Tuesday, 22 Feb 2022

Written Answers Nos. 64-83

Film Industry

Questions (65)

Richard Boyd Barrett

Question:

65. Deputy Richard Boyd Barrett asked the Minister for Finance if he will clearly establish, through guidelines or in legislation, that film producer companies in receipt of section 481 film tax relief must take direct responsibility as the employers for all those working on section 481 supported film productions and end the situation in which they are denying this employer responsibility by hiding behind short-lived designated activity companies which are set up as accountancy tools for the duration of a film production and cease to exist shortly afterwards; and if he will make a statement on the matter. [9673/22]

Written answers

Minister for Finance

Section 481 film relief is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of the Irish culture. The scheme provides a 32% payable tax credit for eligible expenditure on film production in Ireland.

It is essential that employers in the audio-visual industry, as with all industries, comply with all applicable employment obligations including legislative obligations and policies. This is reflected in the section 481 certification process which was amended as part of Finance Act 2018. This process includes a requirement for applicant companies to complete an undertaking of quality employment, committing applicants to compliance with all relevant employment legislation. These conditions apply not only to the producer company but also to the qualifying company (or Designated Activity Company). The DAC is also required to remain in existence for a period of at least 12 months post the completion of a production.

It is also a requirement to provide information on any adverse decisions of the Workplace Relations Commission (WRC) against the company or companies within the group. Should a producer company or qualifying company fail to adhere to a condition or obligation specified in a certificate, the Culture certificate may be rendered invalid and any credit claimed may be subject to recoupment by Revenue.

It should be noted that the monitoring of compliance with employment rights legislation is primarily a matter for the Department of Enterprise Trade and Employment through the Workplace Relations Commission. The WRC is an independent statutory office mandated to secure compliance with Ireland’s employment, equality and industrial relations legislation. As part of its statutory functions, the WRC adjudicates on cases with regard to employment rights, industrial relations and equal status legislation.

There are no plans to issue further guidelines at this point.

Tax Reliefs

Questions (66, 76)

Joe Carey

Question:

66. Deputy Joe Carey asked the Minister for Finance the number of applications and the number of applications approved, respectively, under the help-to-buy scheme, by county, in each of the years from the introduction of the scheme to date; and if he will make a statement on the matter. [3057/22]

Niamh Smyth

Question:

76. Deputy Niamh Smyth asked the Minister for Finance the number of persons who have received assistance under help-to-buy scheme since the start of 2021, by county; if he has plans to review or extend the scheme; and if he will make a statement on the matter. [9687/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 66 and 76 together.

With regard to the Deputies' questions, I am advised by Revenue that there were 26,025 Help-to-Buy (HTB) applications made in 2021.

Applications for HTB may be made on a provisional basis as first time buyers will want to have certainty as to their entitlements in advance of commencing the purchase of a property. An application will only progress to the final ‘claim’ stage when the applicant decides to purchase a property that is eligible for the scheme. In 2021, 7,555 applications moved to this stage and were approved.

I am also advised by Revenue that the available information by county is the number of claims approved. The table below provides a county breakdown of approved claims by year since the introduction of the HTB, based on the claim stage start date. When there are fewer than ten cases in a county, the exact number is not provided due to Revenue's obligation to protect taxpayer confidentiality.

Assistance under help-to-buy scheme

In relation to Deputy Carey's question concerning the future of the scheme, he will be aware that I previously announced that a formal review of the scheme would take place in 2022. The review will be fundamental in nature. By this I mean that all aspects will be examined including the design and operation of the scheme, its cost effectiveness and whether the policy aims of the measure could be better achieved by alternative means. In addition, it is likely that the review will look at the changed policy context of Help to Buy having regard to other initiatives in the same policy space which are committed to in the Housing for All strategy.

Issues related to the terms of reference and the procurement arrangements are being progressed by my Department at present and the matter is expected to be moved forward shortly.

