Niamh Smyth
Question:140. Deputy Niamh Smyth asked the Minister for Transport the reason a person (details supplied) is waiting so long for a driver test; and if he will make a statement on the matter. [35944/21]
View answerDriver Test
Questions (140)
Written answers
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.
Tax Code
Questions (141)
Neale Richmond
Question:141. Deputy Neale Richmond asked the Minister for Transport the reasoning behind customers being unable to complete their car tax payment online by credit card due to a new financial regulation PSD2; if his attention has been drawn to the matter; his plans to rectify same; and if he will make a statement on the matter. [35952/21]
View answerWritten answers
My Departments Driver Vehicle and Computer Services Division manage the National Vehicle and Driver File (NVDF) and its associated online services. This includes the Online Motor Tax service at www.motortax.ie which enables vehicle owner’s tax their vehicle over the internet. The online service integrates with Payment Service Providers (PSP’s) as part of the operation of the service itself.
The revised Payment Services Directive (PSD2) of 2015 introduced strong security requirements for the initiation and processing of electronic payments, which apply to all PSP’s. PSPs are obliged to apply strong customer authentication (SCA) when a payer initiates an electronic payment transaction. SCA under PSD2 requires the customer to go through two-factor authentication made up of elements from two of three separate categories: knowledge, possession, and inherence. SCA is a combination of something you know (a password or PIN), something you have (a card reader or token generator) and something you are (a fingerprint). SCA is intended to reduce the risk of fraud for all types of electronic payments (especially online payments). SCA requirements under PSD2 were mandatory by 31 December 2020. My colleague the Minister for Finance is responsible for Ireland's compliance with the Payment Services Directives.
My Department's online motor tax website is fully compliant with the PSD2 SCA requirements and this involves capturing additional information on the cardholder during the payment process itself, and this information being subsequently shared with the cardholder's bank. The cardholder's bank will validate this against the data they have for the cardholder and determine if the cardholder needs further authentication when processing their transaction, and if so, what that authentication will entail. The changes have not had any adverse impact on the service itself, with just under 1.9m online tax discs issued for January to May 2021, compared to just over 1.8m for the same period in 2020, an increase of 5%. The online service represents 90% of overall motor tax transactions for this period, compared to 85% for the same period last year.
Along with retailers, it is however important to note that the new requirements themselves have some immediate implications for cardholders themselves. That extra layer of security is meant to protect both cardholders and retailers from fraudulent payments, but it also makes shopping online a little more complex. Cardholders may in some cases have to make appropriate security arrangements such as providing their phone number to their bank for SMS authentication etc. Any cardholder issues my officials have encountered to date have in the main been in relation to this, and have required referring the cardholder back to their bank for assistance. My officials are however continually monitoring the new requirements, and have engaged with the financial institutions directly to assist with any such queries where possible.
Driver Licences
Questions (142)
James O'Connor
Question:142. Deputy James O'Connor asked the Minister for Transport if he will report on the IBT training for motorbikes (details supplied); and if he will make a statement on the matter. [35958/21]
View answerWritten answers
The validity period of Initial Basic Training (IBT) certificates is set out in legislation. Making a change to the validity of an existing certificate requires a change in law.
I can confirm that a further extension to IBT certificates is currently being worked on within my Department. An update is expected shortly.
Driver Test
Questions (143)
Louise O'Reilly
Question:143. Deputy Louise O'Reilly asked the Minister for Transport when driving instructors will be given access to toilet facilities at RCA test centres as more of the population are being vaccinated and businesses are reopening; and if he will make a statement on the matter. [36027/21]
View answerWritten answers
In accordance with the provisions of the Road Safety Authority Act 2006, as enacted by the Oireachtas, this is an operational matter for the Road Safety Authority (RSA) and it would therefore not be in accordance with the legislation if I were to issue instructions on such a matter.
