Written Answers Nos. 68-88
68. Deputy Róisín Shortall asked the Minister for the Environment, Climate and Communications the status of the circular economy Bill; the timeline he is working towards to publish the draft heads; if he plans to ban plastic packaging on fruit and vegetables; and if he will make a statement on the matter. [8752/22]
View answerThe Circular Economy Bill2022 aims to support Ireland’s transition to a circular economy by providing the necessary legislative basis for several key measures including the Circular Economy Strategy; the Circular Economy Programme; the National Food Loss Prevention Roadmap; and the Circular Economy Fund. As Minister for the Environment, Climate and Communications, the Bill will provide the power to introduce environmental levies on certain single-use items, including single-use packaging, and to prohibit their placing on the market where a suitable re-usable alternative is, or could be made, readily available. These measures will be introduced by means of secondary legislation.
Pre-legislative scrutiny of the Bill before the Joint Committee on Environment and Climate Action has been completed and the Report of the Committee was published on 16 December last. Drafting of the Bill is well advanced and I expect to seek Government approval to publish the Bill in Q1 2022.
69. Deputy Mairéad Farrell asked the Minister for the Environment, Climate and Communications the annual cost of the salaries of any recently appointed ministerial Garda drivers to his Department; the cost of the annual salary of the existing civilian Garda drivers in his Department; and if he will make a statement on the matter. [9030/22]
View answerThere are no Ministerial Garda drivers appointed to my Department.
70. Deputy Pa Daly asked the Minister for Transport if he will confirm an appointment for a person (details supplied). [8468/22]
View answerWhile I appreciate the circumstances as outlined, under legislation, the Road Safety Authority is responsible for the operation of this test.
I have therefore forwarded the Deputy's query to the RSA for direct reply. If the Deputy does not hear from the RSA in 10 working days, I would ask that he contact my office directly.
71. Deputy Catherine Murphy asked the Minister for Transport if he will provide a schedule of foreign travel episodes arranged by his Department for elected representatives, Ministers and their staff and-or special advisers since 1 January 2018 to date in 2022; and if he will provide a schedule of locations of the travel arranged or advised on, to include the final destination of travel episode, by year, and the full cost of same. [8515/22]
View answerThe information requested by the Deputy is being compiled and will be sent directly to the Deputy's private office within 10 days.
72. Deputy Paul Murphy asked the Minister for Transport if his attention has been drawn to the commitment made by the NTA in 2021 for route A of BusConnects from Rathfarnham to pass by the National Concert Hall, St. Stephen's Green and Kildare Street (details supplied); and if he will make a statement on the matter. [8582/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including the BusConnects programme.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
73. Deputy Sean Sherlock asked the Minister for Transport when the redrafted BusConnects plan for Cork will be published; and the engagement he has had on the matter. [8589/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure, including BusConnects Cork.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
74. Deputy Danny Healy-Rae asked the Minister for Transport the status of an application by a person (details supplied); and if he will make a statement on the matter. [8646/22]
View answerThe Road Safety Authority (RSA) is responsible for the operation of this test.
I have therefore forwarded the Deputy's query to the RSA for direct reply. If the Deputy does not hear from the RSA in 10 working days, I would ask that he contact my office directly.
75. Deputy Bernard J. Durkan asked the Minister for Transport the position regarding previously announced traffic management plans for Celbridge, County Kildare which included the rerouting and blocking off of some existing routes in the village; if the plans are still operable; if the monies are still available; if agreement has been reached with local interests with a view to implementation or replacement; and if he will make a statement on the matter. [8809/22]
View answerAs Minister for Transport I have responsibility for policy and overall funding in relation to the matters outlined in the Deputy's question, while the National Transport Authority (NTA) has responsibility for the planning and development of traffic management measures in the Greater Dublin Area, in conjunction with the relevant local authorities, including Kildare County Council.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
76. Deputy Bernard J. Durkan asked the Minister for Transport the position regarding the previously announced and outlined inner and outer relief road for Naas, County Kildare which was not approved by Kildare County Council; if adjustments have been made in the interim period in accordance with the wishes of local interests; the expected progress on the project in the near future; and if he will make a statement on the matter. [8814/22]
View answerAs Minister for Transport I have responsibility for policy and overall funding in relation to the matters outlined in the Deputy's question, while the National Transport Authority (NTA) has responsibility for the planning and development of such projects and works in conjunction with the relevant local authorities, including Kildare County Council, to implement same.
Noting the NTA's responsibility in this matter, I have referred your question to them for a more detailed reply. Please contact my private office if you do not receive a reply within 10 working days.
77. Deputy Mairéad Farrell asked the Minister for Transport the annual cost of the salaries of any recently appointed ministerial Garda drivers to his Department; the cost of the annual salary of the existing civilian Garda drivers in his Department; and if he will make a statement on the matter. [9038/22]
View answerSince my appointment as Minister for Transport, I have not availed of a Ministerial driver and so have not incurred any such costs.
Minister of State Naughton has availed of two Ministerial Civilian drivers since July 2020. The salary costs of these two drivers collectively were €77,096 in 2021.