Covid-19 Pandemic Supports

Questions (67)

Gerald Nash

Question:

67. Deputy Ged Nash asked the Minister for Finance if an update will be provided on the repayment of outstanding pandemic unemployment payment and temporary wage subsidy scheme tax liabilities; the amount repaid to date; the number of persons with an outstanding TWSS or PUP tax liability for 2020 who subsequently overpaid tax in 2021; and if he will make a statement on the matter. [9482/22]

Written answers

Minister for Finance

The Deputy will be aware that the Pandemic Unemployment Payment (PUP) and the Temporary Wage Subsidy Scheme (TWSS) were not taxed in the normal real-time manner in 2020 and were instead taxed at year end. Where this resulted in an underpayment of tax after all tax credits and reliefs, for example health expenses, were allocated, the amount due could be collected, interest-free, over four years commencing on 1 January 2022.

As taxpayers’ liabilities may have been reduced by these additional reliefs or credits, it is not possible to quantify the exact amounts repaid that related specifically to TWSS or PUP liabilities. Revenue has confirmed that, to date, almost 300,000 PAYE taxpayers who were in receipt of TWSS and/or PUP payments in 2020 have submitted income tax returns for that year and where liabilities arose, these were settled by immediate payment, by the employer paying the amount due on behalf of the employee, or by spreading the payment over four years.

Revenue has also confirmed that there are approximately 290,000 PAYE taxpayers that were in receipt of TWSS and/or PUP payments that have not yet filed an income tax return for 2020 and who may have a tax liability for that year. As previously outlined, this liability could be reduced depending on whether there are additional credits or reliefs to be claimed.

There are also 140,000 PAYE taxpayers who were in receipt of TWSS and/or PUP payments in 2020 who may have overpaid tax, but again this cannot be confirmed until they submit their income tax returns for that year. Approximately 80,000 PAYE taxpayers that received TWSS and/or PUP payments in 2020 paid the correct amount of tax.

To date, over 480,000 PAYE taxpayers have filed their tax returns for 2021 and a small proportion of these had tax liabilities in respect of 2020, which may or may not have arisen from PUP or TWSS payments.

Inflation Rate

Questions (68, 257)

Bernard Durkan

Question:

68. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he unilaterally or in conjunction with his European Union colleagues might seek to tackle inflation on a Europe-wide basis; and if he will make a statement on the matter. [9486/22]

Bernard Durkan

Question:

257. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has had dialogue and or expects to so do in the future with his European Union counterparts regarding the Europe-wide threat of inflation and its possible consequences for European stability. [8371/22]

Written answers

Minister for Finance

I propose to take Questions Nos. 68 and 257 together.

At both the ECOFIN and Eurogroup meetings, my fellow Ministers and I work alongside the European Commission and the European Central Bank to take stock of the latest economic situation, including inflation developments throughout the EU.

The latest Eurostat estimates point to euro area annual inflation of 5.1 per cent in January. This was largely driven by energy inflation, which increased by an estimated 29 per cent. Pandemic-related effects, such as the impact of temporary VAT reductions, and technical factors, such as measurement issues, added further volatility. Core inflation – which strips out energy and non-processed food inflation – was 2.5 per cent in January.

HICP inflation moderated slightly from 5.7 per cent to 5.0 per cent in Ireland in the same period.

The latest figures point to inflation, including energy prices, remaining high over the near-term, before gradually easing later this year. The ECB projects inflation to average 3.2 per cent this year but to decline to rates of 1.8 per cent in both 2023 and 2024. Both the Commission and the ECB are confident that elevated inflation is largely linked to temporary factors, including supply-side constraints and the recovery in demand as our economies reopen.

As the Deputy is aware, the ECB is an independent institution with a mandate to maintain price stability, defined as around 2 per cent over the medium-term. The ECB currently expects inflation to fall slightly below 2 per cent by end-2022.

That said, energy prices can entail wide-ranging consequences for inflation and raise costs for businesses and families. In recognition of these potential social impacts, many Member States have introduced targeted measures to protect vulnerable households from energy poverty.

Ireland is one of these Member States. In framing Budget 2022 , I was conscious of these cost of living pressures and announced a range of measures including targeted social welfare initiatives. Last week, Minister McGrath and I announced a suite of further supports to aid households and to target the main underlying problem – higher energy prices. This is in addition to the electricity credit for households announced late last year.

