Written Answers Nos. 476-495
476. Deputy Louise O'Reilly asked the Minister for Finance the revenue raised by the sugar sweetened drinks tax each year since its introduction and to date in 2022, broken down by the yield in each band; and if he will make a statement on the matter. [19367/22]
View answerI am advised by Revenue that the receipts raised from the Sugar Sweetened Drinks Tax (SSDT), since its introduction in 2018 and up to 31 March 2022, are broken down by applicable SSDT band in the following table. The Deputy should note that the receipts for 2021 and for 2022 to March are provisional at this time and may be revised.
|
SSDT Band 1 |
SSDT Band 2 |
||
|
Year |
€16.26 per Hectolitre |
€24.39 per Hectolitre |
Total SSDT |
|
5g-8g per 100ml |
8g or more per 100ml |
€m |
|
|
€m |
€m |
||
|
2018 |
1.8 |
14.5 |
16.3 |
|
2019 |
3.4 |
29.6 |
33.0 |
|
2020 |
3.5 |
27.8 |
31.3 |
|
2021 |
1.9 |
28.5 |
30.4 |
|
2022 (to 31 March) |
0.1 |
6.2 |
6.3 |
477. Deputy Eoin Ó Broin asked the Minister for Finance the total amount of revenue raised via the carbon tax in each year from 2016 to 2021 and to date in 2022; and the breakdown of the areas in which the tax revenue was spent on via voted expenditure in each of the years in question. [19465/22]
View answer503. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue to be raised in 2022 by the scheduled increase in carbon tax on 12 October 2022. [20196/22]
View answer506. Deputy Pearse Doherty asked the Minister for Finance the revenue raised from carbon taxation to date in 2022 disaggregated by the carbon tax increase of 12 October 2022, the carbon tax increase of 1 May 2022 and all other revenue for 2022, respectively. [20205/22]
View answerI propose to take Questions Nos. 477, 503 and 506 together.
Carbon Tax receipts by commodity for the years 2010 to 2020 are published on the Revenue website at the following link: www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx. I am advised by Revenue that the provisional amounts raised through the Carbon Tax in 2021 and to the end of March 2022 are €652 million and €197 million respectively.
Budget 2022 forecast that the increase in the Carbon Tax rate from €33.50 to €41.00 per tonne of carbon dioxide emitted (from Budget night for auto fuels and from 1 May 2022 for all other fuels) would yield €109 million in the first year and €148 million in a full year. The rate change effective from 12 October 2021 has contributed around €19 million of the €197 million collected to end March 2022.
Given the high uncertainty surrounding the price of motor fuels and the impact this may have on consumption, it is not possible to determine, with a high level of certainty the revenue that the carbon tax increase in October may yield in 2022. Based on the most recent available data from October 2021 to December 2021 the €7.50 increase in carbon tax applied on the 13th October accounted for an additional €17.7m in carbon tax and an estimated €1.7m in VAT . Of which €12m was collected in 2021 with the remaining been collected in January 2022.
A decision was taken in Budget 2020 to ring-fence any additional revenues raised by the increase in carbon tax to be used to protect those most vulnerable to higher fuel and energy costs, to support a just transition for displaced workers and to invest in new climate action.
Following this, the Programme for Government committed to hypothecating all the additional carbon tax receipts over the 2021-2030 period (estimated at €9.5bn), with €3bn to be allocated to targeted social welfare and other initiatives to ensure a Just Transition, €5 billion to be allocated to energy efficiency, and the remaining €1.5bn to be allocated to green agricultural measures.
In 2022, the revenue available for investment is €412m. This is comprised of the revenue made available in 2021 (€148m) and 2020 (€90m) and the allocation of an additional €174m to meet the Programme for Government commitment to spend €9.5bn by 2030.
Out of the €740m of additional carbon tax receipts that has been allocated since the hypothecation process began in Budget 2020, approximately 47% (€348m) has been allocated to energy efficiency measures, which includes Energy Poverty Efficiency Upgrades and the 2020 Aggregated Housing Upgrade Scheme. Approximately 36% (€264m) has been allocated to targeted social welfare supports, including the fuel allowance.
