applications is being postponed for a period where applicants have a COVID-19-related health condition. However, it stated that while unaware of any cases where life cover has been denied, such policies are assessed on a case-by-case basis and that underlying health conditions are taken into account by the underwriters, as was the case pre-COVID-19. Insurance Ireland has also said that it understands that mortgage protection is not a universal requirement by banks, and that there are waiver conditions set out in the Consumer Credit Act where the lender may be able to proceed without the protection cover in place for mortgages in certain situations and this is at the lender’s discretion.
Finally, where somebody feels they have been treated unfairly they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
50. Deputy Eoghan Murphy asked the Minister for Finance the steps that can be taken to assist solicitors and other businesses being charged negative interest rates on money held in client accounts given such money is often borrowed as for example in the case of a mortgage to buy a home and therefore already subject to bank charges (details supplied). [13749/21]
View answerThe application of interest rate charges is solely a commercial matter for the board and management of each bank. I have no role in the day to day operations of any bank operating within the State including banks in which the State has a shareholding. Decisions in relation to commercial matters are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.
Deposit balances and liquidity in general has risen significantly across the banking system in Europe in recent years as the ECB has continued to provide additional funds through their asset purchase schemes and long term refinancing operations. This has been further exacerbated by the COVID-19 pandemic as households continue to stay at home and save and businesses defer investment decisions.
This excess liquidity which has grown significantly in the European system has to go somewhere and in the main it gets placed back on deposit with the ECB who charge the banks -0.50%. The application of negative deposit rates by the ECB has resulted in European banks incurring a consequent cost on deposit accounts. The Irish banks are impacted in a similar way to their European counterparts. The banks across Europe have looked to pass some of the costs associated with negative rates to deposit holders with larger balances. The Irish banks are no different in this regard.
In passing on some of these costs, it is important to note that banks cannot differentiate between customers in different sectors and for that reason the approach taken is to apply charges based on the size of the deposit balance.
51. Deputy Éamon Ó Cuív asked the Minister for Finance the reason the tax relief on donations to sports bodies made under section 847(A) of the Value-Added Tax Consolidation Act 2010 are in the case of PAYE tax payers payable to the eligible association or club and in the case of self-employed are repayable to the taxpayer; if it is planned to change this to make all donations payable to the beneficiary organisation; and if he will make a statement on the matter. [13763/21]
View answerTax relief on donations to approved sports bodies for funding an approved project is provided for in section 847A Taxes Consolidation Act 1997 (TCA) which was introduced in Finance Act 2002. The arrangements for allowing tax relief on such donations by individuals vary depending on whether the donor is a self-assessed or a PAYE-only taxpayer.
- An individual who is a self-assessed taxpayer makes the donation to the approved sports body and claims tax relief on the donation by way of a deduction from her/his income on her/his annual income tax return.
- For donations made by PAYE-only taxpayers, relief is given on a “grossed up” basis to the approved sports body. In other words, the donation is treated as having been received by the approved body net of income tax at the donor’s marginal rate. This is similar to the way in which donations to approved (charitable) bodies under s. 848B of the TCA were treated at the time of the introduction of s. 847A TCA in 2002.
This approach now differs from the current tax treatment of donors under s. 848B TCA to approved (charitable) bodies. The provisions for tax relief for donations made by individuals to charities under s. 848B were changed in Finance Act 2012, with a view to simplifying the regime of tax relief for donations. This followed the recommendations of the Commission on Taxation 2009 and a working group, chaired by my Department, which included representatives of the charities sector, and subsequent to a public consultation process. Since 1 January 2013, tax relief under section 848A TCA in respect of donations made by individuals (whether self-assessed or PAYE-only taxpayers) under the Charitable Donation Scheme (CDS) is given to the body rather than to the donor. A donation which satisfies the conditions of section 848A is grossed up at the “specified rate” (currently 31%). The tax treatment of donations by individuals to approved sporting bodies was not within the scope of that working group or consultation and has not been changed.
