Written Answers Nos. 236-251
236. Deputy Holly Cairns asked the Minister for Transport if the completion of the Galway to Dublin greenway is a priority project for Government; and if the inclusion of the Galway city to Ballyloughane section in the three-year capital programme of Galway City Council as not a priority reflects this position nationally. [7372/22]
View answerThe progression of the Dublin to Galway Greenway continues to be a matter of priority for Government. Indeed, €8.5m has been allocated to Westmeath County Council by Transport Infrastructure Ireland (TII) for this year to progress the construction of the Greenway Bridge in Athlone that will see the Greenway cross the Shannon. That funding will also support the next stages in the pre-planning elements of the route in Roscommon and Galway following the publication of the preferred route corridor in December last year.
Funding has also been allocated to Galway City Council by the National Transport Authority (NTA) to progress the continuation of the Galway to Dublin Greenway from Ballyloughane Road to Galway City Centre - €150,000 has been allocated for pre-planning work this year. That work is at a much earlier stage than the work funded through TII; it reflects the shorter length of route and the significantly fewer number of landowners requiring consultation.
This Greenway will be a world-class facility for pedestrians, cyclists and wheelchair users to enjoy – locals and tourists alike. It will also facilitate the completion of this route which forms part of the international Eurovelo network of long-distance cycling trails in Europe and will link Galway to Moscow. I look forward to continued progress on this project.
237. Deputy Paul Kehoe asked the Minister for Transport the number of electric vehicle charging points that are available for use by staff across all carparks provided for use by his Department throughout the country; and if he will make a statement on the matter. [7391/22]
View answerCurrently, the Department of Transport has five EV charge points available for staff use.
The use of EVs within public sector vehicle fleets and the installation of associated EV infrastructure is an important exemplar and market driver, providing the necessary public leadership and raising consumer awareness of EVs.
There are several initiatives and programmes underway across the public sector that encourage the uptake of electric vehicles.
- The Public Sector Energy Efficiency Strategy encourages public sector fleets to test new technologies and facilitate/accelerate their market uptake.
- Green Public Procurement can act as a driver for innovation and competitiveness in the industrial sector, encouraging the development of new technologies.
- The recast Clean Vehicles Directive set minimum Member State procurement targets, with the main objective of increasing the uptake of clean (low- and zero-emission) vehicles.
- The Local Authority Climate Action Charter is a key action in the Climate Action Plan and will ensure every local authority embeds decarbonisation, sustainable development and climate resilience into every aspect of the work they do.
- The Climate Action Plan 2021 includes an action that call for the cessation of ICE vehicle procurement in Local Authorities and Public Sector Bodies (with exceptions for certain vehicle categories).
On foot of the Electric Vehicle Policy Pathway Report published in September, it was recommended that requirements should be placed on State bodies through their Climate Action Mandates prioritise the provision of adequate EV charging infrastructure where parking is provided for employees and the public.
The full report of the EVPP Working Group is now available online.
My Department is currently developing a national charging infrastructure strategy that will set out a pathway to stay ahead of EV demand over the critical period out to 2030. Preparations are also underway to establish an Office of Low Emission Vehicles. This Office will play an important role in our transition to zero emission vehicles. It will co-ordinate measures to support the uptake of EVs and the rollout of charge point infrastructure.
In addition, a destination charge point scheme is being developed by my Department, in association with the SEAI, which will include commonly accessed destinations. In this regard, I am minded to allow certain key publicly owned facilities at which members of the public access state services to apply for funding under this scheme and help provide another critical link in the overall network for public charging.
238. Deputy Kathleen Funchion asked the Minister for Finance if the employment wage subsidy scheme supports for ELC and SAC services reduced from €350 per week to €200 - €150 per week on 1 February 2022, will reduce on 28 February 2022 to €100 and remain at this level until the end of April 2022. [7146/22]
View answerThe 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 (3rd February) by EWSS is over €7.3 billion comprising direct subsidy payments of €6.34 billion and PRSI forgone of €989 million to 51,900 employers in respect of over 711,600 employees.
While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, positions of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.
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 part of Budget 2022, the Government agreed the future of EWSS including its graduated exit strategy. These arrangements were subsequently enhanced in response to the public health situation, namely the extension of the enhanced rates of subsidy for a further two months (across December 2021 and January 2022) and the reopening of the scheme for certain businesses as announced on 9 and 21 December 2021 respectively.
