Written Answers Nos. 381-395
383. Deputy Sorca Clarke asked the Minister for Finance the actions and engagements his Department has taken to date to reduce carbon emissions and increase energy efficiency in all buildings under his Department. [40911/22]
View answerThe main offices which house my Department are primarily heritage buildings with Protected Structure legislative status. The current available options for energy performance efficiency gains are limited, and offer little scope in terms of facility upgrades and retrofits. Nevertheless, my Department strives to effect tangible reductions in its carbon footprint by active engagement with the Energy Section of the Department of the Environment Climate and Communications (DECC) as well as the Sustainable Energy Authority of Ireland (SEAI) through its Public Sector Energy and Resource Efficiency Action Plan (REAP) programmes, with relevant reports published annually.
My Department has completed significant lighting replacement projects to provide the benefits of better lighting, improved energy efficiency and occupancy detection systems. Such work has resulted in minimising both energy consumption and maintenance costs through the use of new technology LED lighting. Other initiatives have included the use of energy-efficient pump technologies for heating, and also the delivery of energy awareness programmes to staff. In the short- to medium-term, it is envisaged that further lighting projects will take place in order to effect the complete lighting upgrade of my Department’s offices.
My Department actively participates in the Public Sector Energy Reporting Programme, recording all of its energy consumption through the SEAI Monitoring and Reporting online system. From 2009 to 2021, energy consumption has decreased by 35%, putting my Department on track to achieve the 2030 target of a 50% reduction for all Public Sector organisations, nationally. Over that same period, our annual CO2 emissions have fallen from 3,782 tonnes to 1,897 tonnes, which equates to a drop of almost 50%.
These energy efficiencies translate into meaningful power consumption reductions, with consequent benefits in terms of CO2/kWh emission reductions. To note, my Department is a policy organisation with no manufacturing or production facilities, and subsequently no transport fleet. However, where business travel is required, it is undertaken primarily through the use of public transport.
My Department engages with OPW’s Architectural and Engineering Services Divisions on identification of projects that will assist in achieving additional energy efficiencies and it is an active participant in the Office of Public Works (OPW) “Optimising Power @ Work” campaign. In addition, my Department participates in the State-led schemes that assist in reducing Ireland's carbon footprint more generally, including participation in the cycle-to-work and the travel-tax saver schemes, waste management and the promotion of recycling.
Where possible, all heating, ventilation and air-conditioning (HVAC) are monitored and adjusted automatically using modern software systems. All electrical goods sourced by my Department are assessed prior to purchase to determine their energy saving rating in line with current Green Public Procurement best practices. My Department has achieved modest resource efficiency gains through the movement of staff in recent years from older buildings to more modern, resource-efficient buildings, such as Miesian Plaza. All impending changes of premises or leasing of new properties undergo a comprehensive energy appraisal process as part of the regular due diligence undertaken by OPW as they source appropriate accommodation.
In early 2019, a “Green Committee” was established to co-ordinate our approach to all things environmental. This team is comprised of volunteers who carry out the work in addition to their regular duties.
In conclusion, my Department is committed to reducing its carbon footprint through all available options, embedding energy efficiency into the culture of the organisation and continuing to support and progress energy management initiatives across our office locations, including energy awareness activities for staff.
