Marian Harkin
Question:28. Deputy Marian Harkin asked the Minister for Finance if there are plans to make the 9% VAT rate permanent for the hair and beauty sector; and if he will make a statement on the matter. [22414/21]
View answerValue Added Tax
Questions (28)
Written answers
In recognition of the unprecedented challenges facing the sector, I provided for a reduction in the VAT rate for the hospitality sector, including hairdressing services, in Budget 2021. The rate was reduced from 13.5% to 9% from 1 November 2020 to 31 December 2021.
Those changes introduced in the context of the pandemic are kept under review by my Department. Separately, tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.
Wage Subsidy Scheme
Questions (29)
Marian Harkin
Question:29. Deputy Marian Harkin asked the Minister for Finance if he will consider extending the employment wage subsidy scheme until at least the end of 2021; and if he will make a statement on the matter. [22415/21]
View answerWritten answers
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 the week ending 23 April 2021, payments of over €2.8 billion and PRSI credit of over €467 million have been granted to 48,600 employers in respect of almost 552,000 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 23 February, it has been decided that the scheme is now to be extended until the end of June 2021. Similarly, the COVID Restrictions Support Scheme has also been extended to end June 2021.
Motions seeking the approval of Dáil Éireann for the extension of the Covid Restrictions Support Scheme and the Employment Wage Subsidy Scheme to 30 June 2021 were debated in the House on Thursday 22 April, during which I reaffirmed the Government’s commitment that there would be no cliff-edge end to the economic supports at the end of June.
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 June 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 will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
For those businesses who may need additional support during this period, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 - including the Covid Restriction Support Scheme (CRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
Tax Yield
Questions (30)
Richard Bruton
Question:30. Deputy Richard Bruton asked the Minister for Finance the expected size of the tax base upon which the new non-recycled plastic tax being introduced to provide additional own resources to the European Commission is based; the rate at which it will be applied in 2021 and 2022; the expected payments to be made each year; the way in which it is planned to pay for same; and the way in which it is planned to apply this tax in the sectors in which the waste arises. [22422/21]
View answerWritten answers
On 21st July 2020, Heads of State and Government reached agreement on the Post-2020 Multiannual Financial Framework (MFF) and Next Generation EU (NGEU), totalling €1.82 trillion. The agreement by leaders also made a number of changes to the current system of Own Resources, including the introduction of a plastic-based contribution based on non-recycled plastic packaging.
The plastic based contribution will be calculated on the weight of non-recycled plastic packaging waste with a call rate of €0.80 per kilogram. The European Commission estimates that Ireland’s plastic based contribution will be approximately €140 million in both 2021 and 2022. but this has yet to be confirmed.
At this time, it is not planned to introduce a tax to be applied to any sector based on non-recycled plastic. The plastic contribution will be paid from the central fund of the Exchequer, in the same way as other Own Resources.
Value Added Tax
Questions (31)
Brendan Griffin
Question:31. Deputy Brendan Griffin asked the Minister for Finance if community provided defibrillators and ancillary equipment will be exempted from VAT; if a mechanism will be put in place to refund the VAT to groups that fundraise to provide this life-saving equipment; and if he will make a statement on the matter. [22442/21]
View answerWritten answers
Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate, which in Ireland is 23%. Parts or accessories are also liable to VAT at the standard rate. There is no provision under existing VAT law that would make it possible to apply a reduced rate or zero rate to the supply of such products. Under the EU VAT Directive, Member States may retain the zero rate on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As such a zero rate cannot be applied to defibrillators.
The EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow Member States more flexibility in how they apply VAT rates. In negotiations leading up to this proposal Ireland specifically recommended to the Commission to include defibrillators and other emergency-medical and rescue equipment. Discussions on the proposal are ongoing.
In advance of any change that might be made at EU level to the VAT rating of defibrillators and other products that pose difficulty for community groups, I am happy to draw your attention to the VAT compensation refund scheme, which compensates charities for the VAT they occur on their inputs, in recognition of the work undertaken by the charities sector. The scheme took effect from 1 January 2018 but is paid one year in arrears. It is now open for charities to make a claim in 2021 for VAT costs arising in 2020. Charities will be entitled to a proportion of VAT based on the level of non-public funding they receive. A capped fund of €5 million will be available to the scheme.
The Government is very committed to supporting community groups and we will continue to press for a reduction in the VAT rate on defibrillators at EU level. In the meantime, Irish VAT law must comply with the current VAT Directive and therefore defibrillators remain liable to VAT at the standard rate, currently 23%.
