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Wednesday, 17 Nov 2021

Written Answers Nos. 64-78

Road Projects

Questions (64)

Sorca Clarke

Question:

64. Deputy Sorca Clarke asked the Minister for Transport the status of the Glasson bypass, County Westmeath. [56474/21]

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Written answers

As Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.

Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.

Pensions Reform

Questions (65)

Paul McAuliffe

Question:

65. Deputy Paul McAuliffe asked the Minister for Transport further to Parliamentary Question No. 199 of 27 July 2021, when he expects the statutory instruments to be signed for a pension scheme (details supplied); and if he will make a statement on the matter. [56475/21]

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Written answers

The CIÉ Group has two pension schemes, namely the Regular Wages Scheme ("RWS") and 1951 superannuation scheme ("1951 Scheme"), and issues in relation to CIÉ pension schemes are primarily a matter for the trustees of the schemes, the CIÉ Group and their employees.

Concerning the 1951 scheme, members of the scheme were balloted regarding the Labour Court Recommendation which emerged on 23rd November 2020, with a majority voting to accept the proposals. CIÉ has prepared and submitted a consolidated draft Statutory Instrument to give effect to the proposed changes to the scheme which is being considered by my Department in conjunction with NewERA.I further wish to advise that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. As such, being sub-judice, it is not appropriate for me to comment further on the matter.

Programme for Government

Questions (66)

Holly Cairns

Question:

66. Deputy Holly Cairns asked the Minister for Transport the steps he is taking to fulfil the programme for Government commitment to run a pilot to examine the potential for ride-sharing applications to improve rural connectivity. [56528/21]

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Written answers

The Deputy may wish to be aware that a pilot to examine the potential for ride-hailing services to improve rural connectivity will be established as part of Action 91 of Our Rural Future, the Government's Rural Development Policy for 2021-2025. This action will be progressed after the COVID-19 pandemic has abated.

Bus Services

Questions (67)

Richard O'Donoghue

Question:

67. Deputy Richard O'Donoghue asked the Minister for Transport the details of the subsidies provided to Bus Éireann and all other public bus services annually in each of the years 2018 to 2021. [56534/21]

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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 securing the provision of public passenger transport services nationally. Since 2010, the award of Public Service Obligation (PSO) funding falls under the independent statutory remit of the NTA. The allocations to the individual public transport operators are decided by the NTA in accordance with the various contract arrangements that it has in place with PSO service providers.

Therefore, I have forwarded the Deputy's question 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

Revenue Commissioners

Questions (68)

Cathal Crowe

Question:

68. Deputy Cathal Crowe asked the Minister for Finance if adjustments will be made by the Revenue Commissioners in terms of determining the basic exemption and increased exemption rates applicable to paid redundancy lump sums; and if he will make a statement on the matter. [56259/21]

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Written answers

The Redundancy Act 1967, as amended, prescribes the minimum redundancy lump sum for qualified employees, generally referred to as 'statutory redundancy'. Statutory redundancy is based on the employee's length of reckonable service and their normal weekly remuneration subject to a ceiling of €600 per week.

The Act does not stipulate the normal weekly remuneration to be used when an employer places an employee on short-time work or reduced hours or salary. However, the general guidance has been that if an employer has placed an employee on short-time work or reduced hours for certain periods of time, the full-time salary should be used for the calculation of statutory redundancy.

During the Covid-19 pandemic, some employees will have been placed on short-time work or reduced hours, or were paid through the Employment Wage Subsidy Scheme (EWSS) and the previous Temporary Wage Subsidy Scheme (TWSS). These schemes were introduced as exceptional measures to assist businesses and employees during the emergency Covid-19 situation.

In the event of any dispute regarding the amount of the statutory redundancy lump sum, an employee can refer a complaint to the Workplace Relations Commission.

Financial Instruments

Questions (69)

Violet-Anne Wynne

Question:

69. Deputy Violet-Anne Wynne asked the Minister for Finance his views on the claim that section 62 of the Finance Bill 2021 will have a negative impact on the housing crisis as is it will preclude parents from being able to assist their children to purchase their first home; and if he will make a statement on the matter. [56343/21]

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Written answers

As the Deputy may be aware the purpose of this amendment was to make a change to section 40 of the Capital Acquisitions Tax Consolidation Act 2003, which provides for a charge to capital acquisitions tax in relation to the free use of property.

