Thursday, 17 Jun 2021

Written Answers Nos. 213-234

Driver Test

Questions (213)

Brendan Griffin

Question:

213. Deputy Brendan Griffin asked the Minister for Transport when a person (details supplied) in County Kerry will be given a date for a driving test; and if he will make a statement on the matter. [32683/21]

Written answers

Minister of State at the Department of Transport

The driving test is the statutory responsibility of the Road Safety Authority.

Individual cases are a matter for the Authority and the question in relation to this case is being referred to it for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

A referred reply was forwarded to the Deputy under Standing Order 51

Climate Action Plan

Questions (214)

Eoin Ó Broin

Question:

214. Deputy Eoin Ó Broin asked the Minister for Transport the current and capital costs involved with each action item in the Interim Climate Action Plan under his Department’s responsibility. [32691/21]

Written answers

Minister for Transport

The Preliminary Business Cases for the three Transport Mega Projects (BusConnects, Metrolink and DART+) are currently being considered in line with the Public Spending Code and therefore, my Department is not in a position to itemise costs per Action for those associated Actions. 

In relation to Action 96 - ‘Conduct all-island strategic rail review’, the review is currently subject to an ongoing procurement process.

It should be noted that while there may be limited costs associated with conducting and publishing certain studies, delivering on subsequent actions/recommendations may incur significant capital/current costs as yet determined.

Below in tabular format are the costs (where applicable) associated with each item under the Interim CAP which fall under the Department of Transport's responsibility.

costs

The current and capital costs of Action 123 is a matter for Gas Networks Ireland which falls under the aegis of the Department of the Environment, Climate  and Communications.

In relation to the remaining Actions, I have referred your question to the agencies under the aegis of my Department for direct reply. Please contact my private office if you do not receive a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Departmental Policies

Questions (215)

Christopher O'Sullivan

Question:

215. Deputy Christopher O'Sullivan asked the Minister for Transport if he will outline his key policy achievements in his Department since 27 June 2020; and if he will make a statement on the matter. [32727/21]

Written answers

Minister for Transport

I am very happy that significant progress has been made in all policy areas of my Department since 27 June 2020 and I believe that we are well on track to deliver on the Programme for Government commitments in all areas. I am especially pleased that we have been able to make such good progress while dealing with the unprecedented challenge of the COVID pandemic and the very significant challenges that Brexit has also posed over this period. At the same time, we have made significant progress in the area of sustainable mobility and cycling and walking provision.

As the Deputy is aware, my Department has a very broad remit and is responsible for a large number of significant projects and programmes. Therefore, I have asked my officials to compile a comprehensive update on the achievements of the Department over the last year, which will be forwarded to the Deputy within 10 working days.

Equality Issues

Questions (216)

Holly Cairns

Question:

216. Deputy Holly Cairns asked the Minister for Transport the way in which his Department and agencies under his remit are working towards enabling access to employment for persons from minority and or disadvantaged communities, including, but not limited to, persons with disabilities, persons from ethnic minorities, Travellers, Mincéirí; and if he will make a statement on the matter. [32749/21]

Written answers

Minister for Transport

The Department of Transport engages the services of the Public Appointments Service (PAS). PAS is the centralised provider of recruitment, assessment and selection services for the Irish Public and Civil Service.

As the leading recruiter for the Civil and Public Service, PAS welcomes people with from all communities to apply for career opportunities. PAS promotes and supports the development and employment of people with disabilities and promotes diversity and inclusion throughout the Civil and Public Service.

All recruitment and selection processes both within my Department and those undertaken by PAS on my Department's behalf are arranged in accordance with the CPSA Codes of Practice and in compliance with the Employment Equality Acts.

Furthermore, my Department's Human Resources Development strategy, launched in February 2020 has a strong focus on diversity and inclusion. Strategic priorities derived from this include actively promoting inclusion and diversity through initiatives such as Disability Networks.

I have asked the aegis bodies under my Department to provide the information requested for their organisations directly to the Deputy.

A referred reply was forwarded to the Deputy under Standing Order 51

Questions Nos. 217 and 218 answered with Question No. 23.