From 1 February 2022, for most businesses including those in the childcare sector, 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.
As the Deputy will be aware on 21 January 2022, I announced that businesses availing of EWSS that were directly impacted by the public health regulations of last December, will continue to receive the enhanced rates of subsidy for the month of February and the graduated step-down in subsidy rates will be delayed by one month with such firms continuing to receive support under the scheme until 31 May 2022.
Since the introduction of EWSS there has been regular and, where necessary, detailed engagement between my Department and the Department of Children, Equality, Disability, Integration and Youth (D/CEDIY). Analysis undertaken by D/CEDIY informed the approach taken with regard to the childcare sector. Childcare business will continue to benefit from the EWSS exemption until end April 2022.
As announced by my colleague, Minister O’Gorman, it is intended to put in place a transition fund between May and August 2022, which early learning and childcare providers can access. From September 2022, a major new funding stream will be introduced, to support providers in meeting their operating costs in return for a commitment that fees to parents will not increase.
Therefore, I am satisfied that a coherent approach has been taken as regards the exit strategy for EWSS and the introduction of the new funding stream for the childcare sector.
Finally, as has been the case to date, the Government will continue to monitor developments.
239. Deputy Ged Nash asked the Minister for Finance the number of help-to-buy scheme claims that have been rejected since its inception; and if he will make a statement on the matter. [7304/22]
View answerThe Help to Buy (HTB) scheme is an incentive for first-time property purchasers to help with the deposit needed to purchase or self-build a new house or apartment as a home. To date, the scheme has provided over €560 million to first time buyers in respect of more than 30,000 eligible claims.
I am advised by Revenue that the scheme operates through an online system that includes three distinct stages, application stage, claim stage and verification stage. Once an application is made and approved on the system, the person/s must complete the claim stage within a specified timeline.
Where the timeline is not met, the application is automatically cancelled. However, this is not a rejection and does not prevent the person/s from reapplying if they meet the eligibility criteria for the HTB. To date, Revenue has received approximately 110,000 applications for the scheme.
Once a valid claim is received, the information is made available (electronically) to HTB approved third party contractors (when purchasing a property) or solicitors (when self-building a property) for verification. Once verified by the relevant third party, the claim is paid. If the claim is rejected by the relevant third-party, then no payment is made. Revenue has confirmed that just over 350 rejections have occurred since commencement of the scheme to end 2021.
240. Deputy Ged Nash asked the Minister for Finance when his Department plans to commence a formal review of the help-to-buy incentive to ensure it is appropriately calibrated in order that it is delivered in time for Budget 2023; and if he will make a statement on the matter. [7306/22]
View answerThe 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 on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State 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.
The Government is committed, through the Housing for All strategy, to achieving progress on housing as a matter of utmost priority.
The strategy, published last September, includes the following commitment:
"The Help to Buy Incentive is due to end on 31 December 2021 and the Minister for Finance will consider an extension to the timeline in the context of Budget 2022. The role of the Help to Buy incentive will also be reviewed using the Tax Strategy Group mechanism with the aim of ensuring that it is appropriately calibrated in the context of other measures contained in Housing for All."
The associated Tax Strategy Group (TSG) review paper concluded that, should a decision be taken to extend Help to Buy, there would be a strong case for commissioning a further formal review of the efficiency and effectiveness of the scheme having regard to matters such as cost, the changing policy context in which the relief operates, the coming on stream of other non-tax Housing for All measures that have similar objectives, as well as the requirements of my Department's tax expenditure guidelines.
I accepted the thrust of the TSG recommendations and, 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 HTB extension will allow time for the other HFA measures with similar policy objectives to be put in place in the period ahead.
It is also the intention that the review will be fundamental in nature, and that it will help inform decisions for Budget 2023 and Finance Bill 2022.
Issues related to the terms of reference and a specific timeline for completion as well as the question of who will carry out the review are being considered by my Department at present and the matter is expected to be moved forward shortly.
241. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects employment to increase and unemployment to decrease over the next year given the urgency of economic recovery in the aftermath of Covid-19 and taking into account the aftermath of Brexit; and if he will make a statement on the matter. [7325/22]
View answerMeasures to limit the spread of COVID-19 had a substantial impact on economic activity and the labour market. At peak in May 2020, approximately 1.2 million people were in receipt of some form of income assistance from the state.
