Written Answers Nos. 408-432
410. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which he anticipates the need to upgrade arterial road routes and reduce carbon emission levels; and if he will make a statement on the matter. [15892/21]
View answerAs Minister for Transport I have responsibility for overall policy and securing Exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the upgrading and improvement of individual national roads, including appraisal of their environmental impact, is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals.
With regard to climate action, the impact of transport infrastructure on carbon mitigation is taken into account in TII's investment decisions on national road infrastructure.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
411. Deputy Holly Cairns asked the Minister for Transport if his attention has been drawn to issues regarding the CIÉ pension scheme for retired Bus Éireann drivers (details supplied); and if he will make a statement on the matter. [15919/21]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport in Ireland.
The CIÉ Group has two pension schemes, namely the Regular Wages Scheme (“RWS”) and 1951 superannuation scheme (“1951 Scheme”). Issues in relation to CIÉ pension schemes are primarily a matter for the trustees of the schemes, the CIÉ Group and their employees.
I have therefore referred the Deputy’s question to CIÉ for direct reply. Please advise my private office if you do not receive a response within ten working days.
412. Deputy David Cullinane asked the Minister for Transport the total Covid-19-related spend in 2020 by his Department, agency and budget line item; and if he will make a statement on the matter. [16281/21]
View answerThe information requested by the Deputy in respect of my Department, is currently being collated by my officials and will be forwarded to the Deputy within 10 working days.
In respect of agencies under the aegis of my Department, I have referred the question for a direct replies. Please advise my private office if you do not receive these replies within 10 working days.
413. Deputy Emer Higgins asked the Minister for Transport the payment options available for persons to pay fines, charges or bills by his Department; and if there are plans to provide further online payment facilities. [16300/21]
View answerThe options available to members of the public to make payment to my Department for a range of services are set out below.
Freedom of Information Requests
Payment is required in respect of Freedom of Information requests and requests for Access to Information on the Environment in which Search and Retrieval totals 6 hours or more (over €101 threshold charge at €20 per hour as advertised on our website), and for Internal Reviews.
The payment options my Department offers for these requests and reviews are by way of Bank transfer, Bank draft, money order, postal order or personal check. However to note during the current pandemic my Department is advising bank transfer as the best method of payment given staff are working off-site.
Motor Tax Payments
Currently payment of motor tax can be made through the local motor tax office or through the online service for periods of 3, 6 or 12 months, depending on the payment period chosen by the vehicle owner. The payments can be made by cash, cheque, postal order, credit card or debit card payment in a motor tax office and only credit or debit card payment through the online service. There are no plans at present to change these periods or methods of payment for motor tax.
Road Transport Operator Licences
Applicants for Road Transport Operator licences have the option of applying online on www.rtol.ie or by paper form (which can be scanned/emailed instead of being posted, if preferred). The charges applicable can be paid as outlined below.
For paper applications: Charges can be paid by cheque/postal order, or by completing debit/credit card page in the application form, which is disposed of following payment.
For online applications: Charges are paid online with debit/credit card as part of the application process.
Maritime and Seafarer Certification
Payments for applications for certification to the Marine Survey Office and the Mercantile Marine Offices in my Department can be made in the following ways:
- Postal order or Bank Draft made payable to the Superintendent, Mercantile Marine Office
- EFT Payments
- Credit/Debit card payments
Payment options are listed on all application forms.
414. Deputy Chris Andrews asked the Minister for Finance if a company (details supplied) was regulated to operate here; and if so, the regulatory body under which it was regulated. [15496/21]
View answerI am advised by Revenue that the Betting Act 1931 (as amended by the Betting Amendment Act 2015), provides the legislative basis for licensing and control of Bookmakers, Remote Bookmakers, and Remote Betting Intermediaries. These licences fall within the general category of licences known as Excise Licences, which are issued by Revenue under various statutes.
Revenue maintains and publishes a register of all licensed remote bookmaking operations and the current register can be located and viewed at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/licences/licensed-remote-bookmaking-operations.aspx
Revenue has confirmed that the company (details provided) has been issued with a license to provide remote bookmaking services within the State, in accordance with the requirements of the Act.