Rail Network

Questions (219)

Bernard Durkan

Question:

219. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which he expects commuter rail passenger numbers to increase when the lines are upgraded; and if he will make a statement on the matter. [32759/21]

Written answers

Minister for Transport

We need to provide sustainable alternatives to the private car if we are to encourage people to make the shift to more sustainable modes of transport and expanded rail capacity has a role to play in that regard.

We know from experience that the public responds positively when additional capacity is provided as part of an overall strategic and well-planned framework. The high-level strategic context, including passenger demand and forecasted modal share, for all of our commuter rail networks is set out in their relevant metropolitan area transport strategies which are all available online. At a project-level forecasted passenger demand is obviously a key component of the development of the business cases.

As an example, the Preliminary Business Case for DART+ has recently been received by my Department and is under review as required under the Public Spending Code. As the Deputy is aware DART+ proposes DART level all-day services across the network from Drogheda on the Northern Line, Maynooth on Western Line, Hazelhatch on the South Western Line and Greystones on the South Eastern Line and will result in a doubling of capacity as a result.

Another project underway at the moment is the addition of 41 rail carriages to the Greater Dublin Area rail fleet. These carriages are under construction at the moment and will start to arrive next year and will add around 34% capacity to the system as compared to before.

I have no doubt that the passenger response to this additional capacity will be as strong as it has been in the past where we have invested in our public transport network.

Rail Network

Questions (220, 221)

Bernard Durkan

Question:

220. Deputy Bernard J. Durkan asked the Minister for Transport if he is satisfied regarding the adequacy of health and safety adherence for the north County Kildare commuter rail passengers given the necessity to remain standing for some journeys; and if he will make a statement on the matter. [32760/21]

Bernard Durkan

Question:

221. Deputy Bernard J. Durkan asked the Minister for Transport his plans to increase the number of carriages serving the north County Kildare rail commuter routes or alternatively increasing the frequency of trains thereby improving the service for commuters; and if he will make a statement on the matter. [32761/21]

Written answers

Minister for Transport

I propose to take Questions Nos. 220 and 221 together.

As the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operation of public transport.

Public transport operators have been advised of, and are closely following, public health instructions issued by the Health Service Executive (HSE) and the Health Protection Surveillance Centre (HPSC) in relation to COVID-19.

The issues raised are an operational matter for the National Transport Authority (NTA), in conjunction with Iarnród Eireann, and I have forwarded the Deputy's questions to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Question No. 221 answered with Question No. 220.

Aviation Industry

Questions (222)

Bernard Durkan

Question:

222. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which he expects to be in a position to assist the aviation sector post-Covid given the pressures experienced by airlines in recent times; and if he will make a statement on the matter. [32762/21]

Written answers

Minister of State at the Department of Transport

The Irish aviation sector is critical to Ireland’s economic development, as it is a key enabler of international trade and business, including foreign direct investment and tourism. For this reason, our aviation policy places a priority on international connectivity. The sector is experiencing the most challenging crisis in its history, with many analysts predicting that it will take several years for it to return to 2019 levels of activity.

My officials and I have maintained regular contact with key stakeholders throughout this crisis, and Government has put in place a range of supports for businesses, including the aviation sector. These supports include the wage subsidy scheme, waiving of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme. Liquidity funding is also available through the ISIF Pandemic Stabilisation and Recovery Fund for medium and large enterprises. It is estimated that, by the end of June this year, our airlines and airports will have received at least €300 million from several available supports.

In November 2020 the Government agreed a revised funding package of €80 million specifically for Irish aviation for 2021. €21 million is being provided under the Regional Airports Programme (2021-2025). This gives funding certainty to Donegal, Kerry and Ireland West Airport Knock and supports domestic PSO routes from Dublin Airport to Donegal and Kerry. €32 million is being provided to Cork and Shannon Airports through a new one-year COVID-19 Regional State Airports Programme. A €26 million, European Commission approved, Irish State Aid scheme to compensate airport operators for the losses caused by COVID-19 and the travel restrictions imposed by Ireland to limit its spread. The scheme will augment the supports already in place and help the industry to maintain connectivity and recover from the impact of COVID-19.

Such supports and schemes notwithstanding, all service providers in the sector, apart from those substantially or exclusively dedicated to air cargo, have had no option but to radically address their cost base and seek to safeguard liquidity. Alongside rationalisation measures, the major service providers are shoring up their finances through increased borrowings or raising new capital.

