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Wednesday, 3 Nov 2021

Written Answers Nos. 76-90

Driver Test

Questions (76, 77)

Neale Richmond

Question:

76. Deputy Neale Richmond asked the Minister for Transport the status of steps being taken to clear the waiting list for driver tests; and if he will make a statement on the matter. [53516/21]

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Neale Richmond

Question:

77. Deputy Neale Richmond asked the Minister for Transport when he expects the waiting list for driver tests to be cleared; and if he will make a statement on the matter. [53517/21]

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Written answers

I propose to take Questions Nos. 76 and 77 together.

Due to the suspension of driver testing services in the initial pandemic response, along with the health protocols required since the resumption of services, services are operating below normal capacity and a significant backlog has developed.

In line with the gradual reopening of services this summer, driving tests for all those who are eligible to take the test and have been waiting longest have now recommenced. Critical frontline workers continue to be the priority for the driver testing service.

The service continues to operate under restrictions in the interest of making it a safe environment while there is an ongoing presence of Covid. Given the necessity for a tester to be in close proximity to a test candidate, and to get into vehicles brought by the candidates which are therefore not a controlled environment, this places obvious limits on the capacity of the test service.

When the service resumed in June 2020, testers were conducting five tests each per day. Since 27 September 2021, this has been increased to seven tests per tester per day.

In order to deal with the backlog, the RSA received sanction to hire 40 new temporary testers, in addition to 36 they were sanctioned to retain or rehire in 2020. These new testers have completed their training and are now conducting live tests since July 2021. Sanction has also been granted to recruit a further 40 testers. An extra 10 temporary test centres have been opened and a further 9 locations have been expanded within the existing premises, to accommodate more testers.

The volume of tests being offered weekly continues to grow and for the past 4 weeks the average increased to 4098 tests being offered per week. There is now real progress to be seen in the increase in capacity in the service.

Question No. 77 answered with Question No. 76.

Electric Vehicles

Questions (78, 79)

Richard Boyd Barrett

Question:

78. Deputy Richard Boyd Barrett asked the Minister for Transport the reason the electric small public vehicle grant scheme has been closed; if the closure is temporary; if so, when it will resume; if the unspent €9 million budget will be carried over to the next year; if it will be in addition to that allocated for 2022; the amount of same; and if he will make a statement on the matter. [53518/21]

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Richard Boyd Barrett

Question:

79. Deputy Richard Boyd Barrett asked the Minister for Transport the reason an extension on applications for the electric vehicle grant for taxi drivers was given to those who have committed to buy an electric vehicle costing over €60,000 but was not given to those who have not committed to buy an electric vehicle under €60,000; and if he will make a statement on the matter. [53519/21]

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Written answers

I propose to take Questions Nos. 78 and 79 together.

The aim of the Electric Small Public Service Vehicle (eSPSV) Grant Scheme 2021 is to increase the uptake of fully electric SPSVs and zero-emission capable wheelchair accessible SPSVs. It is aimed at improving air quality in urban areas, together with influencing the uptake of zero emission passenger cars by improving general perception and awareness of the benefits of electric vehicles. The SPSV industry is regarded as a champion in the normalisation of electric vehicle use. The Scheme is funded by the Department and administered by NTA acting as agents of the Department with delegated authority and as the licensing authority for SPSVs.

€15m was allocated to support taxis to switch to electric. Over €8m has now been paid out to applicants under the scheme with the remaining funds committed in the form of provisional grant offers.

Per the Terms and Conditions of the eSPSV Grant Scheme 2021 the scheme may close if funding has reached capacity. The funds have reached capacity for 2021 and therefore the scheme closed as of 30th September 2021.

The Department has funded an eSPSV scheme in previous years and as part of the Budget 2022 it was announced that there will be a scheme available in 2022.

In addition, per the Terms and Conditions of the eSPSV Grant Scheme 2021 any Grant Offer Letter issued to an applicant is valid until the earliest of three calendar months from the date of the Grant Offer Letter, the Scheme End date or 31 December 2021. The three calendar month period has been selected to allow reasonable time for vehicle delivery and completion of the vehicle licensing process.

However, any eSPSV which has an existing grant offer and was due to be delivered in 2021 but has met unforeseen delays due to semi-conductor shortage, may avail of an extension to 31st March 2022. This applies to an eSPSV of any value. Grant applicants should contact the NTA to arrange for this extension in relation to vehicles purchased and due for delivery in 2021.

The allocation of funding to be carried forward into the next year is a matter for the Minister for PER, and I am engaging with him on this matter.

Question No. 79 answered with Question No. 78.

Public Transport

Questions (80)

John Paul Phelan

Question:

80. Deputy John Paul Phelan asked the Minister for Transport if he plans to include private bus operators in the new young adult travel card scheme that was recently announced as part of Budget 2022; if not, the reason; and if he will make a statement on the matter. [53520/21]

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Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport, nor decisions on fares.

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.

As part of Budget 2022, I secured €25m of funding to provide for the introduction of a youth travel card (YTC). The YTC will allow any person nationwide who is between 19 and 23 years old to avail of an entitlement for discounted travel costs and to increase the level of discount over and above the current student discount to an average discount of 50% across all services, including city, intercity and rural services.

