Written Answers Nos. 124-143
124. Deputy Mick Barry asked the Minister for Finance if he would support regulations to oblige retail banks to guarantee access to cash across the State through a branch network and ATM network that would allow people to easily access and deal in cash should they so wish; and if he will make a statement on the matter. [46198/22]
View answerOver the last decade, we have seen a shift in the way consumers and businesses are paying and banking. While historically Ireland has been a relatively cash-intensive economy, advances in technology and changing customer demands have prompted a rapid increase in the take-up of electronic payments. The Covid-19 pandemic has acted as a potential catalyst for the move towards digital payments and the move away from cash.
Notwithstanding a significant increase in the take-up of electronic payments, cash remains a vital part of the Irish payment system. 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.
The changes currently underway in the Irish retail banking sector are a reflection of the wider challenges the banking sector is facing, not only in Ireland but also abroad. It is because of these changes that I have instructed my Department to undertake a broad-ranging review of the retail banking sector, which is currently taking place.
A key part of the review will be to examine the use and availability of cash in Ireland and determine whether any legislative proposal is needed in this regard.
The public consultation undertaken as part of the review contained a number of questions relating to access to cash. One of these questions noted the concerns which are being raised around access to cash and asked for submissions on what should be done to protect access to cash.
My officials are currently working on the Review and their draft report will be delivered to me in November.
125. Deputy Aindrias Moynihan asked the Minister for Finance the measures being considered other than business loans and grants to assist SMEs with the rising cost of energy to ensure viability of their businesses in view of the cost of living crisis; and if he will make a statement on the matter. [46244/22]
View answerThe Government is acutely aware of the difficulties Irish businesses are going through arising from substantial increases in energy bills. Since the beginning of the year, this Government has taken action to ease the burden for energy users, including SMEs, as much as possible. Since Budget 2022, measures of approximately €2.4 billion have been introduced to ease the burden of cost of living pressures. These include a temporary reduction in excise duties charged on fuels, a temporary reduction in the rate of VAT on the supply of gas and electricity, and the electricity credit of €200.
However it must be acknowledged that this energy crisis affects not only Ireland but all of Europe, arising from the war in Ukraine which has led to volatility and supply constraints in energy markets. As the current inflationary environment is primarily driven by global pressures outside of our control, the Government cannot cushion businesses from the entire impact of the rising cost of energy.
It is essential that fiscal policy itself does not become part of the problem: inappropriate measures could lead to second-round effects, counterproductively adding to inflation. Therefore, Government policy will focus on temporary and targeted measures, aimed at those most in need.
In order to directly address rising energy prices at source, the EU is rapidly negotiating a Regulation to include measures aimed at addressing windfall gains in the electricity sector and in fossil fuel production. A key element of the proposal is an infra-marginal price cap in the electricity market, designed to limit windfall revenues for producers not experiencing input cost inflation. There is a benefit to coordinated action across the EU to effectively tackle high energy prices, and my officials are working to support officials in the Department of the Environment, Climate and Communications to progress the EU proposal.
There is a range of supports available to SMEs from the Department of Enterprise Trade and Employment. Along with low cost finance, their online information hub contains information to help businesses become more energy efficient. The information hub is available on the Department’s website at:
enterprise.gov.ie/en/what-we-do/supports-for-smes/.
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 focused 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. As the Deputy will appreciate, it would not be appropriate for me to speculate on policy decisions in advance of Budget Day.
126. Deputy Ged Nash asked the Minister for Finance his plans, if any, to reduce the rate of VAT applied on condoms and menstrual cups to 0%; the estimated cost to the Exchequer of reducing the rate on said products to 0%; and if he will make a statement on the matter. [46208/22]
View answerAs the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decision.
I am advised by the Revenue Commissioners that traders are not required to separately identify the VAT yield generated from a particular product type or activity on their VAT returns. Therefore, it is not possible to provide an estimated cost of reducing the VAT rates on the specific products referred to by the Deputy.
