Written Answers Nos. 194-216
194. Deputy Jackie Cahill asked the Minister for Finance if EU Directive 2018/0063 (COD) of the European Parliament and of the Council on Credit Services, Credit Purchasers and the Recovery of Collateral has been transposed into Irish law; and if he will make a statement on the matter. [58793/21]
View answerI should clarify that the item referred to by the Deputy was the Proposal for a Directive, rather than a Directive itself. The Proposal was part of the package of measures published by the EU Commission in March 2018 to address the issue of non-performing loans (NPLs).
Proposal (2018/0063(COD)) was subsequently split into two parts so that the element relating to credit services and credit purchasers could be progressed in the first instance.
This resulted in two proposals:
- 2018/0063A (COD) - Credit servicers and credit purchasers (Non-performing loans Directive)
- 2018/0063B (COD) - Accelerated extrajudicial collateral enforcement (AECE)
The Directive resulting from Part A of the Proposal (regarding credit services and credit purchasers) was adopted by the European Parliament in October and adopted by the Council earlier this month. Publication in the Official Journal of the European Union is to follow. Once the Directive has been published, member states will have 24 months to transpose the Directive.
The Proposal for a Directive on Accelerated Extrajudicial Collateral Enforcement (AECE) has not yet been adopted and it is still the subject of the EU legislative process.
195. Deputy Claire Kerrane asked the Minister for Finance when he sought a reduction in VAT on domestic energy bills from the EU Commission; the way he communicated this to the Commission; and the persons he discussed it with and the response he received. [58909/21]
View answer205. Deputy Claire Kerrane asked the Minister for Finance if he has sought a reduction in VAT on domestic energy bills from the EU Commission; if he has raised this matter with the Commission; and if he will make a statement on the matter. [58908/21]
View answerI propose to take Questions Nos. 195 and 205 together.
As the Deputy may be aware, the Commission’s communication of 13 October 2021 set out a toolbox for Member States to allow them to tackle rising energy prices. For VAT provisions, the communication refers to the fact that Member States can decide to apply reduced rates of VAT on energy products, but only within the confines of what is already provided for in the VAT Directive. As you know, the current structure of VAT rates in the Directive provides for the application of one or two reduced rates and limits the application of those rates to supplies listed in Annex III. The Directive provides that the reduced rates may not be lower than 5%.
Within this rates structure, the Directive allows for historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III. Under this framework, Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%. Also, Ireland has retained its historic application of one of the reduced rates of VAT, 13.5%, to a range of services (including the supply of fuel, gas, oil and electricity services) and, under the Directive, the rate applicable to such services cannot be reduced below 12%.
If Ireland did reduce the rate below 12%, even on a temporary basis, we would not be able to retain the derogation we currently hold that allows us to apply a reduced rate. This means that the VAT rate on electricity, gas, oil and fuel would increase to 23% when the temporary relief had expired.
196. Deputy Michael Collins asked the Minister for Finance if tax incentives are available for persons who are purchasing a residential and commercial property; and if he will make a statement on the matter. [58998/21]
View answerI am advised by Revenue that, where the relevant conditions are met, the following tax-based measures may be available for persons who purchase a residential or a commercial property:
Help to Buy Scheme
Help-to-Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. This measure gives a refund of Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. The main aim of the policy underpinning the design of scheme is to help encourage the building of additional new properties.
A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section. The main conditions include that the claimant is a first-time purchaser, the claimant has a qualifying loan on the property in question and the claimant 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.
The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. The HTB scheme operates by way of a payment being made at deposit stage following the signing of a contract to purchase, or, in the case of a self-build, following the drawdown of the first tranche of the relevant mortgage. The HTB scheme has been widely publicised since its announcement in 2016, particularly by financial institutions providing mortgages.
The Living City Initiative
The Living City Initiative (LCI) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying pre-1915 buildings which are located within 'Special Regeneration Areas'.
There are three types of relief available; owner occupier residential relief, rented residential (landlord) relief and commercial or retail relief. The rented residential relief was introduced with effect from 1 January 2017. Owner occupier relief is given by writing off qualifying expenditure incurred on the property against total income at a rate of 10% per annum over ten years. Rented residential and commercial relief is given by way of capital allowances, with eligible expenditure incurred on the property being written off over seven years at a rate of 15% per annum over 6 years and 10% in the final year.
Sections 372AAA to 372AAD Taxes Consolidation Act 1997 outline the conditions applicable to each element of the LCI. Further information on those conditions are available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-10/10-13-01.pdf .
Stamp duty
Where there is a transfer of residential property, stamp duty is charged at the rate of 1% on the first €1 million of the consideration and 2% on any excess over €1 million. Transfers of non–residential property, including agricultural land, attract a stamp duty charge at the rate of 7.5% of the consideration.
