Wednesday, 28 Apr 2021

Written Answers Nos. 260-278

Insurance Coverage

Questions (260)

Brian Stanley

Question:

260. Deputy Brian Stanley asked the Minister for Finance the options available for a person in circumstances (details supplied). [21188/21]

Written answers

Minister for Finance

I note that the details supplied relate to difficulties in acquiring insurance for a hackney. While I have regard for the circumstances in question, as the Deputy will appreciate, I cannot comment on individual cases. Furthermore, neither I, nor the Central Bank of Ireland, can compel any insurer operating in the Irish market to provide cover to specific individuals or groups. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.

On a general level, my understanding is that firms will use a combination of rating factors in making their individual decisions on whether to offer motor cover and what terms to apply. For example, factors may include inter alia the driver’s age; relevant driving experience; the age and type of vehicle; how and where the vehicle is used; the claims record; the number of drivers; and the storage location. Insurers also price in accordance with their specific claims experience and do not use the same combination of rating factors. In the case of hackney or taxi drivers, I understand that insurers take into account the nature of the business, which involves extensive driving for hire or reward, and that in their view, this has a much higher risk of injury claims from passengers and other road-users as a result.

However, as the Deputy may be aware, under the terms of the Declined Cases Agreement (DCA), which is adhered to by all motor insurers in Ireland, the insurance market will not refuse to provide cover to an individual seeking motor insurance if they have approached at least three insurers and have not been able to obtain cover from them. I would note that the number of taxi and hackney drivers utilising the DCA fell from 375 in 2016 to 205 in 2019, and to just 24 in 2020. While the numbers for 2020 are likely to have decreased in part due to the COVID-19 pandemic, the overall downward trend suggests increased stability in the market and greater availability of insurance for drivers.

Moreover, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government, as reflected in the Action Plan for Insurance Reform. In this regard, work is ongoing to deliver further key reforms over the coming months, which I believe will go some way to improving both the cost and availability of insurance for consumers, businesses and community groups.

Finally, it may interest the individual concerned to know that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover, including motor insurance. This can be accessed at: [e-mail].

Disabled Drivers and Passengers Scheme

Questions (261, 262, 263, 264)

Michael Fitzmaurice

Question:

261. Deputy Michael Fitzmaurice asked the Minister for Finance if persons who are almost or wholly without the use of a single arm and hand are eligible to apply for the disabled drivers and passengers scheme under subsections 92(1)(i) and (ii) of the Finance Act 1989; and if he will make a statement on the matter. [21227/21]

Michael Fitzmaurice

Question:

262. Deputy Michael Fitzmaurice asked the Minister for Finance the number of successful applicants to the disabled drivers and passengers scheme who were almost or wholly without the use of a single arm and hand in each of the past five years; the number of those who were almost or wholly without the use of a single foot and leg; and if he will make a statement on the matter. [21228/21]

Michael Fitzmaurice

Question:

263. Deputy Michael Fitzmaurice asked the Minister for Finance the amendments that will be made to the Finance Act 1989 in relation to the disabled drivers and passengers scheme given the Supreme Court ruling in a case (details supplied); the way the potential for discrimination in the qualifying conditions of the scheme will be addressed in the future; and if he will make a statement on the matter. [21229/21]

Michael Fitzmaurice

Question:

264. Deputy Michael Fitzmaurice asked the Minister for Finance the supports available for those with a single amputated arm and hand who do not qualify under the disabled drivers and passengers scheme despite having to purchase automatic cars to cater to their disability; and if he will make a statement on the matter. [21230/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 261 to 264, inclusive, together.

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations. In order to qualify for relief an organisation must be entered in the register of charitable organisations under Part 3 of the Charities Act 2009, be engaged in the transport of disabled persons and whose purpose is to provide services to persons with disabilities.

In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.

The terms of the Scheme set out the following medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The HSE and the Revenue Commissioners do not collate data on the nature of the disabilities of successful applicants to the Scheme so are not in a position to provide the breakdown requested by the Deputy.

A Supreme Court decision of 18th June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal's refusal to grant them a PMC. The judgement found that the medical criteria set out in the Regulations did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.

