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Tuesday, 21 Jun 2022

Written Answers Nos. 147-160

Driver Test

Questions (147)

Pearse Doherty

Question:

147. Deputy Pearse Doherty asked the Minister for Transport if a Cat D driving test will be expedited for a person (details supplied); and if he will make a statement on the matter. [32398/22]

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Written answers

The operation of the national driving test service is the statutory responsibility of the Road Safety Authority. 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.

A referred reply was forwarded to the Deputy under Standing Order 51

Greenways Provision

Questions (148)

Peadar Tóibín

Question:

148. Deputy Peadar Tóibín asked the Minister for Transport if a national framework exists to govern the process of converting a disused rail line into a greenway; and if he will make a statement on the matter. [32399/22]

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Written answers

The process of converting a disused rail line into a greenway, depends largely on ownership of land along the rail line.

If ownership of the land on the rail line is still with CIE, then a standard licence agreement applies. If the land is currently in private ownership, the Code of Best Practice applies. The Code of Best Practice which was published in December 2021, provides information on the planning, design and construction of Greenways. It includes information on the use of State-owned lands and the acquisition of private lands for developing Greenways. The Code will be reviewed in conjunction with farming organisations and updated, where required, on a biannual basis initially and on an annual basis thereafter.

Tax Data

Questions (149)

Pearse Doherty

Question:

149. Deputy Pearse Doherty asked the Minister for Transport the estimated first and full-year cost of equalising quarterly, half-year and annual payment costs of motor tax equal to the annual payment cost. [32479/22]

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Written answers

Based on the pattern of transactions in 2021, the full-year cost of equalising the charges for annual, half-yearly and quarterly motor tax discs, to the level of the current annual amount, is just over €37m.

Public Transport

Questions (150)

Duncan Smith

Question:

150. Deputy Duncan Smith asked the Minister for Transport if he will provide details of what happens to unused credit on LEAP cards that have not been activated in at least 12 months; the way that the National Transport Authority managed the deposits paid for LEAP cards; the total number of LEAP cards that have been issued since the introduction of the card; the total number of cards have not been activated in the past 12 months; the total balance of unused credit on those cards; and if he will make a statement on the matter. [32508/22]

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Written answers

As 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 regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.

In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific question in relation to LEAP cards to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

Rail Network

Questions (151)

Darren O'Rourke

Question:

151. Deputy Darren O'Rourke asked the Minister for Transport the status of Ballisodare train station; if he has any plans to reopen the station; if his attention has been drawn to the fact that the station is in extensive disrepair and is causing concern that someone will be injured as a result; and if he will make a statement on the matter. [32528/22]

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Written answers

As Minister for Transport, I have responsibility for policy and overall funding of public transport.  The operation, maintenance and renewal of the rail network and stations on the network including the former station at Ballisodare, County Sligo, is a matter for Iarnród Éireann in the first instance.

In view of Iarnród Éireann's responsibility in this matter, I have referred the Deputy's question to the company for direct reply.  Please contact my private office if you do not receive a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Insurance Industry

Questions (152)

Michael Creed

Question:

152. Deputy Michael Creed asked the Minister for Transport if he will engage with the Irish Motor Insurance industry in regard to credit for previous driving experience in respect of Ukrainian refugees; and if he will make a statement on the matter. [32557/22]

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Written answers

The provision of insurance cover is a commercial matter. My Department does not have the power to direct insurance companies on the terms and conditions of insurance products. 

Rail Network

Questions (153)

Johnny Mythen

Question:

153. Deputy Johnny Mythen asked the Minister for Transport if he has had discussions with Irish Rail regarding the designation of Rosslare Europort as Ireland’s offshore renewable energy hub; the plans that are in place to support Rosslare Europort to prepare for an offshore renewable energy hub; the budget that has been allocated for same; and if he will make a statement on the matter. [32643/22]

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Written answers

As the 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 operation of public transport companies. 

The issues raised by the Deputy in relation to the possible creation of an offshore renewable energy hub at Rosslare are an operational matter for the company and I have therefore forwarded the Deputy's questions to Iarnród Éireann for direct reply. 

Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Bus Services

Questions (154)

Chris Andrews

Question:

154. Deputy Chris Andrews asked the Minister for Transport if he will request an explanation from a company (details supplied) as to the reason three scheduled departures of the 18 bus route failed to arrive at the stop of a person on 15 June 2022. [32783/22]

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Written answers

As 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 18 bus route to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Projects

Questions (155)

Duncan Smith

Question:

155. Deputy Duncan Smith asked the Minister for Transport if he or his Department have had any meetings with a local authority (details supplied) on the provision of a vital piece of infrastructure for a town; and if he will make a statement on the matter. [32793/22]

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Written answers

The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources supplemented by State grants, where applicable. 

The major cuts to funding for regional and local roads during the post 2008 recession resulted in the build-up of a substantial backlog of works across the country. The estimated cost of the backlog is in excess of €5 billion. Because of the pressures on the regional and local road network, approximately 90% of available Exchequer grant assistance to local authorities under the Regional and Local Road Grant Programme is being directed to maintenance and renewal works rather than for new roads or for road realignments.

Any road improvement projects proposed by local authorities for consideration for funding under the Regional and Local Road Grant Programme are assessed by the Department on a case-by-case basis. All projects put forward by local authorities for consideration must comply with the requirements of the Public Spending Code (PSC) and my Department's Capital Appraisal Framework (CAF). Given the limited funding available for regional and local road improvement works it is important for local authorities to prioritise projects within their overall area of responsibility with these requirements in mind. 

No application for funding has been received by my Department from Kildare County Council in relation to the proposed second bridge in Newbridge.

Public Transport

Questions (156)

Sorca Clarke

Question:

156. Deputy Sorca Clarke asked the Minister for Transport the steps that he is taking to ensure public transport is a viable alternative to travelling by private car in counties Longford and Westmeath. [32811/22]

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Written answers

The National Sustainable Mobility Policy, which I published in April, sets out a strategic framework to 2030 for active travel and public transport. The aim of the policy is to make it easier for people across the country to choose walking, cycling and use public transport daily instead of having to travel by private car. The policy is accompanied by an action plan to 2025 which contains actions to improve and expand sustainable mobility options throughout the country. 

One of the policy’s ten high-level goals is to expand availability of sustainable mobility in regional and rural areas and the action plan contains a range of actions that will be delivered by 2025 to support this goal. This includes the rollout of the Connecting Ireland Rural Mobility Plan. Starting this year, this plan is a major national public transport initiative funded by my Department and managed by the National Transport Authority (NTA). It aims to increase public transport connectivity over a five-year period, particularly for people living outside our cities. New and improved public transport services will be rolled out on a phased basis including new and enhanced services in Longford and Westmeath. The overarching aim of Connecting Ireland is to develop an accessible, integrated and sustainable network of public transport services in rural and regional areas nationwide. In Budget 2022, I was delighted to secure an allocation of €5.6 million to progress, develop and begin delivery of this important plan.

A programme of improved town bus services will also be implemented by 2025 under the Sustainable Mobility Policy, including in Mullingar. Alongside this, the NTA will commence delivery of an enhanced bus stop and bus shelter programme for regional and rural services.

The Government has also recently introduced a number of new fare reductions to help combat the rising cost-of-living being experienced throughout the country and to incentivise greater use of public transport services.  This includes a 20% average fare reduction on all PSO services until the end of 2022.  Furthermore, the introduction of a young adult card will allow any person nationwide who is between 19 and 23 years old to avail of an entitlement for discounted travel costs across all services, including city, intercity and rural services.  This young adult discount was initially made available on PSO services last month and will then be broadened to include commercial operators at a later date.

The National Sustainable Mobility Policy will be implemented in collaboration with other Government departments, the NTA, regional assemblies, local authorities and other stakeholders to improve sustainable mobility infrastructure and services across the country in the coming years.