I have therefore referred the matter to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
Tax Exemptions
Questions (144)
Neale Richmond
Question:144. Deputy Neale Richmond asked the Minister for Transport if his attention has been drawn to fines being issued for those whose declared their vehicle off-road but it was not received (details supplied); and if he will make a statement on the matter. [36047/21]
View answerWritten answers
There is a facility in place to declare a vehicle off the road where it is not going to be in use in a public place. This is underpinned by the provisions of the Non-Use of Motor Vehicles Act 2013. The primary purpose of the Act is to replace the system whereby a vehicle was declared off the road retrospectively with a system under which the vehicle must be declared off the road in advance.
The current procedures, only allowing for a future declaration of non-use, have been fully in force since 1st October 2013. Under the revised procedures, an owner can indicate that a vehicle is going to be off the road by making a declaration of non-use at any time in the last month of an existing motor tax disc or previously made declaration of non-use. The declaration can be made for any number of calendar months between 3 and 12 months i.e. it cannot be made for a period of 1 or 2 months. If a vehicle is subsequently required to be put back on the road, the declaration can be broken at any time simply by taxing the vehicle, either online or through a motor tax office.
Where a declaration is not made in advance, motor tax must be paid for a minimum of 3 months, along with any arrears of motor tax, where applicable.
An automated response issues in response to emails to motortax@transport.gov.ie ( motortax@dttas.gov.ie in April 2020). This response sets out links to information on www.motortax.ie in respect of the most frequently queries to the mailbox, including the procedures for declaring a vehicle off the road and setting out the position where a declaration is not made in advance. The response also advises that a follow-up email should be sent where the initial response does not address the query raised.
Motor tax legislation does not provide for exemptions in individual cases. You will appreciate the difficulties in providing for exemptions in particular cases, given that other people have had to pay arrears in motor tax where the Declaration of Non-use of a Motor Vehicle was not made on time, and the necessity generally of maintaining a consistent approach in the application of the legislation.
Rail Network
Questions (145)
Martin Browne
Question:145. Deputy Martin Browne asked the Minister for Transport when replacement lift work at Thurles train station will be completed; and the estimated cost of such work. [36095/21]
View answerWritten answers
As Minister for Transport I have responsibility for policy and overall funding in relation to public transport.
As the issue raised is a matter for Iarnród Éireann in the first instance, I have forwarded the Deputy's question to the Company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
EU Meetings
Questions (146)
Martin Browne
Question:146. Deputy Martin Browne asked the Minister for Transport the virtual or in-person meetings he has had with his EU counterparts since his appointment in tabular form.; and if he will make a statement on the matter. [36096/21]
View answerWritten answers
As noted in the Programme for Government, the Government is committed to placing Ireland at the heart of Europe. Membership of the European Union has been transformative for Ireland and its people and I believe that it is in Ireland's best interests to pursue an active and engaged membership by working with our colleagues across the Union.
The following table sets out the meetings that I have had with my EU counterparts, since my appointment as Minister for Transport. Due to the COVID-19 pandemic all of these meetings took place virtually.
|
Event |
Date |
|
Informal Ministerial Transport Council hosted by the German Presidency of the Council of the EU |
29 October 2020 |
|
Introductory call with European Commissioner for Transport, Adina Valean |
10 November 2020 |
|
Informal Ministerial Transport Council hosted by the German Presidency of the Council of the EU |
08 December 2020 |
|
Call with Minister of Climate Action, Environment, Energy, Mobility, Innovation and Technology, Leonore Gewessler (Austria) |
14 December 2020 |
|
Call with Minister for Mobility and Public Works, François Bausch (Luxembourg) |
14 December 2020 |
|
Call with Minister of Transport, Jean-Baptiste Djebbari (France) |
15 January 2021 |
|
Informal Ministerial Transport Council hosted by the Portuguese Presidency of the Council of the EU |
30 March 2021 |
In addition to these engagements, I keep in regular contact with the network of European Green Ministers on various issues. This includes my Ministerial colleagues in Luxembourg, Belgium and Austria.