385. Deputy Sean Sherlock asked the Minister for Finance if he will engage with a bank (details supplied) to put a halt to the switch to cashless branches as announced by the bank this week. [40946/22]
View answer386. Deputy Steven Matthews asked the Minister for Finance if his attention has been drawn to the decision by a bank (details supplied) to remove cash services from 70 banks nationally; the engagement that he has had with the bank in relation to this decision; and if he will make a statement on the matter. [40952/22]
View answer388. Deputy Thomas Gould asked the Minister for Finance the date that he was informed of the decision by a bank (details supplied) to withdraw cash services from 70 branches. [40970/22]
View answer392. Deputy Malcolm Noonan asked the Minister for Finance his views on the plans by a bank (details supplied) to make 70 of its branches cashless and the negative impact that this will have on those in rural areas in particular. [41009/22]
View answer393. Deputy Holly Cairns asked the Minister for Finance his response to the announcement from a retail bank (details supplied) that 70 branches will no longer offer cash and cheque services at the counter or through machines inside the branch. [41032/22]
View answer398. Deputy Róisín Shortall asked the Minister for Finance if a bank (details supplied) informed him of its plans to remove cash services from 70 branches prior to announcing the decision; his plans to assist those most impacted by this restriction of services, particularly persons in rural areas and elderly people; and if he will make a statement on the matter. [41182/22]
View answer400. Deputy Pádraig O'Sullivan asked the Minister for Finance if he will engage with a bank (details supplied) regarding the recent decision by the bank to make 70 branches cashless; his views on the fact that the bank did not consult or engage with customers prior to this decision; and if he will make a statement on the matter. [41185/22]
View answer403. Deputy Johnny Mythen asked the Minister for Finance if he will contact a bank (details supplied) in relation to the recent proposals to avert to cashless transactions in Gorey and New Ross, which will result in many persons and small community and rural businesses being financially stranded; and if he will make a statement on the matter. [41230/22]
View answer405. Deputy Alan Dillon asked the Minister for Finance if he was consulted by a bank (details supplied) on its decision to make 70 branches cashless across the country; if he is concerned that pillar banks are now making commercial decisions to downgrade essential financial services; and if he will make a statement on the matter. [41270/22]
View answer406. Deputy Brendan Griffin asked the Minister for Finance if he will use the majority shareholding in a bank (details supplied) to prevent the withdrawal of cash services from rural bank branches; and if he will make a statement on the matter. [41292/22]
View answer429. Deputy Matt Carthy asked the Minister for Finance if he has carried out an economic assessment on the impact of a bank (details supplied) removing cash services from 70 branches; and if he will make a statement on the matter. [41584/22]
View answer430. Deputy Matt Carthy asked the Minister for Finance if the Government will use its shareholding in a bank (details supplied) to influence the decision to remove cash services from 70 branches; and if he will make a statement on the matter. [41585/22]
View answer443. Deputy Holly Cairns asked the Minister for Finance his engagement with a retail bank (details supplied) concerning a decision no longer to offer cash and cheque services at the counter or through machines inside the branch at 70 branches before the decision was publicly announced. [41755/22]
View answer449. Deputy Ged Nash asked the Minister for Finance when his Department officials were informed, under the terms of the State's relationship framework with a bank (details supplied) that the bank plans to withdraw cash services from 70 of its branches; his views on the fact that a decision of this nature was taken before the completion of his Department's retail banking review; and if he will make a statement on the matter. [41765/22]
View answer454. Deputy Brendan Smith asked the Minister for Finance if he will engage with the Central Bank and with a bank (details supplied) as a matter of urgency in relation to this retail bank's recent decision to reduce substantially its services to customers, causing a further diminution in financial services available to many rural communities; and if he will make a statement on the matter. [41920/22]
View answerI propose to take Questions Nos. 385, 386, 388, 392, 393, 398, 400, 403, 405, 406, 429, 430, 443, 449 and 454 together.
I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, including AIB's original announcement on 19 July 2022 to re-purpose 70 of its branches across the country, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The bank's independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
On Friday 22 July 2022, AIB, having recognised the customer and public unease its original announcement had caused, announced that it has decided not to proceed with the proposed changes to the 70 branches and that cash services would remain in these branches. AIB will continue to retain its 170-strong branch network in its entirety and will also continue to offer banking services through its relationship with at An Post at its 920 post offices nationwide.
Banks have a key role in maintaining the flow of cash through the economy and ensuring appropriate access to retail banking services for all in society, including the vulnerable. I would like to point out that access to cash and branch services is a key focus of the work of the Retail Banking Review, which is currently underway. The public consultation process, which is part of the Review, sought the views of all stakeholders, including members of the public, in this regard. The public consultation concluded on 8 July 2022. The Banking Review team is reviewing the responses received in preparing the draft report which is due with me in November 2022.
387. Deputy Mary Butler asked the Minister for Finance if he will consider the issues facing independent retailers raised in correspondence in a budgetary context (details supplied); and if he will make a statement on the matter. [40958/22]
View answerThe Government is acutely aware of the cost pressures facing households and firms, especially the increase in fuel and other energy prices. Government has acted swiftly, and frequently, to address the cost of living issue. Since Budget 2022, measures of approximately €2.4 billion have been introduced to ease the burden.