On foot of the legal advice received, it became clear that it was appropriate to revisit the six medical criteria set out in Regulation 3 of Statutory Instrument 353 of 1994 for these assessments. In such circumstances, PMC assessments were discontinued until a revised basis for such assessments could be established. The medical officers who are responsible for conducting PMC assessments need to have assurance that the decisions they make are based on clear criteria set out in legislation. While Regulation 3 of Statutory Instrument No. 353 of 1994 was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989.

In order to allow for the PMC assessments and appeals to recommence I brought forward an amendment to the Finance Bill to provide for the existing medical criteria in primary legislation which, following the approval of the Finance Act 2020, allowed assessments to recommence.

Following approval of the Finance Act 2020, a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities and the criteria for qualification for the Scheme, will be conducted this year. On foot of that review new proposals will be brought forward for consideration.

Further information on supports available to persons with disabilities can be found at

https://www.citizensinformation.ie/en/reference/guides/guide_to_entitlements_for_people_with_disabilities.html

Tax Reliefs

Questions (265)

Peter Burke

Question:

265. Deputy Peter Burke asked the Minister for Finance if his Department will review the possibility of retrospective further tax relief on third level fees that can be accessed later than the calendar year in which the fees were paid, for example, as part of the remaining balance of a student loan; and if he will make a statement on the matter. [21298/21]

Written answers

Minister for Finance

Section 473A of the Taxes Consolidation Act 1997 provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual. Claimants who pay tuition fees in instalments can claim tax relief either in the tax year when the academic year commenced or the tax year when the instalment is paid.

“Qualifying fees” mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. No other fees e.g. administration fees, examination fees, capitation fees, qualify for tax relief. Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees. A claim for relief may be made in respect of a number of students. It should be noted that any claim for relief must be submitted within the 4-year time limit which applies to claiming tax reliefs.

The maximum amount of fees that can qualify for the relief is €7,000 per course per academic year. In accordance with the governing legislation, an amount must be disregarded, whether the claim is in respect of one or more students. The disregarded amount per claim is currently €3,000 in the case of a full-time course(s) and €1,500 for a part time course(s). One disregard amount applies to each claim.

Full details of the relief, including the conditions that apply, are set out on the Revenue website at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx. Revenue advises that the simplest way for taxpayers to claim third level tuition fees and any other tax credit entitlements is by logging on to myAccount on the Revenue website at https://www.ros.ie/myaccount-eb/sign_in.html?execution=e1s1.

In terms of the question of retrospective tax relief, it should be noted that section 473A requires that fees are paid as a trigger for the relief and, as is generally the case with tax reliefs, the claimant must have suffered tax in the year of claim in order to avail of the relief.

More generally, as the Deputy will appreciate, I must be mindful of the public finances and the many demands on the Exchequer; tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base. Under my Department's Tax Expenditure Guidelines, changes to measures should only be considered in circumstances where there is a demonstrable market failure and where a tax based incentive is more efficient than a direct expenditure intervention.

Finally, I would be reluctant to introduce further complexities to this particular tax support. However, if the Deputy has further information regarding the particular circumstances of an individual case, Revenue advises me that it will be happy to consider what relief may be due in that particular instance.

Banking Sector Staff

Questions (266, 269, 275)

Seán Canney

Question:

266. Deputy Seán Canney asked the Minister for Finance if his attention has been drawn to the difficulty that the recent announcement by a bank (details supplied) that it is to exit the Irish market is causing for the staff of the bank; if he has ascertained if another bank is willing to absorb the small number of branch staff into its operation; the future prospects for the staff of the bank; and if he will make a statement on the matter. [21336/21]

Claire Kerrane

Question:

269. Deputy Claire Kerrane asked the Minister for Finance if employees and jobs in a bank (details supplied) will be safeguarded should the bank be incorporated into another bank in consideration of the State’s position as a majority shareholder in that bank; and if he will make a statement on the matter. [21389/21]

Catherine Connolly

Question:

275. Deputy Catherine Connolly asked the Minister for Finance the actions his Department is taking in relation to staff at a bank (details supplied) being absorbed into another bank given that the State is a significant shareholder in the bank; and if he will make a statement on the matter. [21582/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 266, 269 and 275 together.

It is important to highlight that, as Minister for Finance, I have no role to play in negotiations between KBC Group and Bank of Ireland which could see the latter party acquiring substantially all of KBC’s Irish business. Nor do I have a role in approving any deal that may be agreed between the two parties.

