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Thursday, 16 Dec 2021

Written Answers Nos. 238-261

Bus Services

Questions (238)

Brendan Griffin

Question:

238. Deputy Brendan Griffin asked the Minister for Transport if he will make additional funding available to LocalLink services in respect of community transport initiatives to serve the Castlemaine, Keel, Inch and Annascaul corridor; and if he will make a statement on the matter. [62890/21]

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Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.

It is the National Transport Authority (NTA) which has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including management of the Rural Transport Programme which operates under the TFI Local Link brand.

In light of the NTA's responsibilities in this matter, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.

Motor Industry

Questions (239)

Brendan Griffin

Question:

239. Deputy Brendan Griffin asked the Minister for Transport if his attention has been drawn to the shortage of quality used cars available to the Irish market; his views on the urgency of the situation and the adverse impacts this is having for retailers and consumers; and if he will make a statement on the matter. [62891/21]

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Written answers

The issues regarding the shortage of quality used cars does not fall under the remit of my Department.

Tax Exemptions

Questions (240)

Violet-Anne Wynne

Question:

240. Deputy Violet-Anne Wynne asked the Minister for Finance the length of time the current property tax exemption will apply to those included on the national defective concrete block redress scheme. [62477/21]

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Written answers

Section 10D of the Finance (Local Property Tax) Act 2012 (as amended) provides for a 6-year period of exemption from the charge to Local Property Tax (LPT) for certain properties that have been damaged by the use of defective concrete blocks in their construction. The exemption is available for the year 2022 and each subsequent year.

A residential property that has been damaged as a result of the use of defective concrete blocks in its construction will be eligible for the exemption where at least one of the following qualifying conditions is met: 

1. The property has been confirmed as eligible for a grant under the Defective Concrete Block Scheme,  which currently applies to properties situated in the administrative areas of Donegal County Council and Mayo County Council. 

2. An insurance company has remediated the property or has provided sufficient funds to carry out the remediation.

3. The builder of the property has remediated it or has provided sufficient funds to carry out the remediation.

Where a property is eligible for the exemption on a liability date (i.e. on 1 November in a given year), a claim for the exemption may be made for the 6-year period following that date.  For instance, where a property was eligible for the exemption on 1 November 2021 and a claim was made for the exemption, the exemption will cover the 6-year period 2022 to 2027.  If a qualifying condition is met in June 2024, 1 November 2024 is the liability date for the year 2025 and the claim covers the 6-year period 2025 to 2030.  

I am advised by Revenue that detailed guidance on this exemption has been published and is available on its website. 

State Bodies

Questions (241)

Willie O'Dea

Question:

241. Deputy Willie O'Dea asked the Minister for Finance when he expects the new members of the Disabled Drivers Medical Board of Appeals to be appointed; and if he will make a statement on the matter. [62678/21]

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Written answers

The Disabled Drivers & Disabled Passengers Scheme (DDS) provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The Scheme is open to severely and permanently disabled persons who also meet one of six specified medical criteria, as a driver or as a passenger and also to certain organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant. In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire.

The members of the DDMBA wrote to me recently tendering their resignation from the Board. Work is now ongoing in my Department to appoint a new Board as quickly as possible. With this in mind, my officials are engaged with the Department of Health and the Public Appointments Service in terms of seeking expressions of interest from medical practitioners to participate in the Board. It is hoped to move this process along as quickly as possible so that appeals can recommence early in the new year.

I should point out that assessments by the HSE are continuing to take place.

Tax Reliefs

Questions (242)

Violet-Anne Wynne

Question:

242. Deputy Violet-Anne Wynne asked the Minister for Finance if the 90% agricultural relief from CAT will continue as a retention of current taxation measures; and if he will make a statement on the matter. [62713/21]

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Written answers

As the Deputy is aware, CAT Agricultural Relief enables qualifying farmers to reduce their liability to CAT by 90%. The relief operates by reducing the market value of 'agricultural property' (including farmland, buildings, stock) by 90%, so that gift or inheritance tax is calculated on an amount known as the 'agricultural value',  which is substantially less than the market value.