415. Deputy Patricia Ryan asked the Minister for Finance the supports that have been provided by the EU to help Ireland to cope with the pandemic. [15546/21]
View answerAs the COVID-19 health crisis spread across the EU, my Department participated in EU negotiations and supported agreements establishing several EU budget-related changes to address the various challenges faced in 2020 and continuing up to 2026.
The Emergency Support Instrument (ESI) was activated in April/May 2020, for €2.7 bn. The ESI’s scope is broad, but it has mostly been used to fund advance purchase agreements with pharmaceutical companies developing vaccines, to increase the speed and scale of manufacturing successful vaccines, and provide the right to EU Member States to buy an agreed number of doses. The ESI’s scope also covers transport of patients, medical teams and equipment, testing, tracing, treatment and disinfection, and procurement of essential products.
The EU Civil Protection Mechanism’s budget was significantly increased, to allow for expanded disaster response support to Member States, from the Commission and other Member States. It financed repatriation flights of EU citizens abroad, stockpiles of essential medical and protective equipment, and moved assistance and equipment between Member States.
The natural disaster scope of the EU Solidarity Fund (EUSF) was expanded to allow for one-off support related to the major public health emergency. Member States had a deadline of June 2020 to submit applications for support. Following a preliminary assessment, some advances of this support were paid to Member States at the end of 2020, with the remainder paid in 2021.
Beyond additional funds, certain programmes were amended to allow them to respond to the crisis by redirecting and/or speeding up existing funds, including for SMEs, the agricultural and fisheries sectors, and neighbouring and developing countries.
The Coronavirus Response Investment Initiatives created liquidity within existing budget limits to speed up investments to respond to the pandemic, such as health equipment, SME support and labour market measures. They also allowed increased flexibility, permitting faster flows of funding, such as no longer requiring national budgets to co-finance EU spending, and permitting transfers between funds, regions and policy objectives.
In July 2020, the European Council reached agreement on a package totalling €1.82 trillion for the 2021-2027 Multiannual Financial Framework (MFF) and “Next Generation EU” (NGEU) recovery instrument. The NGEU is a temporary instrument designed to boost the recovery in a post-COVID-19 Europe. This is the largest stimulus package ever financed through the EU budget. The NGEU is made up of €750bn, made up of €390bn in grants and €360bn in loans, mostly funding the Recovery and Resilience Facility, but also ReactEU, and supplementary amounts to existing EU budget programmes to fund COVID-related expenditure.
As regards EU budget expenditure in Ireland, this has been and will be channelled through relevant Government Departments and/or directly to beneficiaries, and my Department does not have a leading role in roll-out of such funding.
In addition to the above examples of expenditure, the EU’s temporary Support to mitigate Unemployment Risks in an Emergency (SURE) was set up to provide loans to Member States that need to mobilise significant financial means to fight the negative economic and social consequences of the coronavirus outbreak on their territory. It can provide financial assistance up to €100 billion in the form of loans from the EU to affected Member States to address sudden increases in public expenditure for the preservation of employment.
416. Deputy Martin Browne asked the Minister for Finance his views on farmers having to pay carbon tax while fishing boat operators do not have to do so; the reason for same; his views on this discrepancy given the technologically advanced tractors and other machinery farmers are investing in; and if he will make a statement on the matter. [15616/21]
View answerIreland’s excise duty treatment of fuel used for motor and heating purposes is based on European Union law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive.
Mineral Oil Tax (MOT) is an excise duty and is comprised of a carbon and a non-carbon component. The carbon component is often referred to as carbon tax, but it is only one part of the overall tax that applies to mineral oils and other fuels used for motor and heating purposes. MOT as applied in Ireland is subject to the requirements of the Energy Tax Directive.
I am taking it that the Deputy, in referring to “carbon tax”, is enquiring about the application of MOT to agricultural purposes compared to the exemption from MOT that applies in the case of fuel used for fishing boat operators.
The main agriculture exposure to excise duty comes from the fuel inputs primarily through the use of Marked Gas Oil, which is currently subject to a rate of MOT of 11.8 cent per litre. This compares to the current full rate of MOT for auto diesel used as a propellant of 51.5 cent per litre.
