Written Answers Nos. 230-243
230. Deputy Catherine Murphy asked the Minister for Transport if he will provide a schedule of fines issued by the NTA in respect of late arrival and early departures by route in respect of a company (details supplied), Bus Eireann and Dublin Bus services in the past five years to date in 2022. [19089/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific question in relation to the provision of a schedule of fines issued by the NTA in respect of late arrival and early departures by route in respect Go Ahead Ireland, Bus Eireann and Dublin Bus services in the past five years to date, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
231. Deputy Éamon Ó Cuív asked the Minister for Transport the progress that has been made in providing a permanent facility for the Coast Guard service in a location (details supplied); and if he will make a statement on the matter. [19127/22]
View answerThe Cleggan Unit of the Coast Guard is on the priority list for the OPW Building Programme which is funded by my Department and managed by the Office of Public Works.
OPW has carried out a feasibility study on a potential site at the air strip which is owned by the Department of Rural and Community Development. Good progress has been made on this important facility which is now awaiting presentation to the internal Project Oversight Group in the OPW for allocation of full design team resources. Property Management of OPW are also liaising with the Department of Rural and Community Development regarding formal site acquisition.
232. Deputy Catherine Murphy asked the Minister for Transport if he will expedite a driving test for a person (details supplied) due to an oversight by the applicant. [19129/22]
View answerUnder legislation, the Road Safety Authority is responsible for the Driver Testing Service. I have therefore referred this question to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
233. Deputy Catherine Murphy asked the Minister for Transport the process by which the designation of a road is changed from a regional to national road or vice versa. [19136/22]
View answerThe classification of roads as either a national road or a regional road is the responsibility of the Minister under section 10 of the Roads Act, 1993, as amended. A public road, other than one classified by the Minister as a national road or a regional road, is a local road.
The 1993 legislation also provides that where a public road which has been classified as a national or regional road has been realigned or bypassed the section of the pre-existing road which remains following the realignment or bypass becomes a local road unless reclassified by the Minister.
Roads classified as National Primary or National Secondary are funded mainly by the State and construction, improvement and maintenance works are overseen by TII, in conjunction with the relevant local authority, and funded mainly from voted monies. Roads classified as Regional or Local roads fall under the responsibility of local authorities. The construction, repair and maintenance of these roads is funded by local authorities’ own resources supplemented by State grants.
Requests by local authorities to classify a road as a national road or regional road are considered by the Department, in consultation with TII as appropriate. Criteria for consideration are numerous and include items such as function of road including access to towns and cities, ports and airports, geographical regions, population centres and tourist regions. It also includes considerations of continuity of classification throughout the length of road, whether roads are feeder connections or links to the national road network, cross section, alignment and structural integrity as well as numbers of heavy commercial vehicles.
Where a decision is made to classify a road as national or regional, this is then reflected in the relevant Statutory Instrument which includes the status and the location details of the reclassified road.
234. Deputy Mattie McGrath asked the Minister for Transport the reason that own account haulage operators were excluded from the recently announced supports for the haulage sector to address cost pressures arising from current high fuel prices; if the supports can be extended to own account haulage operators particularly for Irish concrete operators which operate in excess of 2,000 heavy goods vehicles; and if he will make a statement on the matter. [19147/22]
View answerOn 15 March 2022, the Government approved an emergency support measure – the Licensed Haulage Emergency Support Scheme to address cost pressures arising from current high fuel prices. I can confirm that the scheme is available only to operators holding a road haulage operator licence.
In deciding on this targeted, temporary scheme, the Government considered that the licensed haulage sector is a specific case for several reasons, primarily that the sector is of national strategic importance as a critical enabler of a functioning supply chain, bringing essential supplies into and around the State, supporting key infrastructure and enabling the maintenance of economic and social activity. While this is true for certain other operators also, fuel represents a greater overall proportion of overhead cost for hauliers than would be the case for other businesses who self-provide transport as part of their wider business.
Given the rapid increase in fuel prices linked to the crisis in Ukraine, the haulage sector reported to the Government a serious risk of cessation of business among haulage companies that would have had significant implications for supply chains into the State, including for essential goods.