Although the State has a 14% minority shareholding in Bank of Ireland, commercial transactions of this nature are the sole responsibility of the Board and management of the bank. The independence of the bank in this regard is protected by the Relationship Framework in place which is a legally binding document that cannot be changed unilaterally. This framework, was insisted upon by the European Commission to protect competition in the Irish market.

Notwithstanding this, whilst the management of staff affairs, including staffing levels, is entirely a matter for KBC and Bank of Ireland were they to acquire the business, I would expect both banks to be very sensitive in relation to the needs and rights of staff. This includes full compliance with TUPE regulations and honouring agreements with staff representative bodies. In addition, I would expect relevant parties to engage with staff representative bodies as appropriate.

Tax Data

Questions (267)

Patrick Costello

Question:

267. Deputy Patrick Costello asked the Minister for Finance the estimated revenue that would be raised if the carbon tax was doubled and the 2030 levy target was doubled to €200 per tonne. [21370/21]

Written answers

Minister for Finance

The Carbon Tax rate will increase each year for the next 10 years based on a programme of changes in the amount charged for carbon emissions, starting from the current level of €33.50 per tonne of CO2 and concluding at €100 per tonne of CO2 in 2030.

Revenue’s Ready Reckoner shows a wide range of detailed information in relation to potential tax changes, including on page 23 estimates for the yield from changes in duties on Carbon Tax. The Ready Reckoner is available on the website of the Office of the Revenue Commissioners at the following address: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf and can also be easily found via the Revenue website search facility or via an internet search.

The Ready Reckoner shows the estimated yield from various increases in the rate per tonne (from the current level of €33.50 per tonne of CO2). Where the cost of specific increases proposed are not displayed in the Ready Reckoner, they can be estimated on a straight-line or pro-rata basis from the costs shown.

I am advised by Revenue that the estimates in the Ready Reckoner are prepared on the assumption of no behavioural change in response to a change in the tax. While this is a reasonable assumption in most cases, for relatively large changes of the nature proposed by the Deputy it becomes more likely that some behavioural change may result. The Revenue estimates are based on the regular volumes for each commodity expected in a normal (non-covid) year and are inclusive of VAT.

Pensions Reform

Questions (268)

Gerald Nash

Question:

268. Deputy Ged Nash asked the Minister for Finance his views on a recent European Parliament and European Council regulation regarding the pan-European personal pension product which was published on 25 July 2019 with entry into force on 14 August 2019 (detail supplied); the actions his Department has taken and subsequently plans to take to address the stated aims of the regulation to ensure a high level of transparency and for costs and fees to be fully transparent; and if he will make a statement on the matter. [21375/21]

Written answers

Minister for Finance

The European Commission proposal for a Pan-European Personal Pension Product (PEPP) was adopted by Council in 2019. Separately, the Level 2 Regulatory Technical Standards were approved by Council and published on 22 March 2021. Accordingly, the Regulation will enter into application by 22 March 2022 - a year following the technical standards publication.

The Pensions Policy Unit within my Department had domestic responsibility for negotiating this file and has engaged with key domestic stakeholders such as the Department of Social Protection, the Pensions Authority, the Central Bank of Ireland and the Office of the Revenue Commissioners as part of the negotiation process.

I am supportive of the PEPP project in principle, recognising the proposal's objective to lay the foundations for a safer, more cost-efficient and transparent market in affordable and voluntary personal pension savings that can be managed on a pan-European scale. It is envisaged that the PEPP framework will constitute a complementary voluntary scheme alongside national regimes. Work on this transposition is ongoing with a view to completion within the time-frame.

The Interdepartmental Pensions Reform and Taxation Group, chaired by my Department, published its Report on supplementary pensions in November 2020. As far as is possible, and consistent with the Group's overarching objective of pension rationalisation and simplification the Report proposes to align the PEPP with existing PRSA legislation.

In an Irish context, PEPP is likely to be of most interest to mobile workers. Apart from portability, a PRSA potentially has more flexible features than a PEPP, means that the PEPP is unlikely to be more attractive to domestic consumers. However, it may introduce greater competition if European providers offer the PEPP to Irish savers. The first PEPP products are expected to come to the market in 2022.

