Wednesday, 5 May 2021

Written Answers Nos. 212-231

Banking Sector

Questions (212)

Gerald Nash

Question:

212. Deputy Ged Nash asked the Minister for Finance if he will encourage a bank (details supplied) to fully honour the transfer of undertakings under the Transfer of Undertakings (Protection of Employment) Regulations as they relate to the pay and terms and conditions of transferring staff in the event of any transfer of the business that may occur of staff from another bank to the bank in the context of ongoing negotiations between both entities; and if he will make a statement on the matter. [22847/21]

Written answers

Minister for Finance

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 and to fully comply with all statutory requirements. In addition, I would expect engagement with staff representative bodies as appropriate.

My Department has been advised by the Department of Enterprise, Trade and Employment that the current Irish law in the area of the “transfer of undertakings” is the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 – S.I. No. 131 of 2003 (TUPE Regulations). The Regulations implement the EU Transfer of Undertakings Directive (EU Directive 2001/23/EC) which is aimed at safeguarding the rights of employees in the event of a transfer of an undertaking, business or part of a business to another employer as a result of a legal transfer (including the assignment or forfeiture of a lease) or merger. Also, section 21 of the Employees (Provision of Information and Consultation) Act 2006 transposed a further provision of the Transfer of Undertakings Directive in relation to the information to be provided by the original employer to the new employer.

The main provisions of the TUPE Regulations provide that all the rights and obligations of an employer under a contract of employment (including terms inserted by collective agreements), other than pension rights, are transferred to the new employer on the transfer of the business or part thereof. The new employer must also continue to observe the terms and conditions of any collective agreements until they expire or are replaced. An employee may not be dismissed by reason of the transfer alone. However, dismissals may take place for economic, technical or organisational reasons involving changes in the workforce. Both the outgoing and incoming employers are obliged to inform their respective employees’ representatives of, inter alia, the reasons for the transfer and the legal, social and economic implications of the transfer. Where there are no representatives, the employers must arrange for the employees to choose representatives for this purpose.

Where an employee considers that a breach of the Regulations has occurred, a complaint may be made to an Adjudication Officer of the Workplace Relations Commission (WRC) and appeals therefrom to the Labour Court.

Wage Subsidy Scheme

Questions (213)

Noel Grealish

Question:

213. Deputy Noel Grealish asked the Minister for Finance if the benefit-in-kind exemption for employed recipients of the 2020 temporary wage subsidy scheme by which employers have the option of paying their employee’s 2020 scheme tax liability without a benefit-in-kind tax liability on the employee is available to self-assessed employees and proprietary directors; and if he will make a statement on the matter. [22918/21]

Written answers

Minister for Finance

The Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March 2020. It was legislated for in Section 28 of the Emergency Measure in the Public Interest (Covid-19) Act 2020 and was an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. The very latest data from Revenue indicate that over 66,600 employers were supported through the TWSS in respect of more than 664,500 employees at a cost of €2.8bn. The Scheme operated until 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.

It will be recalled that in order to maximise the financial support provided to recipients, tax on TWSS payments was not collected in real-time through the PAYE system and that instead the liability for the 2020 tax year was determined at the end of the year by Revenue through the regular ‘end year review’ process.

Revenue made a Preliminary End of Year Statement available to all employees from 15 January 2021, including those who were in receipt of the TWSS. The Preliminary End of Year Statement includes information relating to an employee’s income received, including pensions and income from the Department of Social Protection, as well as their tax credit entitlements. For the tax year 2020, the Statement also includes information on the amounts of TWSS payments, if any, received by each employee. In addition, the Statement provides employees with a preliminary calculation of their income tax and Universal Social Charge (USC) position for 2020 and indicates whether their tax position is balanced, underpaid, or overpaid for the year.

Upon viewing the Preliminary End of Year Statement through myAccount, which is Revenue’s secure online facility for individual taxpayer services, employees have an opportunity to complete their income tax return for 2020, declaring any additional income and claiming any additional tax credits due, for example qualifying health expenses, to arrive at their final liability for 2020.