You will be aware that on 9 March 2022, in recognition of rising fuel costs for all citizens and businesses, the Government reduced Excise duty by 20 cent per litre of petrol, 15 cent per litre of diesel and 2 cent in the excise duty charged on marked gas oil in order to reduce the cost of fuels.
The Minister for Finance has written to the European Commission to ask what flexibilities might be available on an emergency basis to reduce the tax on fuel. Currently, however, the EU Energy Tax Directive limits the possibility of further reducing the tax on fuel. Specifically, the Directive requires a minimum tax of €0.33 per litre and the measures already decided have reduced the tax on diesel to the minimum.
In general, however, it should be noted that the causes of these fuel price pressures are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis.
The Government has limited resources but through the Excise measure announced on 9 March, as well as the Licensed Haulage Emergency Support Scheme approved on 15 March 2022, it has responded to help to ease the impact of these price increases. However, we must accept that it will not be possible to insulate citizens and businesses from the full impact of these fuel price increases.
235. Deputy Holly Cairns asked the Minister for Transport if defibrillators are installed in all offices and buildings accessible by the public in his Department and public bodies and agencies that operate under his remit; and if he will make a statement on the matter. [19180/22]
View answerDefibrillators are available in all buildings accessible by the public in my Department during normal opening hours. In addition, in the case of an emergency, and in non-typical circumstances where the relevant building is open beyond normal working hours, a member of the public may enter the reception area of that building and request the use of a defibrillator.
I have referred your question to the agencies under the aegis of my Department for direct reply. Please contact my private office if you do not receive a reply within 10 days.
236. Deputy Ged Nash asked the Minister for Transport the total value of consultancy contracts awarded to an organisation (details supplied) for work with his Department and bodies under auspices of his Department in each of the years 2017 to 2021, in tabular form; and if he will make a statement on the matter. [19199/22]
View answerThe Department has no record of consultancy contracts entered into or payments made to McKinsey & Co. between the years 2017 to 2021 inclusive.
237. Deputy Joe Carey asked the Minister for Finance when the zoned land tax will be in place; and if land that is zoned for low-density development as opposed to high-density development will be subject to taxation of 3%. [18907/22]
View answerFinance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use purposes and that is serviced.
The RZLT is an annual tax, calculated at a rate of 3% of the market value of the land. It applies to land that is both zoned as suitable for residential development and is serviced, regardless of whether it is zoned for high-density or low-density development.
Each local authority will prepare and publish a map identifying land within the scope of the tax. The first draft map will be published by the local authorities on 1 November 2022.
The tax will be due and payable in May 2024 in respect of land which was suitable for residential development on 1 January 2022 because it was both zoned and serviced on that date, and on which development has not commenced before 1 February 2024. Where land becomes both zoned and serviced after 1 January 2022, tax will be chargeable in the third year after it comes within the scope of the tax.
There are a limited number of exclusions from the tax, including residential dwellings and their gardens and land which is zoned for a mixture of residential and other uses (and not purely for residential development) that is integral to the operation of a business carried out on or beside it.
The tax may be deferred in certain circumstances, including where residential development is commenced. Tax deferred while residential development is ongoing, will, on the making of a claim, not be payable where development is completed within the timeframe set out in the planning permission and a certificate of completion is in place.
238. Deputy Louise O'Reilly asked the Minister for Finance the volume of money warehoused under the tax debt warehousing scheme by sector. [18956/22]
View answer239. Deputy Louise O'Reilly asked the Minister for Finance the amount of debt that has been warehoused under the tax debt warehousing scheme; the amount of this debt from microbusinesses; the amount from SMEs; and if he will make a statement on the matter. [18957/22]
View answer240. Deputy Louise O'Reilly asked the Minister for Finance if his Department has made projections in relation to the amount warehoused tax debt that will be collected; and the amount that may not be collected; and if he will make a statement on the matter. [18958/22]
View answerI propose to take Questions Nos. 238, 239 and 240 together.
The Debt Warehousing Scheme was introduced to provide a vital liquidity support to businesses suffering a downturn due to the Covid-19 pandemic. Under the scheme, businesses can temporarily ‘park’ certain tax debts on an interest free basis until the end of this year (or until 30 April 2023 for businesses most impacted by the most recent public health restrictions and are eligible for certain Covid-19 support schemes).