The PEPP Regulation contains a number of specific elements including requirements for mandatory advice, for providers to account for Environmental, Social, and Governance factors, and has a cost cap in specific circumstances. As the complexity of some pension products requires a high level of intermediation between the consumer and supplementary pension providers, it is expected that information will be easy to read and will allow for comparability between PEPPs by displaying costs and fees in monetary terms.

Question No. 269 answered with Question No. 266.

Pension Provisions

Questions (270)

Dara Calleary

Question:

270. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to recent reports into the high level of company charges applied to individual pension plans; and if he will make a statement on the matter. [21391/21]

Written answers

Minister for Finance

I am aware of a number of reports into charges applied to pension plans. However, while I understand a document on charges has been recently reported on, to date such a document has not been submitted to my Department and as such I cannot comment on its content.

Having said that, as Minister for Finance my role in the pension policy space primarily relates to the provision of tax relief to encourage individuals to save to ensure they will have sufficient income for use in their retirement. However, it is worth noting that the Interdepartmental Pensions Reform and Taxation Group (IDPRTG), chaired by my Department, published its Report on supplementary pensions in November 2020. This provides a number of recommendations and conclusions to help advance the aim of simplifying and harmonising the supplementary pension landscape in Ireland.

As part of this aim it seeks to improve regulatory oversight and reduce costs which in turn should lead to better retirement outcomes for pension savers. It highlights the complexity of pension products which currently require a high level of intermediation between the consumer and supplementary pension providers, driving up costs for some consumers through payments of fees and commissions for intermediation and advice services.

The Report states that reducing the number of schemes and rationalising pension products will help diminish such complexity, enhance market competitiveness, drive product efficiencies and in turn should lead to better retirement outcomes for pension savers.

The IDPRTG Report represents a building block for a significant longer term reform in the area of supplementary pensions, which in turn will have wider longer term consumer, economic and fiscal benefits. The Group is actively working on implementing a number of those recommendations with a view to addressing some of those highlighted issues.

Tax Data

Questions (271)

Matt Carthy

Question:

271. Deputy Matt Carthy asked the Minister for Finance the amount and value of carbon tax raised in relation to green diesel in each of the years 2015 to 2020; and if he will make a statement on the matter. [21393/21]

Written answers

Minister for Finance

Excise Receipts by Commodity are published on the website of the Office of the Revenue Commissioners. The Carbon Tax paid in respect of Marked Gas Oil (green diesel) in each of the years 2015 to 2019 is available under this publication which can be accessed at the address below:

https://www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx

The provisional Carbon Tax receipt amount for 2020 is €65.1 million. This amount may be subject to adjustment.

Tax Code

Questions (272)

Catherine Murphy

Question:

272. Deputy Catherine Murphy asked the Minister for Finance the estimated cost to the Exchequer if the entry point to the higher rate of income tax was increased to €42,500 for a single person and €85,000 for couples who are both working and equivalent change for taxpayer units with one partner in work. [21415/21]

Written answers

Minister for Finance

I am advised by Revenue that on their website they provide a Ready Reckoner which shows a wide range of detailed information in relation to potential tax changes. The Ready Reckoner shows projected Exchequer costs and yields of potential tax changes, including on page 6, estimated increases to the Standard Rate Cut Off points for income tax in tabular form. The Revenue Ready Reckoner is available at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.

Where the cost of specific increases proposed are not displayed in the Ready Reckoner, they can be estimated on a straight-line or pro-rata basis from the costs shown.

For example, the estimated cost of increasing the Standard Rate Cut Off point by €1,000 is as follows:

Category	First Year Estimated Cost	Full Year Estimated Cost
Single / Widowed or Surviving Civil Partner	€75 million	€85 million
Married / Civil Partner (both with income)	€71 million	€81 million
Married / Civil Partner (with one income)	€26 million	€30 million
Total Cost	€171 million	€197 million

Therefore, the estimated cost of the increase specified in the Deputy's question, if undertaken in a single year, would be approximately €1.2 billion in respect of the first year of the increase and about €1.4 billion in a full year.