However, since the phased re-opening of our economy and society at the start of April 2021, the outlook for the labour market has significantly improved.
The Government’s policy response – essentially keeping workers close to the jobs market – paved the way for a rapid recovery in employment, which rebounded in the third quarter of 2021 to exceed the pre-pandemic level in 2019.
Forecasts published with Budget 2022 – which incorporated the impact of COVID-19 and Brexit – projected employment to average around 2.36 million in 2022, and the unemployment rate to average around 7.2 per cent over the same period.
The latest employment data and developments around the epidemiology of COVID-19 suggest that there may be some upside to the employment projections, published with Budget 2022, for this year.
Likewise, although the unemployment rate remains elevated at around 7¾ percent currently, the economy should approach full employment (an unemployment rate of around 5 per cent) over the next year or two, which is sooner than projected in Budget 2022.
As part of the Spring 2022 Stability Programme Update, my Department will publish updated labour market projections in April, that will take into account the latest economic developments, including on Brexit and COVID-19.
242. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which his Department has provided support to employers throughout the country in the course of Covid-19; and if he will make a statement on the matter. [7328/22]
View answerThe position is that this Government has introduced a broad range of COVID-19 supports for businesses such as the Employment Wage Subsidy Scheme (EWSS) and its predecessor, the Temporary Wage Subsidy Scheme (TWSS) which represents a substantial and key part of this Government’s response to the COVID-19 crisis.
The objective of both the EWSS and the TWSS before it is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS is an economy-wide scheme that operates across all sectors.
In money terms, the overall support provided to date by EWSS and TWSS combined is in excess of €10 billion. In the case of EWSS just over €7.3 billion to date has been provided comprising of direct subsidy payments of c. €6.3 billion and PRSI of c. €1 billion to 51,900 employers in respect of over 711,600 employees.
The COVID Restriction Support Scheme (CRSS) was a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the COVID-19 pandemic. The support was available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to COVID restrictions as set out in the relevant legislation. A total of 25,600 unique premises have claimed payments under the scheme amounting to €724 million.
In addition, the Business Resumption Support Scheme (BRSS) was a further support for businesses impacted by COVID-19. Registration for BRSS opened on 6 September 2021 and it closed for applicants on 30 November 2021. I am advised by Revenue that 2,120 businesses with 2,250 trades have availed of the scheme with an associated cost of €7.7 million.
The Tax Debt Warehousing Scheme remains available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic. The scheme applies to VAT debts, PAYE (Employer) debts, certain self-assessed income tax debts and overpayments of both the TWSS and the EWSS. To qualify for debt warehousing, a business must continue to file all tax returns, even though the liability cannot be paid. The Government have agreed to extend the tax debt warehousing scheme to allow the period where liabilities arising can be “warehoused” to be extended to 30 April 2022 for all taxpayers eligible for Covid-19 support schemes. To date, around €3.2billion in tax debts have been warehoused in respect of almost 105,000 businesses.
I would also point out that details of additional COVID-19 business supports are available via the Department of Enterprise, Trade and Employment’s website at the following link -
enterprise.gov.ie/en/Publications/Business-Supports-2022.html
In addition, I would draw the Deputy’s attention to Fáilte Ireland’s Tourism Business Continuity Scheme 2022, which was launched last month. Further details can be obtained via the following link –
www.failteireland.ie/tourism-business-continuity-programme.aspx
243. Deputy Aodhán Ó Ríordáin asked the Minister for Finance the efforts that have been made to recover Covid-19-related payments from companies whose performance during the pandemic allowed them to pay dividends and bonuses to management and owners. [7019/22]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. The TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS) which is provided for in section 28B of the Emergency Measures in the Public Interest (COVID-19) Act 2020, as amended.
The key eligibility criteria for the TWSS were that the business was suffering significant negative economic impact due to the pandemic, the employees were on the payroll at 29 February 2020, and the employer had fulfilled its PAYE reporting obligations for February 2020 before 1 April 2020, at the latest.
As regards eligibility for the EWSS, an employer must be able to demonstrate that its business has experienced a 30% reduction in turnover or orders between 1 January and 31 December 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Furthermore, the employer must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance throughout the scheme. Where an eligible employer makes a payment of wages, within prescribed limits, to a qualifying employee during the scheme, the employer can claim an EWSS subsidy for that employee.