The central thrust of the amendment was to change the methodology for valuing the free use of cash in the form of an interest-free or low interest loan for CAT purposes from a practice whereby Revenue accept the current best financial institution deposit interest rate as the best price obtainable in the open market at the end of each year, to one which would be the cost of borrowing an equivalent amount on the open market. In other words, the basis for calculation would be changed from what it costs the disponer to make the loan to what it would cost the beneficiary to borrow this money on the open market.

In response to the Deputy’s question, I do not believe that if section 62 remained in the Finance Bill it would have a negative impact on the housing crisis and this is not the reason that it is being withdrawn. It is important to note that the reason that I am withdrawing this section is that I believe greater consideration needs to be given to the proposal. It has been pointed out to me that the current drafting has the potential to create inconsistencies as to how it will be applied, with the potential for variation in rates being used. For instance, determining the value of an interest-free loan to buy a house could prove challenging in the context of the variety of competing financial products that are available in the market, and the different conditions that could impact on the appropriate borrowing rate to be used, depending on the particular circumstances of a case.

In summary, this issue is complex. Therefore I believe more time needs to be given to determining whether this change is warranted in the first place, and if it is, to decide on how this issue can be appropriately addressed in legislation in such a way that it gives people certainty as to the rates to be applied.

Housing Schemes

Questions (70)

Carol Nolan

Question:

70. Deputy Carol Nolan asked the Minister for Finance if a couple who are first-time buyers who recently bought an unfinished house, which was never inhabited and which was built in 2009, in an unliveable condition at the time of purchase will qualify for the help-to-buy scheme given that the registered builder of the house is not in the help-to-buy scheme; and if he will make a statement on the matter. [56368/21]

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Written answers

The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.

I am advised by Revenue as follows:

A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser, that he or she has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. Also, the new property must be occupied as the sole or main residence of a first-time purchaser. First-time purchasers who intend to purchase a new property should also ensure their contractor is a Revenue approved qualifying contractor for the purposes of Help to Buy.

S. 477C of the Taxes Consolidation Act 1997 provides that the property must be a new building which was not, at any time, used or suitable for use as a dwelling. In order to determine if the property satisfies the definition of a "qualifying residence", full details of the property would need to be provided. The Revenue Tax and Duty Manual Part 15-01-46 outlines further guidance on what would be considered a "new" house.

As part of the HTB process, "qualifying contractors" are involved in the claim stage of the process where the applicant has purchased a house or apartment. They are required to verify information provided by the applicant in the HTB process. Where the conditions of the HTB are satisfied and a HTB refund is available, the HTB refund is paid to the qualifying contractor to be offset against the purchase price of the property.

For a contractor to become part of the HTB process, they must first apply to Revenue to register as a "qualifying contractor". In order to become a "qualifying contractor" there are certain requirements that need to be satisfied as outlined in section 477C(2) TCA e.g. the contractor must be tax compliant and either a "zero rated" or "20% rated" contractor for the purposes of Relevant Contract Tax ("RCT"). Please see Part 15-01-46 of the Help to Buy Manual for further details.

The HTB scheme has been widely publicised since its announcement in 2016, particularly by financial institutions providing mortgages. However, if there are unique circumstances which has prevented an individual from claiming the HTB scheme, the taxpayer should contact Revenue with the relevant circumstances and each case will be considered on a case by case basis.

However, based on the information provided, it would appear that the builder was not a "qualifying contractor" at the time of purchase. As such, the couple in question will not qualify for the HTB incentive as all the conditions of the scheme have not been met.

Insurance Industry

Questions (71)

Brendan Griffin

Question:

71. Deputy Brendan Griffin asked the Minister for Finance if his Department will investigate a case in which an insurance company refused a new motor insurance policy to a person (details supplied) in County Kerry due to the fact their licence had been extended as a result of the Covid-19 pandemic; and if he will make a statement on the matter. [56400/21]

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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).

As the Deputy will appreciate, I cannot comment on or get involved in individual cases such as that referred to in his question. However, my officials reached out to Insurance Ireland for information regarding the issue of the validity of driving licences which have been extended due to the COVID-19 pandemic. Insurance Ireland stated that it had received a query about the matter via its Insurance Information Service. I understand that an administrative error may have happened in this particular case and that the issue is being resolved. I believe this case underscores the usefulness of the Insurance Information Service, which is a free service for those who have queries, complaints or difficulties in relation to obtaining insurance cover. It can be accessed at feedback@insuranceireland.eu.