Ministerial Appointments
Questions (147)
Martin Browne
Question:147. Deputy Martin Browne asked the Minister for Transport the dates he has spoken to the chairperson and or CEO of each State agency under the remit of his Department to date in 2021, in tabular form. [36097/21]
View answerWritten answers
My Department publishes a copy of my Ministerial diary on the Department's website on a regular basis, and details for the January-June 2021 period are currently being compiled by my private office for release in coming weeks.
The following tables set out the dates of my engagements with the Chairs / CEOs of agencies and bodies under the remit of the Department of Transport for the January-June 2021 period:
Irish Aviation Authority
|
22 January 2021 |
Chair, Ms. Rose Hynes |
daa
|
28 April 2021 |
Chair, Mr. Basil Geoghegan |
|
21 May 2021 |
CEO, Mr. Dalton Philips |
National Transport Authority
|
28 January 2021 |
CEO, Ms. Anne Graham |
|
25 March 2021 |
CEO, Ms. Anne Graham |
|
30 April 2021 |
CEO, Ms. Anne Graham |
|
26 June 2021 |
CEO, Ms Anne Graham |
Bus Átha Cliath
|
20 April 2021 |
Chair, Mr. Ultan Courtney |
|
26 June 2021 |
CEO, Mr. Ray Coyne |
Iarnród Éireann
|
19 February 2021 |
CEO, Mr. Jim Meade |
Transport Infrastructure Ireland
|
12 February 2021 |
CEO, Mr. Peter Walsh |
|
25 March 2021 |
CEO, Mr. Peter Walsh |
|
16 April 2021 |
CEO, Mr. Peter Walsh |
|
26 May 2021 |
Meeting with TII Board: Chair, Mr. Cormac O'Rourke CEO, Mr. Peter Walsh |
Road Safety Authority
|
12 March 2021 |
Chair, Ms. Liz O'Donnell CEO, Mr. Sam Waide |
|
18 June 2021 |
CEO, Mr. Sam Waide |
Dublin Port
|
30 June 2021 |
Chair, Mr. Jerry Grant CEO, Mr. Eamonn O'Reilly |
Freedom of Information
Questions (148)
Catherine Murphy
Question:148. Deputy Catherine Murphy asked the Minister for Transport if he is satisfied in the context of the freedom of information publication scheme that all logs are published and up to date in compliance with the Freedom of Information Act 2014; if not, the reason they are not published; and if he will update them as a matter of priority. [36134/21]
View answerWritten answers
The publication of Freedom of Information logs is a priority for the Department of Transport, and we are committed to making this information available on a timely basis. The Department has published all Freedom of Information disclosure logs up to and including Quarter 1, 2021. Quarter 2 is scheduled to be uploaded in August 2021, once all non-personal FOIs received in Q2 have had decisions rendered.
If the Deputy wishes to view the disclosure logs, they can be found at: www.gov.ie/en/collection/c67965-foi-disclosure-logs-2016/
Freedom of Information
Questions (149)
Catherine Murphy
Question:149. Deputy Catherine Murphy asked the Minister for Transport the amount collected on an annual basis since the Freedom of Information Act 2014 commenced in respect of fees attached to freedom of information requests submitted to his Department. [36152/21]
View answerWritten answers
The current Freedom of Information Act came into effect on 14th October 2014. In accordance with SI 264/2003 the previous fee for an FOI application was €15 and the fee for a review was €75 (€10 and €25 respectively for medical card holders) . Under the 2014 Act, the application fee was abolished and the fee for a review was reduced to €30 (€10 for medical card holders).