Wage Subsidy Scheme
Questions (32)
Ruairí Ó Murchú
Question:32. Deputy Ruairí Ó Murchú asked the Minister for Finance if he is satisfied that a company (details supplied) operated the temporary wage subsidy scheme correctly; if the national employer unit at the Revenue Commissioners has been contacted by employees of the company regarding its operation of the scheme; if so, the number of occasions; the investigations that have been carried out on same; and if he will make a statement on the matter. [22460/21]
View answerWritten answers
Revenue is statutorily bound to confidentiality in respect of taxpayer information. Section 851A of the Taxes Consolidation Act 1997 formalises taxpayer confidentiality and reassures taxpayers that their personal and commercial information disclosed to Revenue for tax purposes is protected against unauthorised disclosure by Revenue to third parties. Therefore, Revenue is precluded by reason of its taxpayer confidentiality obligations, from providing any details in relation to the company in question.
Accordingly, I propose to respond in general terms in relation to the operation of the Temporary Wage Subsidy Scheme (TWSS) and the compliance checks conducted by Revenue on all employers who registered for and received funding under TWSS.
The TWSS operated by Revenue from 26 March 2020 to 31 August 2020, enabled employees, whose employers were affected by the pandemic, to receive supports directly from their employer. TWSS was available to employers who kept their employees on the payroll throughout the COVID-19 pandemic so that employers could retain links with employees for when business picked up after the crisis.
If an individual employee has a concern over how his/her employer has operated TWSS, he/she can see the amount of TWSS claimed by the employer on their behalf and included in their wages/salary by examining their pay slip or by logging on to their Revenue myAccount. Any specific queries in relation to the amount of subsidy received would then be best raised by the individual with that individual’s employer.
I confirm that compliance checks were conducted by Revenue to ensure TWSS was operated correctly by employers who availed of TWSS. I understand that where an employer received amounts under TWSS and the employer has not paid the subsidy amount to the specified employee or where the employer was not entitled to receive the subsidy as it did not meet the qualifying criteria, or the employee was not an eligible employee, the employer is required to refund these amounts to Revenue.
Insurance Costs
Questions (33)
Claire Kerrane
Question:33. Deputy Claire Kerrane asked the Minister for Finance the way in which he plans to tackle rising insurance costs for small businesses which are having difficulty sourcing insurance and when sourced are being quoted premiums at double the previous cost and higher; and if he will make a statement on the matter. [22462/21]
View answerWritten answers
The Government has prioritised the reform of the insurance sector in order to improve the cost and availability of this key financial service, including for businesses. In this regard the Action Plan for Insurance Reform sets out 66 actions across several policy areas, including my Department, with 95% due to be completed by the end of 2021. At its most recent quarterly meeting in March, the Cabinet Sub-Group on Insurance Reform, which oversees the implementation of the Action Plan, reflected upon the considerable progress made in the first three months of this year. Achievements to date include:
- The creation of an Office to Promote Competition in the Insurance Market within the Department of Finance, which has been engaging extensively with stakeholders since its inception;
- The publication of new Personal Injuries Guidelines by the Judicial Council, which came into force on 24 April, a number of months ahead of schedule;
- The launch of a public consultation on proposals to reform the Personal Injuries Assessment Board.
It is worth noting that the new Personal Injuries Guidelines significantly reduce award levels for many categories of common injury, particularly those of soft tissue, and provide further details on how these should be assessed. These 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 new Guidelines should provide more certainty to claimants and insurers, and as such reinforce the benefits of using the PIAB for claims settlement. This in turn should further reduce the costs of claims, particularly legal fees. A reduction of the cost of claims should assist in lowering the cost of premiums, and Minister of State Fleming met with insurers earlier this month to press them on this issue. This was a fruitful series of engagements, with many insurers indicating that they would begin lowering premiums this year in response to the new Guidelines. I welcome this commitment and believe that consumers, small businesses and other groups should start to see the benefit of this as soon as possible.
In conclusion, Minister of State Fleming and I look forward to continue working with colleagues and stakeholders to implement further aspects of the Action Plan, with a view to improve both the cost and availability of insurance for all consumers, businesses and community groups.
Flood Risk Management
Questions (34)
Michael Healy-Rae
Question:34. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if he will address a matter regarding flooding at a location (details supplied); and if he will make a statement on the matter. [22431/21]
View answerWritten answers
The location referred to by the Deputy is within the Feale Catchment Drainage Scheme which is under the auspices of the OPW.
The River Feale at this location is designated as a Special Area of Conservation. Before any works could commence to the gravel island, an Appropriate Assessment and full Natura Impact Statement was necessitated and this was undertaken in 2020. However, invasive species including Japanese knotweed and Himalayan Balsam have been identified within the gravel island.