The NTA have commenced work in relation to the implementation of the new fares structures for young adults. I have therefore forwarded the Deputies 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

Electric Vehicles

Questions (81)

Emer Higgins

Question:

81. Deputy Emer Higgins asked the Minister for Transport his plans to expand the use of electric vehicles in public transport services, in particular bus services. [53546/21]

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Written answers

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 the planning and development of public transport infrastructure, including the provision of the public transport fleet.

Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.

Harbours and Piers

Questions (82)

Joe Carey

Question:

82. Deputy Joe Carey asked the Minister for Transport if his attention has been drawn to a matter (details supplied); and if he will make a statement on the matter. [53583/21]

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Written answers

My Department does not provide any funding for development and maintenance of local authority owned piers or harbours.

It is my understanding there has been contact between the RNLI and the relevant local authority on this matter.

Road Projects

Questions (83, 84, 85)

Pat Buckley

Question:

83. Deputy Pat Buckley asked the Minister for Transport if he has considered a road funding indexed linked model to the number of kilometres of roads in each county as a fairer way of addressing funding shortages in certain counties; and if he will make a statement on the matter. [53600/21]

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Pat Buckley

Question:

84. Deputy Pat Buckley asked the Minister for Transport if he will consider a special road funding model to address access to coastal towns and villages and beaches to help to promote tourism; and if he will make a statement on the matter. [53601/21]

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Pat Buckley

Question:

85. Deputy Pat Buckley asked the Minister for Transport if his Department will make emergency funding available to East Cork Municipal Council to address the serious road safety issues at Churchtown South in east County Cork; and if he will make a statement on the matter. [53602/21]

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Written answers

I propose to take Questions Nos. 83 to 85, inclusive, together.

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 (RLR) allocations in February this year and all grant funding available to my Department has now been allocated. The allocation made available to Cork County Council this year is €68.5 million.

The Department appreciates that, within the overall parameters set for the regional and local road grant programmes, 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.

There were major cutbacks in funding for the road network in general during the post 2008 recession. As a result there is a backlog of road repair works in all local authority jurisdictions across the country. As funding is not yet at the level needed for the adequate protection and renewal of regional and local roads, the primary focus for capital investment continues to be the protection and renewal of the network with some limited investment in road improvement projects.

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.

The main regional and local road grant programmes are focussed on specific policy objectives i.e. surface sealing to protect the road surface from water damage, road strengthening based on pavement condition rating to lengthen the life of roads and a Discretionary Grant Scheme which allows for a specified range of activities including winter maintenance. These 3 grant programmes account for most of the grant funding. Apart from a requirement that 15% of the road strengthening grant is spent on regional roads, the allocation of funding to different categories of road is a matter for decision by each local authority.

Question No. 84 answered with Question No. 83.
Question No. 85 answered with Question No. 83.

Bus Services

Questions (86)

Pearse Doherty

Question:

86. Deputy Pearse Doherty asked the Minister for Transport if there are plans to address the frequent cancellations of Bus Éireann Route 30 between counties Donegal and Dublin; if there are plans to ensure that such cancellations are always published on the Bus Éireann website; and if he will make a statement on the matter. [53605/21]

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Written 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 operation of public transport services.The issues raised are a matter for Bus Éireann and I have forwarded the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a response within ten working days.

Rail Network

Questions (87)

Róisín Shortall

Question:

87. Deputy Róisín Shortall asked the Minister for Transport the timescale for the delivery of MetroLink; the details of the estimated timing of each of the key milestones; and if he will make a statement on the matter. [53616/21]

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Written answers

MetroLink is likely the largest ever public investment project in the history of the State. It faces imminent and important milestones in the coming months and these milestones will determine its progress in the coming years.

Firstly, there is Government’s approval of the Preliminary Business Case and secondly there is the submission of a Railway Order application to An Bord Pleanála. On that first milestone, my Department has received draft Preliminary Business Cases for MetroLink. This represents Decision Gate 1 under the Public Spending Code and the Preliminary Business Case is currently under review.

For major projects, like MetroLink, the Public Spending Code requires a Government decision and I expect to seek such a Government decision in the near future. If approved by Government, that will allow MetroLink to move into the statutory planning system, subject to the completion of the necessary planning and environmental documentation.

The second impending milestone is the submission of Railway Order applications for MetroLink. That application requires the finalisation of an extensive set of documentation, including environmental impact assessment reports, and that work is ongoing in relation to this project.

I understand that an extensive body of work remains in relation to finalising the preliminary design, completing the required environmental impact assessment reports and closing out property referencing issues. This should be completed during Q1 next year and, subject to the Government decision mentioned above, the project will then be ready to seek planning permission.

An actual construction start date will ultimately be determined by the planning process and Government approval to proceed to construction at that time.

I trust this clarifies the current position.