Section 83D of the Stamp Duties Consolidation Act (SDCA) 1999 provides for a refund of stamp duty paid on the transfer of non-residential land where the land is subsequently developed for residential purposes. To qualify for a refund, construction operations must commence on the land within the period of 30 months of the transfer, but no later than 31 December 2022. The amount refundable is calculated by reference to the difference between stamp duty paid at the rate of 7.5% and the stamp duty that would have been paid had the rate been 2% (2% was the rate that applied to the transfer of non-residential property prior to 11 October 2017). The refund scheme applies to both single dwelling units (one-off houses) and multi-unit developments. In the case of multi-unit developments, 75% of the total surface area of the land must be occupied by dwelling units, or the gross floor space of the dwelling units must account for at least 75% of the total surface area of the land. The refund scheme is intended to encourage developers to convert non-residential land into residential land, thereby creating extra housing capacity.
197. Deputy Seán Canney asked the Minister for Finance if he will consider introducing a tax relief scheme to allow early drawdown of a personal pension to fund the installation of microgeneration projects in private dwellings; and if he will make a statement on the matter. [58310/21]
View answerThe main purpose of a pension fund is to provide a secure income in retirement for the pension beneficiary. The purpose of providing tax relief for pension contributions is to encourage saving - by employers, employees and the self-employed - towards retirement income. Any early drawdowns from a pension fund, for any purpose, would reduce the pension savings from which individuals could provide for their retirement, with smaller pension schemes losing a larger proportion of their overall savings.
While the Deputy is suggesting that early drawdown of pension funds be allowed in certain defined circumstances, to fund the installation of microgeneration projects in private dwellings, it is not clear whether it would be intended that the drawdown to be available from all pension products or only certain products.
As an exceptional measure, with a view of relieving hardship during the financial crisis early drawdown from pension funds was permitted. However, it was for a limited period of time and early drawdown was confined to only one type of pension product - additional voluntary contributions (AVCs). Section 782A Taxes Consolidation Act 1997 provided members of occupational pension schemes with a three-year period, from 27 March 2013 to 26 March 2016, during which they could draw down, on a once-off basis, up to 30% of the accumulated value of their AVCs. The amount drawn down was subject to income tax under Schedule E, PRSI and USC, which was collected under the PAYE system.
Ireland operates what is described as an “Exempt – Exempt – Taxed” or “EET” pension regime. Contributions to a pension fund are relieved from tax and growth in these funds are also accumulated on a tax-free basis. Payments out of the fund during retirement are then subject to income tax, and USC and PRSI where applicable. The introduction of a tax relief scheme to allow early drawdown of pension funds could undermine the integrity of the “EET” regime. Therefore, I do not have any plans to introduce such a measure.
Finally, as the Deputy will be aware, in Finance Bill 2021 I have included a provision for a tax disregard in respect of personal income received by households who sell residual electricity that they generate back to the grid. The amount of the disregard will be set at €200. This figure should ensure that most will pay no tax on income from this source. The measure will operate for an initial period of three years with a sunset clause applying at the end of 2024.
198. Deputy Jackie Cahill asked the Minister for Finance if he will consider extending the employment wage subsidy scheme for employers impacted by Covid-19 considering that private bus operators in particular are struggling as a result of reduced passenger numbers due to Covid-19 fears; and if he will make a statement on the matter. [58372/21]
View answer203. Deputy Kathleen Funchion asked the Minister for Finance if he will consider the extension of current employment wage subsidy scheme levels for the tourism and hospitality sector until April 2022 at the earliest given that these measures are due to be significantly scaled back from 1 December 2021 and that this will have a serious impact on the vitality of many tourism businesses in counties Carlow and Kilkenny. [58778/21]
View answer208. Deputy Christopher O'Sullivan asked the Minister for Finance if his attention has been drawn to the issue that small hospitality providers are experiencing with employment wage subsidy scheme and the qualifying criteria of 30% reduction of turnover; and if he will make a statement on the matter. [59090/21]
View answerI propose to take Questions Nos. 198, 203 and 208 together.
The objective of the Employment Wage Subsidy Scheme (EWSS) is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the Covid-19 crisis.
In money terms, the overall support provided to-date (25th November) by EWSS is almost €6.5 billion comprising direct subsidy payments of €5.58 billion and PRSI forgone of €877 million to 51,700 employers in respect of over 690,300 employees.
The EWSS legislation provides that for employers to be eligible for the EWSS, they must be able to demonstrate that their business will experience a 30% reduction in turnover or customer orders for the calendar year 2021 compared to the calendar year 2019 and that this disruption to normal business is caused by the COVID-19 pandemic. This 30% reduction metric, which applies on a self-assessment basis, has been in place since EWSS came into effect in September 2020. I would also draw attention to the fact that, despite the exit from restrictions, it was not tightened in the Finance (Covid-19 and Miscellaneous Provisions) Act 2021 which was enacted in the summer and which extended the scheme beyond end-June 2021 nor is there any proposal to do so in the provisions of Finance Bill which is currently being debated by the Oireachtas. In fact, the reference period to which the metric must be applied was broadened out in the above Act to span a full year thus effectively relaxing the conditionality to qualify to benefit from the scheme in most cases.