127. Deputy Pearse Doherty asked the Minister for Finance the status of the review of the disabled drivers and disabled passengers scheme that his Department gave a commitment to undertake; the timeline for reforming the scheme; and the expected date by which the Medical Board of Appeal will recommence hearings. [46288/22]
View answer145. Deputy Niamh Smyth asked the Minister for Finance if he will provide an update on the resumption of the primary medical certificate appeals process; and if he will make a statement on the matter. [45988/22]
View answer160. Deputy Rose Conway-Walsh asked the Minister for Finance if the Department of Health has nominated candidates for the disabled driver medical board of appeal following the closure of the second-round expression of interest campaign which closed on 5 July 2022; when he will appoint nominees to the Board; and if he will make a statement on the matter. [46277/22]
View answer163. Deputy Pauline Tully asked the Minister for Finance if he will provide an update on progress to replace the disabled drivers medical board of appeal; and if he will make a statement on the matter. [46248/22]
View answerI propose to take Questions Nos. 127, 145, 160 and 163 together.
The Disabled Drivers and Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on 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.
The Minister has 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.
Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal, effective from 30th November 2021, two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health leads on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials provide support to the Department of Health in this matter.
The first campaign closed on 29th April. As there were insufficient suitable candidates arising from the first campaign, a second round was issued with a closing date of 5th July 2022. Processes to support the nomination of suitable candidates are nearing completion. Once these processes have been completed the Minister for Finance will then be in a position to appoint any suitable Department of Health nominee to the Board. When the new Board is up and running, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible.
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.
In relation to the review of the Disabled Drivers and Disabled Passengers Scheme, the Deputy will be aware, I gave a commitment to the House that such a review including a broader review of mobility supports for persons with disabilities, would be undertaken.
In this context I have been working with Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. We both agreed that the 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 consider this the most appropriate forum to meet mutual objectives in respect of transport solutions/mobility supports for those with a disability.
The NDIS working group, chaired by Minister Anne Rabbitte, with officials from both this Department and the Department of Children, Equality, Disability, Integration and Youth as well as others, held its first meeting on the 26th January 2022. A stock-taking exercise of existing transport and mobility schemes currently supporting people with disabilities has been completed. At its meeting of 6th September 2022 members were invited to make proposals for next steps. These proposals will be discussed at its next meeting of 29th November 2022.
As part of its contribution to the NDIS review, my Department established an information-gathering group to capture the experiences, expertise and perspectives of former Disabled Drivers Medical Board of Appeal (DDMBA) members and Principal Medical Officers (PMOs) in the HSE. A range of outputs have been produced, providing information and views on the DDS scheme as inputs into the broader review.
My officials will continue to engage constructively with the NDIS review with a view to assisting in bringing forward proposals for Government to consider.
I cannot comment on any potential changes to the scheme in advance of these proposals.
128. Deputy Marc Ó Cathasaigh asked the Minister for Finance if a statement on the State’s progress on the well-being indicators in accordance with the dimensions outlined in the Well-being Framework for Ireland will accompany Budget 2023; and if he will make a statement on the matter. [46188/22]
View answerIn recognition of the need for a broader perspective on our progress as an economy and as a society, the Programme for Government 2020 committed to the development of new measures of well-being. Since then, considerable progress has made been towards achieving that commitment, with the establishment of the Irish Well-being Framework and a vast amount of associated and supporting work completed. For example, my Department recently published a paper on Sustainability in the Irish Well-being Framework which fed into the development of the Second Report on the Well-being Framework for Ireland.
Focus is now shifting to the next phase of work on well-being, to embed the Framework into the broader system of policy-making. By necessity, this will be a gradual and iterative process, which will be progressed through a number of different channels.
The dashboard of well-being indicators, a key aspect of Ireland’s Well-being Framework, is one source of connection between well-being data and public policy. The first detailed analysis of the dashboard of indicators was published alongside the Second Report on a Well-being Framework for Ireland in June of this year. The analysis painted a generally positive picture of quality of life in Ireland, although some specific areas for improvement were identified.
As committed to in the Second Report, Budget Day documentation will include high-level analysis of the most up-to-date version of the Well-being dashboard. This analysis will be one aspect of a chapter on well-being, which will form part of a broader report on Quality of Life indicators.
129. Deputy Richard Boyd Barrett asked the Minister for Finance if he is planning any further taxation measures in Budget 2023 to bring the large numbers of vacant and derelict homes into use given the severity of the housing crisis; and if he will make a statement on the matter. [46266/22]
View answerAddressing vacancy and dereliction, and maximising the use of 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.