In addition, at an EU level, the Commission has issued a Communication on Tackling Rising Energy Prices, and the matter was discussed at various Council configurations. The Communication emphasises the broad nature of the impact and policy response.

In short, my fellow Finance Ministers and I all agree that this is an important issue and that we need to continue closely monitoring inflation and energy price developments and the potential implications for our economies.

Insurance Industry

Questions (69)

John Lahart

Question:

69. Deputy John Lahart asked the Minister for Finance if an update will be provided on the work of the Office to Promote Competition in the Insurance Market since its establishment. [9495/22]

Written answers

Minister for Finance

Insurance reform is a key priority for this Government as evidenced by the fact that implementation of the Action Plan on Insurance Reform is overseen by the Cabinet Sub-Group on insurance reform, chaired by the Tánaiste.

The establishment of the Office to Promote Competition in the Insurance Market is a Programme for Government commitment. This Office is situated within the Department of Finance and is chaired by Minister of State Fleming. Its aims are to help expand the risk appetite of existing insurers and explore opportunities for new market entrants in order to increase the availability of insurance.

Since its establishment, the Office has had over 60 meetings with a range of stakeholders, including insurance companies and representative organisations, on issues surrounding competition. Of recent significance, in late 2021 Minister Fleming met with the CEOs of the major insurance providers in Ireland, who have confirmed that they are committed to passing on savings from the new Personal Injury Guidelines, and other reforms, to customers. They also reiterated their support for the reform agenda and that they are adhering to the Guidelines in direct settlements with their clients.

Furthermore, the Office has also cooperated with the Central Bank to create a databank for new market entrants, which was launched on 8 February. This databank is anticipated to be an additional source of information for insurance providers who are considering entering the Irish market, as it provides quick access to key sources of information on insurance in Ireland, and sets out the high-quality work being done in data collection by the Central Bank, such as the National Claims Information Database (NCID). In addition, the Office is also actively working with IDA Ireland to help leverage the ongoing insurance reforms with the aim of targeting new entrants to the Irish market, or persuading current incumbents to expand their existing operations here.

In conclusion, this Government is committed to securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland. In this regard, it is my intention to work with my Government colleagues to ensure implementation of the Action Plan which should have a positive impact on the affordability and availability of insurance for all consumers.

Inflation Rate

Questions (70)

Richard Boyd Barrett

Question:

70. Deputy Richard Boyd Barrett asked the Minister for Finance his views on the fact that while inflation and the cost of living increases currently taking place are severely impacting on ordinary workers and households, corporate profits continue to rise as they have done throughout the Covid-19 pandemic and over the last decade; his further views on whether new tax measures are needed to ensure that those that are doing well in the current environment contribute to easing the burden being imposed on the rest of society; and if he will make a statement on the matter. [9674/22]

Written answers

Minister for Finance

The Government is conscious that the rising cost of inflation is putting significant financial pressure on households. In order to alleviate this pressure, last week, Minister McGrath and I announced a €505 million package of measures to mitigate the cost of living pressures faced by households. This is a suite of policy measures targeted at the main underlying problem - higher energy prices. The increase in energy prices is primarily due to external factors such as higher oil prices and pandemic-induced bottlenecks in key regions. The rapid rebound in the domestic economy is also a factor.

These measures come on top of the measures already announced in Budget 2022 to support households – such as increases in social welfare rates as well as increases in tax bands.

While it is expected that the inflation rate will moderate from the second quarter of this year, I believe that it is appropriate for Government to respond to the increase in prices and help our citizens meet the challenges presented by the current cost of living, and that is what we have done.

I acknowledge that some sectors of the economy continue to trade profitably and perhaps even have experienced increased demand during the COVID-19 pandemic. However, all businesses, regardless of profitability, have faced additional costs in adapting to operate in accordance with public health guidelines – through the physical adaptation of premises to ensure social distancing, the provision of Personal Protective Equipment, and the facilitation of remote working.