As I have said previously, the primary purpose of the COVID wage subsidy schemes is to ensure, as much as possible, that employers keep employees in employment, thereby maintaining the employer/employee relationship, so that normal operations can quickly restart once the restrictions are lifted, rather than making them redundant and eligible for the Pandemic Unemployment Payment (PUP). These emergency support schemes were developed to deal with a situation where businesses were restricted from trading due to public health guidelines and not because of any economic or other trading conditions. It was considered that the best metric to determine the impact of the public health restrictions was a decline in turnover.
The legislation enacted by the Oireachtas places the administration of the subsidy schemes under the care and management of Revenue, which includes ensuring that this very significant investment of public funds is properly allocated to eligible employers and businesses in line with the legislation enacted by the Oireachtas.
The eligibility criteria for the wage subsidy schemes, as provided for in legislation, do not include any conditions related to the payment by a company of a dividend or dividends to its shareholders. Thus, there is no impediment to employers paying dividends to its shareholders and this is a business decision for an employer to take based on its financial circumstances. The payment of bonuses to management and owners by any employer who has received wage subsidy supports is similarly not precluded by legislation.
Consequently, to answer the Deputy’s specific regarding the efforts that have been made to recover the State support from companies who paid dividends and bonuses, the fact that the legislation does not prohibit this, it would not seem reasonable or indeed practicable to retrospectively seek to recoup subsidy payments where companies complied with the legislative requirements in place in relation to the supports.
However, as I have said previously, if businesses who availed of the wage subsidy schemes subsequently had a strong financial year and ultimately considered that the State support was not required by them, I would strongly encourage them to consider their position.
It should be noted that the overwhelming majority of companies that have participated in the wage subsidy schemes did so because they genuinely believed they would need support at that point based on the effect of the pandemic on their business. The experience I have had is that employers participating in the scheme are doing so in good faith.
I would also note that the schemes are characterised by a high degree of compliance by beneficiary firms. I am advised that a number of employers have returned the TWSS or EWSS payments to Revenue either because they voluntarily withdrew from either scheme, found they were ineligible or their business performance was better than they expected when they entered the schemes. In that regard, based on the latest available information to Revenue, 860 employers have refunded €10.9 million in TWSS payments. In addition, 16 employers advised Revenue they were voluntarily removing themselves from the EWSS, 9 of whom fully withdrew and repaid nearly €21 million and 7 partially withdrew and repaid just over €4.5 million. A total of 402 employers have repaid in full all subsidies claimed since the EWSS began, totalling approximately €52 million with an additional 3,331 making partial repayments totalling approximately €54 million.
To date, the EWSS has helped almost 52,000 employers to keep over 710,000 employees in employment since the scheme began in September 2020. It is highly likely that the vast majority of employers who have claimed COVID-19 wage supports have not had the wherewithal to pay dividends or bonuses during the period of the pandemic.
Without the support of EWSS, many businesses would simply not be in existence today and would certainly not be in a position to adapt as responsively as they have to the reopening of all sectors of our economy. The EWSS operates as a highly effective and responsive instrument.
We are now shifting our focus towards the phased exit from the scheme, which is commencing this month for most businesses as they transition to the reduced rates of subsidy. Those businesses that were directly impacted by the most recent public health regulations of last December, will continue to receive the enhanced rates of support for the month of February and commence the transition to the reduced rates of subsidy from 1 March 2022. The EWSS remains in operation until 30 April 2022 for most eligible businesses and until 31 May 2022 for those eligible businesses who have been directly impacted by public health regulations.
244. Deputy Carol Nolan asked the Minister for Finance the steps he is taking to address and alleviate the rise in inflation; and if he will make a statement on the matter. [7136/22]
View answerConsumer price inflation picked up sharply over the second half of last year and by December was running at 5.7 per cent – the highest annual rate in more than two decades. While some moderation was evident in January, the annual rate is still 5.0 per cent. Almost every advanced country in the world is in the same position. In the euro area, the annual inflation rate reached a record high of 5.1 per cent in January, while inflation rates of 7 and 5.4 per cent were recorded in the US and UK in December.
At the time of Budget 2022, my Department forecast headline inflation of 2¼ per cent for this year. Due to energy price spikes in the fourth quarter last year, there will be upside to this projection, with inflation of around 4 per cent now more likely. Nevertheless, inflation is expected to ease over the course of the year as some of the temporary drivers of inflation fade, demand eases and supply begins to catch up.