Budget Process

Questions (157)

Joe Carey

Question:

157. Deputy Joe Carey asked the Minister for Finance if he plans to amend the tax requirement in the upcoming Budget in terms of qualifying for the first-time buyers grant given the drive that is ongoing to recruit workers from abroad and to get many of the Irish diaspora to return to take up employment here (details supplied); and if he will make a statement on the matter. [32519/22]

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Written answers

I believe that the Deputy is referring to the Help-to-Buy (HTB) incentive, an income tax relief designed to assist first-time buyers with obtaining the deposit required to purchase or build their first home. With a view towards increasing the supply of new housing, the relief is only available for ‘new builds’. Broadly, the relief takes the form of a rebate of income tax, including DIRT, paid over the previous four tax years. However, it is open to claimants to select all or any of the previous four tax years for the purposes of calculating the refund available to them.

As the Deputy may be aware, in 2018, the Minister for Foreign Affairs and Trade commissioned a report to examine the challenges facing returning Irish emigrants. The Indecon Economic Report on Addressing Challenges Faced by Returning Irish Emigrants was published by the Department of Foreign Affairs and Trade and is available at the following link: www.dfa.ie/media/dfa-2017/globalirish/Report-on-Returning-Emigrants-2018.pdf.

The findings of the report are of relevance to the general issue raised by the Deputy as it provided insights on emigrants’ views of the barriers faced by them in returning to Ireland. In short, the report identified that a wide range of issues could be addressed with a view to attracting Irish people, born and educated in Ireland, to return from abroad.

The consultants identified exclusions from the HTB incentive if they left Ireland more than four years previously as a particular tax treatment issue.  Indecon recommended a tax refund based on the last four years in which tax was paid in Ireland, with eligibility restricted to those who paid tax in last 14/15 years.

However, upon further examination, my Department considered that the measure could not be recommended for implementation due to wider knock-on implications for the operation of the scheme.  As such, currently I do not have any plans to seek to amend the eligibility requirements for first-time purchasers for the purposes of the HTB incentive to be fully tax-compliant and also have submitted the appropriate tax return for each tax year relevant to the claim.  Also of relevance in this regard is that a formal review of the HTB scheme is currently underway and is expected to be completed shortly. The intention is that the exercise will help inform decisions for Budget 2023 and Finance Bill 2022, having regard to the sound management of the public finances.

Finally, the Deputy will also wish to be aware that the Minister of State for Overseas Development Aid and Diaspora chairs an ‘Interdepartmental Committee on the Irish Abroad’. This committee brings together all relevant Government Departments and agencies with a view to developing an all of government approach to addressing the barriers which the Diaspora face in returning to Ireland.  The Department of Finance continues to be engaged in this process. 

Tax Code

Questions (158)

Peter Fitzpatrick

Question:

158. Deputy Peter Fitzpatrick asked the Minister for Finance his views on the reintroduction of the 9% vat rate to the tourism industry; the affect it would have on inbound and domestic tourism; and if he will make a statement on the matter. [32761/22]

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Written answers

As the Deputy will be aware, the 9% rate for these industries was reintroduced in Budget 2021 from 1 November 2020 to 31 December 2021 at an estimated cost of €401m. This measure was initially extended in Budget 2022 to 31 August 2022 at a further estimated cost of €251m. I have now extended this measure for a further six months. The 9% VAT rate will therefore remain for these sectors until 28 February 2023 at an additional estimated cost of €250m. No further extension to this measure is envisaged so the 13.5% rate will apply to these sectors from 1 March 2023.

This extension will cover the same goods and services as the original measure, restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing, as well as certain printed matter such as brochures, leaflets, programmes and catalogues.

The further extension reflects the fact that the tourism and hospitality sectors were among those most impacted by the public health restrictions put in place throughout the pandemic. Through no fault of their own, bars, hotels and restaurants had to close on multiple occasions in response to the public health crisis. This measure will provide further support to the tourism and hospitality sectors over the busy November/December period and into the early New Year.

Insurance Industry

Questions (159)

Rose Conway-Walsh

Question:

159. Deputy Rose Conway-Walsh asked the Minister for Finance if he will discuss the effect that increasing liability insurance premiums are having on sports and cultural organisations as well as adventure centres; and if he will make a statement on the matter. [32269/22]

View answer

Written answers

While neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups, including the sporting and cultural sectors.