Several public health measures have been introduced in relation to international travel, which have developed and evolved as the pandemic has progressed, with the objective of both limiting the spread of COVID-19 and limiting the presence of its variants of concern in Ireland.

The main requirement of all aviation stakeholders has been clarity from Government on a plan to permit the resumption of non-essential international air travel, and the Government outlined such a plan on 28 May, which is scheduled to begin on 19 July. This plan brings together the EU Digital COVID Certificates, pre-departure PCR testing, mandatory quarantine, and our public health measures so that international travel can operate safely. An “emergency brake” mechanism will also allow us to respond to the potential emergence of variants of concern.

While it may take some time for our aviation sector to regain the strong economic position it had at the start of the pandemic, Government has committed to ensuring that there will be no “cliff-edge” to the COVID-19 related business supports that are currently available. On 1 June, Government launched its Economic Recovery Plan 2021 with the goal of achieving rapid job creation and economic growth after the pandemic. This plan sets out new measures for businesses and affected sectors as the economy reopens, and details for existing emergency pandemic financial supports including the COVID Restrictions Support Scheme (CRSS), Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP), giving certainty to employers, workers, and for those who need it most.

With our vaccination programme progressing, a plan for the resumption of non-essential international travel ready and significant levels of business supports available, aviation is now positioned to begin to recover.

Covid-19 Pandemic

Questions (223)

Bernard Durkan

Question:

223. Deputy Bernard J. Durkan asked the Minister for Transport if the use of high quality air purifiers has been considered as a means of reducing the potential spread of Covid-19 throughout the transport sector including air, rail and bus transport; and if he will make a statement on the matter. [32763/21]

Written answers

Minister for Transport

As Minister for Transport I have responsibility for policy and overall funding in relation to public transport.

The continued operation of public transport services has been a priority throughout the Covid-19 pandemic. The National Transport Authority (NTA) is working closely with all transport operators to ensure that public transport services continue to operate in a safe manner during the crisis.

Public transport services have continued to operate safely over the course of this pandemic and operators have taken heed of all public health requirements. This has included the mandatory wearing of face coverings, social distancing measures onboard services, as well as an enhanced daily cleaning regime across the transport fleet. In addition, transport operators have added signage on the windows of vehicles where windows can be opened asking customers to leave them open. Operators are continuing to research ways in which public transport can provide as safe and reliable an environment as possible. Additional cleaning techniques are being researched and air conditioning systems, where installed, are being checked regularly to ensure they are operating as intended. The NTA and transport operators will continue to observe all public health advice relating to Covid-19.

In relation to air travel, the quality of air provided during a flight is very high. This is due to frequent exchange of air (the entire air supply is typically exchanged every 3-5 minutes) and High-Efficiency Particulate Arrestor (HEPA) filters which are used on board most modern aircraft. It is my understanding that HEPA filters have been installed in all modern commercial jet aircraft for many years. For example, Airbus indicate they have been installed on new Airbus aircraft since 1994. Through communication at the National Air Transport Facilitation Committee, I understand that both the Ryanair and Aer Lingus fleets are all fitted with HEPA filters.

The European Aviation Safety Agency (EASA) and European Centre for Disease Prevention & Control (ECDC) guidelines address the scenario where aircraft do not have HEPA filters. It states that aeroplane operators using aircraft without HEPA filters avoid the use of cabin air recirculation entirely, provided it is confirmed that this will not compromise any safety critical functions (e.g. avionics cooling, cabin pressurisation etc.).

I wish to highlight that the air quality on aircraft is just one of a suite of measures that can ensure passengers are safe, and not exposed to the COVID-19 virus while flying, as set out in the ECDC and EASA guidance.

Covid-19 Pandemic

Questions (224)

Bernard Durkan

Question:

224. Deputy Bernard J. Durkan asked the Minister for Transport if he remains satisfied that travel reduction targets for the transport sector in general continues to be attainable; and if he will make a statement on the matter. [32764/21]

Written answers

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally.

On 10 May 2021, the capacity restrictions on public transport were increased from 25% to 50% of onboard capacity (sitting and standing) across all services, under updated measures announced by the Government. Public transport has also now largely returned to normal scheduling.