When a liability is finalised, individuals may opt to fully or partially pay any income tax and USC liability through the Payments/Repayments facility in myAccount. Where individuals do not opt to fully or partially pay, Revenue will collect the liability by reducing their tax credits over 4 years, interest free. The reduction of tax credits will start in January 2022.

Revenue has confirmed that it is facilitating employers who wish to pay the tax liabilities of their employees where such income tax and USC liabilities arise from the TWSS. Details of these arrangements are available on the Revenue website at

www.revenue.ie/en/employing-people/twss/employers/index.aspx.

Should an employer wish to pay these liabilities on behalf of their employees, on an exceptional, once-off basis and subject to certain conditions, Revenue will not apply the Benefit-in-Kind (BIK) rules that would usually apply where employers make payments of this nature on behalf of their employees.

Revenue has informed me that the facility for employers to pay their employees’ income tax and USC liabilities arising from the TWSS is available whether their employees are taxed through the PAYE system or are self-assessed taxpayers. The issue of extending the BIK concession to proprietary directors is under active consideration by Revenue and it expects to publish additional guidance on the matter shortly.

Banking Sector

Questions (214)

Cian O'Callaghan

Question:

214. Deputy Cian O'Callaghan asked the Minister for Finance the action he is taking to ensure competition for consumers and to ensure the competitiveness of Irish banks given the proposed sale of a bank (details supplied); and if he will make a statement on the matter. [22952/21]

Written answers

Minister for Finance

The retail financial services sector is undergoing a major period of change. In the last two months, we have seen several major announcements including the withdrawal of Ulster Bank and the potential withdrawal of KBC Bank Ireland, the forthcoming closure of a large number of bank branches by Bank of Ireland and a much smaller number by AIB.

The sector is facing a number of long running challenges such as negative interest rates, technological change that is reducing the barriers to entry to a whole range of new entrants, changing customer preferences as they use more and more digital services, while still wanting the traditional branch network to be available. Competing with online firms while coping with high cost structures is posing a considerable challenge for the traditional full service sector.

The Irish retail banking system is concentrated with five retail banks accounting for the majority of new mortgage lending, and three retail banks accounting for the majority of new bank lending to SMEs. However, price competition is possible even in a concentrated system. Notwithstanding the recent announcements in the banking sector, Ireland continues to have an extensive network for banking services, including post offices and credit unions. In addition, An Post offers counter services for AIB, allowing customers to lodge and withdraw cash at An Post branches. Bank of Ireland has announced that it is following suit.

The Government wants to ensure that the banking and financial system is one which will effectively contribute and support economic growth and employment. Competition in the sector is vital to ensure that businesses and consumers have a range of options available when using financial services and accessing credit.

As such, my Department is considering a review process that will look at the many issues in depth, provide sensible analysis and implementable recommendations and I hope to be in a position to set out greater details on this in the coming weeks.

Question No. 215 answered with Question No. 205.

Question No. 216 answered with Question No. 205.

Charitable and Voluntary Organisations

Questions (217)

Peadar Tóibín

Question:

217. Deputy Peadar Tóibín asked the Minister for Finance the amount the NGO and charity sector receives in State funding per annum. [22984/21]

Written answers

Minister for Finance

I can advise the Deputy that my Department has no oversight of the funding provided to the NGO and charity sector per annum.

I wish to note that my response refers only to Department of Finance records and I cannot comment on behalf of other Government Departments.

Charitable and Voluntary Organisations

Questions (218)

Peadar Tóibín

Question:

218. Deputy Peadar Tóibín asked the Minister for Finance the annual State funding received by the NGO and charity sector in each of the years 2000 to 2020. [22985/21]

Written answers

Minister for Finance

I wish to advise the Deputy that my Department has no record of any funding being provided by it to the NGO and charity sector in the years 2000 to 2020.