The whole-of-Government approach being taken through the Action Plan for Insurance Reform which sets out 66 actions which aim to improve both the cost and availability of this key financial service, particularly for businesses. The Second Implementation report, which was published on 1 March 2022, shows that 80 per cent of these actions are now being delivered.

Among the key developments so far are the implementation of the new Personal Injury Guidelines, which significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Recent data from the Personal Injury Assessment Board (PIAB) show that award levels have fallen by an average of 40 per cent, providing stability and certainty to the claims environment.

As part of the effort to increase competition, the Department of Finance is working closely with the IDA to bring new entrants into the Irish insurance market, including in areas which have been identified as ‘pinch-points’ in the Irish market, such as the ones highlighted by the Deputy. The IDA is currently commencing a multi-phased engagement process with these targeted underwriters and will seek to leverage the achievements of the Government insurance reform agenda to date. 

In terms of upcoming issues, rebalancing the duty of care is now a high priority action for Government and is being led by the Department of Justice. Overhauling this legislation should help to address the issue of “slips, trips and falls”, which are particularly prevalent in high-risk/heavy-footfall areas such as sports, leisure and adventure centres.

It may also interest the Deputy to know that the National Sports Action Plan 2021 -2023 provides for the establishment of a sports sector stakeholder forum to examine insurance issues in the sector. Enquiries regarding this initiative should be directed to the Department of Tourism, Culture, Arts, Gaeltacht, Sports and Media.

Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government and this in turn should help address some of the issues that are the focus of this Parliamentary Question. 

Fiscal Policy

Questions (160, 161)

Jim O'Callaghan

Question:

160. Deputy Jim O'Callaghan asked the Minister for Finance the impact that the recent increase in interest rates will have on the projected rise in Ireland’s debt servicing costs; and if he will make a statement on the matter. [31824/22]

View answer

Jim O'Callaghan

Question:

161. Deputy Jim O'Callaghan asked the Minister for Finance if a hedging strategy has been introduced to reduce any projected rise in Ireland’s debt servicing costs; and if he will make a statement on the matter. [31825/22]

View answer

Written answers

I propose to take Questions Nos. 160 and 161 together.

The NTMA have informed me that Interest on Ireland’s National Debt has declined significantly in recent years. In 2021 it totalled just under €3.6bn. This is more than 50% below the peak of €7.5bn seen in the mid-part of the last decade.

However, the period of large year-on-year declines in the interest bill is now over as most of the more expensive, crisis-era issued debt has been replaced with cheaper funding.

This year, it is estimated that there will be a slight increase in the interest bill on the National Debt, to just under €3.8bn. This is the equivalent of 5% of projected tax revenue. By contrast, in 2013, this interest-to-tax revenue ratio was almost 20%.

Yields on Irish Government debt are increasing, as they are on sovereign debt around the world. This reflects the withdrawal of large-scale monetary policy support from the major Central Banks and inflation developments.

There are several factors which will help to lessen the impact of rising interest rates on Ireland’s debt servicing costs.

- The vast bulk of Ireland’s public debt is at fixed interest rates.

- The NTMA strategy of pre-funding means it holds significant cash balances. These stood at €30bn at the end of May. This is money the NTMA borrowed in the low rate environment of recent years and means there is less to borrow at higher rates in the coming years. In addition, it affords the NTMA a great deal of flexibility regarding the timing of its funding operations.

- The amount of debt the NTMA will be required to issue over the coming years will likely be lower than in the recent past. This reflects (i) the pre-funding strategy referred to above, (ii) the improving public finances, as forecast in the recent Stability Programme Update and (iii) the quite limited refinancing needs – a consequence of the NTMAs strategy of issuing longer-term debt during the period of the ECBs Quantitative Easing programmes. The NTMA has extended and smoothened the maturity profile of Irish public debt.

So far this year, the NTMA has issued €5.75bn of benchmark bonds, close to 60% of the €10bn lower bound of the bond funding range. This funding was completed at a weighted average yield of 0.76% and a weighted average maturity of 13 years.

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