To qualify for agricultural relief, 80% of the beneficiary’s assets, after having received the gift/inheritance, must consist of qualifying agricultural assets. The beneficiary must also be an active farmer or lease the land to one. Agricultural Relief has been available for gift and inheritance tax since the introduction of Capital Acquisitions Tax in 1976.

I recognise that CAT Agricultural Relief  is a key relief in ensuring the inter-generational transfer of farm assets and farm succession planning, and I have no plans to amend it at this time.

Tax Reliefs

Questions (243)

Violet-Anne Wynne

Question:

243. Deputy Violet-Anne Wynne asked the Minister for Finance if the VAT on farming equipment can be reduced, for example, on slurry equipment to incentivise and make more viable the farming profession. [62714/21]

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Written answers

I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply.  In accordance with Irish legislation, agricultural equipment is liable to VAT at the standard rate, currently 23%. There is no discretion under the Directive for Ireland to reduce the rate of VAT on these goods.

Farmers may elect to register for VAT or be treated as flat-rate farmers for VAT purposes. Farmers that are registered for VAT have an entitlement to reclaim VAT charged on costs incurred in relation to the farm business, including VAT borne on the purchase of agricultural equipment such as slurry equipment. 

Farmers who are not registered for VAT are entitled to avail of the Flat-Rate Farmers Scheme which compensates them for the VAT incurred on goods and services used in the course of their farming business by allowing them to charge a flat rate addition for their supplies of agricultural produce and services. This long-standing arrangement is provided for under Ireland’s VAT legislation and is permitted under the Directive.

Tax Code

Questions (244)

Violet-Anne Wynne

Question:

244. Deputy Violet-Anne Wynne asked the Minister for Finance the steps his Department will take to ensure farmers have more liquidity, specifically in relation to stamp duty; if he will consider a reduction on the agricultural rate and the young farmer stamp duty relief; and if he will make a statement on the matter. [62723/21]

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Written answers

My answer will focus on the stamp duty treatment of agricultural land, as this is the area highlighted in this question.

All open land, including agricultural land, is classified as non-residential property for stamp duty purposes.

Any re-categorisation of agricultural land for the purposes of stamp duty, would not be appropriate as it would introduce an inequity in terms of providing agriculture with an additional advantage over other forms of business.

A number of stamp duty related reliefs which considerably reduce the applicable rate on agricultural land for qualifying acquisitions are currently available to the farming sector including Farm Consolidation Relief, the Young Trained Farmer Stamp Duty Relief and Consanguinity Relief.

I have no plans to amend the status of agricultural property for the purposes of stamp duty. 

In regards to the young trained farmer stamp duty relief, I announced its extension for a further year to 31 December 2022 in my Budget speech this year. This relief provides a full relief from stamp duty on transfers of agricultural land (including farmhouses and buildings) for qualifying farmers.

This measure, designed to support young farmers, is an EU State aid which is granted in accordance with the Agricultural Block Exemption Regulation, or ABER. The current ABER is due to expire on the 31st of December 2022. Therefore, to comply with EU State aid rules, I could only announce an extension of the relief until that date. The same applies in relation to stock relief for young trained farmers and farm partnerships. 

I have been advised by the Department of Agriculture that they are confident that reliefs of this nature will continue to be considered an acceptable form of State aid under the terms of any revised regulation. I am hopeful, therefore, that I will be able to provide for a further extension of these reliefs next year.

Housing Schemes

Questions (245)

Brendan Griffin

Question:

245. Deputy Brendan Griffin asked the Minister for Finance when an announcement will be made in relation to if he will extend the help-to-buy scheme and expand it to include currently uninhabitable properties that buyers do not plan to fully demolish as part of the renovation works; and if he will make a statement on the matter. [62909/21]

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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.  HTB is specifically designed to encourage an increase in demand for new build homes in order to encourage the construction of an additional supply of such properties. 

In my Budget 2022 address, I announced an extension of HTB for a further year until the end of 2022 and also that a formal review of the scheme would take place in 2022. The intention is that the review will be fundamental in nature, and that it will inform decisions for Budget 2023 and Finance Bill 2022.