I also note that when my predecessor increased Carbon Tax in Budget 2012 he made provision for a double income tax relief for farmers to compensate for the increase. This relief continues to apply. It is available to individuals and companies that carry on a trade of farming and are entitled to claim an income tax or corporation tax deduction in respect of farm diesel. The legislation provides that a farmer may take an income tax or corporation tax deduction for farm diesel (including any carbon tax charged in respect of the diesel) and then a further deduction for farm diesel which is equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of 4.1 cent per litre of farm diesel (the 2012 baseline).
In the case of fishing boat operators, the requirements of the Energy Tax Directive apply. The Directive provides for a mandatory exemption from taxation on all fuels that are used for navigation within Community waters, other than fuels used for private pleasure navigation. This is binding on Ireland and all other EU member states and means that fuels used for sea-fishing and for commercial freight and passenger vessels must be exempt from taxation under the Directive. In line with the Directive, Ireland’s MOT legislation provides for a full relief from MOT for fuel used for commercial sea navigation, including sea-fishing. I am advised by Revenue that, subject to conditions, this relief is operated by way of remission or repayment through Revenue’s online services. Full details on the operation of this relief are available on Revenue’s website at: https://www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/remission-or-repayment-of-mot-on-mineral-oil-used/index.aspx.
417. Deputy Jennifer Whitmore asked the Minister for Finance the levels of funding, recipient enterprises, project details, investment objectives, timelines and expected emission reductions associated with the portfolio of investments under the Ireland Strategic Investment Fund supporting collaboration with the food and agriculture sector to decarbonise their supply chain in tabular form; and if he will make a statement on the matter. [13899/21]
View answerI am informed by the Ireland Strategic Investment Fund (ISIF) that its investments to date in the Food and Agriculture sector have focused on Forestry and AgTech set out in the table below.
|
Investment |
Commitment €m |
Objectives
|
|
Forais (Dasos) |
55 |
Fund investing in new and semi-mature forests across Ireland underpinning the sector |
|
AIBIM 1st Forestry Fund |
20 |
Investment in a portfolio of forestry assets across Ireland |
|
Finistere Ireland Ag Tech Fund |
20 |
Partnership between ISIF and Finistere investing in start-up and early stage AgTech companies in Ireland, including: - CropX LL, an agriculture-analytics company that has developed an advanced adaptive irrigation service, which automatically optimizes irrigation, thereby delivering crop yield increase and water and energy cost savings to farms; and - ApisProtect Ltd moving the use of technology in beehives into the commercial sphere, to provide insight for beekeepers to prevent losses and increase productivity.
|
|
Finistere Ventures Fund II |
20 |
Partnership between ISIF and Finistere investing in start-up and early stage AgTech companies globally which have the potential to transform existing and develop new sectors in Irish Agriculture. Portfolio companies have had engagements with the Irish Agriculture sector across the following areas;
- Digital Agriculture: - FoodTech: - Animal & Plant Genetics: We expect that one of these portfolio companies will re-domicile their headquarters to Ireland in 2021. |
ISIF’s forestry fund investment in turn owns 8,000 hectares of forestry that sequesters 50,000 t/C02 approx per annum.
ISIF is also collaborating with the Food and Agriculture sector on;
- decarbonising the heat requirements of the Food and Drink sector; and
- increasing carbon sequestration in soils.
These projects are at feasibility stage and therefore it is too early to quantify the precise impact.
418. Deputy Seán Canney asked the Minister for Finance when medical examinations for the disabled drivers' scheme will recommence given that many disabled persons are at a significant financial disadvantage due to the fact they are not currently able to access the scheme; and if he will make a statement on the matter. [13941/21]
View answerI brought forward an amendment to the Finance Bill to provide for the existing medical criteria for the Disabled Drivers Scheme in primary legislation. Following approval of the Finance Act 2020, the HSE has been informed that medical assessments can recommence from 1st January 2021.
However, in the context of the national effort to suppress and manage the impact of COVID, the ability to hold assessments is impacted by, among other things, the public health restrictions in place and the role of the HSE Medical Officers in the roll-out of the COVID vaccination programme and in responding to outbreaks in residential care facilities across the country. The HSE has confirmed that the community medical doctors and their teams are predominately deployed to the COVID vaccination rollout in residential care facilities and other health care settings.