Government policy has been that there will be no cliff edge to the support, at the same time it is necessary to gradually unwind and phase out this temporary emergency support measure. That is why, on Budget Day, I announced the extension of EWSS in a graduated form until 30 April 2022. This ensures there will be no sudden end to the EWSS and also provides clarity and certainty to business.
Since the onset of the Covid-19 pandemic, the Government has adopted a proactive and dynamic approach to supporting businesses and individuals insofar as possible during this challenging time.
As regards the EWSS and the current circumstances referenced by the Deputies in their questions, the Government continues to monitor developments closely and will consider if any response is required at an appropriate time.
Finally, I would draw the Deputies attention to the comprehensive package of other business and employer supports that have been made available over the course of the last 18 months or so – including the Covid Restriction Support Scheme (CRSS), the Business Resumption Support Scheme (BRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme. Details of the supports are available on the Department of Enterprise, Trade and Employment’s website at the following link enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
199. Deputy Alan Kelly asked the Minister for Finance the estimated full year yield if the stamp duty on residential properties increased to 4% on properties with values greater than or equal to €800,000. [58410/21]
View answerIt is assumed the Deputy is enquiring about a Stamp Duty rate of 4% on the value of residential properties in excess of €800,000, where properties are valued above this amount (currently a 2% rate applies on values over €1m).
I am advised by Revenue that, based on transactions levels and values in recent years, the additional yield per annum from the proposed increase is estimated at €60m.
The Deputy may be interested to note that page 18 of the Revenue Ready Reckoner, which is available at www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf, shows the estimated yield from a range of changes to Stamp Duty rates and thresholds.
200. Deputy Pearse Doherty asked the Minister for Finance the body that is responsible for enforcing section 5(2)(F14) of the Equal Status Act 2000; the person with the responsibility to ensure that insurers are not discriminating on the grounds of disability except in instances in which that disability actually results in greater insurance risk; and if he will make a statement on the matter. [58444/21]
View answerAs 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 interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance, which expressly prohibits Member States from adopting rules that require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
As the Deputy will be aware, neither my Department nor I have responsibility for the enforcement of the Equal Status Acts 2000-2018, which fall under the remit of my colleague, the Minister for Children, Equality, Disability, Integration and Youth, and I am unable to comment on the specific scenario that the Deputy has asked about. On a general level, the Equal Status Acts prohibit certain kinds of discrimination in the provision of goods, facilities and services, obtaining or disposing of accommodation and in relation to educational establishments. The legislation protects against discrimination on nine specific grounds, including disability. However, in relation to insurance, the Deputy should be aware that the legislation also provides that people can be treated differently on any of the grounds (except gender) – but only if the differences are based on actuarial or statistical data or other relevant underwriting or commercial factors and are reasonable.
From a financial services perspective, where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO 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.
Finally, it may be useful for the Deputy to know that Insurance Ireland, the representative body for the insurance industry in this country, operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. This Information Service can be contacted at feedback@insuranceireland.eu.
201. Deputy Robert Troy asked the Minister for Finance if he has given consideration to implementing changes to the local property tax penalty system for self-employed taxpayers; and his views on whether it may be more appropriate to apply such penalties to the self-assessed taxpayers tax records rather than applied in the current form. [58497/21]
View answerI assume the Deputy is referring to the Local Property Tax (LPT) late filing surcharge that is provided for by section 38 of the Finance (Local Property Tax) Act 2012 (as amended).
Section 38 makes provision for a surcharge to be applied where a person files their annual self-assessed tax return (whether it is in respect of income tax, corporation tax or capital gains tax) on or before the appropriate due date for filing the return and, at that point in time, their LPT pay and file obligations are not up-to-date. The amount of the LPT-related surcharge that is generated will be equal to 10% of the income tax, corporation tax or capital gains tax chargeable.
In effect, the surcharge is applied as if the income tax, corporation tax or capital gains tax return has been filed more than 2 months late. If the income tax, corporation tax or capital gains tax return is actually filed after the appropriate due date for filing the return, a late filing surcharge will be applied to that return and an LPT-related late filing surcharge will not also be applied. So there is no question of a double penalty being applied.