Insurance Ireland further noted that a number of its members put measures in place last year (which were recommitted to in January this year) to avoid such a situation given the backlog in licensing services due to COVID-19 lockdown restrictions, where people could not renew their licences through no fault of their own.

Finally, it is worth reiterating that where a consumer feels that they are being treated unfairly, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes that consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.

Tax Code

Questions (72)

Colm Burke

Question:

72. Deputy Colm Burke asked the Minister for Finance if all assistive technology and mainstream technology devices have been made exempt from VAT for persons who are blind or vision impaired, as is recommended in a report (details supplied); and if he will make a statement on the matter. [56407/21]

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Written answers

The VAT rating of goods and services is subject to the provisions of EU VAT law, with which Irish VAT law must comply.

There is no provision in the VAT Directive to exempt the supply of assistive technology and mainstream technology devices. However, there is a VAT refund order in place (Refund Order (No.15) 1981) which provides for the refund of VAT on goods purchased for use by disabled persons suffering a specified degree of disablement. An application can be made to the Revenue Commissioners under this Refund Order for a refund of VAT incurred on assistive technology and mainstream technology devices, which are for the use of a person who is blind or vision impaired.

Tax Code

Questions (73, 74, 75)

Pearse Doherty

Question:

73. Deputy Pearse Doherty asked the Minister for Finance the number of rental properties disposed of in each of the years 2016 to 2020 and to date in 2021 in circumstances in which those properties were acquired between 7 December 2011 and 31 December 2014 and as such are not subject to capital gains tax under section 604A of the Taxes Consolidation Act 1997. [56469/21]

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Pearse Doherty

Question:

74. Deputy Pearse Doherty asked the Minister for Finance the number of residential properties disposed of in each of the years 2016 to 2020 and to date in 2021 in circumstances in which those properties were acquired between 7 December 2011 and 31 December 2014 and as such are not subject to capital gains tax under section 604A of the Taxes Consolidation Act 1997. [56470/21]

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Pearse Doherty

Question:

75. Deputy Pearse Doherty asked the Minister for Finance his views on whether the reduction in capital gains tax relief for properties held for more than seven years in circumstances in which they have been acquired between 7 December 2011 and 31 December 2014 under section 604A of the Taxes Consolidation Act 1997 is acting as a tax incentive and contributing towards the sale of rental properties; and if he will make a statement on the matter. [56471/21]

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Written answers

I propose to take Questions Nos. 73, 74 and 75 together.

The Deputy has requested the number of rental and residential properties disposed of in each of the years 2016 to 2020 and to date in 2021 in circumstances in which those properties were acquired between 7 December 2011 and 31 December 2014 and as such are not subject to capital gains tax under section 604A of the Taxes Consolidation Act 1997.

I am advised by Revenue that the available information in relation to section 604A Capital Gains Tax (CGT) relief is published at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/relief-on-disposal-of-certain-land-or-buildings.pdf. Tax returns do not detail the individual properties disposed of, or the gains on these disposals. However, the numbers of claimants by sector and by asset type are detailed in the statistics published by Revenue.

The Deputy will be aware that Finance Act 2012 introduced section 604A of the Taxes Consolidation Act, 1997 which provides for relief from CGT on the disposal of certain land and buildings. The rationale for the introduction of the measure was to stimulate activity in the property market at that period in time, when there were few transactions taking place.

This relief was amended in Finance Act 2017 for disposals made on or after 1 January 2018, to provide that gains on land and buildings acquired between 7 December 2011 and 31 December 2014 are not chargeable gains where the land or buildings are held for at least 4 years and up to 7 years from the date they were acquired. This change was aimed at reducing any impact the original provision could possibly have on limiting the supply of development land available for sale by incentivising delayed sales to maximise relief.

In response to the Deputy's question in Dail Question No. 75 (Ref: 56471/21), I don't think there is any indication that this capital gains tax relief is acting as a tax incentive and contributing towards the sale of rental properties.

The Government’s current focus is on the comprehensive 'Housing for All' plan. In relation to property-based reliefs more generally, taxation is only one of the policy levers available to the Government through which to boost overall housing supply. In line with my Department's Tax Expenditure Guidelines, consideration of whether a tax measure is the most appropriate policy tool for a given purpose is required. The presumption should be that non-tax measures should be considered before the use of a tax–based measure.