The fees collected on an annual basis by the Department of Transport in accordance with the Freedom of Information Acts from 2014 to 2020 are set out in the attached table:
|
Year |
Fees collected |
|
2014 |
€1151.82 |
|
2015 |
€685 |
|
2016 |
€252 |
|
2017 |
€320 |
|
2018 |
€692.88 |
|
2019 |
€655 |
|
2020 |
€560 |
The figures provided are inclusive of fees received from search and retrieval, internal reviews and application fees applicable from January-October 2014 (prior to being abolished). While the fee structure has been helpful in terms of discouraging vexatious requests, the Department actively works with each requester to minimise or eliminate the costs that may arise in relation to their request.
Freedom of Information
Questions (150)
Catherine Murphy
Question:150. Deputy Catherine Murphy asked the Minister for Transport the number of freedom of information requests refused by his Department since the Freedom of Information Act 2014 commenced for the reason that search and copy costs would exceed the maximum threshold; the number of requests that were subsequently granted following engagement with the requester to narrow the scope of the request; and the costs associated with same. [36170/21]
View answerWritten answers
The Department of Transport does not record the information that the Deputy requests, as we are not required to maintain such information under the Freedom of Information Act 2014. However I can assure the Deputy that while the cost aspect of the Freedom of Information legislation has been important in terms of discouraging vexatious requests, where the it appears from an initial review of an FOI request that fees might apply, the Department always engages with the requestor to advise them and work with them with a view to reducing, or eliminating, estimated costs. This makes for a more effective and efficient process for all concerned.
Road Projects
Questions (151)
Violet-Anne Wynne
Question:151. Deputy Violet-Anne Wynne asked the Minister for Transport the current status of the A5 motorway project; and when the work is set to commence. [36238/21]
View answerWritten answers
The planning and implementation of the proposed A5 upgrade project is the responsibility of the Northern Ireland authorities.
Following a Public Inquiry into the scheme in early 2020, the Department for Infrastructure received an Interim Report from the Planning Appeals Commission (PAC) in September 2020. After careful consideration and having taken legal advice, the Minister for Infrastructure published the Interim Report together with her Department’s formal response to all the recommendations made by the PAC in the form of an Interim Departmental Statement issued on 16th March 2021.
The Minister for Infrastructure has indicated that she expects the Public Inquiry to be reconvened in early 2022, with a view to the Commission preparing a final report on the scheme.
The funding arrangements in relation to the A5 are governed by the commitments in the Stormont House Agreement and Implementation Plan - A Fresh Start and in the New Decade, New Approach document. The Government is committed to providing funding of £75 million (sterling) towards the cost of phase 1a of the A5 upgrade scheme once the statutory planning process in Northern Ireland has been concluded.
Departmental Schemes
Questions (152)
Violet-Anne Wynne
Question:152. Deputy Violet-Anne Wynne asked the Minister for Transport the status of the six pilot community car schemes that were approved for 2020; and if he will make a statement on the matter. [36240/21]
View answerWritten answers
As Minister for Transport I have responsibility for policy and overall funding in relation to public transport.
It is the National Transport Authority (NTA) which has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including management of the Rural Transport Programme which operates under the Local Link brand.
In light of the NTA's responsibilities in this matter, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
Driver Licences
Questions (153)
Catherine Murphy
Question:153. Deputy Catherine Murphy asked the Minister for Transport the rationale for plans to empower him to revoke a driving licence (details supplied) from a person seeking international protection under the Road Traffic Bill 2021; and the engagements he has had with the Courts Service and the Road Safety Authority in this regard. [36311/21]
View answerWritten answers
As set out in the Programme for Government, the Government will act on interim recommendations from the Chair of the Expert Group on the Provision of Support, Including Accommodation, to Persons in the International Protection Process (Asylum Seekers) to improve conditions for asylum seekers in Ireland. This includes the ability to apply for driving licences.
A person must be resident in Ireland to apply for an Irish learner permit or driving licence. An international protection applicant is granted temporary residency while their application to remain is considered. In consulting the European Commission, my department was advised that a mechanism for revocation is required, should a licence holder cease to be resident in the State.