Where a person incurs an LPT-related surcharge and they subsequently bring their LPT payments and returns up-to-date, Revenue will cap the surcharge at 100% of the person’s LPT liability. In recognition of the high LPT compliance rate shown by self-employed taxpayers to date, this year in the Finance (Local Property Tax) (Amendment) Act 2021, I provided for a 50% reduction in this cap. This means that where the amount of an LPT-related surcharge exceeds 50% of a person’s LPT liability and the person subsequently brings their LPT obligations up to date, the surcharge payable will be capped at 50% of their LPT liability. This change will take effect from 1 January 2022.
In addition to this change, I am advised by Revenue that in acknowledgement of the requirement for all residential property owners in the State to file an LPT return for the 2022 to 2025 valuation period during the busy income tax return filing period, outstanding LPT returns or payments for 2022 did not trigger a surcharge for the 2020 Form 11 return. It should be noted, however, that any outstanding LPT returns or payments for 2021 or earlier years would have resulted in an LPT-related surcharge being triggered.
The Deputy has asked me for my views on whether it may be more appropriate to apply such penalties to self-assessed taxpayers’ tax records rather than applied in the current form.
The background to the introduction of the LPT-related surcharge was the need to provide a balance between the LPT compliance measures that applied to property owners who were employees and those that were self-assessed. In the case of employees, Revenue can make it mandatory for an employer to deduct the LPT liability at source from a person’s salary, in the same way that income tax and PRSI is deducted. A similar compliance measure is not generally possible where tax is not deductible at source: an exception is the deduction of LPT from certain EU payments made to farmers by the Department of Agriculture, Food and the Marine; non-compliance with LPT obligations will also affect a person’s tax clearance status. It is within this context that the surcharge was introduced.
As the rationale for providing for this balance in LPT compliance measures still exists, I do not propose making any further changes to the basis on which the LPT-related surcharge is applied. However, as noted above, as a result of changes I made to the LPT legislation this year, self-assessed taxpayers that incur an LPT-related surcharge and subsequently bring their LPT obligations up-to-date will benefit from the reduced cap in the surcharge to 50% of their LPT liability from 1 January 2022.
202. Deputy Thomas Pringle asked the Minister for Finance if a refund of the UK VAT rate is due in a situation in which a person uses the An Post AddressPal service and is charged UK VAT then Irish VAT on the UK Vat rate and a customs clearance fee plus shipping and delivery with regard to the operation of VAT post-Brexit; and if he will make a statement on the matter. [58767/21]
View answerI am advised by Revenue that electronic Customs import declarations are now required for all parcels / packages coming from non-EU countries including those coming through the postal system regardless of the value of the goods being sent. Since 1 July 2021, all goods imported to the Union, regardless of their value, are liable to VAT. In addition, all goods valued at €150 or more may be liable to a Customs duty charge.
The Customs value on which Customs duty is calculated is the cost of the goods plus the transport costs (including postage), any insurance fees and any handling charges to deliver the goods to the EU. VAT is calculated on the Customs value, plus any Customs duty applicable. In addition, postal operators and courier businesses may charge an administration fee for the delivery of the goods.
Generally, a UK retailer does not charge UK VAT on goods which are being exported from their territory. However, some delivery services use a proxy address in the UK. In these instances, from the perspective of the UK retailer and the operation of the VAT system in the UK, this appears as a sale within the UK, and not an export, and as a result is liable to UK VAT. When calculating the Customs value upon importation to Ireland, the invoice value is used in the calculation. Where the invoice value includes UK VAT then this will be included in the calculation of the Customs Value.
The charging of VAT in the UK including any refund of UK VAT, is a matter for the retailer in the UK.
204. Deputy Claire Kerrane asked the Minister for Finance if his attention has been drawn to difficulties being experienced by the equine industry when it comes to insurance; the action he has taken to protect jobs in the sector and to ensure that racing events can get insurance cover in order to go ahead; if he has engaged with the sector; and if he will make a statement on the matter. [58907/21]
View answerAt the outset, it is important to note that neither I nor the Central Bank of Ireland have any influence over the pricing or provision of insurance products, as this is a purely commercial matter. This position is reinforced by the EU legislative framework for insurance (the Solvency II Directive).
Having said that, the Government is acutely aware of the concerns felt by many sectors, including the ones highlighted by the Deputy, regarding the cost and availability of insurance. It has therefore prioritised the implementation of the Action Plan for Insurance Reform. As the Deputy may be aware, the first Action Plan Implementation Report, which was published in July, shows that significant progress has been made, with 34 of the 66 actions contained therein now completed.
One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines some six months ahead of schedule. Early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development; it is my hope that this trend will continue and result in lower costs for businesses. As the insurance reform agenda progresses, we will continue to hold the industry to account on its commitments to pass on savings from the Guidelines, and other elements of the reforms, to customers. Minister of State Fleming, in his recent engagement with the sector, re-emphasised the need for insurance providers to reduce premiums and increase their risk appetite to provide cover in new areas. It is my understanding that some providers have noted that they are considering expanding their footprint in the insurance market, including potentially in high-risk activity sectors. I will continue to monitor this situation.