Insurance Industry

Questions (88)

Mattie McGrath

Question:

88. Deputy Mattie McGrath asked the Minister for Finance the efforts being made to reduce the cost of insurance for returning Irish emigrants who are penalised due to time spent abroad; and if he will make a statement on the matter. [53419/21]

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Written answers

At the outset it is important to note that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland can intervene in the provision or pricing of insurance products, or have the power to direct insurance companies to provide cover in such circumstances. This position is reinforced by the EU framework for insurance (the Solvency II Directive).

On a general level, my understanding is that insurers will use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. For example, in relation to motor insurance, factors may include those such as the age of the driver and the relevant driving experience, as well as the age and type of vehicle, how the vehicle is used, the claims record, the number of drivers, and the location of storage. Insurers also price in accordance with their own past claims experience, and do not all use the same combination of rating factors, so as a result prices vary across the market.

Notwithstanding this, the difficulties faced by returning emigrants in respect of motor insurance was recognised by the Cost of Insurance Working Group (which ran between 2016 and 2020) and was the subject of a particular recommendation. In this regard, a protocol was agreed between Insurance Ireland and the Department of Finance in relation to returning emigrants, under which insurance companies committed to accepting the driving experience of such drivers gained while abroad, when the driver has had previous driving experience in Ireland. The details of it is available on Insurance Ireland’s website and the websites of its member companies.

The guiding principle of the protocol is to ensure that a returning emigrant is not treated differently to any other driver, subject to verification of their continued driving experience and the normal acceptance criteria of the company. Thus, a returning emigrant will not be disadvantaged from spending that time abroad. Furthermore, under the protocol, insurance companies will not distinguish between countries on the basis of which side of the road driving takes place therein. My Department continues to review the implementation of this recommendation through its regular engagement with Insurance Ireland.

In relation to insurance more generally, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. It is my intention, along with Minister of State Fleming, to work to ensure that the commitments outlined in the Programme for Government are progressed in accordance with the Action Plan for Insurance Reform. As the Deputy may be aware, the Cabinet Committee Insurance Reform Sub-Group in July published the first six-monthly Implementation Report of the Action Plan. This shows that work is progressing well to implement these important reforms, with 34 of the 66 actions now completed. The Sub-Group’s focus now is on implementing the outstanding actions on time.

I would also like to note that, according to Central Statistics Office (CSO) data for September 2021, motor insurance prices are continuing to decline. Motor insurance prices in June were 36.6% lower than their peak in July 2016; and 8.4% lower than when the Government’s Cabinet Committee Sub-Group on Insurance Reform was established in September 2020. It is the Government’s intention that this positive downward trend continues as the reform agenda progresses, including for returning emigrants.

In addition, it may interest anyone affected by this issue to know that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover. This can be accessed at feedback@insuranceireland.eu. In addition, Brokers Ireland can be contacted at insurancequeries@brokersireland.ie.

I would like to assure the Deputy that work remains ongoing across Government to deliver further elements of the Action Plan, including measures to reform the Personal Injuries Assessment Board, reduce fraud, and make changes to the duty of care in order to strengthen waivers and notices. It is my hope that the implementation of these key actions in particular should further help to improve the affordability and availability of insurance for all consumers, businesses and voluntary groups – including motorists in particular.

Tax Exemptions

Questions (89)

Éamon Ó Cuív

Question:

89. Deputy Éamon Ó Cuív asked the Minister for Finance if he plans to remove the condition that a person must be a dependent relative of the person making a gift of a house to another person as long as all the other conditions are met for the purposes of the gift being exempt from capital acquisitions tax; the reason the law provides at present that the receiver must be a dependent relative; and if he will make a statement on the matter. [53442/21]

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Written answers

The original policy objective of the dwelling house exemption relief was to alleviate the hardship of an inheritance tax liability for a person who inherits a house in which he or she had been living with the deceased and to ensure that the person did not have to sell the house to pay the tax liability. Over time, however, the relief had moved away from its original policy focus, and was being used regularly for the purpose of gifts.

Consequently, changes were agreed in Finance Act 2016 so that the dwelling house exemption is only available for inheritances, and not gifts. The exception to this is where a person gifts a dwelling house to a dependent relative. For this purpose, a dependent relative is a direct relative of the donor, or of the donor’s spouse or civil partner, who is permanently and totally incapacitated because of physical or mental infirmity from maintaining himself or herself or who is over the age of 65.

The intention in allowing such gifts under the dwelling house exemption is to facilitate independent living for infirm and elderly people.

I have no plans to remove the condition that, in the context of gifts qualifying for the dwelling house exemption, a person must be a dependent relative of the person making a gift of a house to another person.

Tax Code

Questions (90)

Richard Bruton

Question:

90. Deputy Richard Bruton asked the Minister for Finance if changes in the benefit-in-kind tax treatment of electric vehicles now make it attractive for those availing of that relief to switch back to diesel cars; and if he will make a statement on the matter. [53543/21]

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Written answers

In Finance Act 2019 I legislated for a CO2-based BIK regime for company cars from 1/1/2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four.

I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). However, in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold.

The BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging. The new BIK regime will commence on 1/1/2023 and from that date EVs will benefit from a preferential rate of BIK, ranging from 9 – 22% depending on mileage. ICE vehicles will be subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges will incentivise employers to provide employees with low-emission cars.

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