I wish to note that my response refers only to Department of Finance records and I cannot comment on behalf of other Government Departments.

Charitable and Voluntary Organisations

Questions (219)

Peadar Tóibín

Question:

219. Deputy Peadar Tóibín asked the Minister for Finance the funding allocated to each individual NGO and charity between 2010 and 2020. [22986/21]

Written answers

Minister for Finance

I wish to advise the Deputy that my Department has no record of any funding being provided by it to the NGO and charity sector in the years 2010 to 2020.

I wish to note that my response refers only to Department of Finance records and I cannot comment on behalf of other Government Departments.

Departmental Legal Costs

Questions (220)

Peadar Tóibín

Question:

220. Deputy Peadar Tóibín asked the Minister for Finance the amount in legal fees incurred by his Department in 2020 and in each of the years 2000 to 2020. [22989/21]

Written answers

Minister for Finance

It has not been possible in the time available to compile all the information required. However my officials will follow up with the Deputy in writing.

Value Added Tax

Questions (221)

Matt Carthy

Question:

221. Deputy Matt Carthy asked the Minister for Finance the circumstances in which VAT is applied; the rate at which the tax is applied to the labour cost element of an invoice that includes the cost of actual parts, that is, car servicing and other mechanical goods maintenance and upkeep; and if he will make a statement on the matter. [23106/21]

Written answers

Minister for Finance

I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exempt from VAT. In addition, the Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland, by way of special derogation from the general rule, has retained the application of VAT at the reduced rate, currently 13.5%, to repair or maintenance services relating to movable goods.

However, certain items supplied in the course of any such repair/maintenance service, are specifically excluded from the reduced rate and are therefore liable at the standard rate, currently 23%. These items include accessories, attachments or batteries and tyres, tyre cases, interchangeable tyre treads, inner tubes, and tyre flaps for wheels of all kinds.

The supply of maintenance or repair services of mechanical goods, other than vehicles and agricultural machinery is subject to the two-thirds rule. This rule requires that to benefit from the reduced VAT rate the cost of the materials supplied during the course of the service must not exceed two thirds of the total amount payable for the supply of the service.

Insurance Industry Regulation

Questions (222, 223, 224, 225, 226)

Matt Shanahan

Question:

222. Deputy Matt Shanahan asked the Minister for Finance the number of applications for general insurance licences that were made to the Central Bank from 2016 to 2020; and if he will make a statement on the matter. [23231/21]

Matt Shanahan

Question:

223. Deputy Matt Shanahan asked the Minister for Finance the number of applications for general insurance licences awarded by the Central Bank from 2016 to 2020; and if he will make a statement on the matter. [23232/21]

Matt Shanahan

Question:

224. Deputy Matt Shanahan asked the Minister for Finance the number of applications for general insurance licences that were abandoned and or withdrawn by applicants from 2016 to 2020; and if he will make a statement on the matter. [23233/21]

Matt Shanahan

Question:

225. Deputy Matt Shanahan asked the Minister for Finance the breakdown by location of the entities applying for general insurance licences to the Central Bank from 2016 to 2020; and if he will make a statement on the matter. [23234/21]

Matt Shanahan

Question:

226. Deputy Matt Shanahan asked the Minister for Finance the number of applications for general insurance licences that were made to the Central Bank in each of the years 2016 to 2020, inclusive; the number of these applications that were awarded; the number of the applications that were abandoned and withdrawn by the applicants; the breakdown by location of the entities applying for such licences to the Central Bank in each of the years 2016 to 2020 inclusive in tabular form; and if he will make a statement on the matter. [23248/21]

Written answers

Minister for Finance

I propose to take Questions Nos. 222, 223, 224, 225 and 226 together.

At the outset, it is important to note that as Minister for Finance, I am responsible for the development of the legal and policy framework governing financial regulation. As such, my Department does not collect the type of information being sought by the Deputy.