Another key element of the Action Plan with particular relevance to these types of activities involves reviewing the Duty of Care. The Minister for Justice, who is leading on this action, has noted to Government the intention to bring forward legislative proposals to reform the law in this area. My officials have been informed by colleagues in the Department of Justice that these proposals are at an advanced stage.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention to work with my Government colleagues to ensure that the implementation of the Action Plan can continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country, including for the equine industry.
206. Deputy Brendan Griffin asked the Minister for Finance if his Department will encourage Irish public bodies to provide insurance for community groups given that there are only two insurers left in this market; and if he will make a statement on the matter. [59078/21]
View answerI note that the company referred to by the Deputy is an independent entity which is subject to the same rules as all other insurers in the Irish market, including the Solvency II Directive.
While I share the Deputy’s concerns and understand the issues facing many community groups across the country regarding the cost and availability of insurance, he will appreciate that, as Minister for Finance, I am not in a position to comment on matters that are a commercial decision for that company.
Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is also reinforced by Solvency II Directive.
Nevertheless, the Government is acutely aware of the concerns of individuals, businesses, and voluntary/community groups across the country regarding the cost and availability of insurance, and is working to address them through the Action Plan for Insurance Reform. While work remains ongoing across Government Departments to deliver these reforms, it is important to acknowledge that significant progress has already been made. The first Action Plan Implementation Report, published in July, show that 34 of the 66 objectives included in the Action Plan have been completed.
One of the key achievements in the first half of this year was the implementation of the Personal Injuries Guidelines some six months ahead of schedule. Early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development; it is my hope that this trend will continue and result in lower costs for businesses. As the insurance reform agenda progresses, we will continue to hold the industry to account on its commitments to pass on savings from the Guidelines, and other elements of the reforms, to customers. Minister of State Fleming, in his recent meetings with the CEOs of the largest providers in the domestic market, has emphasised the need for firms to reduce premiums and increase their risk appetite to provide cover in new areas.
A further element of the Action Plan with particular relevance to community groups involves reviewing the Duty of Care. The Minister for Justice, who is leading on this action, has noted to Government the intention to bring forward legislative proposals to reform the law in this area. The planned rebalancing of the duty of care, with a view to applying a common-sense approach to risk, is of particular relevance to the sector as it will help address so-called ‘slips, trips and falls’. My officials understand from their Department of Justice colleagues that these proposals are at an advanced stage.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention to work with my Government colleagues to ensure that the implementation of the Action Plan can continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country.
207. Deputy Brendan Griffin asked the Minister for Finance if his Department will engage with a company (details supplied) who are currently examining the possibility of providing insurance cover to mounted hunt clubs following the exit from the market by all other insurers; and if he will make a statement on the matter. [59079/21]
View answerI note that the details supplied by the Deputy refers to a specific company. While I understand the concerns felt by many groups, including the one highlighted by the Deputy, around the cost and availability of insurance cover, he will appreciate that, as Minister for Finance, I am not in a position to comment on an individual commercial entity.
Likewise, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU Solvency II Directive insurance framework.
Nevertheless, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. In this regard, the Action Plan for Insurance Reform sets out 66 actions across a number of policy areas. As the Deputy may be aware, the first Action Plan Implementation Report, which was published in July, shows that significant progress has been made, with 34 of the 66 actions contained in the Action Plan now completed. Of note is the implementation of new Personal Injury Guidelines, which substantially reduce award levels for a range of personal injury categories, and has resulted in an average reduction of 40% in award values via the Personal Injuries Assessment Board (PIAB). It is Government’s hope that this will result in lower insurance costs for both individuals and businesses, and provide relief to sectors such as those highlighted by the Deputy.
Another notable achievement is the creation of the Office to Promote Competition in the Insurance Market within the Department of Finance. The Office, which is chaired by Minister of State Fleming, continues to engage with a wide range of stakeholders, including the insurance industry, on a regular basis. In his recent meetings with insurance CEOs, Minister Fleming stressed the need for providers to reduce premiums and increase their risk appetite to provide cover in new areas. Some providers have noted that they are considering expanding their footprint in the insurance market, including potentially in high-risk activity sectors. I will continue to monitor this.
Finally, I would like to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. In this regard, it is my intention to work with my Government colleagues to ensure that the implementation of the Action Plan can continue to have a positive impact on the affordability and availability of insurance for all individuals, businesses and community groups across the country.
209. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform if he will ensure that the freedom of information units across all Departments deal with the freedom of information requests in a consistent manner (details supplied). [58811/21]
View answerThe Central Policy Unit for Freedom of Information at my Department has put in place a broad array of supports for bodies across the civil and public service in order to assist them in discharging their obligations under the Freedom of Information Act in an efficient and thorough manner.