I have no plans at the present time to change the tax treatment of the various classes of tax-payer under s. 847A TCA. However, tax expenditure measures are kept under regular review by my Department as part of its on-going programme of work. Proposals for change are dealt with in the context of the annual Budget and Finance Bill process.
52. Deputy Joe Flaherty asked the Minister for Finance if he will consider waiving the local property tax for pensioners in receipt of the fuel allowance given that the benefit of the fuel allowance payment is null and voided by the local property tax payment. [13786/21]
View answerThe Government agreed with the recommendation of the 2012 Inter-Departmental Group, which considered the structures and modalities of a property tax, that a universal liability to LPT should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the LPT rate to be kept low for those liable persons who do not qualify for an exemption. There is no specific exemption from the requirement to pay LPT for pensioners in receipt of fuel allowance under the Finance (Local Property Tax) Act 2012 (as amended), though such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.
The LPT legislation provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and the person meets certain criteria based on income thresholds. The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds. The thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple. Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple. Further information regarding the deferral of LPT is available on the Revenue website at link www.revenue.ie/en/property/documents/lpt/guidelines-for-deferral-of-lpt.pdf.
Any property owners experiencing financial difficulties can avail of a wide range of flexible payment options in respect of 2021 liabilities and for any previous years where liabilities remain outstanding and can be assured that Revenue will take account of their current circumstances in agreeing payment arrangements. Payments can be spread over the year, in a way that best suits an individual’s circumstances and options include deduction at source from their DSP payment, by monthly direct debits through certain credit union accounts or their bank account or, by making regular weekly or monthly payments to one of the three payment service providers which are An Post, Payzone and Omnivend. The full range of payment options are available to property owners via the LPT portal on the Revenue website at link www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx. Assistance with payment arrangements is available via the LPT Helpline at (01) 7383626 or by writing to Revenue at LPT Branch, PO Box 1, Limerick.
53. Deputy Violet-Anne Wynne asked the Minister for Finance if ATMs will remain in circumstances in which the branch of a bank (details supplied) is closing, specifically in Kilkee, Miltown Malbay and Tulla, County Clare; and if he will make a statement on the matter. [13802/21]
View answerAs the Deputy may be aware, as Minister for Finance I have no role in the commercial decisions made by any bank in the State. This includes banks in which the State has a shareholding.
Decisions in this regard, including the management of branch networks, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market. The Bank of Ireland Relationship Framework can be found at the following link:
BOI:https://www.gov.ie/en/publication/fc36e6-bank-of-ireland-relationship-framework-march-2012/.
However, Bank of Ireland did provide me with a briefing in advance which was consistent with its announcement on the matter on 1st March.
Some of the key points contained in the announcement are:
- The decision to close these branches is in response to changing customer behaviour with a significant acceleration in digital banking.
- The branches closing are predominately self-service locations which do not offer a counter service.
- To preserve local access to physical banking for those who want it, the bank has agreed a new partnership with An Post which will allow personal and business customers use their local post office for a range of banking services – including to withdraw cash and make cash and cheque lodgements – at no additional cost. The closing Bank of Ireland branches all have a post office within, on average, less than 500 meters.
- The bank confirmed that the new partnership with An Post will be available to all Bank of Ireland customers before any branch closes.
- Furthermore, the bank stated that there will be no closures for six months.
On staff, the bank commented that it will be working closely with all colleagues at these branches and will be setting out a range of options which include relocating to a different branch, moving to a new role in the bank, or voluntary redundancy for those who choose it.
The full Bank of Ireland announcement on the matter can be found at the following link:
https://www.bankofireland.com/about-bank-of-ireland/press-releases/2021/bank-of-ireland-announces-significant-changes-to-branch-network-and-local-banking-services/.