With regard to currently uninhabitable or derelict properties which are not to be demolished, the recent Tax Strategy Group (TSG) paper on HTB, published on Budget day and available on my Department's website, noted that there would be difficulties in defining these properties in legislation to remove the potential for abuse. Revenue has advised that, as matters stand, in some marginal cases involving this issue for both HTB and Local Property Tax, a higher degree of compliance oversight, requiring engineers’ reports, photos and other supporting documentation, by them is necessary.

Furthermore, the paper notes that the extension of HTB as such a measure could create a market for eligible properties that would result in the benefit accruing to vendors of such properties in the form of increased prices rather than assisting purchasers.

In relation to second-hand properties more generally, an increase in the supply of new housing remains a priority aim of Government policy. As mentioned above, the HTB scheme is specifically designed to encourage an increase in demand for new build homes in order to encourage the construction of an additional supply of such properties. A move to include second-hand properties within the scope of the relief would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply.  

Covid-19 Pandemic Supports

Questions (246)

Cathal Berry

Question:

246. Deputy Cathal Berry asked the Minister for Finance the position regarding supports for the hospitality sector from his Department in response to the further public health restrictions imposed on the sector to reduce the spread of Covid-19; the date the scheme will be open for applications; and if he will make a statement on the matter. [62421/21]

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Written answers

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. It is an economy-wide scheme that operates across all sectors.  

In money terms, the overall support provided to-date (9th December) by EWSS is over €6.6 billion comprising direct subsidy payments of almost €5.73 billion and PRSI forgone of €902 million to 51,700 employers in respect of over 696,900 employees.  

Following the agreement of Government on 3 December 2021, my Department and Revenue sought to develop a proposal to modify the Covid Restrictions Support Scheme (CRSS) to provide for a supplementary subsidy (in addition to EWSS) for businesses which are subject to the latest restrictions on operating.  The objective of the modified scheme was to provide targeted, timely and sector-specific support to supplement the reduced EWSS payments to the sector. 

However, on further consideration and analysis of the data on CRSS, it proved to be administratively complex to design such a scheme and it would not be possible to have it operational ahead of Christmas as was hoped.  The proposed modifications which included a change to both the turnover threshold and the rate, as well as consideration of a higher weekly cap, had the potential to significantly increase the cost of the scheme, particularly in the context of uncertainty around the trajectory of Covid-19 and the impact of the Omicron variant. 

Instead, maintaining the enhanced rates of subsidy under the EWSS offers a relatively more efficient and effective way to support affected businesses in the immediate term. As such, the Government decided, and it was announced on Thursday last (9thDecember), that the enhanced rates of EWSS subsidy would apply for a further two months, December 2021 and January 2022. This will give certainty to businesses when they need it most. 

The Government and I have been clear that there will be no cliff edge to supports for employers but we have also been clear that the EWSS cannot run indefinitely, nor is it sustainable to continue with the enhanced rates for a prolonged period of time given the very substantial costs to the Exchequer.

As such, from 1 February 2022, the original two-rate structure of €203 per week and €151.50 per week will apply; for March and April 2022 the flat rate subsidy of €100 per week will apply and the scheme will end on 30 April 2022.

The CRSS will remain in place to support businesses who are required to close or significantly restrict customers from accessing their business premises, and who meet the qualifying criteria.  Under the relevant legislation, the CRSS was due to end on 31 December 2021 but is now being extended to the end of January 2022 under the same Government decision of 9 December as mentioned above.  Provision is also being made to allow me, as Minister for Finance, to extend the CRSS up to 30 April 2022 by Ministerial Order if deemed necessary.

Amendments to the Finance Bill 2021 were brought forward this week to give effect to the EWSS and CRSS changes mentioned.

Finally, as has been the case throughout the pandemic, the Government will continue to monitor developments closely.  

Capital Expenditure Programme

Questions (247)

Jennifer Carroll MacNeill

Question:

247. Deputy Jennifer Carroll MacNeill asked the Minister for Finance the amount of capital allocated to non-voted expenditure in 2020; and if he will make a statement on the matter. [55674/21]

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Written answers

An amount of €1.9 billion was spent through non-voted capital expenditure in 2020.

The vast majority of this is composed of short-term, technical loans for the purposes of cash flow, including €600 million to the Social Insurance Fund, €670 million to cover payments from the European Agriculture Guarantee Fund, and a further €253 million to the Supply Account. All of these were recouped in-year or in the early months of 2021.