We must acknowledge the important role played by innovative sectors of the economy. The growing digitalisation of business in recent years has allowed many parts of the economy to continue to function while others were forced to close. This has enabled home working and allowed trade in essential goods and services to continue. Furthermore, the fact that sectors of the economy have continued to function has allowed Governments to extend supports to other sectors of the economy that have fared less well, particularly in areas such as hospitality and retail.

As the Deputy will be aware, the trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5%. Some of the main features of the current Corporation Tax regime are its simplicity and that it applies to a broad base.

Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, it could also potentially lead to lower levels of economic activity and to companies passing the additional tax burden onto their staff, customers, suppliers or investors.

In addition it should be noted that Ireland’s Corporation Tax regime has been undergoing a process of significant reform in recent years. The Deputy will be aware that, on 8 October 2021, Ireland joined 135 other member jurisdictions of the OECD/G20 Inclusive Framework in reaching an historic two-pillar agreement to address the tax challenges that have arisen from digitalisation.

Pillar One will see a re-allocation of a portion of the income of very large companies from source jurisdictions to market jurisdictions. Pillar Two will introduce a global minimum effective tax rate of 15% on businesses with a global turnover of greater than €750 million annually.

Ireland has been constructively engaged with the Base Erosion and Profit Shifting (BEPS) project from its outset in 2013 and we have diligently reformed our tax system to ensure that it is in line with emerging international norms.

In consideration of the need for certainty regarding our corporation tax regime, and acknowledgment of the significant amendments being made to corporation tax internationally, I do not believe it is appropriate to introduce any additional taxes or levies on companies at this time.

Tax Reliefs

Questions (71)

Marc Ó Cathasaigh

Question:

71. Deputy Marc Ó Cathasaigh asked the Minister for Finance the latest figures available with respect to entrepreneur relief; the total tax expenditure forgone in that year; the average costs per claimant; the number of claims in excess of €1 million of relief; and if he will make a statement on the matter. [9449/22]

Written answers

Minister for Finance

As the Deputy will be aware Section 597AA of the Taxes Consolidation Act 1997 provides that disposals of qualifying business assets (in most businesses but excluding those involving dealing in land or holding investments) by qualifying individuals are charged CGT at a rate of 10% up to a lifetime limit of €1 million in chargeable gains. To qualify, among other conditions, an individual must own at least 5% of the business and have spent a certain proportion of their time working in the business as a director or employee for three out of the previous five years, prior to disposal.

I am informed by Revenue that in respect of 2019, the most recent available year, the tax expenditure foregone for entrepreneurial relief was €94 million. The average cost per claimant was €96,600. The number of claims greater than €1 million was 189. It should be noted that claims can exceed €1 million in a year arising from spouses claiming the relief on a single return.

An external review by Indecon Consultants of the Revised CGT Entrepreneur Relief was published as part of the Budget 2020 documentation. While the Indecon review identified a number of possible amendments and improvements it also recommended retaining the relief. Retaining this relief ensures stability and consistency for businesses and individuals and allows them to plan and organise their affairs with a degree of certainty. However an evaluation before the end of 2024 (when the relief is due to expire) would allow consideration of the appropriate next steps for this relief.

Tax Exemptions

Questions (72)

Neale Richmond

Question:

72. Deputy Neale Richmond asked the Minister for Finance if he will consider making tips received in the hospitality sector tax free; and if he will make a statement on the matter. [9456/22]

Written answers

Minister for Finance

It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. This is a well-established and broadly accepted principle.

Section 19 of the Taxes Consolidation Act (TCA) 1997, sets out that tax under Schedule E shall be charged in respect of every public office or employment of profit. Section 112 of the TCA 1997 brings into charge all salaries, fees, wages, perquisites or profits of any kind arising from an office or employment. Therefore, the long-standing position is that all tips, gratuities and service charges arising from an office or employment are chargeable to income tax under Schedule E in accordance with Section 112.