The Government recently agreed, that the ending of the 50% capacity restriction on public transport will be considered for August, subject to the epidemiological situation at the time.

My Department and the NTA continue to be guided by public health advice and are closely monitoring public transport demand.

Transport Policy

Questions (225)

Bernard Durkan

Question:

225. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which he remains satisfied regarding the adequacy of capital investment in the transport sector for the foreseeable future; and if he will make a statement on the matter. [32766/21]

Written answers

Minister for Transport

As the Deputy is aware, the National Development Plan (NDP) is under review and discussions are ongoing in relation to finalising the review and agreeing a new NDP setting out the overall capital investment envelope to 2030.

My approach to this review has been based around the sort of outcomes I want to see this NDP deliver –

- I would like this NDP set the groundwork for the fundamental change in the nature of transport in Ireland as committed to in the Programme for Government.

- I want to see this NDP support the investment needed to support the National Planning Framework, particularly in terms of supporting balanced regional development and supporting compact growth in the five cities.

- And finally, my view is that this NDP needs to set us on our way to reduce emissions in line with our 2030 and ultimately 2050 ‘net zero’ commitments.

Our ability to deliver on those outcomes will be determined by the capital investment allocations we receive for the transport sector as part of the review, but my approach to the review has been framed by these considerations.

Greenways Provision

Questions (226)

Catherine Murphy

Question:

226. Deputy Catherine Murphy asked the Minister for Transport the status of the progress made to date on establishing a greenway from Leixlip to Maynooth along the royal canal; if he will provide the amount funded and or granted to that section in 2021; and if he will confirm if that section will be designated as an official greenway on the Dublin to Galway national cycle route. [32783/21]

Written answers

Minister for Transport

I am pleased to inform the Deputy that Kildare County Council are progressing the section of the Royal Canal Greenway between Maynooth and Leixlip, through funding administered by the National Transport Authority (NTA). An allocation of €3,750,000 has been granted for the project in 2021. The design phase of the project is nearing completion and it is anticipated that the tenders for the construction contract will be sought in the coming months with construction to begin in Q4 2021.

In relation to the second part of the Deputy's question, the Royal Canal Greenway will be part of the Dublin to Galway route as far as Mullingar where the Old Rail Trail will take it to Athlone. The Royal Canal Greenway from Maynooth in Kildare to Cloondara in Longford opened on 21 March 2021, and the Old Rail Trail has been opened for some time. Transport Infrastructure Ireland (TII) have recently been engaging in public consultations with a view to progressing the Dublin-Galway Greenway from Athlone to Galway and are managing the project that will take it across the Shannon at Athlone and onto Galway.

Aviation Industry

Questions (227, 228)

Darren O'Rourke

Question:

227. Deputy Darren O'Rourke asked the Minister for Transport the estimated cost of providing a rebate directly to airlines of all Dublin Airport charges and air navigation charges as recommended in the Taskforce for Aviation Recovery report from July 2020. [32793/21]

Darren O'Rourke

Question:

228. Deputy Darren O'Rourke asked the Minister for Transport the estimated cost of providing a common fixed amount per passenger to regional airports; as recommended in the Taskforce for Aviation Recovery report from July 2020. [32801/21]

Written answers

Minister of State at the Department of Transport

I propose to take Questions Nos. 227 and 228 together.

I can advise the Deputy that to put the cost of the type of rebate recommended by the Taskforce for Aviation Recovery into context, Dublin Airport revenue from passenger charges in 2019 was €307m with the average price per passenger of €9.18. The Commission for Aviation Regulation (CAR) set the price cap at €9.30 for 2019.

For 2020 and 2021 the CAR set the price cap per passenger at €7.50. If passenger numbers this year are in line with those in 2020 (7.4m passengers) - the costs could be in the region of €55m for 2021 if a full rebate was applied for this year.

Furthermore, I can advise the Deputy that from June 2020 to June 2021, the IAA invoiced airlines terminal charges of €6.2 million. These air navigation charges are attributable to aircraft landing/taking off at Dublin, Cork and Shannon airports (Terminal charges only).

In response to the recommendations of the Taskforce, Government put in place an €80m aviation support package which was announced on 10 November. This package includes €21.3 million for the Regional Airports Programme and €32.1 million for a new COVID-19 Regional State Airports Programme. Under these Programmes, the airports of Donegal, Kerry, Knock, Cork and Shannon will have access to capital and operational supports in 2021.