Insurance Coverage

Questions (273, 277, 282)

Mick Barry

Question:

273. Deputy Mick Barry asked the Minister for Finance if he will introduce regulations or take steps to prevent insurers denying cover or loading premia for those who are type 1 diabetic and who are managing their condition; and if he will make a statement on the matter. [21443/21]

Thomas Gould

Question:

277. Deputy Thomas Gould asked the Minister for Finance if insurance companies can refuse cover or increase premiums on the basis of controlled type 1 diabetes; and if so, the steps he is taking to address the issue. [21622/21]

Pádraig O'Sullivan

Question:

282. Deputy Pádraig O'Sullivan asked the Minister for Finance if his attention has been drawn to the difficulties persons with type 1 diabetes face in trying to get life insurance or mortgage protection (details supplied); and if he will make a statement on the matter. [21744/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 273, 277 and 282 together.

At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct companies as to what terms and conditions apply in relation to cover.

It is my understanding that generally, insurers use a combination of rating factors in making their individual decisions on whether to offer life 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 policies, these tend to be over the lifetime of the repayment schedule. In addition, my understanding is that different insurers do not use the same combination of rating factors. Accordingly, prices and availability of cover varies across the market, and will be priced in accordance with firms’ prior claims experience.

While the above applies in general, I am aware of reports that some customers, including those with Type-1 diabetes, have experiencing increased difficulties in obtaining life insurance or mortgage protection cover in the context of the COVID-19 pandemic. This is an issue that Minister of State Fleming and my officials have raised in meetings with Insurance Ireland, and more recently with the CEOs of the main insurers in the Irish market. Insurance Ireland 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, such as Type 1 diabetes, will be taken into account by underwriters, as was the case pre-COVID-19. It will continue to keep in close contact with its members on this issue, which I welcome.

The Deputy will be aware that both Minister of State Fleming and I have consistently and publicly 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.

Finally, where somebody feels they have been treated unfairly by a particular insurance provider, 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 [e-mail] or by telephone at 01-567-7000.

Help-To-Buy Scheme

Questions (274)

Eoin Ó Broin

Question:

274. Deputy Eoin Ó Broin asked the Minister for Finance the number of help-to-buy grant applications received; the number of applications that reached claim stage; and the number of claims approved under the help-to-buy scheme for quarter 1 of 2021. [21578/21]

Written answers

Minister for Finance

I am advised by Revenue that detailed monthly statistics are published on the Help to Buy (HTB) scheme, available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/htb/htb-monthly.aspx.

These statistics include the numbers of applications and claims. They are updated monthly. An extract of the relevant statistics is presented in the table below:

	Jan 21	Feb 21	Mar 21	Total
Applications	7,591	4,642	5,018	17,251
Claims	373	629	773	1,775

Furthermore, the Revenue data show that there were approximately 1,440 approved claims in Q1 2021.

Question No. 275 answered with Question No. 266.

Value Added Tax

Questions (276)

Jennifer Murnane O'Connor

Question:

276. Deputy Jennifer Murnane O'Connor asked the Minister for Finance his plans to reduce the current 23% VAT rate that applies to menstrual cups to 0% to bring it into line with the rate that applies for other sanitary items. [21621/21]

Written answers

Minister for Finance

From 1st January 2021, following the last Finance Bill, menstrual cups have a reduced VAT rate of 13.5% applied to them.

As the Deputy may be aware, Ireland is the only country in the EU which applies a zero rate of VAT to period products. This was the rate that applied in 1991 and we have been able to maintain that rate under the provisions of the EU VAT Directive that allow for a zero rate to be maintained if it applied on and from 1st January 1991. The VAT Directive provides for the application of a reduced rate of VAT to such products in paragraph 3 of Annex III.

I can confirm that Ireland and a number of other Member States are looking for greater flexibility in the VAT directive to allow a zero rate to be applied to these newer period products. These discussions are connected to a wider debate on VAT Rates and any agreement on VAT rates must be agreed by every Member State.

Question No. 277 answered with Question No. 273.

Primary Medical Certificates

Questions (278)

Marian Harkin

Question:

278. Deputy Marian Harkin asked the Minister for Finance his plans to change the current qualifying criteria for a primary medical certificate; and if he will make a statement on the matter. [21661/21]

Written answers

Minister for Finance

Following approval of the Finance Act 2020, which provides for the medical criteria for the Disabled Drivers Scheme in primary legislation, a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities and the criteria for qualification for the Scheme, will be conducted this year. On foot of that review new proposals will be brought forward for consideration.