A further €372 million loan was advanced to Irish Water, under an agreement to repay Irish Water’s existing non-domestic commercial debt and to fund its future non-domestic water borrowing requirements. 

The remaining non-voted capital expenditure is composed of €17 million in various investments to international bodies provided for under such legislation as the Development Banks Act 2005, and an amount of €0.4 million to the Carbon Fund under the Carbon Fund Act 2007.

Housing Policy

Questions (248)

Thomas Gould

Question:

248. Deputy Thomas Gould asked the Minister for Finance his views on and response to the ESRI paper, Prudent government borrowing can mitigate inadequate housing supply and upward pressure on prices and rent; and if he met with the ESRI on same. [55907/21]

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Written answers

I am aware of the ESRI paper to which the Deputy refers, which calls for higher levels of borrowing to increase public spending on housing.  

The Government’s response to the Covid-19 pandemic has had a significant impact on our deficit. Last year, a general government deficit of €18½ billion was recorded – the equivalent of nearly 9 per cent of modified gross national income (GNI*). This year, Budget 2022 projected a general government deficit of €13.3 billion, nearly 6 per cent of GNI*.

Against this background, the Government has still made very extensive commitments in the area of housing. This reflects the priority which the Government places on boosting housing supply.

To this end, the Housing for All plan commits to increase housing supply and affordability by targeting the delivery of, on average, 33,000 new homes every year to 2030. This includes the provision of over 10,000 social homes per year and an average of 6,000 affordable homes to purchase or rent. The plan is supported by significant annual investment of over €4 billion in guaranteed State funding over the next five years.

While public investment has an obvious role in alleviating housing market pressures, there are also significant non-fiscal constraints. In particular, the public health measures needed to suppress the spread of the virus have placed a direct restriction on the construction of new housing. The industry is now facing increased costs and difficulty sourcing building materials as a result of the pandemic, high international demand, and Brexit. There are also skills shortages within the construction sector, which is why the Government is providing significant investment in skills and trades. As acknowledged in the report, simply increasing expenditure will not negate these capacity constraints. It is, therefore, a gross simplification to suggest that providing additional housing is purely a matter of increasing Exchequer funding.

From a broader fiscal perspective, as the recovery gains strength, it is important to remember that it is neither sustainable nor prudent to run perpetual deficits. Even before the onset of Covid-19, Ireland’s level of public debt per capita was one of the highest in the developed world.  The impact of the pandemic is expected to add nearly €6,000 per person to this ratio by the end of the year, bringing the level of public indebtedness to €47,250 for every citizen in this country.  

Looking beyond the pandemic, a number of fiscal challenges lie ahead, including financing the digital and climate transitions, as well as making provision for the future costs of an ageing population. It is also important that fiscal buffers are rebuilt and public indebtedness is steadily reduced once the pandemic has passed, so we can address future shocks by providing support at the right time – as we have done over the past twenty months.

While I keep close track of all important research published by the ESRI, I have not met with the Institute specifically to discuss this paper. However, it is important to note that since the publication of the paper, the ESRI have welcomed the fiscal stance taken in Budget 2022 and clarified that the analysis contained within the paper refers to a so-called “steady-state” scenario, a theoretical situation where macroeconomic and fiscal balance has been achieved and the government is not already running a very large deficit.

Finally, while I greatly respect the analysis produced by the ESRI, the Institute does not have a monopoly on providing economic advice.  I get economic and fiscal advice from a broad range of specialists, including my own officials and the Irish Fiscal Advisory Council.  In this vein, it is worth noting that the IFAC has welcomed the fiscal stance taken in the recent budget. 

Question No. 249 answered with Question No. 113.
Question No. 250 answered with Question No. 113.

Tax Rebates

Questions (251)

Ruairí Ó Murchú

Question:

251. Deputy Ruairí Ó Murchú asked the Minister for Finance his plans to introduce an enhanced or improved carbon tax rebate for cucumber and other greenhouse growers that use CO2 in the growing process; and if he will make a statement on the matter. [60850/21]

View answer

Written answers

Mineral Oil Tax (MOT) applies to minerals oils used for motor or heating purposes in the State. The rate of MOT is comprised of a carbon and non-carbon component.