Following consultation with the European Commission, State aid Schemes to the value of €26 million to compensate airport operators for the losses caused by the COVID-19 pandemic were established. These schemes include compensation for State airports (Dublin, Cork and Shannon) of approximately €20 million, in light of Covid impacts in 2020. This funding Scheme was considered the most appropriate and State aid compliant way to provide State airports with flexibility to roll out route incentives/charge rebates, in consultation with airlines, with a view to supporting recovery and growth of connectivity.

The Department is currently assessing applications for this funding and would hope to be in a position to disburse this compensation in the coming weeks. In order to ensure parity of treatment, funding will be allocated proportionately in line with 2019 passenger numbers at the airports.

In addition, up to €6 million is also available to regional airports that provide connectivity (Knock, Kerry and Donegal) under the EU Temporary Framework in recognition of the impact of COVID on their business. Applications for funding under this measure are also currently being assessed and it is hoped that aid will be granted in the coming weeks.

Throughout the COVID-19, the Government has made significant funding available to the Irish aviation industry through a range of business supports. The bulk of the support to airlines is through the TWSS/EWSS wage subsidy schemes which were specifically designed to maintain the link between employers and employees. It is estimated that by end-June 2021, the sector will have received approximately €300 million in such supports. In addition, liquidity support has also been made available to the aviation industry through the ISIF Pandemic Stabilisation Fund. Aer Lingus has secured a €150m loan under this fund.

Question No. 228 answered with Question No. 227.

Road Network

Questions (229)

Mattie McGrath

Question:

229. Deputy Mattie McGrath asked the Minister for Transport if the level of funding awarded to Tipperary County Council will be increased ahead of the next three year roadworks programme in order to assist the Council’s roads development to promptly improve the road network which has been ranked as 29th out of 31 local authorities by the National Oversight and Audit Commission for road condition. [30932/21]

Written answers

Minister for Transport

The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources supplemented by State road grants, where applicable.

I announced the 2021 regional and local road allocations earlier this year and all grant funding available to my Department has now been allocated.

There were major cutbacks in funding for the road network in general during the post 2008 recession. The National Development Plan (NDP), as it stands, provides for a gradual increase in funding for regional and local roads and there has been a significant increase in Exchequer funding particularly in the last four years. In this context, Tipperary County Council received a total allocation of €29,526,858 for 2021 which is an increase of approximately 60% when compared to 2017.

Funding is not yet at the level needed for the adequate maintenance and renewal of regional and local roads and so for this reason, the primary focus for capital investment continues to be the maintenance and renewal of the network with some limited investment in road improvement projects.

As regards the basis for allocating grants, within the budget available to the Department, funding is allocated on as fair and equitable a basis as possible to eligible local authorities. In this context, grants in the main grant categories are allocated based on the length of the road network within a local authority's area of responsibility with some account taken of traffic. It is envisaged that grants will continue to be made available on that basis.

Basing regional and local roads grant allocations on road conditions could result in an uneven distribution of State funding. For example, local authorities that allocate higher levels of own resources funding to regional and local roads will have a larger proportion of roads with a higher condition rating than those with lower levels of own resources funding. Basing allocations on road condition could therefore disincentivise local authorities from allocating own resources funding to roads maintenance.

The Department appreciates that, within the overall parameters set for the grant programme, local authorities might need to target funding at particular problem areas and there is sufficient flexibility in the structure of the grant programme to allow for this. It is also open to each local authority to allocate its own resources to priority areas. In this context the Department has supported the development of a road asset management system for regional and local roads – MapRoad - to provide the data needed for each local authority to manage its network as effectively as possible, including the prioritisation of works for inclusion in its maintenance and renewal works programme. The road pavement condition information generated by the MapRoad system forms the basis for the National Oversight and Audit Commission (NOAC) performance reports each year.

My Department will be issuing a Circular shortly to local authorities regarding the preparation and submission of the next 3 year 2022 -2024 Restoration Improvement Programme.