Officials in my Department are examining the operational and legislative amendments required to allow a person with temporary residency to have access to the driving licensing system and are working with colleagues in the Road Safety Authority, the Department of Justice and the Attorney General's Office on this matter.
Driver Licences
Questions (154)
Johnny Mythen
Question:154. Deputy Johnny Mythen asked the Minister for Transport if his attention has been drawn to past or present delays in the application of penalty points being put on driving licences; the cause of these delays; the number of these delays there has been in each of the years 2018 to 2020 and to date in 2021; the procedure and policy for such an instance; and if he will make a statement on the matter. [36409/21]
View answerWritten answers
Penalty Points records are processed on the National Vehicle and Driver File (NVDF) without delay by my Department on receipt of the details from An Garda Síochána and The Courts Service.
Although penalty points are applied immediately to the offending driver record, the penalty point duration period is suspended in certain circumstances according to legislation, for instance when the driver’s license has expired and has not been renewed at the time of the offence or where the driver is serving a disqualification for a separate offence.
Without your constituent's driver number, it is difficult for my officials to clarify the circumstances of this particular case. They may wish to contact my Department's office in Shannon should they wish to discuss the matter further.
Driver Test
Questions (155)
Peter Burke
Question:155. Deputy Peter Burke asked the Minister for Transport the status of a driver theory test for a person (details supplied). [36440/21]
View answerWritten answers
The driving theory 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.
Public Transport
Questions (156)
James O'Connor
Question:156. Deputy James O'Connor asked the Minister for Transport his views on discrepancies between bus ticket prices on routes (details supplied); and if he will make a statement on the matter. [36443/21]
View answerWritten answers
As 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 operations of public transport.
Following the establishment of the National Transport Authority (NTA) in December 2009, the NTA has responsibility for the regulation of fares charged to passengers in respect of public transport services, provided under public service obligation (PSO) contracts. Further, Bus Éireann’s Expressway services are commercial bus services and responsibility for setting fares for those services is a matter for the company.
I have, therefore, referred the Deputy's question to the NTA and Bus Éireann for direct reply. Please advise my private office if you do not receive a reply within ten working days.
Driver Test
Questions (157)
Brendan Griffin
Question:157. Deputy Brendan Griffin asked the Minister for Transport if a person (details supplied) in County Kerry will be given a date for a driver theory test to allow them to take up an employment opportunity; and if he will make a statement on the matter. [36527/21]
View answerWritten answers
The driving theory 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.
Covid-19 Pandemic Supports
Questions (158)
Niall Collins
Question:158. Deputy Niall Collins asked the Minister for Finance his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [36441/21]
View answerWritten answers
The Covid Restrictions Support Scheme (CRSS) is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.
Details of CRSS were published in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website.
The CRSS applies to businesses carrying on trading activities from a business premises located in a region subject to restrictions, which requires the business to prohibit or considerably restrict customers from accessing their business premises and as a result, is operating at less than 25% of turnover in 2019.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or significantly restrict access to its business premises. This means that in the case of a travel agent that operates from a business premises, they may qualify for support under the scheme provided they meet all the eligibility criteria, including the requirement that customers are either prohibited, or significantly restricted, from accessing their business premises under the public health regulations.
As non-essential retail, including travel agent businesses, were permitted to open from 17 May 2021, they are no longer subject to Covid restrictions which would require them to prohibit or significantly restrict customers from accessing their business premises. Therefore, from that date, they ceased to qualify for support under the CRSS. However, subject to meeting the relevant criteria, a business such as a travel agent business, reopening after a period of restrictions, may claim a “restart week payment” under the CRSS scheme to assist it with the costs of reopening.
For businesses reopening between 29 April 2021 and 1 June 2021, an “enhanced restart week payment” may be claimed, which is computed at double the normal weekly CRSS rate, for two weeks, subject to a maximum weekly amount payable of €5,000.