Notwithstanding this, officials in my Department referred your question to Bank of Ireland and received the following response:
"In the Republic of Ireland, a total of 88 branches will close, 78 of which have an external ATM. All of these locations will close in full, with the exception of a small number of locations (4) where there is no alternative ATM available. In those locations the Bank will maintain an ATM for cash withdrawal purposes.
"The Bank will retain 169 branches nationwide, the majority of which have an External ATM which can be used for cash withdrawal and cash and cheque lodgement 24/7.
"The majority of the closing branches are self-service and do not offer counter services or coin facilities. However, all locations have a post office within on average, less than 500 metres. Post offices have the capacity to manage cash (for both lodgement and withdrawal) on behalf of business customers, and offer longer operating hours and Saturday opening.
"Bank of Ireland will continue to offer Cash in Transit services (including collection of notes, coins, FX and priority lodgements directly from a customer’s premises) for businesses who deal in very large amounts of cash."
54. Deputy Brendan Smith asked the Minister for Finance further to Parliamentary Question No. 47 of 4 March 2021, if his attention has been drawn to the widespread concerns of communities throughout the country regarding the decision of a bank (details supplied) given that these drastic measures are being taken during a pandemic when families and communities face many difficulties; if the bank will reconsider the decisions announced at the beginning of March 2021; and if he will make a statement on the matter. [13813/21]
View answerThe response to the Deputy's parliamentary question which I answered on 4th March still stands.
One point I wish to re-emphasise is the fact that Bank of Ireland has confirmed that no branch will close for six months.
In its announcement, Bank of Ireland acknowledged that it accepts that news of its branch closures will cause concern for some customers, and for the communities that it serves. The bank has commented in this regard that the six month moratorium on closures will allow it to ensure the An Post partnership is up and running before any branches close, and gives it time to communicate fully with all its impacted customers about every option available to them online, in a nearby BOI branch, or at a local post office.
55. Deputy Róisín Shortall asked the Minister for Finance his views on the appropriateness of a company (details supplied) continuing to act for the National Treasury Management Agency in bond sales in view of the recent findings of the Central Bank; and if he will make a statement on the matter. [13814/21]
View answerThe Deputy will by now be aware of the decision by the Board of the National Treasury Management Agency (NTMA) on Monday, 8th March, to withdraw J&E Davy’s authority to act as a primary dealer in Irish Government bonds. The NTMA wishes to maintain both Ireland's reputation as a sovereign issuer in the bond market and also the orderly functioning of the market for Irish Government debt. In this context, the NTMA believes that the behaviour described by the Central Bank falls substantially short of the standards expected from market counterparties, peers and colleagues in the bond market and is potentially damaging to Ireland’s reputation as a sovereign issuer.
I am informed that the NTMA Board reached its decision based on its assessment of last week's Central Bank of Ireland findings and also as a result of engagement with investors in Irish Government debt. As such, I note and support this decision. I believe that it is the appropriate course of action in the current circumstances.
56. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he remains satisfied that the steps taken to date to offset the impact of Brexit remain sufficiently robust to ensure Ireland’s economic future; and if he will make a statement on the matter. [13842/21]
View answerSince the Brexit referendum result in 2016, the Government has taken steps to build up the resilience of the economy. This involved actions across the whole of Government, including supports to businesses to diversify trade beyond the UK market.
More recently, to prepare our economy for the immediate impacts of Brexit, the Government in Budget 2021 allocated unprecedented resources to confronting the twin challenges of COVID-19 and Brexit, with €340 million to be spent on Brexit-related measures. When these measures are taken into account, Brexit related expenditure to date is over €1 billion.
The European Commission’s proposal to allocate €1 billion from the Brexit Adjustment Reserve to Ireland is welcome. The very significant share of the fund initially allocated to Ireland reflects the research undertaken by my Department which shows the disproportionate impact of Brexit on Ireland. The Fund will be used to support the most affected sectors of our economy. Discussions are taking place within Government Departments as to how best to allocate Ireland’s share of the Brexit Adjustment Fund.