Gratuities from customers for example, service charges in hotels or tips in restaurants, paid to the employer and subsequently paid out to an employee should be included in pay for the income tax week or month in which they are paid out. These tips constitute pay for the purposes of the PAYE system. However, in a situation where an employee receives tips directly from customers, the employer is not obliged to operate PAYE and in that case, the tips and gratuities are fully taxable and should be included by the employee in his or her income tax return. It is important to point out that such tips constitute pay for the purposes of the PAYE system.

The Department of Enterprise, Trade and Employment is progressing legislation on tips and gratuities and this legislation will prohibit the practise of using tips or gratuities to top up wages. It will also ensure that electronic tips and gratuities, which are much more common these days, have to be divided fairly and equitably among the staff. In addition, the legislation will provide transparency to customers so they will know what the policy is on tips and service charges, how they are managed and to whom they go.

For the reasons outlined in the opening paragraphs of my reply, I have no plans to amend the tax treatment of tips and gratuities.

Question No. 73 answered with Question No. 27.

Financial Services

Questions (74)

Cormac Devlin

Question:

74. Deputy Cormac Devlin asked the Minister for Finance his views on legislating on reserve requirements for banks and credit unions. [9683/22]

Written answers

Minister for Finance

Since the Financial and Banking crisis, a number of regulatory, supervisory and legislative changes have taken place at International, EU and domestic level to ensure a safer, more stable and resilient financial and banking sector. These changes include the implementation of revised capital requirements for banks under the Capital Requirements Directives and the Capital Requirements Regulation as amended.

Ireland’s position is represented at EU Council negotiations by officials from my Department on these issues and is supported by expert analysis from a range of sources including the Central Bank of Ireland.

Specifically relating to the minimum reserve requirements for credit institutions, these are governed by the minimum reserve system which is set out in the Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of minimum reserve requirements. Banks and credit unions are within scope of this regulation.

Credit unions are also subject to statutory regulatory reserve requirements prescribed by the Central Bank under Section 45 of the Credit Union Act 1997, and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the Credit Union Regulations). The minimum regulatory requirement of 10% that applies to Credit Unions is set by the Central Bank of Ireland as Regulator and is set out in Regulations and not Primary Legislation.

For ease of reference the full provision is set out in Regulation 4 of the Credit Union Regulations which provides that:

“(1) Subject to paragraph (2), a credit union shall establish and maintain a minimum regulatory reserve requirement of at least 10 per cent of the assets of the credit union

(2) A newly registered credit union shall establish and maintain an initial reserve requirement that: (a) is sufficient to meet the credit union's anticipated growth over 3 years; (b) takes account of operating losses that can be expected to occur until the credit union reaches an operationally viable performance level; and (c) is at least equal to the greater of: (i) €10,000; or (ii) minimum regulatory reserve requirement specified in paragraph (1).”

Real Estate Investment Trusts

Questions (75)

Neasa Hourigan

Question:

75. Deputy Neasa Hourigan asked the Minister for Finance his plans to review the current tax arrangements for real estate investment trusts and Irish real estate funds; and if he will make a statement on the matter. [9533/22]

Written answers

Minister for Finance

It should be noted that, as with investment vehicles generally, taxation in Real Estate Investment Trusts (REITs) and Irish Real Estate Funds (IREFs) occurs primarily at the level of the investor rather than within the investment vehicle. Additionally, both REITs and IREFs apply withholding taxes on distributions to investors to ensure collection of tax revenues.

Finance Act 2013 introduced the regime for the operation of REIT companies in Ireland. The purpose of the REIT regime is to allow for a collective investment vehicle which provides a comparable after-tax return to investors to direct investment in rental property, by eliminating the double layer of taxation at corporate and shareholder level which would otherwise apply. REITs are required to distribute 85% of all property income profits annually to investors. Dividend Withholding Tax (DWT) at a rate of 25% must be applied to these distributions, other than those distributed to certain limited classes of investors such as pensions and charities as they are more generally exempt from tax.