Housing for All is intended to deliver more homes of all types for people with different housing needs, including those who wish to rent at an affordable price. The Government has committed to, amongst other things, an average of 2,000 new ‘cost rental’ homes every year, with targets of rents being at least 25 per cent below market level, as well as a rent value freeze to 2024 by linking any increases in Rent Pressure Zones to inflation.

Question No. 74 answered with Question No. 73.
Question No. 75 answered with Question No. 73.

Office of Public Works

Questions (76)

Michael Ring

Question:

76. Deputy Michael Ring asked the Minister for Public Expenditure and Reform if he will ascertain from the OPW its plans for a property (details supplied); the length of time the property has been vacant; if it could be considered for use by an organisation; and if he will make a statement on the matter. [56207/21]

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Written answers

I am advised by the Commissioners of Public Works that the property at Prospect Avenue, Westport, Co. Mayo was sold at auction on the 23rd July 2021, with the sale closing on 27th September 2021.

The property was formerly used by the Department of Social Protection (DSP) as an Intreo Office. It closed in November 2017 when the DSP relocated to its new Intreo Centre on James Street, Westport.

Following the closure, the OPW proceeded to seek alternative State use interest. The Department of Education expressed an interest in acquiring the property for a primary school under its Patronage Divestment Programme. However, the planning application process undertaken by the Department was unsuccessful.

Subsequently, the local authority considered acquiring the property but decided not to pursue with its acquisition.

As no alternative State use was identified, the OPW proceeded with the disposal of the property.

Public Sector Staff

Questions (77, 78)

Michael Healy-Rae

Question:

77. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if he will address a series of matters in relation to the executive officer Irish panel and the mobility scheme (details supplied); and if he will make a statement on the matter. [56332/21]

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Brendan Griffin

Question:

78. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 83 of 10 November 2021, if he will address a series of matters in relation to the question (details supplied); and if he will make a statement on the matter. [56346/21]

View answer

Written answers

I propose to take Questions Nos. 77 and 78 together.

In relation to the request that the current panel in place from the 2019 Executive Officer with Irish fluency competition be further extended beyond 31 December 2021, I would refer the Deputy to PQ 54814/21 of 10 November. Candidates for this competition were advised that vacancies many not arise in all regional locations while the panel is active. A new Irish Executive Officer competition will be undertaken by PAS in the coming months from which future assignments will be made from 2022. In relation to the sequential filling of posts, this is grade specific as opposed to competition specific and civil service employers have delegated sanction to fill posts in line with these arrangements.

The Deputy will be aware that officials from my Department appeared before the Oireachtas Joint Committee on the Irish Language, Gaeltacht and the Irish-speaking Community in July. The recruitment of Irish speakers was discussed in detail with the Committee in the context of the ambitious 2030 recruitment targets set out in the Official Languages (Amendment) Bill that is presently before the Houses of the Oireachtas and alongside the July 2019 audit findings of An Coimisinéir Teanga that highlighted that only c. 0.4% of total positions were presently designated by civil service employers as positions having an Irish language proficiency requirement.

The achievement of a 20% recruitment target of proficient Irish speakers by 2030 will require a cross-Government approach. On enactment of the Bill presently before the Oireachtas, the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media will establish an Advisory Committee on Irish languages services. The functions of this Advisory Committee are set out in the Bill and include the publication of a national plan to increase the provision of services through the medium of Ireland that will likely require the consideration of approaches to the future recruitment of Irish speakers in the coming years. My Department and the Public Appointments Service will be represented as members on this Committee.

The Mobility scheme (list-based) for Clerical Officers and Executive Officers which went live for offers on 10th September 2018 was reviewed by officials in my department and key stakeholders (Local HR representatives and Fórsa) following twelve months of operation. The reported data at this time indicated that only 25% of moves took place following the initial offer.

Following consultation it was agreed by with all stakeholders that in order to focus a more targeted approach at application stage that the number of zone choices would be reduced from three to two with the number of organisation choices per zone reduced from all organisations to five, for all new applicants. This change took effect from 19th June 2020.

A future review will be carried out following the development and roll out of organisational blended working policies under the planned Blended Working Policy Framework for the Civil Service in order to determine the effects that this has on the Mobility Scheme. Currently it is too early to report on the effects of the change versus the impact of the pandemic.

As you will be aware some of the location zones include the larger civil service organisations (e.g Revenue, Department of Social Protection) which experience higher rates of staff turnover than the smaller organisations due to retirements, promotions etc. and this reflects on the movement of staff through the Mobility lists.

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