Finally, I would like to clarify that the Scheme itself is still operating. All persons or charitable organisations that can currently access the Scheme will continue to be able to do so and make claims for tax reliefs and the fuel grant in the normal manner.
419. Deputy Sean Sherlock asked the Minister for Finance if his attention has been drawn to international online wine merchants advertising and importing wine to Ireland without paying excise or VAT; and if he will make a statement on the matter. [13953/21]
View answerIt is assumed that the Deputy is referring to cross-border sales of wine over the internet to consumers in Ireland. Such sales of alcohol products are referred to as “distance sales”.
Distance sales of alcohol products from one EU Member State to a consumer in another Member State are subject to VAT in the Member State of destination of the supply, which would be Ireland if the consumer is based in this State. In all such cases, the supplier of those goods is required to register in the State and account for VAT.
Specific requirements apply in relation to excise duty on the distance sales of alcohol products from another EU state to a private individual in Ireland. The vendor in the Member State of dispatch must appoint a tax representative in Ireland who must be approved by Revenue. The tax representative must provide a guarantee for the excise duty prior to the dispatch of the alcohol products and must pay the excise duty on arrival of the products at the designated address in Ireland. Failing this, liability for payment ultimately rests with the person to whom the products have been delivered in the Member State of destination.
Alcohol products ordered by persons, both business and private consumers, from suppliers established outside the EU are subject to customs duty, VAT and excise duty which are normally payable prior to the release of the goods into free circulation in Ireland.
Revenue inform me that they are very aware of the growth in business to consumer internet sales and of the risks this presents, both to tax revenues and domestic business, and that they are working continuously to strengthen their controls in this area. Revenue uses a range of measures to monitor internet retail activity directed at customers in Ireland. Revenue’s work at ports, airports and postal depots to ensure compliance is supported by equipment and resources such as scanners and x-ray machines and these are reviewed regularly in light of technological developments and operational effectiveness. Revenue’s overall approach to managing compliance is to undertake a range of targeted interventions that are most appropriate for dealing with the specific risks presented in individual cases – including internet sales. Their work is also supported and enhanced with appropriate technology, including their Risk Evaluation Analysis and Profiling (REAP) risk identification system and capture of data from multiple sources.
These compliance activities are very successful, and Revenue seizes considerable quantities of excisable and prohibited goods annually in the course of delivery through postal and other delivery channels.
420. Deputy Aengus Ó Snodaigh asked the Minister for Finance the drug finds by Customs and Excise and the Revenue Commissioners in each of the past five years calculated as being over €13,000; the counties in which the findings were made; and the type of drugs involved. [13962/21]
View answerAs the Deputy will be aware, there are multiple State agencies involved in the interdiction and seizure of drugs. Some of these agencies, such as the Customs Service of the Revenue Commissioners and the Irish Naval Service, rest outside of my remit as Minister for Justice.
I have, however, contacted An Garda Síochána, the Courts Service and the Criminal Asses Bureau to obtain the information requested from the agencies under my remit and have been advised of the following.
CAB has had one drugs seizure valued over €13,000 in the last five years on 12 February 2019. This seizure occurred in County Limerick and involved Cocaine. Two persons were charged in connection with this find and the case is currently before the Circuit Court.
An Garda Síochána have advised that drugs seizures valued at €13,000 or over are recorded on PULSE as incidents of the types “Cultivate or Manufacture of Drugs”, “Importation” or “Possession of Drugs for Sale and Supply”. There is no distinct incident type for seizures which are valued at €13,000 or more.
All "Possession of Drugs for Sale and Supply", "Importation" and "Cultivation or Manufacture of Drugs" Incidents
The table above relates to all incidents of type “Cultivate or Manufacture of Drugs”, “Importation” or “Possession of Drugs for Sale and Supply” regardless of the value of the seizure. This data was drawn down from PULSE on 15/03/2021. Data is presented for Garda Divisions, some of which are comprised of two counties.*
Charges and summonses data is also available for drugs offences. This information was drawn down on 11/03/2021. The figures presented in the tables below relate to charges and summonses for the following sections of the Misuse of Drugs Act 1977:
- Section 15A, which relates to possession of drugs with a value of at least €13,000,
- Section 15B, which relates to the importation of drugs with a value of at least €13,000.