Allocations of €15m (2%) were made to peatlands rehabilitation and €18m (2%) was allocated to a Just Transition Fund to support impacted communities. A further €27m (4%) has been allocated to Greenway and Urban Cycling programmes over the 3 years, while €24m (3%) and €9m (1%) have been allocated for grants for Electric Vehicle purchase and Electric Charging infrastructure respectively.
In addition, €29m (4%) has been allocated to green agricultural pilot schemes and €6m (1%) was allocated to an Overseas Development Aid Green Climate Fund, which provides financial support to reduce greenhouse gas emissions in developing countries and to help vulnerable societies adapt to the unavoidable impacts of climate change.
478. Deputy Carol Nolan asked the Minister for Finance the steps he will take to enable the credit union movement to grow as a key provider of community banking in the country; and if he will make a statement on the matter. [19533/22]
View answer479. Deputy Carol Nolan asked the Minister for Finance if he will examine the suggestion by the credit union movement to review the policy framework within which credit unions currently operate; if he will allow for the creation of a regulatory and legislative credit union policy committee and a business model taskforce; and if he will make a statement on the matter. [19534/22]
View answer480. Deputy Carol Nolan asked the Minister for Finance the steps he is taking to enable and support the growth of the credit union movement; and if he will make a statement on the matter. [19535/22]
View answerI propose to take Questions Nos. 478, 479 and 480 together.
This Government recognises the importance of credit unions. The Programme for Government contains commitments to:
- Review the policy framework within which credit unions operate;
- Enable and support the credit union movement to grow;
- Support credit unions in the expansion of services, to encourage community development;
- Enable the credit union movement to grow as a key provider of community banking in the country.
Review of the Policy Framework
With regard to fulfilling the commitments in the Programme for Government for credit unions, the Review of the Policy Framework has been completed following a recent engagement session with all the credit union representative bodies. The proposals arising from the Review received broad support from the representative bodies and will go to Cabinet shortly for approval to draft legislation. The proposals being considered aim to better position credit unions to grow as a key provider of community banking.
In developing these proposals Minister of State Sean Fleming TD has met the Irish League of Credit Unions, the Credit Union Development Association, the Credit Union Managers Association, the National Supervisors Forum, the Registrar of Credit Unions, the Credit Union Advisory Committee, the CEO Forum, collaborative ventures and many individual credit unions. In total, Minister of State Fleming has held over 40 stakeholder meetings with the credit union sector and well over 100 proposals were considered.
I will refer specifically to the creation of a regulatory and legislative credit union policy committee. Both the Department of Finance and the Central Bank already have a very substantial programme of engagement with the representative bodies. One example of this is the Credit Union stakeholder roundtable chaired by the Department, which facilitates dialogue between all the representative bodies, the Central Bank and the Department. The proposals will seek to support engagement between credit unions, the Department and the Central Bank, whilst respecting the Central Bank’s independence.
The proposal to establish a business model taskforce is not being progressed as there is no legislative barrier for credit unions to create such a taskforce at present. It would also not be appropriate for Government to have a role in setting the business model for credit unions, which are owned by their members.
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 for credit unions. New lending regulations were introduced on 1 January 2020.
Credit unions can provide 7.5% of their assets to mortgage and SME lending - approximately €1.5 billion. Credit unions have the capacity to lend an additional €1.1 billion in mortgage and SME loans. Further additional lending capacity is available to credit unions who can comply with certain conditions or on approval by the Central Bank.
As of December 2021, credit unions had a combined mortgage and SME loan book of circa €408 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). 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 2021 five credit unions were announced as participants in the Brexit Impact Loan Scheme (BILS).
In total, SME lending has grown 9.5% year on year to end December 2021. Further development of SME lending in a controlled manner could also assist credit unions in growing and diversifying their loan book.
Other Services
Other than member savings and lending, in order to provide “additional services”, a credit union must receive approval from the Central Bank.