While most of these measures have been targeted at households, several of these measures will also help firms. In particular, the Government reduced the rate of VAT on electricity and gas to 9 per cent and reduced the excise levied on fuels. Government cut tax on a litre of petrol by 20 cent, on a litre of diesel by 15 cent and on a litre Marked Gas Oil by 2 cent.
However, it is important to recognise the reality that the current inflationary environment is, primarily, driven by global pressures. As such Government cannot fully ease the burden of the rising cost of living.
It is also essential that fiscal policy itself does not become part of the problem: inappropriate policy could lead to second-round effects, counterproductively adding to inflation and increasing the vulnerability of the public finances. Therefore, Government policy will focus on temporary and targeted measures, aimed at those most in need.
The Government must also strike the balance between intervening today and keeping our public finances on a positive trajectory in the future. The need for a credible fiscal strategy for rebuilding fiscal buffers takes on an increased urgency in the context of multiple challenges facing the public finances including elevated levels of public debt, rising borrowing costs and significant medium-term expenditure pressures.
In the Summer Economic Statement, the Government adapted its budgetary strategy for next year on a once-off basis to take into account the much less benign inflationary environment. Reflecting this, Budget 2023 will be a ‘cost of living’ Budget, predominately focussed on helping to ease the burden of inflation. Budget 2023 will provide for an overall package of €6.7 billion; this has been calibrated to balance the need to provide further support with the need to avoid adding to inflationary pressures.
I have taken note of the suggested measures raised in correspondence but as the Deputy will appreciate, it would not be appropriate for me to speculate on policy decisions in advance of Budget Day.
389. Deputy Richard Bruton asked the Minister for Finance the way that unoccupied homes were categorised under the recent data analysis of local property tax, distinguishing the different reasons for being empty and the owners' liability to pay the tax under existing local property tax rules; the way that the cohort for which a vacancy tax might be applied has been distinguished; and if he will elaborate on his recent statement regarding his plans to introduce such a vacancy tax. [40986/22]
View answerAddressing vacancy and dereliction, and maximising the use of the existing housing stock, is a priority objective of the Government. Housing for All outlines a suite of measures aimed at addressing vacancy in a coordinated, robust manner, and specifically includes an action for the Department of Finance to collect data on vacancy with a view to introducing a vacant property tax.
Provisions included in the Finance (Local Property Tax) (Amendment) Act 2021 enabled Revenue to collect certain information on vacant properties in the Local Property Tax return forms submitted by residential property owners in respect of the new LPT valuation period 2022-2025. This information included whether the properties were unoccupied at 1 November 2021, the reason why and whether they (the properties) had been vacant for 12 months or more. Vacancy data on LPT returns has not been verified by Revenue and was collected for informational purposes only. A preliminary analysis of this data was published by Revenue on 6 July 2022, and is available at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/lpt-stats-2022/index.aspx.
LPT applies in respect of any building which is in use as, or is suitable for use as a dwelling, in accordance with section 2A of the Finance (Local Property Tax) Act 2012 (as amended). Therefore, if a vacant property falls within this definition on the liability date (1 November) of any given year, the property owner or ‘liable person’ is liable for LPT for the following year. It should be noted that LPT applies only to habitable residential properties, and is not applied in respect of derelict or properties no longer in use, or suitable for use, as a dwelling.
The preliminary analysis published by Revenue includes a breakdown of the various reasons provided for vacancy. It indicates that the most frequent reasons for properties reported as vacant, were “Undergoing Refurbishment” (22.2%), “Other” (21.7%) and “Holiday Home” (20.4%). Other reasons for vacancy were reported as a property being for sale or between lettings, subject to a probate application or other legal proceedings, or where the owner is in long-term care. The analysis also indicated that levels of vacancy among LPT liable properties are low across all counties and lie within a range that is considered to be in line with a normal functioning housing market.
As I have said on many occasions, I consider that the primary objective of a vacant residential property tax would be to increase the supply of homes for rent or purchase to meet demand rather than increasing tax revenues. The Revenue analysis provides a basis for my Department to assess the merits and impact of introducing a Vacant Property Tax, and how best such a tax might be designed. This work has already commenced and I intend to bring forward proposals on a targeted measure that achieves an appropriate balance between incentivising owners of vacant habitable residential properties to bring their properties back into use, and ensuring any such tax does not arbitrarily or excessively penalise home-owners in a discriminatory way.