Charges & Summonses Issued for S15A and 15B Misuse of Drugs Act for "Possession of Drugs for Sale and Supply", "Importation" and "Cultivation or Manufacture of Drugs" Incidents
Multiple charges or summonses may be issued for incidents, for example, if there are multiple offenders, multiple drug types, or multiple categories of charges. Furthermore, charges or summonses may not have been issued in relation to all incidents to date. The figures in the table above should not therefore be taken to be a direct subset of the incident numbers above. The number of charges/summonses is only possible to provide at a regional level.
Confirmed information on types of drugs is only available following analysis by Forensic Science Ireland. In an effort to provide some insight into drug types, the drugs detailed in the Section 15A and 15B charges/summonses have been examined.
Drug Categories associated with Charges & Summonses Issued for S15A and 15B Misuse of Drugs Act 1977 for "Possession of Drugs for Sale and Supply", "Importation" and "Cultivation or Manufacture of Drugs" Incidents
In relation to the number of convictions secured and length of sentences handed down by the Courts for these seizures, I have been advised by the CourtsService that this information is not available. The Integrated Criminal Management System (ICMS) is used by the Courts Service in cases before the Circuit Courts. The particular offence referred to by the Deputy is tried only in the Circuit Court and the ICMS only allows reports by offence category (e.g. "DRUG OFFENCES") , rather than for individual offences. The offence category of 'Drugs Offences' contains multiple offences so therefore it would not be possible to provide the information sought.
*Incident figures are taken from PULSE as of 01:30 on 15/03/2021, they are operational and liable to change.
421. Deputy Peter Burke asked the Minister for Finance if he will consider an additional tax credit for those who are single and who live alone given that there is an additional tax credit for widowed persons, one parent families, divorced or separated persons; and if he will make a statement on the matter. [13970/21]
View answerI would like to advise the Deputy that the Irish income tax system has been specifically designed to be broad-based and progressive thereby ensuring that the tax burden is lowest for those on the lowest incomes and highest for those on the highest incomes. It is the Government’s position that this is the most fair and sustainable income tax system in the long term.
Within these general principles, specific credits have been introduced to give additional targeted support to persons, depending on their personal circumstances, to recognise the particular additional financial challenges that may arise.
For example, to assist parents in the transition from married or civil partnership to widowed status, a Widowed Parent Tax Credit is available to a widowed person with dependent children for the five years following the year of bereavement.
Another credit, the Single Parent Child Carer Credit, is designed to support single parents with children to take up, or remain in, employment by indirectly assisting with the cost of childcare.
Such credits work alongside targeted aspects of the social welfare code, including the Living Alone Allowance for people on social welfare pensions who live alone.
As regards the Deputy's suggestion, it is noted that a single person living alone with no dependants is an entirely different set of circumstances compared to a widowed person, a single parent or recently divorced or separated persons.
While it is the case that policy choices exist as to how best to deploy the available financial resources of the State, resources are being prioritised at this time on initiatives to support those who are no longer in employment or who will or have had reduced income arising from the Covid-19 pandemic, as well as measures seeking to support employers in retaining staff on the payroll.
422. Deputy Dara Calleary asked the Minister for Finance if concerns have been raised with him or the Central Bank in relation to the change of policy proposed by retail banks in relation to solicitors' client bank accounts; his views on whether this change of policy has the potential to impact on legal costs on the sustainability of some legal practices; and if he will make a statement on the matter. [13981/21]
View answerI am aware of the concerns regarding the application of negative interest rates to solicitors' client bank accounts through parliamentary questions and correspondence.
The 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, banks have decided that they cannot differentiate between customers in different sectors and for that reason, banks have chosen to apply charges based on the size of the deposit balance.
I am not in a position to comment on the potential impact on legal practices. However, I understand that some legal practices have already taken steps to work closely with clients to ensure that clients' monies for transactions spends the least amount of time possible in the client account.