69 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.
481. Deputy Marc MacSharry asked the Minister for Finance if he will provide the details of the name, salary, position and roles of persons who are being paid for by his Department for secondment to another public, private or semi-private entity in tabular form following the announcement that the salary of a person (details supplied) being seconded to Trinity College, Dublin will be paid by the Department of Health; and if he will make a statement on the matter. [19548/22]
View answerI wish to advise the Deputy that there are currently six employees of the Department of Finance seconded to other organisations who continue to be paid by my Department.
These employees are seconded as follows:
- Department of Foreign Affairs
- London Embassy
- Assistant Secretary x 1
- Finance Attaché (Assistant Principal - AP) x 1
- Berlin Embassy
- Finance Attaché (AP) x 1
- EU Commission
- Seconded National Expert (AP) x 2
- OECD
- Economic & Finance Attaché (AP) x 1
These employees have remained on the payroll of the Department as the roles they occupy remain directly in the purview and strategic interest of the Department of Finance. Their secondment enables them to work closely within these organisations and also allows for administrative ease (i.e. access to email/internet networks etc).
Furthermore, the salaries of the 2 Seconded National Experts are recouped from the Department of Foreign Affairs under the Central Funding Scheme, which supports the placement of Irish staff in international organisations.
The salaries for these positions follow the salary scale of the relevant grade, details of which can be found in the recent Circular 04/2022 from the Department of Public Expenditure and Reform regarding pay scales, available at the following link: www.gov.ie/en/circular/ef515-application-of-1st-february-2022-pay-adjustments/
In line with the guidelines set out by the Department of Public Expenditure and Reform's Secondment Policy for the Civil Service, each position is for a specified period only, upon the end of which the employee will return to the Department of Finance.
482. Deputy Holly Cairns asked the Minister for Finance if his Department and public bodies and agencies that operate under his remit run apprenticeship programmes or are directly engaged in the training of apprentices; if so, the number of apprentices involved; the specialities in which they are being trained; and if he will make a statement on the matter. [19584/22]
View answerI can confirm that my Department does not currently run apprenticeship programmes and is not engaged in the training of apprentices.
The Office of the Comptroller and Auditor General and the Office of the Revenue Commissioners are bodies under the aegis of my Department.
The Office of the Comptroller and Auditor General is registered as a national apprenticeship employer. Two apprentices from Accounting Technicians Ireland commenced with the Office in early 2021 on two-year apprenticeship programmes. They are being trained in Accountancy and Finance. The Office now plans to take on two additional apprentices per year from September 2022 onwards.
The Office of the Revenue Commissioners advises that while it does engage in the training of apprentices, it currently has no such trainees.
483. Deputy Carol Nolan asked the Minister for Finance the number of persons employed by his Department and bodies under the aegis of his Department with a rate of pay below the living wage of €12.30; the role that those persons occupy within his Department or relevant body; and if he will make a statement on the matter. [19628/22]
View answerThere is currently one member of staff within my Department with a rate of pay below €12.30. This staff member holds the role of Service Officer. It should be noted that the staff of my Department are paid in line with Government pay policy, and that this staff member will move above the rate of €12.30 per hour when they move to the next increment step of their respective salary scale. Officers typically move to the next increment step of their salary scale on an annual basis, subject to satisfactory performance.
Bodies under the aegis of my Department that have persons employed with a rate of pay below the living wage of €12.30 have advised the following:
There are 41 people employed by the Central Bank with a rate of pay below the living wage of €12.30, of which 37 are Interns and 4 are Bank Officers.
The Office of the Comptroller and Auditor General has 16 employees that earn less than the living wage of €12.30 per hour. 14 are students on temporary work placement as part of a co-operative education programme with the University of Limerick. These 8-month placements are a formal, integral, compulsory and academically accredited element of students’ degree programmes. 2 are apprentices from Accounting Technicians Ireland. The students and the apprentices are all paid in accordance with the Clerical Officer grade pay scale.