The preliminary analysis of this information which was published on 6 July 2022, indicates that levels of vacancy amongst LPT liable properties are low across all counties and lie within the range that is considered to be in line with a functioning housing market. The data also indicates that many of the reasons given for vacancy are genuine and acceptable reasons for temporary vacancy, for example, where a property is for sale, between lettings, undergoing refurbishment, where the property is subject to a probate application or other legal proceedings, holiday homes, or in cases where the owner is in long-term care.
In Housing for All, the Government has set out a suite of incentives available to encourage re-use of properties and increase the supply of housing. However, in addition, the Government is committed to exploring options around sanctions for non-use of residential property so that there is some penalty for leaving a property vacant for a prolonged period without a genuine reason at a time where there are pressures in terms of housing supply. 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 is well underway 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.
Regarding dereliction, I am informed by the Minister for Housing, Local Government and Heritage that the existing Derelict Sites Act imposes a general duty on every owner and occupier of land to take all reasonable steps to ensure that the land does not become, or continue to be, a derelict site. The Act also imposes a duty on local authorities to take all reasonable steps, including the exercise of appropriate statutory powers, to ensure that any land within their functional area does not become, or continue to be, a derelict site. These powers include the power to prosecute owners who do not comply with notices served; making compulsory land purchases and carrying out necessary work at charge to the owners for the cost.
I am advised that the Department of Housing, Local Government and Heritage continues to liaise with local authorities on the implementation of the Act with a view to improving its effectiveness. In this regard, a review of the Act was initiated in November 2021 and initial submissions have been sought from local authorities on potential improvements to the legislative provisions and the way they are applied. I am further advised that the Department of Housing, Local Government and Heritage has established a focused working group to progress this matter further.
Finally, as the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decision.
130. Deputy Ged Nash asked the Minister for Finance if he is concerned by the recent findings of the Report of the Commission of Investigation IBRC that a senior official at his Department made an unauthorised disclosure of confidential information regarding the sale process for an organisation (details supplied); if he believes that it is appropriate that the same official now represents the State’s interest in relation to the liquidation of IBRC in their role as head of the shareholding and financial advisory division at his Department; and if he will make a statement on the matter. [46207/22]
View answerOn 7 September, the Taoiseach published the Final Report of the Commission of Investigation (IBRC) on the transaction in relation to Siteserv and the principles and policies within IBRC on interest rates. This extensive report outlined the transaction, makes various adverse findings against individuals and made various recommendations.
I note that the Report refers to an individual who has been working in the Department of Finance since November 2013, but who, 11 years ago, worked in Davy, which was one of the financial advisers to Siteserv. It was a function of the Davy adviser to encourage credible bidders for the company in order to maximise the sale price, thereby minimising losses to IBRC and ultimately to the State.
The Commission found that this individual made an unauthorised disclosure of confidential information regarding the sale process however there is no suggestion that the individual concerned disclosed the information for any personal gain or for any reason other than to enhance the sale process in which he was engaged. Aspects of the confidential information in question were provided to all bidders in the Siteserv sale process, as was always the intention.
The disclosure of confidential information by the Davy adviser to an individual which the Commission states he trusted, and which was subsequently transmitted without his knowledge, does not form part of the findings outlined by the Commission in Chapter 22 regarding the commercial soundness of the Siteserv transaction.
132. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the necessary economic fundamentals continue to be met and will so do in the coming year in the aftermath of Budget 2023 or otherwise; and if he will make a statement on the matter. [46364/22]
View answerPrior to the pandemic, the economic fundamentals of the Irish economy were in a strong position, with robust growth, a labour market close to full employment and public finances broadly balanced. From this position of strength, and with the aid of government policies, the Irish economy proved to be remarkably resilient during successive lockdowns and emerged from the pandemic, at the start of this year, with little evidence of permanent scarring to the economy.
Our economy is now faced with new challenge and significant headwinds as a result of the war in Ukraine, the most pressing of which has been the rising cost of living. Consumer price (HICP) inflation rose to 9 per cent in August. Rising prices are eroding real incomes of Irish households and inhibiting businesses investment. The Government is acutely aware of these challenges and is committed to tackling them head-on. As part of Budget 2023 next week, the Government will set out a series of targeted once-off measures to be introduced over the course of the winter to help alleviate the cost of living pressures on both businesses and households.
Notwithstanding these challenges, the economic fundamentals of the Irish economy remain strong. The labour market has remained resilient, with a record number of people now in employment and the unemployment rate falling to just 4.3 per cent in August. The external side of the economy also continues to perform very strongly with particularly strong export growth in the ICT and Pharmaceutical sectors.