423. Deputy Seán Canney asked the Minister for Finance if he will request as a shareholder in a bank (details supplied) that it defer branch closures until the end of the Covid-19 pandemic. [13998/21]
View answer432. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if his Department can contact the bank in question to request a pause to these closures as outlined; and if he will make a statement on the matter. [14106/21]
View answer439. Deputy Cian O'Callaghan asked the Minister for Finance if he will intervene to stop the closure of bank branches (details supplied) given that the State is a major shareholder in the bank; and if he will make a statement on the matter. [14223/21]
View answer458. Deputy Catherine Connolly asked the Minister for Finance his plans for the introduction of a moratorium on bank branch closures for the remainder of the Covid-19 pandemic in view of a recent announcement (details supplied); and if he will make a statement on the matter. [14549/21]
View answer506. Deputy Richard Boyd Barrett asked the Minister for Finance if he will request the delay of the closure of branches of a bank (details supplied) until after the Covid-19 pandemic given the importance of same during the pandemic; and if he will make a statement on the matter. [15850/21]
View answerI propose to take Questions Nos. 423, 432, 439, 458 and 506 together.
As the Deputies 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:
https://www.gov.ie/en/publication/fc36e6-bank-of-ireland-relationship-framework-march-2012/
Notwithstanding this, Bank of Ireland provided 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/
424. Deputy Seán Canney asked the Minister for Finance the number or percentage of personal injury cases that do not go to the Personal Injuries Assessment Board by veto of the insurance companies. [14035/21]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. As such my Department does not collect the type of information being sought by the Deputy. However, in order to help address the question, my officials examined data from the National Claims Information Database (NCID) which deals with motor insurance. This does not show the number of cases where a respondent (or their insurer) has not agreed to an assessment by the Personal Injuries Assessment Board (PIAB), or which side rejected the PIAB’s award if a claim is subsequently referred to the courts.
Data for 2019 from the NCID Private Motor Report 2 shows that the following number of motor-related injury claimants settled at each stage:
- Direct settlement before PIAB: 5,317 claimants (39.0%)
- PIAB settlement: 1,824 claimants (13.4%)
- Direct settlement after the PIAB: 1,940 claimants (14.3%)
- Litigated but settled before court award: 4,201 claimants (30.9%)
- Litigated with court award: 321 claimants (2.4%)
Separately, my officials contacted Insurance Ireland on the matter, however it does not have data on the number of claims that are consented to by insurers. Insurance Ireland indicated that the industry supports PIAB and that it accept 90% of these case settlements.
NCID data also shows that for motor insurance, the average legal costs of settling a case through the PIAB are around twenty times lower than through court. In addition, the process of finalising cases, from accident to resolution, through the PIAB takes on average 2.5 years as against 4.5 years through the legal route. This is despite the fact that the award levels between the two channels, for cases under €100,000, are almost the same. As both the courts and the PIAB will shortly be required to base assessments on the new Personal Injuries Guidelines, there should be less incentive for either side to reject PIAB settlements and proceed to more costly litigation.
Reform of the PIAB is key aspect of the Government’s reform agenda, to lower claims costs (including legal charges) which are a key driver of insurance premiums. This is included in the Action Plan for Insurance Reform. Responsibility for reforming the PIAB falls under the Department of Enterprise, Trade and Employment which will shortly carry out a public consultation on proposals to enhance the PIAB.
425. Deputy John Brady asked the Minister for Finance his plans to ensure that households living in flood risk areas can obtain household insurance for flood cover; and if he will make a statement on the matter. [14036/21]
View answerI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which is based on an assessment of the risks they are willing to accept. Consequently, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (Solvency II Directive).
Current government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. To achieve this aim there is a focus on:
- Investing almost €1 billion to flood relief measures over the lifetime of the National Development Plan 2018-2027;
- Implementation of flood relief management plans by the Office of Public Works (OPW), and;
- Maintaining channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in affected areas.
The above approach is underpinned by a Memorandum of Understanding between the OPW and industry representatives Insurance Ireland, who meet on a quarterly basis to help implement this initiative. This provides for the exchange of data in relation to completed flood defence schemes which should in turn provide a basis for the increased provision of flood insurance in these areas.
I acknowledge that while there has been an overall increase in the provision of flood insurance between 2015 and 2020, some householders are still experiencing difficulties. T his is particularly the case for households in areas with demountable flood defences.