There are 814 staff in the Office of the Revenue Commissioners earning less than €12.30 per hour. 806 are Clerical Officers, 7 are Service Officers and 1 is a Cleaner.
484. Deputy Carol Nolan asked the Minister for Finance if he will support the introduction of a VAT exemption on low-emission slurry spreading equipment purchased by farmers; and if he will make a statement on the matter. [19655/22]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with Irish legislation, agricultural equipment is liable to VAT at the standard rate, currently 23%. There is no discretion under the Directive for Ireland to reduce the rate of VAT on these goods.
Farmers may elect to register for VAT or be treated as flat-rate farmers for VAT purposes. Farmers that are registered for VAT have an entitlement to reclaim VAT charged on costs incurred in relation to the farm business, including VAT borne on the purchase of agricultural equipment such as slurry equipment.
Farmers who are not registered for VAT are entitled to avail of the Flat-Rate Farmers Scheme which compensates them for the VAT incurred on goods and services used in the course of their farming business by allowing them to charge a flat rate addition for their supplies of agricultural produce and services. This long-standing arrangement is provided for under Ireland’s VAT legislation and is permitted under the Directive.
485. Deputy Marian Harkin asked the Minister for Finance further to Parliamentary Question No. 226 of 31 March 2022, if it is unlawful to give specific weighting to the presence of a person in the State on any specific days of the month or year for example, by deeming their presence in the State on the first and last day of a month as normal residence for that entire month in relation to SI. No. 60/1993; and if he will make a statement on the matter. [19659/22]
View answerSI. No. 60/1993 does not give any specific weighting to the presence of an individual in the State on any specific days of the month or year. I am informed that while Revenue does not ‘deem’ a presence in the State over a specific period in this context, a person wishing to avail of the exemption under SI. No. 60/1993 has the onus of proof. To fulfil this, the person must provide satisfactory evidence that they are eligible for an exemption from Vehicle Registration Tax (VRT), and as such would be required to demonstrate they are normally resident outside the State.
In a circumstance where a person was in the State on certain dates and is not able to demonstrate that they departed the State between these times, Revenue is required to conclude that those days have been spent in the State. This is because the person concerned has not fulfilled the requirement to demonstrate their presence outside the State, a necessity for the exemption to be applied.
Revenue states in its guidance on VRT that an exemption should be refused where there is insufficient, satisfactory documentary evidence to support an application. As such, in the absence of proof that the qualifying criteria have been fulfilled, such an application would not qualify for an exemption.
486. Deputy Marian Harkin asked the Minister for Finance further to Parliamentary Question No. 225 of 31 March 2022, the manner in which information on the number and value of refunds of compromise penalties is recorded in the Revenue Commissioners’ systems; if there were no refunds of compromise penalties between 2015 and 2021, inclusive; and if he will make a statement on the matter. [19660/22]
View answerI am advised by the Revenue Commissioners that the number and value of refunds of compromise penalties is not recorded in the Revenue Commissioners systems as previously outlined in the answer provided to Dáil Questions 225 (Ref No. 17257/22) and 227 (Ref No. 17259/22).
Each application for a refund of a compromise penalty is examined on a case by case basis and any refund that arises is made based on the individual circumstances of each case and is recorded on the individual’s file. The number of cases on which a refund in whole or in part is made in any given year is minimal. It is not feasible to review individual files totalling 6,784 cases on which penalties were applied between 2015 and 2021 to ascertain the number of cases that may have had some element of refund of a compromise penalty made.
487. Deputy Cian O'Callaghan asked the Minister for Finance if he will consider offering tax credits for owner-occupiers affected by building defects in budget 2023; and if he will make a statement on the matter. [19705/22]
View answerAs the Deputy may be aware, the Minister for Housing, Local Government and Heritage has established an Independent Working Group to examine the issue of defective housing. Officials from my Department participate in this Working Group. The objectives of the group are to identify the scope of relevant significant defects in housing, to evaluate the scale of housing affected, to propose a means of prioritising defects, to evaluate the cost of remediation, to recommend appropriate mechanisms for resolving defects and, to consider financing options in line with the Programme for Government commitment to identifying options for those impacted by defects to access low-cost, long-term finance. A final paper is due to be completed by Q2 this year.