Departmental Expenditure

Questions (230)

Alan Kelly

Question:

230. Deputy Alan Kelly asked the Minister for Finance the amount his Department and associated agencies have spent on social media advertising since the beginning of January 2021 until 12 June 2021; and if he will make a statement on the matter. [32613/21]

Written answers

Minister for Finance

I can inform the Deputy that the Department of Finance has no record of spending on social media advertising since the beginning of January 2021 until 12 June 2021.

A number of bodies under the aegis of my Department have incurred expenditure on social media advertising since January 2021, the details are as follows:

The Central Bank of Ireland has paid €66,405 (VAT excl.) since the beginning of January 2021 for recruitment advertisements.

The Credit Review Office has incurred expenditure of €1,875 (VAT excl.) in relation to social media advertising since the start of January 2021.

The National Treasury Management Agency (NTMA) has incurred expenditure totalling €11,546 (VAT incl.) since January 2021 to date.

Home Building Finance Ireland (HBFI), the National Asset Management Agency (NAMA) and the Strategic Banking Corporation of Ireland (SBCI) are also bodies under my Department’s aegis. As part of a shared services agreement, HBFI, NAMA and the SBCI reimburse the NTMA in respect of recruitment advertising costs attributable to them and any such spend is accounted for in the cost provided above.

In addition the SBCI has spent €100 (VAT excl.) since January 2021 on social media advertising.

Departmental Expenditure

Questions (231)

Alan Kelly

Question:

231. Deputy Alan Kelly asked the Minister for Finance the amount his Department has spent on social media content production since the beginning of January 2021 until 12 June 2021; and if he will make a statement on the matter. [32630/21]

Written answers

Minister for Finance

I can inform the Deputy that the Department of Finance has no record of spending on social media content production from the beginning of January 2021 to 12 June 2021.

Departmental Expenditure

Questions (232)

Alan Kelly

Question:

232. Deputy Alan Kelly asked the Minister for Finance the amount his Department and all associated agencies have spent on public relations consultancy costs since January 2021; and if he will make a statement on the matter. [32647/21]

Written answers

Minister for Finance

I can inform the Deputy that the Department of Finance has no record of spending on public relations consultancy since January 2021 to date.

A number of bodies under the aegis of my Department have incurred expenditure on public relations consultancy since January 2021, the details are as follows:

The National Asset Management Agency (NAMA) has spent €40,000 (VAT excl.) to date since January 2021 on public relations.

The National Treasury Management Agency’s (NTMA) public affairs and communications team incurred costs of €35,200 (VAT excl.) in relation to public relations.

Home Building Finance Ireland (HBFI) and the Strategic Banking Corporation of Ireland (SBCI) are also bodies under my Department’s aegis. As part of a shared services agreement, HBFI and the SBCI reimburse the NTMA in respect of public relations consultancy costs attributable to them and any such spend is accounted for in the cost provided above.

The Office of the Revenue Commissioners has incurred expenditure of €687 (VAT excl.) in respect of public relations consultancy during the period January 2021 to date.

Tax Code

Questions (233)

Éamon Ó Cuív

Question:

233. Deputy Éamon Ó Cuív asked the Minister for Finance the reason persons in receipt of the carer's tax credit who have a small income, including the carer's allowance are not allowed the extra €26,300 income at 20% which is normally allowed for two married persons or persons in a civil partnership who have two incomes thus diluting the benefit of the carer's tax credit considerably; and if he will make a statement on the matter. [32672/21]

Written answers

Minister for Finance

In terms of providing a context for the present arrangements, the current structures with regard to tax bands of couples who are married or in civil partnerships has been in place for the last 20 years or so. The previous Commission on Taxation in their 2009 report observed the following:

"However, in relation to income tax, a “hybrid” arrangement has been in place since 2000, with regard to the tax band structure and credits that apply to married couples. We consider that this arrangement should remain in place as it represents a balance between, on the one hand, acknowledging the choices families make in caring for children and, on the other, taking account of the need to encourage labour force participation."

This is an area that is kept under review.

On the specific arrangements in place, I am advised by Revenue that the home carer tax credit may be claimed by a married couple or civil partners where one spouse or civil partner (the ‘home carer’) cares for one or more dependent persons.

Eligibility for the home carer tax credit is subject to a number of conditions, as follows:

- The married couple or civil partners must be jointly assessed to tax;

- The home carer must care for one or more dependent persons; and

- The dependent person(s) must normally reside with the married couple or civil partners for the tax year, however certain exceptions apply where the dependent person is a relative.