Whilst our economy has faced a successive wave of shocks over the last number of years, our resilience and strength ultimately comes from being a dynamic economy open to investment and trade across our borders. This has long proven to be the fundamental strength of the Irish economy, and that remains the case today.
133. Deputy Michael Fitzmaurice asked the Minister for Finance if the duty that was removed from petrol and diesel will apply for another year; and if he will freeze the carbon tax in light of the current energy crisis. [46192/22]
View answerAs the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
134. Deputy Ruairí Ó Murchú asked the Minister for Finance the status of the work of the Office for the Promotion of Competition in the Insurance Market; and if he will make a statement on the matter. [45714/22]
View answerInsurance reform is a key priority for this Government as evidenced by the fact that implementation of the Action Plan on Insurance Reform is overseen by the Cabinet Sub-Group on insurance reform.
The establishment of the Office to Promote Competition in the Insurance Market, which I chair, is a Programme for Government commitment. Its aims are to help expand the risk appetite of existing insurers and explore opportunities for new market entrants in order to increase the availability of insurance. In that regard, the Office is working closely with brokers and IDA Ireland to help leverage the ongoing domestic insurance reforms with the aim of targeting new entrants to the Irish market or encouraging current incumbents to expand into underserved areas. Since its establishment, the Office has held over 90 meetings with a wide range of stakeholders including insurance companies, voluntary groups and representative bodies on issues surrounding competition. As part of this schedule of engagements, I will meet the CEOs of the major insurance companies in the State over the coming weeks to impress upon them the expectation that savings achieved as a result of the Government reform agenda will be passed onto consumers in the form of reduced premiums.
Through initiatives such as the Action Plan, this Government is committed to securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland. In this regard, it is my intention to continue working with my Government colleagues to ensure the timely implementation of the Action Plan, which will bring benefits to the wider economy and society.
135. Deputy Ged Nash asked the Minister for Finance if he is concerned about the impact of rising European Central Bank interest rates on mortgage holders; his plans, if any, to put a cap on variable mortgage interest rates to protect homeowners; if he agrees that the current code of conduct on mortgage arrears needs to be updated to provide greater protection to homeowners who may be in arrears; and if he will make a statement on the matter. [46205/22]
View answer149. Deputy Mick Barry asked the Minister for Finance if he will support measures to be taken to ensure that interest rate rises will not be passed-on to mortgage consumers; and if he will make a statement on the matter. [46196/22]
View answerI propose to take Questions Nos. 135 and 149 together.
I am aware that the European Central Bank (ECB) has in recent months increased its official interest rates. The ECB is independent in the formulation and implementation of monetary policy.
The price lenders charge for their loans is a commercial matter for individual lenders. As Minister for Finance I cannot determine the lending policies of individual banks or other lenders, including the interest rates they charge for mortgages and other loans.
While the general level of new lending interest rates in Ireland are currently higher than in many other European countries, recent trends indicate that the interest rates charged by lenders on new mortgages have been falling in Ireland. For example, in July 2022 – based on the latest available data from the Central Bank - the weighted average interest rate was 2.63%, which is down from 2.69% at the end of 2021 and 2.73% in July 2021.
Most new mortgages in Ireland are now fixed rate mortgages and the average interest rates on these mortgages, 2.50% at the end of July, is even a little bit lower. At the end of 2021 this was 2.59%.
Over the same period, the average Eurozone new mortgage interest rate has increased and, therefore, the differential between the Irish and the Eurozone mortgage interest rate has narrowed from 1.40% at end 2021 to 0.55% at end July 2022.
It should be noted that the structure of the Irish mortgage market has changed over time. For example, there has been an increase in the take up of fixed rate mortgages - in July 2022 for example, over 88% of new mortgages were at a fixed interest rate - and this will protect borrowers for an adjustment in the interest rate for the period that the interest rate is fixed.
Deputies may also wish to note that, as regulator, the Central Bank has introduced a number of increased protections for variable rate mortgage holders in recent years which help mortgage holders identify lower cost mortgage options.
Firstly it made changes to the Consumer Protection Code which required lenders to explain to borrowers how their non tracker variable interest rates have been set and to clearly identify the factors which may result in changes to variable interest rates.