A programme of Invasive Species Management has been commenced for the area and treatment will be continued over the next number of years to mitigate risk associated with the spread of the invasive species identified. The OPW will carry out some general vegetation management works in the area within the constraints imposed by these invasive species.
A potentially viable flood relief scheme for Listowel has been identified in the Tralee Bay – Feale Flood Risk Management Plan. While Listowel has not been included in the first tranche of schemes to be delivered under the Flood Risk Management Plans, the Government is committed to the implementation of all of the schemes included in the Plans within the lifetime of the National Development Plan 2018 – 2027.
Freedom of Information
Questions (35)
Catherine Murphy
Question:35. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform his plans to review the Freedom of Information Act 2014; and if he has embarked on preliminary in drafting a new freedom of information Act and or amendments to the existing legislation. [22465/21]
View answerWritten answers
The 2014 Act consolidated and modernised the FOI system in Ireland, brought a large number of additional bodies in to FOI, and has continued to bed in successfully in the intervening years. The Central Policy Unit for Freedom of Information at my Department continues to monitor the operation of the FOI system, including by regular engagement with the network of FOI Officers throughout the civil and public service and by tracking appeals, court proceedings and other matters as they arise.
To date, no issues have been noted as requiring an urgent amendment to the 2014 Act. The most recent statistics published by the Information Commissioner show that FOI bodies in Ireland processed 41,176 FOI requests in 2019, the highest number since the introduction of FOI legislation. Demand has almost doubled since the introduction of the 2014 Act. 87% of requests were granted in full or in part and in only 3% of cases did the requester seek an internal review, while in only 1% of cases was an independent review sought by the Office of the Information Commissioner. Moreover, in 2019 in only a quarter of cases reviewed by him did the Commissioner issue a decision annulling or varying the decision of the public body concerned. Therefore, at present, all objective indications are that the system is robust and functioning well.
However, my Department will continue to monitor the position and will take whatever steps are necessary to ensure that the FOI system continues to operate effectively and to deliver on its aims of openness, transparency and accountability of public bodies.
Freedom of Information
Questions (36)
Catherine Murphy
Question:36. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he and or his officials have undertaken and or completed work on a project and or research regarding the cost of freedom of information for public bodies; and if he will provide this Deputy with the report or research undertaken regarding this work. [22466/21]
View answerWritten answers
Estimating the cost of FOI for public bodies is something that has proven difficult in all jurisdictions that have attempted it.
A project seeking detailed information on FOI requests processed in the state was commenced in 2016, in terms of the time taken by officials at various grades, however this project was discontinued in early 2017 as it was found to be unduly administratively burdensome.
Following this, consultations were undertaken with stakeholder organisations as to whether a more streamlined and efficient methodology could be used, and a potential approach was devised. The project was at a fairly advanced stage of development when the Covid-19 crisis intervened. At present, this initiative has been paused in order to avoid creating a further administrative burden for bodies that are already under significant pressure in ensuring the continuity of FOI services in the face of unprecedented disruption and high levels of demand.
However, it is proposed to restart this project as soon as the circumstances permit. If the Deputy wishes to contact the Central Policy Unit for Freedom of Information at my Department, further specific details can be provided.
Garda Stations
Questions (37, 38, 39)
Catherine Murphy
Question:37. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he and or the OPW have received an amended design detail in respect of the construction of the Garda building on Military Road, Kilmainham, Dublin 8; and if a security assessment has or will be undertaken regarding the potential risk associated with the site location. [22491/21]
View answerCatherine Murphy
Question:38. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he will provide a schedule of all sites that were considered in respect of a Garda building that is currently under construction on Military Road, Kilmainham, Dublin 8. [22492/21]
View answerCatherine Murphy
Question:39. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if the Garda building project on Military Road, Kilmainham, Dublin 8 has received additional funding over and above the initial project budget. [22493/21]
View answerWritten answers
I propose to take Questions Nos. 37, 38 and 39 together.
A tri-partite assessment panel comprising senior representatives of the Dept. Justice and Equality, An Garda Síochána and the Office of Public Works was established in order to identify an alternative site for An Garda Síochána’s operations at Harcourt Square. The panel assessed six short listed sites:
Option 1 - Gateway Site, Naas Road, Dublin 24
Option 2 - Garda HQ, Phoenix Park, Dublin 8
Option 3 - Phoenix Park Racecourse Site, Dublin 8
Option 4 - Thornton Hall Site, Co. Dublin
Option 5 - Military Road Site
Option 6 - Pino Harris Site, Naas Road, Dublin 12
In November 2015, the evaluation panel concluded that, based on the evaluation assessment and the brief of requirements from An Garda Síochána, the site at Military Road was deemed the preferred location.