Separately, my Department's Tax Expenditure Guidelines are clear that a tax-based intervention should only be considered where it would be more efficient than a direct expenditure measure.
In the circumstances, any intervention by me along the lines mentioned by the Deputy would seem to be premature at this point.
488. Deputy Niamh Smyth asked the Minister for Finance if a new appeal board for the primary certificate has been appointed (details supplied); if it is operational; and if he will make a statement on the matter. [19706/22]
View answerThe Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the six medical criteria.
I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
A new Disabled Drivers Medical Board of Appeal (DDMBA) is being established following the resignation of all 5 members of the previous board. An Expression of Interest seeking suitable candidates for the Disabled Drivers Medical Board of Appeal is now published on gov.ie - Expression of interest for appointment to the Disabled Drivers Medical Board of Appeal (www.gov.ie).
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
I gave a commitment that a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, would be undertaken.
I am working on this matter with Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. We have agreed that the DDS review should be brought within a wider review under the auspices of the National Disability Inclusion Strategy (NDIS), to examine transport supports encompassing all Government funded transport and mobility schemes for people with disabilities.
We believe that this is the most appropriate forum to meet mutual objectives in respect of transport solutions/mobility supports for those with a disability.
The NDIS Transport Working Group, chaired by Anne Rabbitte, Minister of State for Disability, met on 26th January 2022. Officials from the Department of Finance will contribute to the Working Group to progress the review and to bring forward proposals for consideration by Government.
489. Deputy Eoin Ó Broin asked the Minister for Finance the breakdown of Home Building Finance Ireland, HBFI, loans by number of units fewer than 25, between 26 and 50, between 50 and 99, between 100 and 200 and over 200, geographical location of development by county and tenure, owner-occupier, private rental and social rental in tabular form. [19717/22]
View answerHome Building Finance Ireland was established to increase the supply of new homes for owner-occupiers, renters and social housing by providing funding on commercial terms to housebuilders for commercially viable developments throughout Ireland. To March 2022, HBFI has approved funding of €1,129m across 81 projects in 20 counties. This funding will support the building of 4,920 new homes.
Additional detail requested is provided in the tables below:
(1) Approvals by Unit Size
|
Scheme Size Range |
No. of Approvals |
% of Total |
|
0-24 |
38 |
47% |
|
25-49 |
12 |
15% |
|
50-99 |
19 |
23% |
|
100-200 |
5 |
6% |
|
200+ |
7 |
9% |
|
Total |
81 |
100% |
(2) Approvals by County
|
County |
No. of Approvals |
No. of Homes |
|
Carlow |
1 |
22 |
|
Clare |
2 |
30 |
|
Cork |
13 |
584 |
|
Donegal |
2 |
82 |
|
Dublin |
14 |
1,723 |
|
Galway |
4 |
196 |
|
Kerry |
2 |
83 |
|
Kildare |
5 |
307 |
|
Kilkenny |
1 |
113 |
|
Laois |
3 |
116 |
|
Limerick |
1 |
76 |
|
Louth |
7 |
388 |
|
Mayo |
5 |
92 |
|
Meath |
9 |
517 |
|
Monaghan |
1 |
12 |
|
Offaly |
3 |
83 |
|
Waterford |
2 |
44 |
|
Wexford |
1 |
16 |
|
Wicklow |
4 |
422 |
|
Westmeath |
1 |
14 |
|
Total |
81 |
4,920 |
(3) Composition of HBFI approved funding
|
|
Total |
% of Total |
Owner-occupiers |
Private Rental |
Social Housing |
Part V |
|
Houses |
3,164 |
64% |
2,368 |
26 |
610 |
160 |
|
Apartments |
1,756 |
36% |
73 |
1,327 |
288 |
68 |
|
Total |
4,920 |
|
2,441 |
1,353 |
898 |
228 |
|
% of Total |
|
|
50% |
27% |
18% |
5% |
490. Deputy Sorca Clarke asked the Minister for Finance the salaries and expenses paid to advisers, Ministers and or Ministers of State in his Department in 2020, 2021 and to date in 2022, in tabular form. [19745/22]
View answerI wish to advise the Deputy that the salaries and expenses paid to advisers, Ministers and or Ministers of State in the Department of Finance in 2020, 2021 and to date in 2022, were as follows:
|
Minister for Finance |
Pay |
Voluntary Surrender Of Pay* |
Expenses |
|
2020 (from 23 July 2020)** |
€36,940.35 |
-€9,929.00 |
€2,652.67 |
|
2021 |
€81,006.75 |
-€21,084.00 |
€10,307.01 |
|
2022 to date |
€25,280.16 |
-€4,583.50 |
€953.66 |
* Voluntary Surrender of Pay is deducted from the salaries of both the Minister for Finance and the Minister of State for the Department of Finance and returned to the Exchequer.