Secondly, it also increases the level of information lenders are required to provide their customers including where there is a possibility for the borrower to move to a lower ‘loan to value’ interest rate band and signpost the borrower to the Competition and Consumer Protection Commission's mortgage switching tool.
Also, by considering and availing of the options available on the market, some borrowers may be able to reduce their mortgage costs. A 2020 Central Bank study estimated that three in every five ‘eligible’ mortgages for principal dwelling homes stand to save over €1,000 within the first year if they switch and €10,000 over the remaining mortgage term.
The change in the Irish mortgage market to a greater proportion of fixed rate mortgages along with changes to the Consumer Protection Code outlined above will help mortgage holders manage the impact of rising ECB interest rates.
In relation to the Code of Conduct on Mortgage Arrears (CCMA), the CCMA was introduced to ensure that regulated entities have fair and transparent processes in place for dealing with borrowers in or facing mortgage arrears and is part of the national policy framework of supports and protections available to assist borrowers in financial difficulties.
The CCMA sets out the process that entities must follow when a borrower is in or facing difficulties with their mortgage payments. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits. All cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations.
In addition, the Central Bank has made its expectations to lenders clear on how firms should engage with borrowers who are in long-term mortgage arrears. Lenders should seek to offer appropriate and sustainable solutions to borrowers. Nevertheless, borrowers who have not engaged with the processes laid out under the CCMA, risk loss of ownership.
That being said, there is an obligation on regulated entities to explore all of the options for alternative repayment arrangements (ARAs) offered by that entity, in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances. Under the CCMA, a regulated entity may only commence legal proceedings for repossession where it has made every reasonable effort to agree an ARA with the borrower and other clear requirements are met, or the borrower has been classified as not co-operating.
The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating.
136. Deputy Brian Leddin asked the Minister for Finance his plans to extend the bike-to-work scheme to include more persons (details supplied); his plans to raise the limits of the scheme to enable the purchase of cargo bikes; and if he will make a statement on the matter. [46328/22]
View answerSection 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,250 (€1,500 in the case of e-bikes), for an employee to use, in whole or in part, to travel to work. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.From 1 August 2020, this exemption was increased from €1,000 to €1,250 for expenditure incurred by an employer in connection with the provision of a bicycle and/or bicycle safety equipment in respect of any one employee. A higher exemption limit of €1,500 applies in the case of the provision of an electric bike (which may also include bicycle safety equipment). These increases and the change to a 4-year period from a 5-year period were in line with the commitment made in the Programme for Government.
It is assumed that the reference to “cargo bikes” by the Deputy means a bicycle specifically designed to carry a load. Such a bicycle would qualify under the cycle to work scheme, assuming all of the required conditions are satisfied.
Benefit-in-kind is a charge to tax that applies where an employer provides an employee with a benefit such as a bicycle, car or accommodation. Therefore, the Cycle to Work scheme is only applicable where the bicycle and safety equipment is provided by an employer to either a director or someone in its employment and thus, where an employer-employee relationship does not exist, for example, in the case of self-employed, retired individuals, or those in receipt of social welfare payments, such individuals can’t qualify for the scheme.
The scheme continues to be kept under review by my officials and any extension to the scheme of increase in the allowance would create an additional cost and that cost must be recovered elsewhere. The Deputy will appreciate that it would not be appropriate for me to comment at this time, on what changes, if any, are being considered in terms of this relief or any other tax relief. The Deputy may also be aware that the Department of Transport published an examination of the scheme in November 2021 as part of the Spending Review series.
Further guidance regarding the Cycle to Work Scheme can be found on Revenue’s website.
137. Deputy Peadar Tóibín asked the Minister for Finance the amount his Department has collected in VAT on fuel per year in the past five years. [46330/22]
View answerI am advised by Revenue that VAT returns do not require traders to separately identify the VAT yield from the supply of specific products or services. Therefore, the information required for estimating the VAT collected on fuel is not readily available from information provided on tax returns.
However, an estimate of the VAT collected on fuel (e.g. Petrol, Diesel, Kerosene, Marked gas oil, Natural gas, Electricity etc) using third party data sources and Revenue’s excise clearances for the past five years and to the end of July 2022 is provided in the table below.
|
Year |
VAT €m |
|
2017 |
988 |
|
2018 |
1,029 |
|
2019 |
995 |
|
2020 |
886 |
|
2021 |
980 |
|
2022* |
760 |
* To the 31st July 2022
138. Deputy Pearse Doherty asked the Minister for Finance if he will introduce a refundable tax credit equivalent to one month’s rent for struggling renters in Budget 2023 given the deepening unaffordability in the rental sector; and if he will make a statement on the matter. [46290/22]
View answerAs the Deputy will appreciate, with under a week to go to the annual Budget, it would not be appropriate for me to comment on any issue which may or may not be the focus of policy changes in the context of that Budget.