Nonetheless, in response to the Deputy’s question, my officials contacted the Central Bank for the information requested. The Central Bank advised that where a non-life undertaking has been authorised in another European Economic Area country, no further authorisation is needed for the undertaking to write non-life business in the State under the Freedom of Establishment or Freedom to provide Services provisions (passporting).

With this in mind, there were 29 applications for authorisation as non-life insurance undertakings made to the Central Bank in the period from 01 January 2016 to 31 December 2020:

Year	Number of Applications
2016	3
2017	6
2018	16
2019	2
2020	2

Of the 29 applications, 21 were authorised - eight applications were withdrawn or not subsequently pursued by the applicant. In terms of origin, 19 of the total were in respect of Irish undertakings and 10 were from UK firms seeking authorisation of a third country branch in the State.

The UK withdrew from the EU on 31 January 2020 and entered an 11-month implementation period until 31 December 2020. During this time, EU law continued to apply in the UK, but not thereafter. This meant that UK insurers, who previously provided insurance products and services to Irish customers from 31 December 2020 could no longer avail of the European passport. In order to be in a position to continue to provide these products and services, some UK insurers established firms or third country branches in the State and sought authorisation as non-life insurance undertakings. Accordingly, this led to an increase in applications for authorisation especially in 2018, in advance of the original withdrawal date of 31 March 2019.

Question No. 223 answered with Question No. 222.

Question No. 224 answered with Question No. 222.

Question No. 225 answered with Question No. 222.

Question No. 226 answered with Question No. 222.

Flood Prevention Measures

Questions (227, 233)

Christopher O'Sullivan

Question:

227. Deputy Christopher O'Sullivan asked the Minister for Public Expenditure and Reform the measures that will be taken to fix the fish pass installed as a part of flood relief works in Bandon town, County Cork; and if he will make a statement on the matter. [23591/21]

Holly Cairns

Question:

233. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform the actions being taken to address the serious deterioration of the recently constructed Bandon River fish pass; the estimated costs of these works; and if he will make a statement on the matter. [23051/21]

Written answers

Minister of State at the Department of Public Expenditure and Reform

I propose to take Questions Nos. 227 and 233 together.

The Bandon River fish pass was completed as part of the Bandon Flood Relief Scheme in 2018 for the migration of aquatic species upstream of the pre-existing weir.

Having become aware that the bed of this fish pass had suffered deterioration through the erosion of bed material at the upstream end of the structure during particularly heavy flows in February 2021, site inspections were immediately undertaken by the Office of Public Works (OPW) and Inland Fisheries Ireland (IFI), and emergency measures were agreed for the alleviation of this problem.

The proposed solution comprised large boulders being placed in a line across the width of the fish pass - close to the ‘step’ at the upstream end of the pass - to create a pool from which the fish could pass with greater ease. An Appropriate Assessment Screening process for the work was completed, in line with the requirements of the Habitats Directive, and a contractor was appointed to undertake the works.

The emergency works were carried out by the appointed contractor under the supervision of the OPW and their consultants (incl. a fisheries specialist) on the night of Tuesday April 27th last. The works as completed were judged to have had the planned effect of creating a pool from which the fish could pass with greater ease and the work site was cleared by the early morning of Wednesday April 28th.

The estimated cost of these emergency works is €70,000 (excluding VAT.).

An investigation into the reasons for the deterioration of the bed material on the fish pass has commenced and a longer term solution will be developed with a view to fully rectifying the issue over the coming months.

Covid-19 Pandemic

Questions (228)

Holly Cairns

Question:

228. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform if his Department and agencies under his remit are facilitating employees in receiving Covid-19 vaccinations by providing reasonable accommodations and paid leave when employees are due to receive the vaccine during working hours and if they suffer temporary side effects; and if he will make a statement on the matter. [22641/21]

Written answers

Minister for Public Expenditure and Reform

I encourage as many people as possible to take up their COVID-19 vaccinations when offered.