I am advised by Revenue that Section 98 of Finance Act 1999 provides for a partial relief for MOT for heavy oil and liquefied petroleum gas (LPG) used in horticultural production and the cultivation of mushrooms. Heavy oil refers to diesel, kerosene, and fuel oil, and LPG is defined in MOT legislation as “petroleum gases and other gaseous hydrocarbons falling within CN Codes 2711 12 11 to 2711 19 00”. The relief is operated by way of repayment only. The repayment amount is the difference between the MOT paid and the predetermined rate set out in section 98 for heavy oil/LPG. More information on the operation of the relief is also available on Revenue’s website.   

With regard to the 2022 carbon tax rate increase, the Deputy will be aware that this applied to auto fuels with effect from 13th October 2021.  However, I delayed the application of the rate increase on all other fuels until May 2022.  

The Deputy will be aware that there are support schemes and investment aid available to horticultural producers from the Department of Agriculture, Food and the Marine and Bord Bia.   Full details are available at the website addresses below. 

www.gov.ie/en/service/d6dde0-commercial-horticulture-investment-aid-scheme-2020/

www.bordbia.ie/farmers-growers/get-involved/how-we-help/

Vacant Properties

Questions (252)

Thomas Gould

Question:

252. Deputy Thomas Gould asked the Minister for Finance the status of the survey of vacant properties undertaken within the local property tax process. [62513/21]

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Written answers

The Finance (Local Property Tax) (Amendment) Act 2021 provides for a revaluation of residential properties to form the basis of the Local Property Tax (LPT) charge from 2022.

While the LPT filing deadline passed on 10 November, it is evident that property owners are still making their best efforts to file their returns as these continue to be received by Revenue. As part of the LPT return, information was sought in relation to the current occupancy of each residential property and, where unoccupied, the reason and duration for this.

Revenue will be undertaking analysis of the information collected on this matter, in conjunction with my Department once all returns received are processed. Revenue expects that this information will be made available early in 2022.

While detailed analysis of the returns is not yet available, Revenue publishes preliminary statistics on LPT on a regular basis on its website.

Economic and Social Research Institute

Questions (253)

Thomas Gould

Question:

253. Deputy Thomas Gould asked the Minister for Finance the number of meetings his Department has held with the ESRI in the past 12 months; and the topic of these meetings. [62518/21]

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Written answers

Officials from my Department have held meetings with researchers from the Economic and Social Research Institute (ESRI) 50 times in the past year. Many of these meetings relate to the work of the Department of Finance/ESRI Joint Research Programme, which is jointly funded by my Department and the Revenue Commissioners. This programme, which will continue for its eighth year in 2022, involves ongoing research collaboration across all three Institutions in the policy areas of banking, taxation and the economy.

The topics of the meetings between my Department and the ESRI are set out below.

Topic

Number of Meetings

Joint Research Programme on The Macroeconomy, Taxation and Banking - Steering Committee Meetings

4

Joint research - discussion of future research

3

Joint research - Exploring the impact of COVID-19 and recovery paths for the economy

8

Joint research - Impact of Brexit on trade flows between Ireland and the UK.

5

Joint research - MNE modelling

1

Joint research - SME investment project

1

Joint research - SME survival project 

8

Joint research - I3E climate modelling project

8

Dept. of Finance Credit Demand Survey

2

Productivity research

3

SWITCH Model - Steering Committee Meeting

2

SWITCH Model and Distributional Analysis

2

Discussion of the COSMO Model

1

Switch your Bank Campaign

2

State Bodies

Questions (254)

Holly Cairns

Question:

254. Deputy Holly Cairns asked the Minister for Finance the number of State boards under the remit of his Department or its agencies, in tabular form; the number of members of each board; the number of persons with a declared disability on each board; and the percentage of each board that is made up of persons with a declared disability. [62525/21]

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Written answers

I can advise the Deputy that information on State Board membership, by Department, is available on the State Boards website www.StateBoards.ie. As the State Boards under the aegis of my Department do not collect information related to the declared disabilities of their members, it is not possible to provide the number of such persons with a declared disability.