The scheme is automatically available to businesses and individuals that are managed by Revenue’s Business and Personal Divisions. Revenue’s Business Division manages enterprises with an annual turnover less than €3 million, which accounts for the majority of business taxpayers. Revenue’s Personal Division deals with all business entities with no trade or professional income such as trusts, charities, sporting bodies.
The scheme is available by agreement to larger businesses managed by Revenue’s Large Corporates and Medium Enterprises Divisions, where such businesses were adversely impacted by COVID-19. Revenue’s Medium Enterprises Division deals with businesses with an annual Irish turnover of more than €3 million (but less than €190 million) as well as the subsidiaries/parents of such companies. Large Corporates Division deals with the largest companies with an annual Irish turnover of more than €190 million per annum.
I am advised by Revenue that the total debt eligible for the Debt Warehousing Scheme since its introduction is €30.9 billion, and 250,000 businesses were eligible to avail of the scheme. However, 90% of that debt has been paid, with the balance of just over €3 billion warehoused at the end of February 2022 in respect of almost 97,000 businesses. This warehoused debt breaks down by Revenue Division as follows:
|
Division |
Total (€m) |
|
Business |
1,625 |
|
Medium Enterprises |
1,005 |
|
Large Corporates |
392 |
|
Personal |
26 |
|
Large Cases – High Wealth Individuals |
6 |
|
Total |
3,053 |
I am advised by Revenue that towards the end of this year, it will engage with all businesses availing of the scheme to agree suitable phased payment arrangements in respect of the ‘parked’ debt. The payment arrangements will be flexible and tailored to take account of the financial circumstances of each business concerned. Provided that in the intervening period tax returns are filed and current taxes paid as they fall due, and therefore a business continues to be able to avail of the Debt Warehousing Scheme, a reduced interest rate of 3% will apply to a payment arrangement.
I am advised that Revenue has not estimated the potential amount of warehoused debt that will not be paid as the expectation is that flexible payment arrangements will assist businesses in meeting their obligations over time and any payment difficulties will only become apparent in the context of the aforementioned engagement between each business and Revenue.
As the Deputy will be aware, my Department makes certain assumptions and projections in preparing the annual Budget and in that regard, Budget 2022 projections made by my Department incorporated the prudent assumption that 25 per cent of the warehoused tax liabilities are not repaid, i.e., that 25 per cent of the businesses that have availed of the scheme will never be in a position to repay. This is a conservative technical assumption but it is considered better to err on the side of caution in this matter.
The volume of money warehoused under the tax debt warehousing scheme by sector, at the end of February 2022, is as follows:
|
Sectors |
(€m) |
% |
|
Agriculture, forestry and fishing |
28 |
1% |
|
Manufacturing |
191 |
6% |
|
Construction |
368 |
12% |
|
Wholesale and retail trade; Repair of motor vehicles and motorcycles |
688 |
23% |
|
Transportation and Storage |
207 |
7% |
|
Accommodation and food service activities |
431 |
14% |
|
Information and Communication |
200 |
7% |
|
Financial and Insurance Activities |
61 |
2% |
|
Real estate activities |
70 |
2% |
Revenue recently published updated statistics on the Debt Warehousing Scheme and this report as well as further information on the Scheme is available on the Revenue website.
241. Deputy Matt Carthy asked the Minister for Finance the estimated cost of reducing the non-carbon component on mineral oil tax on gas oil regarding motor fuel for agricultural, horticultural or piscicultural works and in forestry to 0% until the end of August 2022; and if he will make a statement on the matter. [19009/22]
View answerI am advised by Revenue that it is not possible to identify the volume of Marked Gas Oil (MGO) consumption in specific sectors of the economy. As such, Revenue cannot provide the cost for the proposed measure to reduce the non-carbon component rate on MGO to zero in respect of its use in agricultural, horticultural or piscicultural works and in forestry until the end of August 2022.
It is also important to note that Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. The current ETD minimum in respect of MGO for commercial and industrial use is €21 per 1,000 litres. The current rate of Mineral Oil Tax on MGO is €120.55 per 1,000 litres; comprised of a non-carbon component of €29.74 and a carbon component of €90.81.