My Department is reviewing the challenges of property insurance and flooding as part of the action points for my Department under the Climate Action Plan. It launched a public consultation on Climate Change and Insurance in 2019 and subsequently met with interested parties. The key themes that arose from the consultation related to (i) the lack of data on flood insurance coverage and (ii) the challenges of obtaining flood cover in areas with demountable defences. My Department has met with key stakeholders such as the Central Bank of Ireland, the OPW, Irish Public Bodies, and the State Claims Agency to further review the issues raised and assess a feasible way forward. This review is in progress and my Department will continue to provide updates on this work stream to the Climate Action Delivery Board.
Finally, the Deputy should be assured that Minister of State Fleming and I will continue to proactively engage on all aspects of insurance reform including flood insurance issues.
426. Deputy Aindrias Moynihan asked the Minister for Finance his plans and the consideration given to increase the current agricultural relief for the leasing of agriculture lands for solar energy production; and if he will make a statement on the matter. [14058/21]
View answerAs the Deputy will be aware, agricultural relief allows the value of agricultural assets gifted or inherited (including farmland, buildings, stock) to be reduced by 90% of its value for the calculation of a Capital Acquisition Tax (CAT) liability. This is a valuable relief from CAT and a fundamental objective of this relief is that it is availed of by genuine, and active farmers, and that it relates to agricultural land which is being actively farmed.
One of the key conditions for agricultural relief is that agricultural property must make up at least 80% of a beneficiary’s total property. Prior to the changes made in Finance Act 2017, any land leased for solar panels was not classified as agricultural land and therefore could not be counted towards satisfying this 80% threshold.
In recognition of the then Government’s commitment to facilitate the development of solar energy projects in Ireland and the potential role of farmland in achieving this, an amendment was made to allow land leased for solar panels to be classified as qualifying agricultural activity under certain conditions.
While introducing this amendment, it was important that sight was not lost of the fundamental principle which underpins agricultural relief policy, namely to support the intergenerational transfer of family farms and to encourage succession planning. Therefore, a key aspect of this relief is to ensure that it is targeted at land which is actively farmed. Consequently to facilitate the above policy objectives, the amendment included a condition that in order to be classified as qualifying agricultural activity, the total area under lease for solar should not exceed 50% of the total area of agricultural land.
This addressed any potential disincentive to leasing land for solar panels, while also preserving the integrity of this generous CAT relief. There are currently no plans to further increase the current agricultural relief for the leasing of agricultural lands for solar energy production.
427. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence from a person (details supplied); and if he will make a statement on the matter. [14082/21]
View answer471. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if he will address the matters outlined; and if he will make a statement on the matter. [14997/21]
View answer472. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if he will address the matters outlined; and if he will make a statement on the matter. [14998/21]
View answer473. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if he will address the concerns highlighted in relation to insurance costs; and if he will make a statement on the matter. [15000/21]
View answerI propose to take Questions Nos. 427 and 471 to 473, inclusive, together.
I note all the details in the correspondence supplied relates to the recent publication of the Personal Injuries Guidelines and the impact they may have on the cost of insurance. At the outset, insurance reform is a priority for this Government, and the publication of the Guidelines delivers a key element of the Action Plan for Insurance Reform.
The Guidelines significantly reduce award levels for many categories of common injuries, particularly those of soft tissue, and provide further details on how these should be assessed. Also of note is that a number of common injuries will now move to the jurisdiction of the District rather than the Circuit Court, thus reducing the associated legal fees. The Guidelines also provide guidance in relation to injuries previously not included in the Book of Quantum and will be used by both the Personal Injuries Assessment Board (PIAB) and judiciary. Therefore, in addition to the lower awards and legal fees, the Guidelines should help to bring more certainty to claimants and insurers, and as such reinforce the benefits of using PIAB to settle claims. This in turn should further reduce the costs of claims, particularly legal fees. Amendments will be advanced through the Family Leave Bill 2021 to allow implementation of these Guidelines as soon as possible.