On 1 June, I announced that an additional business support scheme, the Business Resumption Support Scheme (BRSS), would be available for businesses whose turnover in the period from 1 September 2020 to 31 August 2021 is reduced by 75% compared with their 2019 turnover. To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The BRSS will come into operation from early September. Under the scheme, a qualifying business will be able to claim a cash payment calculated as three times the sum of 10% of their average weekly turnover up to €20,000 and 5% on any excess of average weekly turnover above €20,000, subject to a maximum payment under the scheme of €15,000.
Companies and self-employed individuals may be entitled to support under other measures put in place by Government, including the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.
The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with my Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
Tax Forms
Questions (159)
Catherine Murphy
Question:159. Deputy Catherine Murphy asked the Minister for Finance if his attention or the attention of the Revenue Commissioners has been drawn to instances in which persons in the construction sector are required to complete paperwork (details supplied) in order to secure work; if he will engage with the Revenue Commissioners in respect of same and seek their views and or actions they will take arising from the information contained; and if he will make a statement on the matter. [35818/21]
View answerWritten answers
Since 2012 all Relevant Contracts Tax (RCT) compliance, filings and payments, is conducted online using the Revenue Online Service (ROS).
An important feature of the online RCT system is the submission of contract notifications to Revenue. These contract notifications provide Revenue with information regarding the contract between the principal and the subcontractor. Prior to the principal submitting a contract notification to Revenue, the principal is obliged to seek and retain proof of identity from the subcontractor. The contract notification must include the subcontractor’s name and tax reference number or where the tax reference number is not known, the subcontractor’s contact information, including the subcontractor’s address, phone number and email address. The contract notification also requires information regarding the contractual relationship between the principal and the subcontractor, to ensure that it is not one of employer-employee. Details in relation to the contract itself must also be provided, including the sector involved, nature of work, site identification number, start date and end date and the value of the contract.
Details supplied by principals regarding subcontractors enables Revenue to monitor that subcontractors are registered with Revenue and are complying with their tax obligations.
Revenue has advised that the introduction of the online RCT system in 2012 has reduced the administrative burden, for both principals and subcontractors, associated with RCT. This was facilitated by the online system tailoring information requests based on the circumstances of each contract. The electronic system has reduced tax fraud in the sectors that come within RCT and has also increased the tax compliance of subcontractors.
I know the Deputy has been interested in the employment/self-employment status of workers in the construction sector and there is an onus on principal contractors to ensure the status of sub-contractors when engaging them. While the documentation provided by the Deputy is not prescribed by Revenue, some of the information is required to comply with the online RCT system. The balance of the information may be relevant to Health and Safety and contractual details.
Insurance Coverage
Questions (160)
Pearse Doherty
Question:160. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the problems faced by the tree surgery industry in accessing affordable insurance; the actions he has taken in relation to same; and if he will make a statement on the matter. [35822/21]
View answerWritten answers
At the outset it is important to note that neither I, nor the Minister for Finance or the Central Bank, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
Notwithstanding this, the Government understands the concerns felt by many groups, including the arborist sector, regarding the cost and availability of insurance. Accordingly, insurance reform is high on the Government agenda. In this regard, the Action Plan for Insurance Reform sets out 66 actions which aim to bring down costs for consumers and business; introduce more competition into the market; prevent fraud and reduce the burden that insurance costs can have on business, community and voluntary organisations. The Plan is ambitious, with 95% of actions due to be completed in 2021, and work is continuing across several Government departments to deliver these key reforms.
I would note that significant progress has been made on the reform agenda. Of note is the adoption of new personal injuries guidelines. These have reduced awards and I now expect that premiums will decline as a consequence. It is something I have impressed in my bilateral engagements with the insurance industry over recent months.
Another significant achievement has been the creation of the Office to Promote Competition in the Insurance Market within the Department of Finance. The role of the Office, which I chair, is twofold: to assist in reducing insurance costs, and increasing the availability of cover, by promoting competition in the Irish insurance market. The Office has held a number of meetings with several key stakeholders, including representatives of civic society, to discuss important matters regarding reducing cost, consumer empowerment and increasing the provision of relevant information.