Tax Reliefs

Questions (255)

Brendan Griffin

Question:

255. Deputy Brendan Griffin asked the Minister for Finance when Ireland will implement a recent modernised European Union VAT directive to reduce VAT on bicycles including e-bikes; and if he will make a statement on the matter. [62588/21]

View answer

Written answers

As the Deputy will be aware the Commission issued its original proposal to amend a Council directive on the common system of value added tax as regards rates of value added tax on 18 January 2018.

The compromise text agreed at ECOFIN has been amended significantly in comparison to the original proposal so the EU Parliament will once again be consulted for their opinion. 

Once the Parliament has issued its opinion on the proposal, the Council will formally adopt the directive. It will then enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Officials in my Department will be reviewing the options now available to Ireland in setting VAT rates.

Future tax changes are generally taken in the context of the Budget. Deputies will be aware that my officials prepare a series of papers containing tax options for the Tax Strategy Group to be considered in the context of the budgetary process, alongside a wide range of submissions from various stakeholders and lobby groups.

Customs and Excise

Questions (256)

Cian O'Callaghan

Question:

256. Deputy Cian O'Callaghan asked the Minister for Finance if regulations will be introduced to regulate service providers that charge a fee for clearing parcels and packets including collection and payment of duties for the Revenue Commissioners; if regulation of these charges will be assigned to the Commission for Communications Regulation or to another statutory regulatory authority; and if he will make a statement on the matter. [62637/21]

View answer

Written answers

I am advised by Revenue that across the European Union electronic customs import declarations are now required for all parcels / packages coming from non-EU countries regardless of the value of the goods being sent. This includes parcels / packages coming from the UK. It is important to note that without a customs declaration and payment of any taxes and duties owed, parcels / packages from outside the EU cannot be delivered to the importer.

The importer may submit the import declaration themselves or they can appoint a representative to submit the declaration on their behalf. Generally, private individual importers appoint a representative and the commercial arrangements that they have with this representative, including the fees levied by the representative for the service provided, is a matter between them and the service provider and Revenue has no role in relation to the fees charged. This is a contractual arrangement between the service provider and the importer. They have further advised that these representatives do not collect the relevant taxes and duties on behalf of Revenue, but rather they act on behalf of the importer and assist the importer in the completion of customs formalities required when importing goods from outside the EU, including in discharging their liability to any taxes and duties owed.

The regulation of fees charged by a commercial entity in terms of the commercial services provided to an importer in meeting their obligations to comply with their statutory obligations is not a matter for me as Minister for Finance or my Department. I have no proposal to introduce or assign any role in that regard to any regulatory authority.

Illicit Trade

Questions (257)

Brendan Smith

Question:

257. Deputy Brendan Smith asked the Minister for Finance the proposals to introduce additional measures to combat the illicit trade in tobacco, drink and fuel products; and if he will make a statement on the matter. [62677/21]

View answer

Written answers

I am assured by Revenue that combating the threat which fuel fraud and the illicit alcohol and tobacco trades pose to legitimate businesses, consumers and the Exchequer continues to be a priority.

Steps taken by Revenue to combat the illegal mineral oils trade include the implementation of stringent supply chain controls and reporting requirements, a rigorous programme of risk focused enforcement action and the application of robust legislation. In addition, Revenue and the UK Revenue and Customs undertook a joint initiative to introduce a new marker for use in marked fuels, which came into operation in April 2015. The industry view is that the actions taken have been successful in curtailing fuel fraud.

The Deputy will be aware that illicit trade in alcohol can occur through the diversion of untaxed alcohol onto the market, through the production of counterfeit alcohol and through smuggling from countries with lower taxes. I am aware that Revenue takes appropriate action where illicit activity is detected and that this action is informed by intelligence on criminal activity and risk-based examination of commercial traffic and stock in retail premises.

In relation to the tobacco trade, I am advised that Revenue uses a combination of risk analysis, profiling and intelligence, and risk-based screening of cargo, vehicles, baggage and postal packages to intercept illicit products. Action after importation includes checks at retail outlets, markets and private and commercial premises.

I am aware that Revenue and An Garda Síochána collaborate closely in acting against fuel, alcohol and tobacco crime, and also cooperate closely with their counterparts in Northern Ireland, in the framework of the North-South Joint Agency Task Force. This cooperation plays a key role in targeting the organised crime groups who operate across jurisdictions and are responsible for much of this criminality.