The Government is very conscious of the cost pressures facing households and accordingly introduced a large range of measures to protect households from the rising cost of living as part of Budget 2022. These measures cover a range of costs to people including health costs, income supports, family and child costs, energy costs, and supports for the costs of housing and education. Specifically, the fuel allowance was increased by €5 per week and there were increases in the allocation of Early Learning Care and School-Age Childcare to ensure childcare prices do not rise. The Budget package also included a personal income tax package worth €520m and a social welfare package of over €550m. On foot of significant increases in energy prices, the Cabinet further approved an Electricity Costs Emergency Benefit Payment of up to €100 to be made this year to an estimated 2.1m domestic electricity account holders.
In addition, the Government is currently considering further measures to help alleviate some of the cost pressures facing households. When considering the policy response it is important to bear in mind that household balance sheets, on aggregate, are in a very strong position, in large part due to the supports provided to households by government throughout the pandemic. In contrast, the government balance sheet is in a less favourable position, with a debt-GNI* ratio of 106 per cent recorded at the end of last year. We must also be very careful not to generate second round effects – pouring more money into the economy could generate further inflation and be self-defeating.
Furthermore, the era of cheap money is now coming to an end. The higher inflation environment has brought about an earlier than expected change in the monetary policy cycle. The Bank of England increased interest rates again last week and the US Federal Reserve is expected to begin ‘lift-off’ next month. In the euro area, market participants are now pricing in two interest rate increases this year; these come on top of the ending of the Pandemic Emergency Purchase Programme next month. The net effect of this monetary policy shift is expected to be a higher cost of sovereign borrowing. In light of these considerations, any further support provided should be temporary and targeted.
245. Deputy Neale Richmond asked the Minister for Finance if he will consider increasing the €3.20 per day work from home allowance given the rise in the cost of electricity and utility bills; and if he will make a statement on the matter. [7204/22]
View answer246. Deputy Neale Richmond asked the Minister for Finance if he will consider increasing the 30% remote working relief on the cost of electricity bills given the rise in the cost of electricity and utility bills; and if he will make a statement on the matter. [7205/22]
View answerI propose to take Questions Nos. 245 and 246 together.
As the Deputy will be aware, there are a number of administrative and legislative provisions under which employers can support employees in working from home.
Where e-workers incur certain extra expenditure in the performance of their duties of employment remotely or from home, such as additional heating and electricity costs, there is a Revenue administrative practice in place that allows an employer to make payments up to €3.20 per day to such employees, subject to certain conditions, without deducting PAYE, PRSI, or USC. There is no legal obligation on the employer to make such payment and the payment is at the discretion of the employer.
I am advised by Revenue that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental. These Benefit-in-Kind exemptions are provided for by way of legislation, in section 118 of the Taxes Consolidation Act (TCA) 1997.
In relation to the Deputy’s suggestion to increase the daily €3.20 allowance, it should be noted that the administration of the tax code is exclusively a matter for Revenue. Section 101 of the Ministers and Secretaries (Amendment) Act 2011 has specifically provided that Revenue is independent in the performance of its functions under, or for the purposes of, tax laws. Consequently, I am precluded from giving any direction or instruction to Revenue in regard to the review of any threshold relating to e-working.
I am further advised by Revenue that the value of relief allowed under the administrative arrangements is already considered sufficient to cover any legitimate additional costs incurred by workers. The level of support allowed also compares favourably internationally: at €3.20 per day, up to €16 per week or €832 per annum may be paid tax free. In contrast, in the UK, the weekly rate is just £6 per week or a maximum of £312 per annum. However, while Revenue has confirmed that there are currently no plans to increase the €3.20 allowance, it will keep the matter under review.
As the Deputy will be aware, in the Finance Act 2021, I enhanced and formalised the tax arrangements for working from home in line with Government policy to facilitate and support remote working. Accordingly, for the tax year 2022, an income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heat and broadband in respect of those days spent working from home can be claimed by taxpayers.
The amount of the relief will depend on the particular circumstances of the remote worker in terms of the level of costs incurred and their marginal tax rate. However, this measure will provide some relief for those with additional expenses arising from working from home and it will support living standards as the economy recovers.
