Cycling Policy

Dáil Éireann Debate, Tuesday - 27 July 2021

Tuesday, 27 July 2021

Questions (360)

Gerald Nash

Question:

360. Deputy Ged Nash asked the Minister for Finance the estimated cost of introducing a cycle to school scheme based on the cycle to work scheme by which a parent can claim back the cost of one bicycle per child through their salary; and if he will make a statement on the matter. [39918/21]

Written answers

Minister for Finance

As the Deputy will be aware, the current cycle to work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.

Tax expenditure reports prepared by my Department have estimated the full year's cost at €4 million but have been clear that this figure was an estimate as separate returns are not required.

The potential cost of a cycle to school scheme would depend on uptake and the marginal rate of tax being paid by the parent and the threshold value allowed under such a scheme. CSO data from the Census in 2016 shows that 7,326 children aged between 5 and 12 years, and 7,282 students at school or college aged between 13 and 18 years used bicycles as their means of transport. This could give a potential uptake of 14,608 but each child would not get a new bicycle each year.

The cost per bicycle in the tax expenditure reports is estimated at €200 and it would not be unreasonable to make the same assumption for a cycle to school scheme. If one third of the number cycling got a new bicycle each year, this would give an annual cost of approximately €1 million.

I should add that including bicycles for use by children to cycle to school would add to the administrative burden on employers of participating in the scheme. Furthermore, I would expect considerable deadweight in such a proposal with people benefitting who would have purchased a bicycle in any event.