The Office is also working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. In conjunction with the IDA, my officials are developing a customised proposal for potential new market entrants and are identifying a shortlist of specific targets to engage intensively with. This proposal will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market.
I would like to add that we are already seeing the insurance industry respond positively to our reform progress with the announcement recently by some specialist providers that they will expand their footprint in Ireland. This should help ease the capacity issues particularly in the professional indemnity market, which has been prominent in recent years.
Finally, it is my firm belief that ongoing work across Government to deliver the remaining elements of the Action Plan, including measures to reform the Personal Injuries Assessment Board (PIAB), reduce fraud, and make changes to the duty of care, will help more companies to expand their product lines or enter into the Irish market. This, in turn, will lower the insurance costs for customers across all sectors.
Departmental Schemes
Questions (161)
Seán Sherlock
Question:161. Deputy Sean Sherlock asked the Minister for Finance if he plans to restart the spend and save scheme again. [35832/21]
View answerWritten answers
I understand that the question relates to the Stay and Spend tax credit scheme.
The purpose of the scheme was to provide targeted support to businesses within the hospitality sector whose operations are likely to be most affected by continued restrictions on public health grounds. The scheme ended on 30 April.
Since 1 October 2020, a total of 66,725 receipts have been uploaded to the Revenue Receipts Tracker, as at 1 July 2021. The related expenditure recorded on these receipts amounts to €10,036,454, and the potential tax cost is €2,207,291, assuming all such expenditure is claimed and qualifies in full for tax relief. Subsequent to claims being made in respect of this scheme and any other relief or deduction, verification of such reliefs and deductions forms part of Revenue’s comprehensive risk assessment programme.
The scheme was developed at a time last year when there appeared to be a steady downward trend in infection rates and there was an expectation that the re-opening of the economy could be sustained uninterrupted. Unfortunately, this has not been the case and, with the exception of some short periods, public health restrictions had the effect of impeding the operation of the incentive as originally envisaged.
While I am very mindful of the significant difficulties that remain to be faced by the hospitality sector, I made the determination that the broad interests of taxpayers would not have been best served by extending the scheme over the summer months in circumstances where most will be staying at home and hopefully holidaying in Ireland. This is particularly the case when other very significant support measures will remain in place.
Currently, I do not have plans to re-introduce the Stay and Spend scheme. However, it may be useful to highlight and summarise the significant supports that remain available to support businesses in the hospitality sector:
- In recognition of the unprecedented challenges facing the Hospitality and Tourism sector, the VAT rate was reduced from 13.5% to 9% from 1 November 2020. This is a temporary but important measure to provide support to the sector, where many businesses remain closed for now and those that are open are operating at significantly reduced capacity. It was originally to apply until 31 December 2021. However, the reduced rate will be extended to 1 September 2022. The extension until the end of the 2022 summer season allows for a longer period of recovery for the sector. It should be noted that this VAT rate reduction came after the introduction of the Stay and Spend Tax Credit and reflects the fact that the latter was not intended to be the sole sector-specific support for hospitality.
- In addition, the Employment Wage Subsidy Scheme (EWSS) continues to be a key component of the Government’s response to the COVID-19 crisis to support viable firms and encourage employment in the hospitality and tourism sector and beyond.
- The Covid Restrictions Support Scheme (CRSS) is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the COVID-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with COVID-19 Plan.
- The extension of the tax debt warehousing scheme to allow the period where liabilities arising can be “warehoused” to be extended to the end of 2021 for all eligible taxpayers, with an interest free period during 2022, and to include overpayments of EWSS in the scheme.