I am satisfied that Revenue’s work against fuel fraud and the illicit alcohol and tobacco trades has achieved a considerable level of success. I know that Revenue is very conscious of the resourcefulness of those involved and remains vigilant for, and ready to respond to, any new developments in these areas.

Vacant Properties

Questions (258)

Cian O'Callaghan

Question:

258. Deputy Cian O'Callaghan asked the Minister for Finance the number of reports on residential vacancy that have been commissioned in the past three years; the titles of these reports; the level of vacancy that was reported by area, in tabular form; the recommendations that were made in these reports; and if he will make a statement on the matter. [62719/21]

View answer

Written answers

In 2018 I commissioned  Indecon consultants to examine the potential of a vacant residential property tax to meet the objective of increasing the supply of homes. The resulting report presented a detailed evidence-based assessment of vacancy rates in areas in which the demand for housing is most acute.

The Indecon report is entitled “Report on the Taxation of Vacant Residential Property” and is available on the Government website gov.ie

The report did not recommend the introduction of a residential vacant property tax as it considered it would not be an effective response to deal with the housing challenges. The very low vacancy rates in the areas of greatest demand for housing, particularly in terms of medium term vacancy, indicated that the potential for a vacant property tax to increase housing supply was very limited and could represent a distraction from the need to significantly accelerate the building of new social housing, affordable housing and the facilitation of private sector supply.

In summary, the recommendations in the report are as follows

1. Indecon did not recommend the introduction of a residential vacant property tax as they did not believe it would be an effective response to deal with the housing shortages. However, Indecon recommended this should be kept under review.

2. In the event that a vacant property tax is introduced at some stage in the future, careful consideration is required to design the appropriate criteria for the implementation of such a tax.

3. Properties which become vacant owing to the long-term illness of the owner and which subsequently are rented out should be exempt from Local Property Tax

4. Enhanced evidence should be collected to monitor movements in the level of vacancies of residential properties.

5. A major programme of compulsory purchase orders should be urgently activated on suitable residential vacant properties.

6. Consideration should be given to introducing a time limited differential rate of capital gains tax for long term vacant residential properties.

It is the stated intention of the Government to introduce a Vacant Property tax next year. The Government’s strategy ‘Housing For All’ includes an action for my Department to collect data on vacancy with a view to introducing a Vacant Property Tax. The timeframe for delivery on this commitment is the second quarter of 2022.  The Finance (Local Property Tax) (Amendment) Act 2021 has accordingly enabled Revenue to collect certain information on vacant properties in the Local Property Tax (LPT) return forms submitted by residential property owners last month in respect of the new LPT valuation period 2022-2025. This information, together with information from other available sources, will be used to inform the optimum design of a Vacant Property Tax.

Vacant Properties

Questions (259)

Cian O'Callaghan

Question:

259. Deputy Cian O'Callaghan asked the Minister for Finance the steps that have been taken towards the introduction of a tax on vacant residential property; the estimated amount of revenue that would be raised by such a tax at each possible rate, in tabular form; the impact on property usage each rate would have; and if he will make a statement on the matter. [62721/21]

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Written answers

The Government’s strategy ‘Housing For All’ includes an action for my Department to collect data on vacancy with a view to introducing a Vacant Property Tax. The timeframe for delivery on this commitment is the second quarter of 2022.  The Finance (Local Property Tax) (Amendment) Act 2021 has accordingly enabled Revenue to collect certain information on vacant properties in the Local Property Tax (LPT) return forms submitted by residential property owners last month in respect of the new LPT valuation period 2022-2025. This information, together with information from other available sources, will be used to assess the merits and design of a Vacant Property Tax.

Before introducing such a tax it is important to have a sound understanding of the quantity, locations and characteristics of long term vacant properties.  It is also essential to identify the reasons for vacancy, and whether this is long or short-term in nature. There may be genuine and acceptable reasons for vacancy such as refurbishment work, the temporary absence of the owner for medical reasons or pending the grant of probate for a deceased person’s estate. Appropriate exemptions from any charge will have to be considered in addition to acceptable periods of vacancy.