In addition, Budget 2022 included a significant tax package amounting to a cost of €520 million. This included a substantial income tax package comprising of an increase of €50 in each of the main tax credits – personal tax credit, employee tax credit and the earned income credit – from €1,650 to €1,700. An increase of €1,500 in the income tax standard rate band for all income earners was also introduced. Furthermore, the 2% rate band ceiling for USC was also increased for 2022 in line with the increase in the national minimum wage to ensure that a full-time adult worker who benefits from the increase in the hourly minimum wage rate of €10.20 to €10.50 will remain outside the top rates of USC. It is important to point out that these measures introduced in the Budget 2022 will benefit everyone who pays income tax and are aimed at helping people at a time when prices are rising.
While I have no immediate plans to increase the tax relief for working from home, I would point out that the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Bill 2022 is currently making its way through the Houses of the Oireachtas, this measure will provide a once-off support to all payers of domestic electricity bills to help to off-set rising prices. This is a measure that will benefit all households regardless of whether they have an income tax liability or not.
247. Deputy James Browne asked the Minister for Finance if he will provide a breakdown of Departmental civil servants and State agency employees under his remit, respectively working in County Wexford and their respective Departmental section in tabular form. [7234/22]
View answerI wish to inform the Deputy that neither my Department, nor any of the State Agencies under the remit of my Department, are located in, nor have public sector workers employed in roles that are based in County Wexford. Therefore, there are no public sector workers under the remit of my Department employed in County Wexford.
248. Deputy Niall Collins asked the Minister for Finance his views on a scheme (details supplied); if it can be implemented here; and if he will make a statement on the matter. [7249/22]
View answerProviding a sustainable, low-carbon transport system is a key priority of Government. The Programme for Government commits to 7% average annual emissions reduction to 2030; ultimately, the goal is for a zero-emission mobility system by 2050. Electrification will be key to achieving this objective in the transport sector.
Electric vehicles (EVs) are the most prominent transport mitigation measure in the Climate Action Plan, which contains an ambitious target of 945,000 EVs on our roads by 2030.
As I understand it, the proposed scheme as set out in the details provided would provide an exemption from benefit-in-kind (BIK) where an employer leases an electric vehicle on behalf of an employee.
Decisions on taxation matters are made in the context of the annual Budget process, and the Deputy will understand that I cannot give any indications of matters under consideration for Budget 2023 at this time.
The Department of Finance Tax Expenditure Guidelines, published in October 2014, set out guidelines for best practice in ex-ante and ex-post evaluation of tax expenditures and are used by my Department when considering whether or not to introduce a new tax expenditure, or in reviewing an existing measure. These guidelines provide that tax expenditures should only be used in limited circumstances of demonstrable market failure, and where a tax-based incentive is likely to be more efficient than a direct expenditure intervention.
249. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that will be raised in 2022 through the scheduled increase in carbon tax on 1 May 2022. [7251/22]
View answerI am informed by Revenue that the estimated additional yield arising from the increase in the rate of carbon tax on 1 May 2022 is €32 million in 2022.
250. Deputy Brendan Griffin asked the Minister for Finance if matters raised by a person (details supplied) in relation to the new draft policy for credit unions will be clarified; and if he will make a statement on the matter. [7265/22]
View answer252. Deputy Brendan Smith asked the Minister for Finance the progress to date in implementing commitments in the Programme for Government in relation to financial services (details supplied); and if he will make a statement on the matter. [7359/22]
View answer253. Deputy Brendan Smith asked the Minister for Finance if further consideration has been given to issues raised by a national organisation (details supplied); and if he will make a statement on the matter. [7360/22]
View answerI propose to take Questions Nos. 250, 252 and 253 together.
The Programme for Government includes a number of commitments in relation to the credit union sector. Work on the Review of the Policy Framework is well advanced and we intend to issue proposals emanating from the Review for consultation shortly.
As part of the Review of the Policy Framework, Minister of State Fleming has conducted extensive stakeholder engagement, meeting with the representative bodies, collaborative ventures, service providers, the Credit Union Advisory Committee, the Registrar of Credit Unions and individual credit unions. The information gained from these meetings will help inform the next steps taken by Government.
In terms of supporting the sector to provide essential financial services to local communities, the following are some recent developments which highlight the potential of the sector to grow and fulfil a role in relation to community banking.