The Military Rd site, along with all of the other sites was subject to a comprehensive security appraisal as part of the assessment criteria. A detailed security specification has since being received from An Garda Síochána and it is incorporated into the design and construction of the Military Rd facility.
The Military Rd development is being constructed within its approved project budget and in accordance with the planning approval received.
Open Government Partnership
Questions (40)
Catherine Murphy
Question:40. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the position in respect of implementing 18 commitments from the Open Government Partnership National Action Plan 2016-2018; his plans to establish and or develop open Government partnerships; and if he will establish a public consultation in respect of open Government partnerships. [22513/21]
View answerWritten answers
Ireland became a full member of the Open Government Partnership (OGP) in July 2014 when the Government adopted Ireland’s first National Action Plan 2014-2016 (developed in tandem with civil society). To date 79 countries have signed the OGP declaration and participate in its processes to advance the principles of transparency, integrity, accountability, and stakeholder participation.
The OGP's processes are centred on the agreement of biennial National Action Plans with Civil Society. The OGP’s ‘Independent Reporting Mechanism (IRM)’ hires independent experts (from academia within the relevant country) to undertake research and author progress reports in accordance with IRM assessment methodology. These annual progress reports monitor the implementation of each country’s OGP action plan and the quality of its engagement with Civil Society.
The IRM End-of-Term Report on the implementation of Ireland's 2016-2018 National Action Plan assessed that of the Plan’s 18 Commitments, 13 were completed or substantially completed, 2 of which were “Starred” (i.e. meaning that they were 'measurable, clearly relevant to the OGP's values, of transformative potential impact and substantially or completely implemented')> These were:
- Commitment 13: Develop a Code of Practice for the Governance of Charities
- Commitment 14: Strengthen Anti-Corruption Measures, i.e.: the Public Sector Standards Bill, the Criminal Justice (Corruption Offences) Bill and Judicial Council Legislation.
The current Programme for Government includes a commitment to “continue and re-invigorate participation by the public sector in the Open Government Partnership”. I expect that a Memorandum seeking formal approval to commence a process aimed at developing a third National Plan will be finalised and submitted to Government shortly. In addition, some preparatory work aimed at developing and agreeing a process through which our next National Plan will be developed with civil society is at an advanced stage.
The deadline for submitting a National Action Plan within the current cycle (2020-2022) is 31st December 2021.
Online Safety
Questions (41)
Seán Canney
Question:41. Deputy Seán Canney asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media when she will reconvene the National Advisory Council on Online Safety; when the next meeting of the Council is scheduled; and if she will make a statement on the matter. [22531/21]
View answerWritten answers
The National Advisory Council for Online Safety (NACOS) was established as part of the Action Plan for Online Safety 2018-2019. It replaced the Internet Safety Advisory Committee (ISAC) which was a forum for stakeholders to share experience on the subject of internet safety and which had been based in the Department of Justice.
The role of the National Advisory Council is to:
- Provide advice to the Government on online safety issues
- Identify emerging issues where Government intervention might be needed
- Help in the creation of clear and easy to understand online safety guidance materials for all internet users
- Examine national and international research and communicate key findings to Government, stakeholders and the wider public
NACOS has been a useful forum for keeping relevant stakeholders informed about relevant online safety matters and for ensuring that different types of stakeholders - NGOs, industry and Government agencies – hear each other’s perspectives on proposals such as the Online Safety and Media Regulation Bill. NACOS has also commissioned research on Online Safety matters, which has been delayed due to COVID 19, but which will be important for providing a trustworthy evidence base in relation to online safety matters and for informing the future work of the Council.
Following the change in Government and subsequent transfer of functions between Departments, I will now chair the group. Membership of the Council has been renewed and new members appointed where necessary. It is expected that the group will reconvene shortly.
Culture Policy
Questions (42)
Aengus Ó Snodaigh
Question:42. Deputy Aengus Ó Snodaigh asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she has any plans for funding incentives or policies for cultural institutions to tackle inequality by ensuring increased access and participation for persons on lower incomes and from working class backgrounds. [22447/21]
View answerWritten answers
The annual allocations to the national cultural institutions include provision for all aspects of their activities. The development of policies including education programmes and outreach initiatives is addressed as an operational matter by the management and Board in each individual institution. The cultural institutions make a constant effort to increase general visitor numbers, encourage repeated visits and to attract additional visitors through special exhibitions and programmes. Special events and outreach programmes are developed to appeal to a younger audience and to stimulate an interest in the collections. Although I have no direct role in relation to the promotional and access policies, I welcome the commitment of the institutions to promote public interest and engagement with the national collections.
It should be noted that entry to the National Cultural Institutions is free of charge. Furthermore, an additional €17.3m was provided in 2021 toward operations and development costs of the National Cultural Institutions.