The LPT returns in respect of around 1.9 million dwellings are currently being analysed by Revenue and include information on the number and location of unoccupied properties, and the reasons for and duration of this, as of 1 November 2021. I look forward to receiving the results of Revenue’s analysis of this information early in 2022.  This analysis will be used together with other available sources of information to inform the optimum design of a Vacant Property Tax. The objective of the tax will be to increase the supply of housing to help address the housing challenge. It will not be primarily a revenue raising measure. In advance of the analysis of LPT returns and design of the tax it is not possible to provide estimates of the revenues the tax may generate.

In designing the tax it will be important to achieve an appropriate balance between placing sufficient pressure on vacant home owners to allow the measure to actually work as an incentive, and ensuring any such tax does not arbitrarily or excessively penalise home-owners in a discriminatory way. 

Covid-19 Pandemic Supports

Questions (260, 262)

Bernard Durkan

Question:

260. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he is confident that adequate resources remain available to him to continue supporting the economy in the face of the continued advance of Covid-19 and its variations; and if he will make a statement on the matter. [62730/21]

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Bernard Durkan

Question:

262. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which resources remain available to him and his Department to facilitate the battle against Covid-19 in its various forms; and if he will make a statement on the matter. [62732/21]

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Written answers

I propose to take Questions Nos. 260 and 262 together.

Including funds allocated in Budget 2022, the total amount made available to mitigate the impact of the Covid-19 pandemic stands at approximately €48 billion, composed of a combination of direct public expenditure, taxation measures and ‘below the line’ supports.

Of this, €6.8 billion has been made available in direct expenditure measures in 2022. Approximately €2.9 billion has been allocated to departments, particularly the Departments of Health and Social Protection to facilitate their continued Covid response, while the remainder remains unallocated. The unallocated funds will allow the Government respond flexibly to the challenges of the pandemic as it evolves without impacting on baseline budgetary arithmetic.

The primary income support schemes remain in place. The Pandemic Unemployment Payment, which to date has paid out nearly €9 billion, reopened to workers impacted by the most recent set of restrictions. Furthermore, the Employee Wage Subsidy Scheme will continue to operate at enhanced rates for December and January. Over €8.5 billion has been paid to businesses to date through this scheme and its predecessor, the Temporary Wage Subsidy Scheme. 

Going forward, we will continue to assess the supports available and ensure that they remain targeted to those most in need.  The Government has been clear that there will be no cliff edge to supports but we have also been clear that these measures cannot run indefinitely given the very substantial costs to the Exchequer.

Economic Growth

Questions (261)

Bernard Durkan

Question:

261. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he is satisfied that Ireland’s economic progress will continue unimpeded notwithstanding the challenges of Covid-19 and Brexit; and if he will make a statement on the matter. [62731/21]

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Written answers

Due to the success of our vaccination programme restrictions were eased gradually since the second quarter of this year, with the domestic economy recovering strongly as a result. Modified Domestic Demand (MDD) – the best measure of domestic economic activity now exceeds the level immediately preceding the pandemic (2019-Q4) by around 3 per cent. Improvements can also be seen in the labour market with the unemployment rate including PUP recipients now below 7 per cent, the lowest rate since the onset of the pandemic.

Looking forward, early indications point towards an easing in growth rates in the domestic economy in the fourth quarter. Part of this is the continued adjustment in growth towards pre-pandemic trends with re-opening effects and pent-up demand tapering off. Clearly, any further deterioration in the current epidemiological situation that results in the re-introduction of significant restrictions would hamper the economic recovery. However, with our booster campaign ramping up, and around a third of those who are fully vaccinated having now received a third jab, I am confident that, once we overcome the fourth wave of the virus, our economy will strengthen.

The UK plan to implement the new procedures and checks under the Trade and Cooperation Agreement on a phased basis from January of next year is expected to have a negative impact on Irish exports due to increased trade frictions. To help in combatting this Ireland has been allocated over 1 billion euro from the Brexit Adjustment Reserve which will help support employment, businesses and local communities negatively affected by Brexit.

Overall I am optimistic that the economy can continue to grow robustly, thanks largely to our economic model, our well educated work force and pro-enterprise culture. Our resilience and strength comes from being an economy that remains open to investment and facilitates trade across our borders. This has proven to be the fundamental strength of the Irish economy over decades and is still the case today.

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