Lending and Investment
The Central Bank has in recent years reviewed both the lending and investment frameworks. Since 1 January 2020, credit unions now have a combined capacity to provide up to €1.1 billion in additional SME and mortgage loans, with further capacity available to credit unions who can comply with certain conditions or on approval by the Central Bank. As of September 2021, credit unions had a combined mortgage and SME loan book of circa €387 million, an increase of 19% year-on-year.
Credit unions are permitted to place their surplus funds that have not been lent to members in a range of investments including Tier 3 Approved Housing Bodies (AHBs). I am pleased to share with the Deputy that three credit union backed funds have received approval from the Central Bank. Credit unions will be able to invest up to €900 million in these regulated funds, which will subsequently lend to AHBs.
SME Lending
Nineteen credit unions were approved in early 2021 for participation in the Covid-19 Credit Guarantee Scheme. Further, in November five credit unions were announced as participants in the Brexit Impact Loan Scheme (BILS). The BILS provides low-cost loans of €25,000 to €1.5m to eligible Brexit-impacted businesses.
In total, SME lending has grown 6.9% year on year to end September 2021. Further development of SME lending in a controlled manner could also assist credit unions in growing and diversifying their loan book.
Access to Finance for Retrofit
The Government significantly increased the funding available to support retrofit. My officials have been engaging with stakeholders to support increased credit union participation in retrofit loan schemes.
Other Services
Other than member savings and lending, in order to provide “additional services”, a credit union must receive approval from the Central Bank.
66 credit unions are approved to provide current accounts.
The Central Bank has prescribed a list of exempt services which may be provided without requiring approval. The Central Bank is undertaking a review of the Exempt Services Schedule to ensure that the services listed reflect the current financial services landscape. The Central Bank has commenced a public consultation seeking views from stakeholders on the proposed changes arising from this review.
251. Deputy Denis Naughten asked the Minister for Finance the progress made by his Department in respect of its targets and goals set out in the Sustainable Development Goals of the 2030 United Nations Agenda for Sustainable Development under the policy remit of his Department; if these targets and goals will be met by their respective deadlines; and if he will make a statement on the matter. [7278/22]
View answerAs the Deputy will be aware, in September 2015, 193 UN Member Countries including Ireland adopted the Sustainable Development Goals (SDGs) which consist of 169 targets around 17 high level goals. The SDGs are a global blueprint for collective progress to a more prosperous and sustainable world by 2030. The SDGs are applicable to all countries, developed and developing, and action is required for their implementation both domestically and internationally.
A renewed focus is currently being given to progress Ireland’s commitment to Agenda 2030 for Sustainable Development. Substantial progress has been achieved in recent months in respect of reviewing Ireland’s implementation of Agenda 2030 and identifying key priorities and actions for inclusion in the next National Implementation Plan. It is intended that the draft Plan will be made available shortly and form the basis of discussion at the next SDG National Stakeholder Forum. This will allow for a final round of input from stakeholders prior to finalisation and publication.
Ireland has adopted a ‘whole-of-Government’ approach to achieving the Sustainable Development Goals (SDGs), with each Minister having responsibility for implementing individual SDG targets related to their functions.
As the Deputy will note, the targets assigned to the Department of Finance as either lead or stakeholder extend across a wide range of its business and activities ranging from promoting inclusive economic growth to building partnerships for sustainable development. My Department has published these obligations online at www.gov.ie/en/publication/032fa-sustainable-development-goals/. In relation to the update on implementation progress the Deputy has sought, I have appended a summary in tabular form below.
In line with Action 4 of the first National Implementation Plan my Department’s Statement of Strategy 2021-2023 makes specific reference to our SDG targets ( available at the following link: assets.gov.ie/122270/1d8bd1ca-295f-42b2-9998-1c83ae04e716.pdf).
The Statement plays an important role in the delivery of policy objectives insofar as it provides a framework to translate such objectives into policies and operational business plans designed to achieve implementation. My Department's obligations in respect of the achievement of SDGs have therefore been embedded within the fabric of how it does its business. It is my hope that these steps towards enhanced policy coherence, alignment and mainstreaming of SDGs into policy areas will contribute to an accelerated progression towards SDG implementation.
Moving forward, I can assure the Deputy of my Department’s continued focus and commitment to the whole of Government approach in the achievement of the Sustainable Development Goals.