My expectation is that insurers will commence reflecting these savings to hard-pressed consumers, businesses and other groups. I have also previously stated that they should increase their risk appetite to extend cover to new market segments or areas they may have withdrawn from in recent years. The insurance industry has previously committed to reduce premiums in line with lower award levels. I n this regard, Minister of State Fleming is meeting the CEOs of the main firms in the coming weeks to hear how they will respond to these recent developments. In addition, I would hope that the improved insurance operating environment may help to attract new entrants into the Irish market.
While I note that some may feel the reduction to award levels does not go far enough, I believe that it needs to be recognised that the revised Guidelines were carefully considered by the judiciary. As such, we will need a period of reflection to assess their implementation and they should be given some time to be applied in practice.
In summary, the Personal Injuries Guidelines, in conjunction with other strands of the insurance reform agenda, should go some way to improving both the cost and availability of insurance for businesses, consumers, and other voluntary, sporting & community groups. The Deputy can be assured that the Government is committed to achieving a more sustainable and competitive insurance market, and is continuing to progress other aspects of the Action Plan for Insurance Reform.
428. Deputy Pearse Doherty asked the Minister for Finance if he has held a meeting or received correspondence from a company (details supplied) regarding the senior executive accountability regime since January 2018. [14086/21]
View answerIn response to the Deputy's question I wish to inform him that I have not held a meeting or received correspondence from the company regarding the senior executive accountability regime since January 2018.
429. Deputy Pearse Doherty asked the Minister for Finance if he has received communication from the Central Bank regarding its investigation into a company (details supplied) prior to its enforcement action announced on 2 March 2021. [14087/21]
View answerI would remind the Deputy that the Central Bank of Ireland is our independent financial services regulatory. In undertaking its independent functions of supervising, investigating and carrying out an enforcement action with respect to the company that the Deputy has supplied details on, the Central Bank of Ireland did not notify me of the details of this enforcement action prior to its 2 March announcement.
430. Deputy Pearse Doherty asked the Minister for Finance if current or former employees of a company (details supplied) sit on boards or hold positions in State agencies under the aegis of his Department. [14088/21]
View answerThe Deputy’s office has clarified that the information sought relates specifically to the 16 employees of J&E Davy who were referred to in the Central Bank’s Enforcement Action Notice on 2nd March 2021.
There are 8 State Boards under the aegis of my Department, including the Central Bank. As the Central Bank is subject to legal obligations of confidentiality with regard to its enforcement investigation of Davy and data protection obligations, it is not in a position to provide a response to the question posed.
The remaining 7 State Boards are the Credit Union Restructuring Board, the Financial Services and Pensions Ombudsman, Home Building Finance Ireland, the Irish Fiscal Advisory Council, the National Asset Management Agency, the National Treasury Management Agency and the Strategic Banking Corporation of Ireland.
As no individuals were identified in the Central Bank’s Enforcement Action Notice, these remaining 7 State Boards are not in a position to provide the information requested.
My Department has 3 staff on secondment from the National Treasury Management Agency who were employed by J&E Davy. These staff members have confirmed that they are not, nor are any of their connected persons, part of the 16 employees of J&E Davy who were referred to in the Central Bank's Enforcement Action Notice on 2nd March 2021.
431. Deputy Catherine Connolly asked the Minister for Finance the reason the stamp duty levy on privately funded pension schemes introduced as a temporary measure in 2011 is still being levied on IASS pensioners particularly in view of the deep cuts in their pensions that these pensioners suffered following the revision of pensions legislation in 2013 and 2014; and if he will make a statement on the matter. [14092/21]
View answerI take it the Deputy is referring to the stamp duty levies that applied to the assets of funded pension arrangements introduced in 2011 to pay for the Jobs Initiative, the chargeable persons for which were the trustees of pension schemes and others responsible for the management of pension fund assets.
At the outset, it is important to note that this levy ceased in 2015.
However, under the relevant legislation (section 125B of the Stamp Duties Consolidation Act 1999), the payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are able, where needed, to adjust the current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees or insurer to decide whether, when and how the levy should be passed on and to what extent, given the particular circumstances of the pension schemes for which they are responsible. The legislation also includes safeguards aimed at ensuring that should the option of reducing scheme benefits be taken, it has to be applied in an equitable fashion across the different classes of scheme member that could include active, deferred and retired members. In no cases may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy.