The Central Policy Unit has published on its website sample letters covering various situations that may arise when processing a request, guidance notes and a comprehensive manual for decision makers. In addition, my Department maintains the Code of Practice for FOI which details the roles and responsibilities in the administration of the FOI system. The Central Policy Unit also operates a helpdesk that is available to advise and guide decision makers in relation to issues they may have in implementing the FOI regime.
Furthermore, my Department has put in place a standardised training framework for FOI, in order to inculcate a strong knowledge of what is required under the FOI system throughout the civil and public service. Since this arrangement was first put in place in 2015, more than 7,000 officers across the system have received training through the framework.
Section 27(14) of the Act obliges public bodies to endeavour to put in place mechanisms to facilitate payments required in processing an FOI request by electronic means. This position is reflected in the code, manuals and sample letters.
While my Department has produced supports and guidance around the FOI process, I should also acknowledge the excellent guidance documents on the operation of the legislation that have been published by the Office of the Information Commissioner, which have proven invaluable to decision-makers across the system.
I also note that the basic requirements for an FOI decision have a statutory basis under section 13 of the Act, while the Information Commissioner has powers to direct that a revised decision is issued where this standard is not met. Only three such directions were made in 2020, for context 32,652 FOI requests were handled by public bodies in that year, and the Commissioner observed in his Annual Report that this notably low number was part of a continuing trend of improvement.
Finally the FOI system covers approximately 600 organisations that are diverse in terms of size, functions and structure. As such, while I have outlined the supports that are available to decision makers, it is ultimately a matter for each decision maker to apply the legislation and guidance as appropriate in the circumstances of a particular request, and for each organisation to tailor the general approach where necessary to meet its own circumstances.
210. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the progress made to date in relation to the parking strategy recommended in the Phoenix Park Transport and Mobility Study; and if he will make a statement on the matter. [58258/21]
View answerThe development of a new Parking Strategy for the Phoenix Park was identified as one of the priority recommendations in the Phoenix Park Transport and Mobility Study 2021. I can confirm that the definitive project brief for the parking strategy is currently being finalised for inclusion in a tender which will be advertised on e-tenders before the end of the year.
The OPW intends to undertake further public consultation as part of the development of this parking strategy for the Park. It should be noted that any new developments, arising from the finished strategy, would be subject to the normal planning processes and the availability of funding in the future.
211. Deputy Jennifer Murnane O'Connor asked the Minister for Public Expenditure and Reform the status of plans to carry out remedial works to the railings at Carlow courthouse which is being managed by the Office of Public Works on behalf of the Courts Service; if there is an update to tender documentation for the repair of ten sections of the railings; and if he will make a statement on the matter. [58279/21]
View answerFollowing a tender process and assessment OPW have appointed Francis Haughey Building Contractor for the proposed repair of ten sections of existing railings at Carlow Courthouse. OPW and the Contractor met with Engineers from Carlow County Council on site in November 2021 to discuss traffic management and the erection of the site hoarding for the repair project.
The Contractor has subsequently issued an application for a hoarding licence to Carlow County Council and issued the Council with details of the Contractor’s traffic / pedestrian management plan for approval. Once the Contractor receives approval from Carlow County Council for the hoarding licence and traffic management plan the Contractor will commence remedial works to the railings on site, with the erection of the site hoarding at Carlow Courthouse.
It is hoped that the Contractor will be able to commence with the erection of site hoarding and site set-up in December 2021 and remove the ten sections of railing in January and February 2022 for transport to the workshop for repair.
212. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will report on the work of the Inter-Departmental group for Equality Budgeting. [58403/21]
View answerBeginning with a pilot programme introduced for the 2018 budgetary cycle, Equality Budgeting is a way of approaching and understanding the budget as a process that embodies long-standing societal choices about how resources are used, rather than simply a neutral process of resource allocation. In practice, this means that equality budgeting attempts to provide greater information on how proposed or ongoing budgetary decisions impact on particular groups in society, thereby integrating equality concerns into the budgetary process.
Since 2018, significant work has been undertaken to develop the initiative and Equality Budgeting has been expanded across multiple dimensions of equality including gender, socio-economic, disability and minority groups.
In 2019, the OECD was requested by my Department, and the Department of Justice and Equality, to conduct a scan of Equality Budgeting in Ireland. The published report supported the approach taken, and also provided twelve recommendations on how to drive this initiative forward. Implementation of the report's recommendations is well advanced.
A key OECD recommendation, that will underpin overall implementation, was the establishment of an inter-departmental network of Equality Budgeting contact points.
In March of this year, Government agreed to establish an inter-departmental network on Equality Budgeting in order to facilitate the full implementation of Equality Budgeting across all departments, in line with this OECD recommendation.
Following a request for nominees, the network first meet in June, and has since met on two further dates in July and November.