** Mr. Pascal Donohoe T.D. did not receive a salary from the Department of Finance while holding the offices of Minister for Public Expenditure and Reform and Minister for Finance up to 23 July 2020. Upon his appointment as Minister for Finance only on the formation of Government on 23 July 2020 he transferred to the payroll of the Department for Finance.
|
Ministers of State |
Pay |
Voluntary Surrender Of Pay |
Expenses |
|
2020*** |
€40,957.52 |
-€10,127.00 |
€16,003.55 |
|
2021 |
€39,541.41 |
-€16,198.00 |
€17,683.26 |
|
2022 to date |
€12,364.70 |
-€4,049.52 |
€9,616.10 |
*** 2020 figures is comprised of salaries and expenses for three Ministers of State for the Department of Finance that served over the course of the year.
|
Special Advisers**** |
Pay |
Expenses |
|
2020 |
€192,121.12 |
€857.65 |
|
2021 |
€292,871.21 |
€600.24 |
|
2022 to date |
€101,859.41 |
€4,041.01 |
**** In 2020 and 2022 four Special Advisors served in the Department between the Minister for Finance and the Ministers of State for the Department of Finance. In 2021 five Special Advisors served in the Department between the Minister for Finance and the Minister of State for the Department of Finance.
491. Deputy Christopher O'Sullivan asked the Minister for Finance if consideration will be given to extending the VAT rate of 9% beyond August 2022; and if he will make a statement on the matter. [19802/22]
View answerAs part of the Government’s response to Covid-19, Budget 2021 brought the VAT rate for Hospitality and Tourism related services and goods down from 13.5% to 9%. This was initially planned for 14 months, from 1 November 2020 to 31 December 2021. This was then extended to 31 August 2022 in recognition of the difficulties facing these sectors.
This extension provides support for a further 8 months to the end of the 2022 summer season, allowing for a longer period of recovery for tourism and hospitality. This measure is only one of the supports the Government has provided for businesses over the course of the pandemic and was always designed to be temporary, with a sunset clause included in the enacting legislation.
A review was undertaken of the 9% VAT rate in advance of Budget 2019. This review found that tourism expenditure is more sensitive to income growth and the economic cycle than price changes, which reduces the relevance of the VAT rate applying to the sector.
Should the economic position or tourism demand alter, the VAT rate applicable to tourism will be reviewed as part of the budgetary cycle.
492. Deputy Mattie McGrath asked the Minister for Finance if he will outline all of the secondment arrangements within his Department; the conditions related to such secondments; and if he will make a statement on the matter. [19868/22]
View answerI wish to inform the Deputy that there are currently 16 employees of the Department of Finance on secondment out to another organisation, and 32 employees seconded into the Department from other organisations.
Secondment arrangements within the Department of Finance follow the guidelines set out by the Department of Public Expenditure and Reform's Secondment Policy for the Civil Service.
This was outlined most recently in Circular 27-2021 which sets out the current arrangements for secondments between Civil Service organisations. This Secondment Policy also provides that the same principles may be applied to secondment arrangements between a parent department and a non-civil service body within its sector.