78. Deputy Neasa Hourigan asked the Minister for Finance his plans to address the cost of breastfeeding equipment and supplies; if consideration has been given to removing VAT; and if he will make a statement on the matter. [8591/22]
View answer79. Deputy Louise O'Reilly asked the Minister for Finance the reason that the proposal on the reform of VAT rates may not apply until 1 January 2025; the action that his Department is undertaking in the interim to review the options now available to Ireland in setting VAT rates; and if he will make a statement on the matter. [8462/22]
View answer80. Deputy Louise O'Reilly asked the Minister for Finance if he will consider the removal of the VAT on defibrillators in view of work on the proposal on the reform of VAT rates at European Union level and wording which supports VAT removal on medical equipment; the preparatory work that is under way on this; the lead in time for same; and if he will make a statement on the matter. [8463/22]
View answer86. Deputy Michael Lowry asked the Minister for Finance if provisions will be prioritised for the removal of VAT from defibrillators in the wake of agreement by European Union finance ministers to amend Council Directive 2006/112/EC on 7 December 2021 given that the removal of VAT from the cost of defibrillators would greatly increase the ability of sports clubs, first responder groups and other community organisations to provide vital emergency assistance in the event of cardiac arrests; and if he will make a statement on the matter. [8587/22]
View answer88. Deputy Brendan Smith asked the Minister for Finance if he will consider the issues outlined in correspondence from a national organisation (details supplied); and if he will make a statement on the matter. [8637/22]
View answer89. Deputy Brendan Griffin asked the Minister for Finance if defibrillators and life saving equipment will be exempted from VAT when European Union law allows for an exemption; and if he will make a statement on the matter. [8638/22]
View answerI propose to take Questions Nos. 78 to 80, inclusive, 86, 88 and 89 together.
As the deputies will be aware the EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow Member States more flexibility in how they apply VAT rates. The compromise text agreed at ECOFIN in December 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. Once the directive has been adopted it will be published in the Official Journal of the European Union and, in line with the text of the proposal will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. If the text remains unchanged, the transposition required by the proposal must be completed by 31 December 2024.
However, even without this transposition, Member States may rely on the proposal to amend their VAT Rates from when it enters into force, on the twentieth day following 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 alongside their colleagues in Revenue. 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.
81. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of foreign travel episodes arranged by his Department for elected representatives, Ministers and their staff and-or special advisers since 1 January 2018 to date in 2022; and if he will provide a schedule of locations of the travel arranged or advised on, to include the final destination of travel episode, by year, and the full cost of same. [8505/22]
View answerI wish to advise the Deputy of the schedule of foreign travel episodes arranged by my Department for elected representatives, Ministers and their staff and or special advisors since 1 January 2018 to date in 2022. The schedule provides the relevant information relating to dates of travel, final destination and the attending costs for each.
82. Deputy Peadar Tóibín asked the Minister for Finance the total cost of national debt servicing currently; the refinancing schedule for the next five years; the interest rate projections for the next five years; and the estimated amount interest rate increases will cost the Exchequer. [8542/22]
View answerExchequer debt servicing costs for 2022 were projected at just below €3.9bn at the time of Budget 2022 last October.
This is a slight increase on 2021. The provisional debt service outturn for 2021 was just below €3.75bn.
I am informed by the National Treasury Management Agency (NTMA) that the maturity profile of the Exchequer’s medium/long-term (MLT) debt portfolio is available on the Agency's website. A summary version, reflecting the position as of end-January 2022, and covering the five-year period 2022 – 2026 is outlined below.
|
€bn |
Government Bonds |
EFSM |
SURE |
Other MLT Debt |
|
2022 |
12.0 |
- |
- |
0.0 |
|
2023 |
7.0 |
2.0 |
- |
0.0 |
|
2024 |
8.1 |
0.8 |
- |
0.2 |
|
2025 |
11.5 |
2.4 |
- |
0.1 |
|
2026 |
11.7 |
2.0 |
1.3 |
0.0 |
Sovereign bond yields have increased in recent weeks. This primarily reflects inflation developments and market expectations of sooner than previously expected interest rate increases. This is true of both the Federal Reserve in the U.S. and the European Central Bank. The Bank of England has already begun to increase interest rates.
An updated set of debt service projections will be prepared for the forthcoming Stability Programme Update which will be published in April. These projections will reflect the change in the interest rate outlook since the Budget 2022 estimates were prepared last year.
83. Deputy Peadar Tóibín asked the Minister for Finance the total level of private debt in the State currently, by each sector of Irish society; the level of debt arrears currently within the State by each sector in Irish society; the number of persons and businesses that are in debt arrears in the State by each financial institution; and the effect that the projected increase in interest will have on servicing private debt and on arrears. [8543/22]
View answerI have been informed by the Central Bank that it compiles information on the assets and liabilities of institutional sectors as part of the Quarterly Financial Accounts (QFA). The latest QFA statistics show that Irish private sector debt stood at €808bn in Q3 2021. As a proportion of GDP, private sector debt continues to decline and stood at 197 per cent in Q3 2021.