The inter-departmental network includes a senior member of staff from each department with a broad knowledge of the policy work undertaken by that department and its relevance to advancing the goals of equality and inclusion.
Members are accountable for:
1. ensuring that policy makers in their departments are fully aware of, and implementing, Equality Budgeting policy where applicable;
2. bringing all relevant work within their department to the attention of the Equality Budgeting unit, to ensure that strategic direction of Equality Budgeting is fully informed, and;
3. attending all scheduled meetings, or where this is not possible, nominate a suitably informed deputy to attend, to represent their department
This group is playing a key role in guiding the continued progress of Equality Budgeting.
By improving knowledge sharing across departments, this network will help to resolve several challenges highlighted by the OECD. The network will also facilitate cross-government training on the purpose and application of equality budgeting.
In conjunction with the Equality Budgeting Expert Advisory group, this network will also help inform the future direction of Equality Budgeting policy, in line with broader cross-governmental developments, including the Wellbeing framework.
The Network is chaired jointly by the Department of Public Expenditure and Reform and the Department of Children, Equality, Disability, Integration and Youth and meetings will continue to be held on approximately a bi-monthly basis. Secretariat is provided by the Performance Budgeting unit of the Department of Public Expenditure and Reform.
Meeting agendas and minutes are published on the Equality Budgeting page of Gov.ie.
213. Deputy Alan Kelly asked the Minister for Public Expenditure and Reform the estimated cost in 2022 of recruiting an additional 12 full-time qualified horticulturists for the Office of Public Works. [58415/21]
View answerThe starting salary for a craft gardener/ horticulturist in the Office of Public Works is €36,334.
The estimated cost in 2022 of recruiting an additional 12 full-time qualified horticulturists for the Office of Public Work would equate to €436,007.
Please be advised that the OPW does not have any plans to recruit this number of additional horticulturalists in 2022.
214. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the Garda stations within the Roscommon and Longford Garda division that were refurbished by the Office of Public Works in 2020 and to-date in 2021; the nature of refurbishment works that were carried out on each station; and if each work project is completed or still ongoing in tabular form. [58515/21]
View answerThe Office of Public works can confirm that refurbishment works were carried out to Garda Stations in the Roscommon and Longford Garda division in 2020 and to-date in 2021. The Garda Stations and the nature of the works carried out is outlined in the table below.
|
Garda Station |
Nature of Refurbishment |
Completed / Ongoing |
|
Ballinlough GS |
Internal Refurbishment works and upgrade of all electrical Services |
Completed 2020 |
|
Edgeworthstown GS |
Internal Refurbishment works. |
Completed 2021 |
|
Lanesboro |
Minor refurbishment works to station |
Completed 2021 |
|
Longford GS |
New Cell Block with Prisoner Processing Unit and Office Accommodation |
Ongoing |
|
Roscommon GS |
Cell Upgrade and Refurbishment Works. |
Completed 2021 |
215. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will provide an update on his Department's implementation of each of the 12 recommendations contained within the Organisation for Economic Co-operation and Development report on Equality Budgeting in Ireland 2019. [58668/21]
View answerSince 2018, when it was first piloted, significant work has been undertaken to develop the Equality Budgeting initiative. With an initial focus on gender, due to the availability of data, Equality Budgeting has since been expanded across multiple dimensions of equality including gender, socio-economic, disability and minority groups.
An Equality Budgeting Expert Advisory Group (EBEAG) has been established to guide the development of Equality Budgeting policy. Representing key stakeholders such as the Irish Human Rights and Equality Commission, the National Women’s Council and the National Disability Authority, this group is chaired by my Department and has met regularly since 2018.
To drive this important work forward in line with international best practice, in 2019 the OECD was requested by my Department, and the Department of Justice and Equality, to conduct a scan of Equality Budgeting in Ireland. The report, published on Budget day 2020, supported the approach taken, and also provided twelve recommendations on how to drive this initiative forward.
Implementation of the report's recommendations is well advanced, is a continued focus of work, and includes the workstreams below.
In cooperation with my Department, the CSO conducted a data audit in 2020 to ascertain the availability of public service data that is disaggregated by equality dimension. This work was guided by the EBEAG and the audit findings were published alongside Budget 2021. The information is published on the CSO website and will continue to be updated as new data is identified.
Following the data audit, work is now underway to identify a data strategy that will identify what actions are needed to improve the disaggregation of data and identify actions needed to address data gaps. This work is led by the CSO and the Department of Children, Equality, Disability, Integration and Youth (D/CEDIY).