An IREF is an investment undertaking where 25% or more of the value of that undertaking is made up of Irish real estate assets. The legislation was introduced to address concerns raised regarding the use of collective investment vehicles by non-residents to invest in Irish property. Generally IREFs must deduct a 20% withholding tax on distributions to non-resident investors. Certain categories of investors such as pension funds, life assurance companies and other collective investment undertakings are generally exempt from having IREF withholding tax applied provided the appropriate declarations are in place. Irish resident investors may be subject to the investment undertakings exit tax, at a rate of 41%.

Officials in my Department produced a report on REITs and IREFs as respects their investment in the Irish property market in 2019. The report was presented to the Tax Strategy Group and provided a basis for policy discussions and for amendments which were introduced in Finance Act 2019 to strengthen the regimes.

In relation to REITs, Finance Act 2019 extended the obligation to deduct DWT to include distributions of the proceeds of capital disposals. In addition, the deemed disposal provisions upon cessation of REIT status were restricted to REITs that have been in operation for at least 15 years, in line with the regime's stated objective of encouraging long-term, stable investment in rental property. In relation to IREFs, amendments were made in Finance Act 2019 to prevent the use of excessive debt and other payments to reduce distributable profits, and to prevent the avoidance of tax on gains on the redemption of IREF units. These amendments were made to ensure appropriate levels of tax are paid by investors in Irish property.

There are currently no plans to conduct a further review the tax treatment of REITs or IREFs. However officials in my Department and the Revenue Commissioners monitor the taxation of IREFs and REITs on an ongoing basis and, should additional issues be identified, I will take further action as necessary.

Question No. 76 answered with Question No. 66.

Tax Credits

Questions (77)

Rose Conway-Walsh

Question:

77. Deputy Rose Conway-Walsh asked the Minister for Finance when the next departmental tax expenditure evaluation will be published on the research and development tax credit; and if he will make a statement on the matter. [9677/22]

Written answers

Minister for Finance

The Research and Development (R&D) tax credit allows companies to claim a 25% tax credit in respect of expenditure incurred on qualifying R&D activities.

It is intended for a review of the R&D tax credit to take place during 2022, alongside an evaluation of the Knowledge Development Box (KDB). My officials plan to facilitate public consultation and stakeholder engagement during the review process.

The review will consider the potential impact of the agreement reached at the OECD/G20 Inclusive Framework on BEPS on the R&D tax credit, particularly the Pillar 2 global anti-base erosion (GloBE) rules. It will also have regard to any elements of the ongoing process of international tax reform which may be of relevance to the credit.

The review will inform any policy considerations to be undertaken in advance of Budget 2023, and it is therefore intended that the review will be published on or before Budget Day, this October.

The Deputy may also be interested in Revenue’s published information in respect of the research and development tax credit, which is available at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/r-and-d-tax-credit-statistics.pdf.

Insurance Industry

Questions (78)

Cathal Crowe

Question:

78. Deputy Cathal Crowe asked the Minister for Finance the number of meetings, discussions and telephone calls that he, the Minister of State, special advisers and officials in his Department have had with a company (details supplied) since June 2021; and if he will make a statement on the matter. [9480/22]

Written answers

Minister for Finance

As part of his role as Chair of the Office to Promote Competition in the Insurance Market, Minister of State Fleming has had a wide-ranging series of engagements with stakeholders across the insurance industry, including providers, state bodies and representative groups. The Office has had more than 60 meetings since its establishment.

As part of this work, in late 2021 Minister Fleming met with the CEOs of the major insurance companies in Ireland, including the one identified by the Deputy. A number of issues were discussed with the firm, including the implementation of the new Personal Injury Guidelines; business interruption insurance developments; and an expansion of its risk appetite to other areas. In addition, officials and Minister Fleming’s advisor directly contacted the company in question in relation to the logistics involved in setting up this meeting.

Questions Nos. 79 and 80 answered with Question No. 14.