Where an employee in the public service has an appointment to attend a COVID-19 vaccination during working hours, they will be facilitated to attend based on the health/medical appointment arrangements which apply in each sector.

Where there may be a reaction to a COVID-19 vaccination and the employee is unfit for work, then the provisions of the Public Service Sick Leave Regulations and associated rules would apply.

Pension Provisions

Questions (229)

Niall Collins

Question:

229. Deputy Niall Collins asked the Minister for Public Expenditure and Reform if he will review correspondence from a person (details supplied) and address the issues raised; and if he will make a statement on the matter. [22721/21]

Written answers

Minister for Public Expenditure and Reform

The issues raised in the correspondence provided by the Deputy relate to PRSI cover as well as pension scheme rules.

Firstly, in relation to PRSI class, the Government decided in 1995 that full social welfare cover should be extended to all newly appointed Civil and Public servants and that they should pay the full Class A social insurance contribution. The change was introduced by the Department of Social Protection under the Social Welfare (Modification of Insurance) (Amendment) Regulations 1995 (S.I. No. 77/1995), as amended.

This Regulation also provided that, where a person, who had previously served in the civil or public service and paid modified insurance, had a break in service they would become Class A Social Insurance contributors.

Secondly, where a person is fully insured under the Social Welfare regulations their occupational pension is generally integrated with the State Pension i.e. in calculating the pension payable to an individual account is taken of any social welfare benefits to which an individual has an entitlement. This is sometimes referred to as co-ordination with the State Pension. The aim of integration with the social insurance system is to prevent “double pensioning” where both an occupational public service pension and the State Pension Contributory would both be payable

Supplementary pensions is one particular aspect of integrated pensions which arise when a bridging payment is required to provide for an individual's overall public service pension entitlement because there can be a shortfall in this benefit in certain circumstances e.g. when a person due to causes outside his/her control, fails to qualify for social insurance benefit or qualifies for such benefit at less than the maximum personal rate. However, these payments are not automatic and subject to rules.

These integration arrangements and the rules for the payment of a supplementary pension have always existed for fully insured Civil and Public servants. For example, the relevant provision for one of the main health sector schemes is rule 9.5 in SI 362 of 2010 for the HSE superannuation scheme.

Finally, the Department of Health has overall responsibility for Health Sector public service pension schemes and is best placed to answer further detailed questions on the operation of scheme rules as there are different health sector pension schemes which can apply for psychiatric nurses depending on particular the employer involved.

Flood Prevention Measures

Questions (230)

Cathal Crowe

Question:

230. Deputy Cathal Crowe asked the Minister for Public Expenditure and Reform if he will provide a commencement date for flood defence works to be undertaken by the Office of Public Works at Springfield, Clonlara, County Clare; and if he will make a statement on the matter. [22736/21]

Written answers

Minister of State at the Department of Public Expenditure and Reform

Clare County Council (CCC) is the contracting authority in relation to the proposed flood relief scheme in Springfield/Clonlara, with funding provided by the Office of Public Works (OPW). The current position is as follows:

CCC has been in contact with land owners affected by the proposals and has consulted with local residents and relevant statutory bodies. The Council submitted the works for planning permission, which was granted by An Bord Pleanala in November 2020. Since then detailed design has been ongoing and is now substantially complete, with some final additional Ground Investigations ongoing, which are to be completed and reviewed in advance of the projected construction start date of Q2 this year, with the construction works being carried out by the OPW as contractor for the Local Authority.

Departmental Investigations

Questions (231)

Catherine Murphy

Question:

231. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the number of staff in his Department that have had access to files and or email restricted and or revoked as part of a disciplinary process or preceding or following a disciplinary process from 1 January 2018 to date in 2021. [22780/21]

Written answers

Minister for Public Expenditure and Reform

In reply to the Deputy’s question, I wish to inform the Deputy that no staff in my department have had access to files or email restricted or revoked on the grounds listed in the specified time frame.