The Government's strategy in relation to housing is aimed at delivering more homes of all types for people with different housing needs, including those who wish to rent at an affordable price. This approach is set out in 'Housing for All'.
139. Deputy Peadar Tóibín asked the Minister for Finance the amount of revenue his Department has made through excise duties on fuel per year in the past five years. [46329/22]
View answerI am advised by Revenue that the excise receipts per year on fuel for the years 2017 to 2021, and the year-to-date August 2022, are as follows:
|
Excise Duty on Fuel |
(€millions) |
|
2022* |
1,602.4 |
|
2021 |
2,578.4 |
|
2020 |
2,308.6 |
|
2019 |
2,594.7 |
|
2018 |
2,594.4 |
|
2017 |
2,480.7 |
*Provisional Year To Date August
I am further advised that excise receipts by fuel type for the years 2017 to 2020 are published on the Revenue website.
www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx
As the Deputy is aware, taxation revenues are a key part of the public finances and fund essential services.
140. Deputy Robert Troy asked the Minister for Finance the way in which the terms of reference were set for the Commission on Taxation; and the way in which the recommendations will support entrepreneurs in Ireland. [46047/22]
View answerThe Commission on Taxation and Welfare was an independent group that was established in April 2021 as a result of a commitment in the Programme for Government. The terms of reference for the Commission members were broad and comprehensive. The Commission was asked to independently consider how best the taxation and welfare systems can support economic activity, and promote increased employment and prosperity while ensuring that there are sufficient resources available to meet the costs of the public services and supports in the medium and longer term.
The Commission was called on to consider some specific policy matters including reforms to the social insurance system, how the taxation system can support the transition to a low carbon economy, and the role of the tax and welfare systems in achieving housing policy objectives; all while taking account of relevant issues such as the impact of the COVID 19 pandemic, aging demographics, and digital disruption and automation. Furthermore, the Commission was asked to review how best the taxation environment for SMEs and entrepreneurs can ensure that Ireland remains an attractive place to sustain and grow an existing business or to start and scale up a new business.
These terms of reference were drafted in accordance with the principles of taxation and welfare policy outlined within the 2020 Programme for Government. This includes the Government’s commitment to a pro-enterprise policy framework and to providing a stable and sustainable regulatory and tax environment.
An independent review of this nature complies with best practice and is important to ensure that the taxation and welfare system remains fit for purpose into the medium to long term.
'Foundations for the Future’, the Report of the Commission on Taxation and Welfare, is a wide ranging report that contains over 500 pages and 116 recommendations. This includes a number of recommendations related to supporting economic activity and the tax environment for SMEs and entrepreneurs in particular.
It is important to allow time for detailed consideration of these serious recommendations. It is my intention to provide an initial response to some of the recommendations as part of the upcoming budget. The medium to long-term focused recommendations will also serve to inform this and future governments’ deliberations on these important challenges for many years to come.
141. Deputy Bríd Smith asked the Minister for Finance his plans, if any, to afford owners of defective apartment blocks built during the Celtic Tiger-era additional tax reliefs on the costs of redress which they face; and if he will make a statement on the matter. [46238/22]
View answerThe Working Group to Examine Defects in Housing was published on 28 July last.
It is clear from the report that the process of remediation is likely to take many years to complete and that the estimated potential costs of such remediation are very substantial and that appropriate actions will need to be prioritised.
The report sets out a number of funding options of which taxation measures are but one approach. It is also clear from the report that further work needs to be undertaken to assess the relative merits of each funding option.
Against this background, it would be premature at this point to proceed along the particular line of approach mentioned by the Deputy.
143. Deputy Fergus O'Dowd asked the Minister for Finance his views on the easing of VAT rates for retrofitting works or renewable energy works for domestic purposes to assist homeowners in reduction reliance on energy providers in view of the energy crisis; and if he will make a statement on the matter. [46099/22]
View answerAs the Deputy will be aware, it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of a Budget decision.