Private sector debt is broken down into the debt of Non-Financial Corporations (NFCs) and Households. In the case of NFCs, total debt stood at €680bn at Q3 2021. As a proportion of GDP, NFC debt stood at 166%, its lowest level since 2008. It should also be noted that the QFA is compiled for the NFC sector on an aggregate level and a further breakdown of NFC debt by financial institution is not published.
Household debt stood at €128bn or €25,568 per capita in Q3 2021, a decrease of 37% from its peak in Q3 2008. As a percentage of household disposable income, household debt stood at 100 per cent in Q3 2021, an all-time series low.
In terms of debt arrears, the Residential Mortgage Arrears and Repossession Statistics (available at www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears) indicate there were 60,971 accounts in mortgage arrears of 30 days or more as at end-Q3 2021, with 47,681 accounts relating to Principal Dwelling House (PDHs), and 13,110 relating to Buy-to-lets (BTLs). The total arrears balance was €2.83bn, with €2.74bn relating to PDH accounts.
Focussing on loans held by retail banks, the Non-Performing Loan ratio for lending to businesses was 8 per cent in 2021q3.
On debt arrears broken down by individual financial institution, this information is not publically available from the Central Bank of Ireland, but to the extent this information is available it would be disclosed in the accounts of the relevant institutions.
The Central Bank does not currently have direct analysis published on the issue of potential increase in repayment burdens or arrears resulting from increases in interest rates. However, the recent Financial Stability Review highlights that half of the balances owed by Irish SMEs to the retail banks have fixed interest rates, meaning that sudden interest rate rises would only impact borrowing costs if or when loan facilities are renewed. In addition, a growing number of households have short-term fixed interest rates, which will provide initial protection against potential interest rate rises.
To help ensure the sustainability of the macroeconomic environment, the Department monitors interest rate developments on an ongoing basis. As part of both the Budget and the Stability Programme Update, baseline interest rate expectations are incorporated into the forecasts. In additional the Department has also previously simulated the impact of different stylised shocks, such as interest rate shocks, as part of the sensitivity analysis of the forecasts. The most recent published example is in Budget 2020, which included a hypothetical monetary policy shock that assumed the ECB policy rate increases by 1 percentage point.
84. Deputy Bríd Smith asked the Minister for Finance the amount raised by the Exchequer in each of the years since 2010 by the application of VAT on home energy heating bills, that is, electricity and gas; the projected figures, if actual figures are not available, for VAT returns from the rising bills over recent months; and if he will make a statement on the matter. [8583/22]
View answerI am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific services on their VAT returns. However, a tentative estimate for the VAT collected on the supplies listed is provided in the table below for 2010 – 2021, based on tax returns and other third-party sources available to Revenue. Information for 2021 should be considered as provisional.
In the course of compiling the data to respond to this question officials in Revenue realised that the answer previously given in response to PQ 256 from Deputy Catherine Martin on 10 February 2022 contained an error in the data supplied. The corrected table for that PQ is set out below.
|
|
VAT Collected 2020 €m |
VAT Collected 2021 €m |
|
Gas |
53 |
68 |
|
Electricity |
201 |
250 |
I wish to apologise for this error and correct the record of the house.
85. Deputy Bríd Smith asked the Minister for Finance if Ireland will oppose or support proposals to include gas and nuclear projects in the EU taxonomy as suggested by the EU Commission; and if he will make a statement on the matter. [8586/22]
View answerIreland is a strong supporter of the EU Taxonomy for sustainable activities’ development as a science-based tool to classify, to guide and to help mobilise investments in activities that will help us achieve carbon neutrality. It is a voluntary tool aimed primarily for use by financial services firms and large companies.
The European Commission adopted a Delegated Act on 2 February 2022 which included standards that nuclear and natural gas power production must meet, particularly in terms of emissions and other environmental impacts, to be considered sustainable. After this adoption, the Act can no longer be amended, and Council and the European Parliament have four months to object. Rejection of the Act requires a reinforced qualified majority (75% of Member States) at Council or a majority at the European Parliament.
Ireland’s Climate Action Plan acknowledges that we will use natural gas as part of our energy mix, particularly as a base reserve to provide supply when renewables are unable to meet demand so as to provide consumers and businesses with the confidence to electrify. This consideration applies for other Member States also. However, it does not necessarily follow that all activities necessary to achieve net zero emissions by 2050 should be included in the Taxonomy and Ireland expressed this view to the Commission in advance of the Commission adopting their delegated act.
To be clear, including something (such as nuclear energy generation) in the Taxonomy will not mean it must be used and excluding it from the taxonomy will not prohibit its use. It is, however, likely to affect investment decisions by financial market participants. The generation of energy from nuclear power is statute-barred in Ireland and the Government has no plans to revisit this legislative prohibition.
87. Deputy Mary Butler asked the Minister for Finance the position regarding the progress of commitments to credit unions in the programme for Government as highlighted in correspondence from an organisation (details supplied); and if he will make a statement on the matter. [8593/22]
View answerThe 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.