A key OECD recommendation, that has underpinned overall implementation, was the establishment of an inter-departmental network of Equality Budgeting contact points. In March of this year, Government agreed to establish an inter-departmental network on Equality Budgeting in order to facilitate the full implementation of Equality Budgeting across all departments, in line with this OECD recommendation. The network first met in June, and have since met on two further dates in July and November. The inter-departmental network includes a senior member of staff from each department and members are accountable for:
- ensuring that policy makers in their departments are fully aware of, and implementing, Equality Budgeting policy where applicable and
- bringing all relevant work within their department to the attention of the Equality Budgeting unit, to ensure that strategic direction of Equality Budgeting is fully informed.
An initial multi-dimensional Well-being Framework for Ireland was published in July 2021. Since then the CSO has launched an interactive dashboard to complement the Framework and a wide-ranging public consultation led by the Department of the Taoiseach is ongoing. My Department is in the process of piloting an approach of locating well-being within existing public policy. The approach builds on the performance budgeting initiative by placing an explicit focus on stated policy goals and evidence of progress. With regard to well-being, my Department intends to:
(1) Put in place supports for other Departments to support them in using the Well-being Framework as part of the Spending Review process; and
(2) Develop an approach to linking budget decisions with the various dimensions of the Well-being Framework.
The Structural Reform Support Programme (SRSP) is an EU programme that provides tailor-made support to all EU countries for their institutional, administrative and growth-enhancing reforms. In Oct 2019, my Department applied for funding to develop our Performance Budgeting framework and systems, and in early 2020, it was confirmed that our application had been successful. This project aims to create a new architecture for Performance Budgeting that brings together the various streams including Green Budgeting, Equality Budgeting, and Well-being Budgeting. A key element of this project is the development of tagging and tracking functions.
We continue to work closely with the Department of Finance, who are also members of the EBEAG, to ensure synergy with their remit. On Budget day this year, the Department of Finance published a paper (as part of the Report on Tax Expenditures 2021), which examined how to analyse and develop a process for Equality Budgeting in Ireland from a tax perspective.
We continue to work very closely with our colleagues in D/CEDIY to ensure that Equality Budgeting and gender mainstreaming work together to achieve common goals and on mutually beneficial policies. The Inter-departmental network outlined above is jointly chaired by D/CEDIY which ensures collaboration is maximised.
Communication with stakeholders continues to be a priority. Through both the EBEAG and the Inter-departmental network, very strong communication channels now exist. These channels provide the scope to enhance knowledge sharing on Equality Budgeting across Government.
Work is underway to identify the most suitable approach to track the actions and impact of equality budgeting to inform both the Oireachtas and civil society stakeholders that builds on the existing structures in place in the Revised Estimates for Public Services and the Public Service Performance Report.
The actions outlined above, and the work plan in place for 2022, will continue to support the further development of Equality Budgeting, ensuring that the momentum achieved to date will be maintained.
216. Deputy Catherine Connolly asked the Minister for Public Expenditure and Reform if CEOs of statutory organisations may hold board and or committee positions in other organisations in this or another jurisdiction; and if he will make a statement on the matter. [58772/21]
View answerThe position of CEOs of statutory bodies is in the first instance dependent on any specific provisions in the legislation establishing those bodies, and may differ between organisations.
More generally, in respect of board appointments, the Guidelines on Appointments to State Boards published by my Department in 2014 states “Consistent with best corporate governance practice it is advisable that no member of a State Board should serve more than two full terms of appointment or should hold appointments to more than two State Boards”.
My Department provides a template contract for the appointment of CEOs which contains the following relevant provisions :
For appointments of COs to non-commercial State Bodies the relevant clause is 4.7:
"You shall, unless prevented by ill-health, devote your whole time and attention during business hours to the discharge of your duties and to the business of the Agency and shall do all in your power to promote, develop and extend the business of the Agency and shall at all times and in all respects conform to and comply with the directions and regulations made by the Agency commensurate with your position as CEO and shall not without the previous consent of the Agency in writing:
a) engage in any other profession or business, or
b) be concerned with or interested in any other business of a similar nature to, or competitive with, that carried on by the body."
For appointments of CEOs to Commercial State Bodies the relevant clause is 7.2:
The Chief Executive shall not:
1. without the previous consent of the Company in writing be concerned with or interested in any other business of a similar nature to or competitive with as determined by the Board, that carried on by the Company;
2. work for or have any other interest in any other company or business or undertake any other activity which might interfere with the proper performance of his/her duties or compete or conflict (or be perceived to conflict) in any way with the Company’s activities provided always that nothing contained in Section 7.2 of this Contract shall preclude the Chief Executive from holding or being otherwise interested in any shares or other securities of any company where such securities are for the time being quoted on any recognised Stock Exchange (the “Shares”) and the interest of the Chief Executive therein does not extend to more than one-hundredth part of the aggregate amount of such securities and provided that nothing in Section 7.2 shall preclude the Chief Executive, with the previous consent in writing of the Board, from holding private investments that may give rise to a conflict in interest.