The Trade and Cooperation Agreement between the EU and UK was a positive conclusion to the transition period. However, the new agreement still represents a break from the previously existing arrangements and it does not completely mitigate against ‘trade frictions’ in the form of non-tariff barriers. Further import controls will be introduced by the UK on 1 April on certain categories of EU goods, including plant and animal products. A range of Government support is available to Irish exporters, including training and grants, to help businesses deal with these changes. It is vital that business prepare for this next stage.
The successful negotiation of the Protocol on Ireland / Northern Ireland, as part of the Withdrawal Agreement, delivered key economic objectives for Ireland. The Protocol secures Ireland’s place within the Single Market, avoids a hard border on the island, protects the all-island economy, and provides Northern Ireland with unique access to both the British internal market and the EU single market.
The Irish Government remains focused on protecting our economic and financial interests, and will continue to work to minimise the disruption that Brexit will have on the economy and peoples’ livelihoods to the greatest extent possible.
57. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he expects Covid-19-related payments to continue into the future; and if he will make a statement on the matter. [13843/21]
View answerThe main direct Covid-19 supports under the aegis of my Department and the Revenue Commissioners are the Employment Wage Subsidy Scheme (EWSS) and the Covid Restriction Support Scheme (CRSS).
The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. Details of CRSS are set out in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The trade must be carried on from a business premises that is located in a region subject to restrictions introduced in line with the Government’s ‘Living with Covid-19 Plan’, with the result that the business is required to prohibit or considerably restrict customers from accessing its business premises.
To make a claim under the CRSS, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made.
A qualifying business may make a claim to Revenue under the CRSS for a cash payment known as an “Advance Credit for Trading Expenses”. This payment will be equal to 10% of the average weekly turnover of the business in 2019 (or in 2020 in the case of a new business) up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for each week that the business is affected by the Covid restrictions.
As of 4 March 2021, payments of €351 million have been made in respect of 22,900 premises.
The objective of the Employment Wage Subsidy Scheme (EWSS) is to support all employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and encourage employment in the midst of these very challenging times. As of 4 March, subsidy payments of over €2.2 billion have been made and PRSI relief worth over €378m granted to over 47,600 employers in respect of over 537,100 employees.
I have been clear that there will be no cliff-edge to supports and, as Deputies will be aware from announcements made on Tuesday 23 February, it has been decided that both the EWSS and the CRSS are now to be extended until the end of June 2021.
With the agreement by Government on the revised plan, COVID-19 Resilience and Recovery 2021: The Path Ahead, a cautious and measured approach will be taken as we lay the foundations for the full recovery of social life, public services and the economy. It is therefore appropriate that key business supports should remain in place until the end of the second quarter of 2021.
As the revised plan is implemented, the EWSS will play an important role in getting people back to work as public health restrictions are eased, thereby reducing the numbers dependent on social welfare payments over time, including the Pandemic Unemployment Payment (PUP).
Consideration is being given to the fact that continued support could be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
58. Deputy Éamon Ó Cuív asked the Minister for Finance when the central vehicle registrations office will register a vehicle for VRT (details supplied); the reason for the delay in same; and if he will make a statement on the matter. [13848/21]
View answerI am advised by Revenue that the vehicle in question was registered for Vehicle Registration Tax (VRT) purposes on 2 March 2021.
Revenue has also advised me that the delay in completing the registration process for the vehicle was due to the higher than normal volumes of applications received in late 2020 and early 2021. Revenue has confirmed that the backlog in applications is largely cleared and registrations are being completed in a timely manner.
59. Deputy Catherine Murphy asked the Minister for Finance the amount a company (details supplied) has received in fees from NAMA in each of the years 2014 to 2020 and to date in 2021. [13898/21]
View answerI am advised that NAMA did not procure any services from J&E Davy during the period from 2014 to 2020 and to date in 2021, nor for any time preceding that, and accordingly has paid nil fees to the company.