Tax Code
Questions (162)
Seán Canney
Question:162. Deputy Seán Canney asked the Minister for Finance if he plans to reduce the VAT on the music and entertainment industry in line with the hospitality sector; and if he will make a statement on the matter. [35855/21]
View answerWritten answers
In Budget 2021, I introduced a temporary reduced rate of VAT, 9%, to apply to tourism and hospitality related services from 1 November 2020 to 31 December 2021, and the Finance (Covid 19 and Miscellaneous Provisions) Bill currently before the House proposes that this temporary rate continue until 31 August 2022.
The Deputy is asking that this arrangement be applied to the music and entertainment industry. I can assure the Deputy that the provision I introduced in 2020 does already apply the temporary 9% VAT rate to admission fees for cinemas, theatres and musical performances. The Deputy will also be interested to know that, under long-standing provisions in Irish legislation, admission fees to live theatrical or musical performances are actually exempt from VAT, subject to certain conditions.
I am advised by Revenue that the VAT treatment of admissions to theatrical or musical performances is dependent on the type of event and whether there are facilities available for the consumption of food or drink (including alcohol) during all or part of the performance. In broad terms -
- if there is a live performance and if food or drink are not available, then the admission tickets are exempt from VAT.
- If there is a live performance with food or drink available, then the admission tickets are subject to the reduced rate of VAT, currently 9%.
- for venues and events where the entertainment, if any, is not a live theatrical or musical performance, including dances, discos, nightclubs and pubs, the standard rate of VAT, currently 23%, applies to admission charges.
Where a music band is being hired for a function, such as a wedding, the hiring service is subject to the standard rate of VAT, currently 23%.
Tax Code
Questions (163)
Seán Canney
Question:163. Deputy Seán Canney asked the Minister for Finance if he will reduce the VAT rate on construction works from 13.5% to counteract the increases in costs experienced by first-time buyers; and if he will make a statement on the matter. [35856/21]
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The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. Under the EU VAT Directive it is not permissible to differentiate between the supply of different types of residential property, such as apartments and housing, for the purpose of applying VAT rates. Nor is it possible to change the VAT rate for first-time buyers.
While most Member states apply the standard rate to construction services, Ireland already applies a 13.5% reduced rate of VAT to all construction services under a derogation from the EU VAT Directive.
I am advised by the Revenue Commissioners that under the EU VAT Directive and Irish VAT legislation the supply of building materials is liable to VAT at the standard rate, currently 23%. Member states are not permitted to apply a VAT rate lower than the standard rate to building materials. However, Ireland by way of derogation from the general rule is permitted to continue to apply a reduced rate, currently 13.5%, to the supply of ready-to-pour concrete and certain concrete blocks.
Property developers charge VAT on sales of developed residential property at the 13.5% rate but are entitled to recover the VAT incurred in the development of that property, including VAT on building materials. As such, a reduction in the rate of VAT on building materials would not reduce building costs.
National Asset Management Agency
Questions (164)
Peadar Tóibín
Question:164. Deputy Peadar Tóibín asked the Minister for Finance the number of former employees of NAMA who have left and become employees of property development companies; the person or body in relation to same; the companies they have or work for; if his Department or NAMA record such details; and the timeframe required between when a person is an employee of NAMA and when they then take up employment either directly or on contract with a property development company. [35889/21]
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All NAMA staff are employees of the NTMA as Section 42 of the National Asset Management Agency Act, 2009 provides that the NTMA shall assign staff to NAMA. Other than a small number of staff re-assigned from other functions within the NTMA, NAMA staff are employed on the basis of specified purpose contracts i.e. their employment lasts for as long as NAMA requires their particular function.
Since inception, staff assigned to NAMA have a 3-month notice period and garden leave provision in their contracts. Following a review of NTMA notice periods and post termination restrictions of employment, a provision prohibiting certain activities in an employee's subsequent employment for a defined period of time has also been introduced on a case by case basis. NAMA is not obliged to record the details of future employers for individuals who leave the organisation.
The Deputy will also be aware of Section 202 provisions in the NAMA Act, which are lifelong provisions with respect to confidentiality for all current and former staff assigned to NAMA and to members of the NAMA Board.