390. Deputy Richard Bruton asked the Minister for Finance the total number of returns for the local property tax that have been made; and their distribution across the house value thresholds. [40987/22]
View answerI am advised by Revenue that Local Property Tax (LPT) statistics for the year 2022 are published on the Revenue website, with the most recent update being published on 14 July. This information includes information on the number of returns for LPT and the distribution of properties by valuation band.
391. Deputy Richard Bruton asked the Minister for Finance the supports that now apply to encourage the purchase of plug-in hybrid electric vehicles. [40988/22]
View answerThe Government remains committed to achieving a 51% reduction in transport emissions by 2030, and vehicle electrification will be a key part of this achievement.
A balance must be struck with how we target supports for the vehicles which provide the greatest scope for reducing emissions, while also making a value for money consideration on Exchequer impact. To that end, the Vehicle Registration relief for plug-in hybrid electric vehicles (PHEVs) ceased at end 2020, while grant support for PHEVs was removed from 1 January 2022. It should be noted that, for the top 10 PHEVs sold in 2020, four are high cost vehicles for which a grant would not be applicable and two have a direct BEV equivalent, that would be more useful in terms of decarbonizing the car fleet. Of the four remaining, three are made by manufacturers that have an equivalent size BEV model and only one model has no BEV alternative in its range.
It should also be noted that PHEV owners will still be able to avail of other incentives currently in place including:
- Tolling reductions of 25% up to a threshold of €500 per annum per household for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles;
- Low rate of annual motor tax; and
- Home charger grant of €600 per household.
The Government is fully committed to supporting a significant expansion and modernisation of the electric vehicle charging network over the coming years. A national charging infrastructure strategy is being developed which will set out a pathway to stay ahead of demand over the critical period out to 2030.
Additionally, recent Budgets have seen major changes to Motor Tax and VRT structures with the aim of incentivising the purchase of more efficient and 'greener' vehicles.
Budget 2021 saw the transition to the more accurate Worldwide Harmonized Light Vehicles Test Procedure (WLTP); and restructured the VRT and motor tax regimes with a view to strengthening their environmental rationale in line with Government commitments as set out in the Programme for Government and Climate Action Plan. The VRT rates were changed again in Budget 2022 to increase the fiscal gap between low emission vehicles and the rest, thus incentivising motorists in the market for a new car to make ‘greener choices’. The structure is based on the 'polluter pays' principles, with a reduced rate for battery electric vehicles (BEVs) and well-performing PHEVs of 7% of open-market selling price, while vehicles falling into the highest emissions band are liable to a rate of 41%. Similarly, in motor tax, WLTP-tested vehicles are charged motor tax according to their emissions profile; the rate for BEVs and well-performing PHEVs is €120 and scales up to €2400 for the most pollutant vehicles.
Furthermore, the emissions-based vehicle BIK regime will take effect from January 2023. This new system will provide a structural benefit to low emission vehicles such as PHEVs, where lower emission profiles will by reflected in lower rates for BIK liability.
I am satisfied that the current vehicle taxation regime is based on an environmental rationale which incentivises low emission vehicles, including well performing PHEVs, and consequently provides strong disincentives for the most polluting ones.
394. Deputy John Brady asked the Minister for Finance if he has received any gifts from visiting dignitaries; if he will provide a breakdown of the details of these gifts, their value, and the way they were disposed of; and if he will make a statement on the matter. [41117/22]
View answer395. Deputy John Brady asked the Minister for Finance if he has received any gifts while travelling abroad; if he will provide a breakdown of the detail and value of these gifts and the way they were disposed of; and if he will make a statement on the matter. [41135/22]
View answer396. Deputy John Brady asked the Minister for Finance if he or his Department have given any gifts to visiting dignitaries; if he will provide a breakdown of the detail and the value of these gifts; and if he will make a statement on the matter. [41153/22]
View answerI propose to take Questions Nos. 394 to 396, inclusive, together.
I wish to inform the Deputy that it is not possible to provide the information sought in the time available and, therefore, I will make arrangements to provide the information in line with Standing Orders.