However, the duration and role of each secondment arrangement to and from the Department of Finance vary in line with the needs of each arrangement and are specific to that individual. As such, it would not be appropriate to disclose these specific details.
493. Deputy Claire Kerrane asked the Minister for Finance if he will meet with an association (details supplied) to engage with them on issues impacting on the viability of their sector relating to carbon tax on marked gas oil green agri diesel to ensure that grass silage and tillage can be saved this summer; and if he will make a statement on the matter. [19950/22]
View answer494. Deputy Claire Kerrane asked the Minister for Finance if he will consider removing carbon tax from marked gas oil supplied to the farm and forestry contractor sector; and if he will make a statement on the matter. [19951/22]
View answer496. Deputy Michael Healy-Rae asked the Minister for Finance if he will remove the carbon tax from the marked gas oil supplied to the farm and forestry contractors sector; and if he will make a statement on the matter. [20048/22]
View answer522. Deputy Colm Burke asked the Minister for Finance if consideration will be given to the removal of carbon tax from marked oil gas used in agriculture and forestry by farm and forestry contractors for a period of five years in order to reduce costs and to allow adequate time for the international machine development and supply sector to provide alternatives to internal combustion engines in the form of market ready zero carbon systems that will meet the lower carbon climate objectives as set out in the National Climate Action Plan; and if he will make a statement on the matter. [20660/22]
View answer529. Deputy Colm Burke asked the Minister for Finance if consideration will be given to giving relief on green diesel particularly with forage harvesting crops in May, June, July and August; and if he will make a statement on the matter. [20964/22]
View answerI propose to take Questions Nos. 493, 494, 496, 522 and 529 together.
Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels. MOT is comprised of a non-carbon component and a carbon component. The carbon component is proportionate to the carbon dioxide emissions of the fuel concerned and is commonly referred to as carbon tax. The non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”.
The Deputies will be aware that the 2020 Programme for Government committed to increasing the amount that is charged per tonne of carbon dioxide emissions from fuels to €100 by 2030. I followed through on this commitment by introducing legislation in Finance Act 2020 to provide for a 10-year trajectory for carbon tax increases to reach €100 per tonne of carbon dioxide by 2030. This measure is a key pillar underpinning the Government’s Climate Action Plan to halve emissions by 2030 and reach net zero no later than 2050. Carbon tax increases are scheduled to apply to petrol and diesel on Budget night and on all other mineral oils on 1 May each year to 2030.
Diesel used for certain purposes, for example in agricultural machinery, may qualify for a reduced rate of MOT. Such diesel must be marked with prescribed fiscal markers and is referred to as Marked Gas Oil (MGO), green diesel or farm/agricultural diesel. The current reduced rate of MOT that applies to MGO is €120.55 per 1,000 litres. This is considerably less than the standard rate of MOT on diesel used as a propellant which is currently €405.38 per 1,000 litres.
In March this year, in response to the global fuel crisis, I introduced cuts to MOT rates on petrol, diesel and MGO. I intend to introduce a further cut to the MOT rate on MGO from 1 May to run until 11 October this year. This rate cut will be applied to the non-carbon component of MOT to fully compensate for a scheduled increase in the carbon component. The rate of MOT on MGO will be almost 30% lower from 1 May than the rate that would have applied had I not provided for relevant cuts. As a result of the measures I introduced, all MGO users will benefit from a cut of more than 5 cents per litre inclusive of VAT from 1 May until 11 October. The table below provides the current MOT rate, broken into its carbon and non-carbon components, along with the pre-cut rate and the rate to apply when the temporary reduction period ends.
|
MOT rate on MGO from |
MOT non-carbon |
MOT carbon |
Total MOT |
|
01-May-21 |
€47.36 |
€90.81 |
€138.17 |
|
10-Mar-22 |
€29.74 |
€90.81 |
€120.55 |
|
01-May-22 |
€0.00 |
€111.14 |
€111.14 |
|
12-Oct-22 |
€47.36 |
€111.14 |
€158.50 |
In addition to benefiting from the enhanced, reduced MOT rate on MGO (farm/green diesel), farmers and agricultural/forestry contractors may also claim a tax deduction for expenditure incurred on MGO (including any MOT charged) in computing their taxable profits. In computing their taxable farming profits, farmers may also benefit from a relief provided under Section 664A of the Taxes Consolidation Act 1997. This relief allows a farmer to claim an additional deduction for MGO which amounts to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).