242. Deputy Denis Naughten asked the Minister for Finance the number of staff within his Department who are based and working with the European Union in Brussels; their present roles and responsibilities; the posts and responsibilities that are presently vacant; the corresponding figures on 23 June 2016; and if he will make a statement on the matter. [19033/22]
View answerI wish to advise the Deputy that there are currently 6 staff from my Department working with the European Union in Brussels, in addition to 3 Central Bank of Ireland staff who are currently seconded to the Department of Finance working with the European Union.
5 staff are based in the Permanent Representation of Ireland to the European Union (Perm Rep), whose roles and position are as follows:
- Counsellor - Principal Officer (PO)
- Fiscal Attaché - Assistant Principal (AP)
- Budget Attaché - AP
- Financial Services Attaché - Administrative Officer (AO)
- Financial Services Attaché - Central Bank of Ireland secondee
There are currently no vacant positions in the Perm Rep.
A further 4 staff are based in the European Commission as Seconded National Experts (SNEs):
- DG ECFIN - AP
- DG FISMA - AP
- DG FISMA - CBI secondee
- DG FISMA - CBI secondee
On 23 June 2016, there were 5 staff based in the Perm Rep:
- Counsellor - PO
- Budget Attaché - AP
- Financial Services Attaché- AP
- Financial Services Attaché - AP IGEES
- Fiscal Attaché - AO
A further 3 staff were working in the European Commission and European Parliament as SNEs:
- DG Economic and Financial Affairs - AP
- DG TAXUD - AP
- ECON European Parliament - HEO
243. Deputy Pearse Doherty asked the Minister for Finance if he has met with the CEOs and senior teams of banks (details supplied) regarding the withdrawal of banks from the market; the operational process of personal and business customers closing their accounts with the withdrawing banks and opening accounts with the receiving banks; the number of meetings he has had with each and the dates on which they occurred; and if he expressed concerns regarding the preparedness of withdrawing and receiving banks to execute this transition. [19062/22]
View answerWhile it is regrettable that Ulster Bank and KBC have decided to exit the Irish market, Government has no role in relation to the commercial decisions of any bank. However, it is my priority to ensure that each bank withdraws from the market in an orderly manner.
My officials and I are engaging with the banks that have indicated their intentions to leave the market, to emphasise the importance of an orderly withdrawal and the need to engage in a timely manner with their customers in advance of any exit.
On 22 September 2021, I met with Alison Rose, CEO of NatWest, Sir Howard Davies, Chair of NatWest, Jane Howard, the CEO of Ulster Bank, and Martin Murphy, the Chair of Ulster Bank, where they updated me on their progress and I emphasised the importance of an orderly withdrawal. Minister Fleming met with the CEO, Director of Corporate Affairs and Head of Corporate Affairs of Ulster Bank on the 8 March 2022 for a further update. On 31 March 2022, officials in the Banking Division met with the CEO, the Director of Corporate Affairs, the Head of Corporate Affairs, the Head of Digital and the Head of Personal Banking at Ulster Bank.
I spoke with KBC and Bank of Ireland last Spring around the time of the announcement of their proposed transaction and engagement has continued. Most recently, on 23 March 2022, officials in the Banking Division met with the Chief Operations Office, Chief Financial Officer and Chief Communications Officer of KBC.
My officials are also engaging with the Banking and Payments Federation of Ireland to ensure that the remaining Banks are prepared to accept applications from customers who are switching from the closing banks. We also engage directly with the banks that are remaining on a regular basis, and at recent meetings the issue of preparedness in relation to account switching has been raised.
Separately, my officials are arranging to meet key representatives from the Credit Unions, An Post and other retail financial services providers to discuss the how they can support customers that have to open new accounts as a result of the withdrawal of both Ulster Bank and KBC.
My Department will be monitoring closely the number of accounts that have closed/switched over the coming months and will continue to engage with all stakeholders to ensure that the impact on consumers is minimised.
On 25 June 2021, the Central Bank engaged with all banks on their expectations of how they manage issues and consumer risks during this period of change, and they are actively monitoring compliance with these expectations.
The Central Bank’s supervision of any bank that withdraws from the market will be focused on ensuring that its customers are treated fairly, and that it remains in compliance with the letter and spirit of regulatory requirements. The Central Bank has clearly communicated the requirement for a customer-focused approach to be taken in all aspects of their business throughout the period of change and that the banks ensure that customers understand what these developments means for them.