To obtain the full tax credit (€1,600 for 2021), the home carer’s income must not exceed €7,200 in the tax year. Where the home carer’s income is over €7,200, the tax credit available is reduced by one half of the excess amount earned over this limit. The home carer tax credit will therefore not be available for 2021 where the home carer’s income exceeds €10,400. Both carer’s benefit and carer’s allowance payments from the Department of Social Protection are disregarded for the purposes of determining the annual income threshold of €7,200.

The standard rate band, where one spouse or civil partner is in receipt of income, is currently €44,300. For dual income couples, this amount can be increased by the lesser of €26,300 or the income of the lower earner. The maximum standard rate band for a dual income couple in 2021 is therefore €70,600.

By virtue of the legislation contained in section 466A Taxes Consolidation Act 1997, a couple or civil partners cannot claim both the increased standard rate band for dual income couples and the home carer tax credit in the same year. They may however claim whichever of the two is more beneficial to them.

Revenue will grant whichever relief – the home carer tax credit or the increased standard rate band - will provide the most beneficial treatment for the taxpayer. Further details on determining whether the home carer tax credit or the increased standard rate band may be more advantageous can be found in section 6 of Tax and Duty Manual Part 15-01-29 published on Revenue's website (https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-29.pdf).

Alternatively, taxpayers may contact the National PAYE helpline at 01-7383636 where they will receive any assistance required to establish the more advantageous option, based on their individual circumstances.

Departmental Policies

Questions (234)

Christopher O'Sullivan

Question:

234. Deputy Christopher O'Sullivan asked the Minister for Finance if he will outline his key policy achievements in his Department since 27 June 2020; and if he will make a statement on the matter. [32717/21]

Written answers

Minister for Finance

Since June 2020, my Department published Budget 2021 in October 2020, the Stability Programme Update forecasts in April 2021 as well as various economic, research and analysis papers to support policy-making, including the launch of the quarterly Economic Insights series. My Department also continues to provide technical input around the economic impact of COVID-19 and the related policy response.

Ireland’s National Recovery and Resilience Plan was submitted to the European Commission on 28 May 2021. The draft Plan, worth almost €1bn, will enable Ireland to access funding under the Recovery and Resilience Facility. This Facility is the centrepiece of the Next Generation EU (NGEU), the EU’s €750bn pandemic recovery package. Ireland is expected to receive approximately €915m in grants under the Facility for the period 2021-2022, with further grants in 2023.

On 30 March 2021, Ireland received €2.492bn under the EU’s SURE scheme (Support to mitigate Unemployment Risks in an Emergency). SURE is a temporary instrument, providing up to €100bn in loans from the EU to Member States affected by increases in public expenditure aimed at preserving employment during the pandemic. The amount of the Irish application was based on costs already expended under the COVID-19 Temporary Wage Subsidy Scheme (TWSS).

In July 2020, I brought forward the Financial Provisions (COVID-19) Bill to enable the State to participate in the EU crisis recovery instruments, the SURE scheme and the €25bn Pan-European Guarantee Fund. My Department has undertaken significant work on the EU regulatory package which forms part of the EU Action Plan on Financing Sustainable Growth. Sustainable finance is a priority, accounting for 10 of the 46 action measures under the Ireland for Finance 2021 Action Plan. Ireland for Finance is the strategy for the development of the IFS sector in Ireland to 2025.

The Taxonomy Regulation entered into force in July 2020 and the Sustainable Finance Disclosures Regulation took effect from March 2021. My Department recently concluded negotiations of the Regulation establishing the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism expected to mobilise €25bn to 30bn in public investment over the 2021-2027 period.

Since 27 June 2020, my Department has transposed the Bank Recovery and Resolution Directive (EU) 2019/879, the Capital Requirements Directive (EU) 2019/878 and elements of the Capital Requirements Regulation (EU) 2019/876. In November 2020, Statutory Instrument 525 of 2020 was signed to amend the Interchange Fee Regulations to fully align with EU regulations. Negotiations on Regulation (EU) 2020/1503 on European crowdfunding service providers for business, amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 concluded and the Directive was transposed in April 2021.