Insurance Industry

Questions (81)

Ruairí Ó Murchú

Question:

81. Deputy Ruairí Ó Murchú asked the Minister for Finance the status of progress made under the Action Plan for Insurance Reform; and if he will make a statement on the matter. [9474/22]

Written answers

Minister for Finance

The Cabinet Committee Sub-Group on Insurance Reform, which oversees the Action Plan for Insurance Reform, met earlier this month to assess the work completed during 2021, and to look ahead to the priorities for 2022. It is anticipated that the second Implementation Report will be brought to Government by An Tánaiste very shortly and published thereafter. That report will show that the majority of the 66 reforms being delivered under this agenda are now complete, including many principal actions. Key reforms to date include:

- the publication of the General Scheme of a Bill to enhance and reform the Personal Injuries Assessment Board (PIAB);

- the launch of a databank for new entrants by the Central Bank of Ireland;

- the establishment of the Insurance Fraud Co-ordination Office within the Garda National Economic Crime Bureau;

- the publication of the Final Report of the Central Bank’s Review of Differential Pricing in the Motor and Home Insurance Markets;

- the expansion of the National Claims Information Database to gather data on employers’ and public liability insurance, and the publication of the first report on same;

- the publication of the Central Bank’s third National Claims Information Database report on private motor insurance;

- the enactment of the Criminal Justice (Perjury and Related Offences) Act 2021;

- the implementation of the Personal Injuries Guidelines;

- the creation of the Office to Promote Competition in the Insurance Market; and

- the introduction of new regulations on solicitors advertising

In addition, my officials are continuing to advance the Insurance (Miscellaneous Provision) Bill, to address a number of separate, but related issues that complement the Action Plan. This is expected to be published in the coming weeks, and we will seeking to have it prioritised for passage through the Oireachtas.

The focus of the Sub-Group now is on implementing the outstanding reforms as soon as possible, with particular regard to:

- reforming the law on occupier’s liability to rebalance the duty of care;

- enhancing the enforcement powers of the Competition and Consumer Protection Commission through the Competition Amendment Bill; and

- reforming the PIAB, with a view to increasing the number of cases settled by the Board

Overall, it is felt that the range of measures being pursued under the Action Plan will lead to an improvement in the insurance market. Throughout 2022, both Minister of State Fleming and I will continue our widespread engagement with industry and other stakeholders to ensure that the benefits of these reforms are being passed on and are felt, first and foremost, by policyholders.

Question No. 82 answered with Question No. 55.

Enterprise Policy

Questions (83)

Matt Carthy

Question:

83. Deputy Matt Carthy asked the Minister for Finance the sectors that will be able to avail of funding from the Irish Innovation Seed Fund Programme; and the funding allocated or ring-fenced for any of strategic opportunities. [9986/22]

Written answers

Minister for Finance

The Irish Innovation Seed Fund Programme (IISF) is designed to provide seed venture capital to innovative Irish companies and is an important step in developing the Irish venture capital market. While the overall venture capital sector in Ireland is strong and continues to grow, there is a trend towards growth being driven by larger, later stage deals and investments. The Irish market is producing ambitious founders with strong technical expertise and a drive to innovate in much greater numbers, so the need to nurture seed and scaling activities in Ireland remains very important.

The €90m fund programme is made up of a €30m investment from the Department of Enterprise Trade and Employment (DETE), through Enterprise Ireland (EI), which is matched by a €30m investment from the European Investment Fund (EIF). The €60m fund will be managed by EIF. The Ireland Strategic Investment Fund (ISIF) will seek to co-invest a further €30m alongside on a deal by deal basis.

Establishment of the fund programme enhances the growing relationship between Enterprise Ireland, the EIF and ISIF. The €90m fund programme will attract both new fund managers and new private investors and will crowd-in significant private investment.

All investments are expected to be made within a three-year timeframe. The investments are forecast to have a 10-year life. Investments will be targeted and prioritised in areas that have experienced difficulty in attracting investment, such as funds that invest in companies with a focus on regional development, climate change and female entrepreneurship.

There is no doubt that our most innovative, early stage firms have been affected by the more cautious investment environment which followed the uncertainty of a pandemic. SMEs make up over 99% of our firms and employ over one million people across our cities, towns and villages. They are the lifeblood of our economy and we will continue to depend on their innovations and successes to secure the future, sustained economic growth of our country.