The relief under section 664A is available to any person carrying on a trade of farming in the State. Agricultural/forestry contractors are not entitled to this relief as they are not carrying on a trade of farming which, as defined in section 654 of the Taxes Consolidation Act 1997, requires the occupation of farmland. However, as outlined above, such contractors may claim tax deduction for expenditure incurred on fuel costs when calculating their taxable profits.
It is also worth mentioning that MOT law provides for a relief from the carbon component of MOT for biofuels that are made of biomass of animal or vegetal origin. This means that a fuel that is entirely made from biomass would be liable for the non-carbon component of MOT only. In the case of such a biofuel used in place of MGO, the MOT carbon component would be fully relieved. For blended fuels containing biomass, the relief applies to the portion of fuel that meets the biofuel criteria set out in MOT legislation. The biofuel relief is intended to promote a higher level of biofuel in fuel sales and supports Government’s commitment to incentivising the use of greener alternatives to fossil fuels.
Finally, if the Association of Farm and Forestry Contractors wish to meet me or my officials they should submit a request to my private office.
495. Deputy Holly Cairns asked the Minister for Finance if his Department and public bodies and agencies that operate under his remit facilitate internships by students engaged in full-time or part-time further and higher education courses; if so, the number of interns his Department and public bodies and agencies that operate under his remit accept annually; if any or all of these interns receive remuneration of any kind; and if he will make a statement on the matter. [20006/22]
View answerI can confirm that my Department does not facilitate internships for students in full or part-time further and higher education.
A number of bodies under the aegis of my Department have advised the following:
The Central Bank typically takes in forty students annually on its Internship Programme. The programme is usually undertaken by students in their second or penultimate year of study, and for most an internship is a requirement in order to complete their course. Placements are typically between 6-12 months in duration, commencing in September or January of any given year, depending on the course. The students participating in the Bank’s Internship Programme are paid €20,902 per annum, or a pro-rata sum thereof.
The Irish Fiscal Advisory Council runs an annual Summer Internship Programme. The internships are temporary posts, each lasting up to 12 weeks over the Summer months and are open to those currently engaged in an undergraduate or postgraduate degree programme in Economics. The Programme accepts two interns annually, both of whom receive remuneration.
The National Treasury Management Agency (NTMA) has, in previous years, facilitated paid placements for college students. In 2021, the NTMA accepted one intern for a period of six weeks. It is anticipated that further placements will be advertised on an annual basis. The NTMA assigns staff to Home Building Finance Ireland, the National Asset Management Agency and the Strategic Banking Corporation of Ireland, and can assign interns to these bodies as required.
The Office of the Comptroller and Auditor General accepts fourteen students annually on temporary work placement as part of a co-operative education programme with the University of Limerick. These 8-month placements are a formal, integral, compulsory and academically accredited element of the students’ degree programmes. The interns are remunerated at Point 1 of the Clerical Officer Temporary PPC salary scale.
The Office of the Revenue Commissioners has operated an Internship Programme with a variety of colleges nationwide for a number of years. As of 2019, all interns assigned to Revenue have been placed on Point 1 of the Executive Officer salary scale for the duration of their internship. Revenue onboards interns to work across specialist fields such as Economic Research, Information and Communications Technology, and Audit and Compliance. Of the 18 interns due to take up their positions in 2022, 8 have already commenced their internship in Revenue, with the remaining 10 expected to commence throughout the year. Since 2019, the number of interns accepted annually by Revenue are:
2019=12;
2020=11;
2021=7; and
2022=18