My Department completed the drawdown of €1.5bn from the National Surplus (Exceptional Contingencies) Reserve Fund to the Exchequer’s Central Fund at the end of October 2020.

The Finance (Miscellaneous Provisions) Act 2020 was signed into law in December 2020 to allow credit unions to hold General Meetings remotely and to provide more flexibility in voting methods.

In line with its strategic goal of promoting environmentally sustainable economic progress, my Department has increased its capacity for managing the climate action agenda at a cross-departmental, EU and international level, including the Senior Officials Group on Climate, ECOFIN and the Coalition of Finance Minsters for Climate Action. My Department is actively participating in the interdepartmental structures established to develop the updated Climate Action Plan 2021.

In the period to March 2021, my Department supported the migration of Ireland’s securities settlement system from the UK to Belgium. This project saw over €100bn worth of securities migrated. My Department introduced dedicated legislation and coordinated with national and EU authorities. The securities settlement migration means that Ireland remains well connected to the EU’s capital markets with the stable investment and legislative environment that comes with it.

The Investment Limited Partnerships (Amendment) Act 2020 was signed into law on 23 December 2020. This will enhance the development of Ireland’s international financial services (IFS) sector. My colleague, Minister of State Seán Fleming TD, officially launched the Ireland for Finance Action Plan for 2021 ahead of the sixth annual European Financial Forum in February 2021.

In November 2020, I published the Interdepartmental Pensions Reform and Taxation Group’s (IDPRTG) Report on supplementary pensions. The work will inform pension debates and future policymaking which will in turn have wider, longer-term socio-economic and fiscal benefits. The Report contains forty-two recommendations and conclusions. The IDPRTG is working on a number of those recommendations for implementation later this year.

A requirement at EU level was introduced that the forthcoming EU package of Anti-Money Laundering (AML) reforms must be compatible with common law and a registration and supervision regime was introduced for virtual assets service providers for Anti-Money Laundering and Countering the Financing of Terrorism purposes, the scope of which is more advanced and robust than the 5th EU Anti-Money Laundering Directive requirements and places Ireland ahead of EU obligations in this area.

The Office to Promote Competition in the Insurance Market has been created and is chaired by Minister of State Fleming.

Development and operation of the COVID-19 Restrictions Support Scheme, in particular the wage subsidy schemes, the TWSS and the Employment Wage Subsidy Scheme (EWSS) have been central pillars of the Government’s response to the pandemic. When the TWSS ended last August, nearly 70,000 employers and over 600,000 employees had been supported. Additionally, the tax debt warehousing scheme has been placed on a statutory footing and expanded; an enhanced Help-to-Buy incentive scheme was introduced in the Financial Provisions (Covid-19) (No. 2) Act 2020 and subsequently extended until end 2021; the valuation date for Local Property Tax (LPT) has been deferred until 1 November 2021; and a revised method for calculating taxpayers’ LPT liabilities was developed. The General Scheme of Finance (Local Property Tax) (Amendment) Bill was approved by Government.

Finance Act 2020 was enacted giving legislative form to the taxation proposals in the Budget 2021 Statement. Measures included a trajectory of annual increases in the rate of carbon tax leading to a rate of €100 per tonne of carbon dioxide by 2030; increase of the Earned Income Credit from €1,500 to €1,650 - delivering on the commitment to equalise this with the employee tax credit; the introduction of an accelerated capital allowances scheme for farm safety and disability adaptation equipment and legislative defensive measures to apply to the EU list of non-cooperative jurisdictions.

In January 2021, an update to the Corporation Tax Roadmap was published. Progress continued on the transposition of the Anti-Tax Avoidance Directives, with the publication in December 2020 of a Feedback Statement on the Article 4 Interest Limitation Rule, in advance of legislation in Finance Bill 2021.

On 19 May 2021, in response to a need to provide a significant disincentive to the multiple purchase by institutional investors of large parts of or whole housing estates before they reach the market, I introduced, by way of a Financial Resolution, a new measure which applies, subject to certain conditions and reliefs, a 10% stamp duty charge on bulk purchases (i.e. 10 or more in any 12-month period) of houses. This took effect from midnight that day.

Finally, I have established the Commission on Taxation and Welfare which has begun its work.