Jennifer Whitmore
Question:283. Deputy Jennifer Whitmore asked the Minister for Finance if he will review the case of (details supplied); and if he will make a statement on the matter. [54988/22]
View answerFinancial Services
Questions (283)
Written answers
There are a number of legal and regulatory requirements governing the provision of mortgage credit to a consumer.
The primary aim of the Central Bank macro prudential mortgage lending measures is to prevent the emergence of an unsustainable relationship between credit and house prices, and also to support the resilience of lenders, borrowers and the broader economy. These measures, subject to a certain level of discretion available to lenders, set proportionate limits on the amount of credit which can be provided for the purchase of a residential property.
Certain limits apply to both 'first time buyers' and to 'second and subsequent buyers' and, as the Deputy will be aware, following the outcome of a recent comprehensive review of the rules, new lending measures will apply from the start of next year. The Deputy may wish to note that, as part of these changes, the Central Bank will change the definition of 'first time buyer' for the purpose of these rules so that it will now include borrowers who are divorced or separated (or have undergone bankruptcy or insolvency) where they no longer have an interest in the property in respect of which the borrower previously had a mortgage.
Separate from these mortgage lending measures, regulated entities are also required to comply with certain other requirements in relation to the provision of mortgage credit. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 place a requirement on lenders to assess the creditworthiness of the consumer and furthermore indicate that lenders shall only make credit available where the result of the creditworthiness assessment indicates that the consumer's obligations resulting from the credit agreement are likely to be met in the manner required under that agreement.
In addition, the Central Bank’s Consumer Protection Code 2012 requires regulated entities to carry out affordability and suitability assessments, prior to offering, recommending, arranging or providing a credit product to a personal consumer.
However, within the parameters of this regulatory framework, the decision to grant or refuse an individual application for credit (or the decision on the amount of credit to provide) is a commercial matter for the regulated mortgage lender having regard to their own lending policies and neither I nor the Central Bank have a role in such matters.
Also where there is more than one borrower who is party to a credit agreement, the respective liability of each of those borrowers for the loan will be a contractual matter as provided for in the credit agreement and the removal of one of those parties from a mortgage agreement is a matter governed by the terms of the particular contract and contract law more generally.
However, it can also be noted that, if a mortgage applicant or an existing mortgage borrower is not satisfied with how a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the Financial Services and Pensions Ombudsman.
Departmental Bodies
Questions (284)
Richard O'Donoghue
Question:284. Deputy Richard O'Donoghue asked the Minister for Finance if the disabled drivers’ medical board of appeal has been reinstated at the National Rehabilitation University Hospital, Dún Laoghaire, County Dublin; and if he will make a statement on the matter. [55018/22]
View answerWritten answers
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.
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.
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. From these, three suitable candidates have been identified and are being Garda vetted. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. Two other candidates have been interviewed and if deemed suitable will complete Garda vetting.
Once these processes have been completed for all candidates, I in my role as 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.
Applicants deemed not to have met one of the six eligibility criteria required for a PMC can request another PMC assessment six months after an unsuccessful PMC assessment.
Tax Code
Questions (285)
Réada Cronin
Question:285. Deputy Réada Cronin asked the Minister for Finance if homeowners subject to payment of both service charges to an owner's management company and liability for payment of LPT to a local authority could be allowed by his Department to off-set service charges against LPT until their estate is taken-in-charge by the local authority (details supplied); and if he will make a statement on the matter. [55026/22]
View answerWritten answers
As I outlined in a recent response to the Deputy, the Government decided upon the introduction of the Local Property Tax (LPT), that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions and no deductions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.
The proceeds of the LPT are largely used in the general provision and maintenance of infrastructure, services and amenities in a local authority area. Accordingly, residential property owners in estates not yet taken in charge benefit from the expenditure of these proceeds in the same way as the owners of other residential properties in the general locality in terms of the provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. LPT is payable, regardless of whether or not an estate has been taken in charge.
A requirement to pay a management fee or service charge to property management companies is not relevant in determining whether a property is subject to the LPT. Accordingly, whilst those who are liable for these payments may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees, nor is there provision to offset the amount paid on management fees against LPT. There are no plans to change this.
The relevant planning and development matters fall under the responsibility of my colleague, the Minister for Housing, Local Government and Heritage. However, I am informed by the Department of Housing, Local Government and Heritage that section 180 of the Planning and Development Act 2000 (as amended), sets out the process to be followed in relation to the taking in charge of housing estates where a development is considered to have been satisfactorily completed, as well as the procedure where it has not been completed to the satisfaction of the planning authority. It is a matter for the relevant planning authority to agree to take in charge any individual housing estate.
Ultimately, the Department of Housing advise that progression of individual developments through the taking-in-charge process is a matter for the relevant housing developer, the residents in such developments and the relevant local authorities, following the procedures set out in section 180 of the Planning and Development Act.
Question No. 286 answered with Question No. 281.
Budget 2023
Questions (287)
Patrick Costello
Question:287. Deputy Patrick Costello asked the Minister for Finance if his Department will undertake an impact analysis indexed to prices, to illustrate the impact of measures on households in real terms, rather than nominal terms, thereby addressing the inaccurate analysis that lone parents will be better-off following Budget 2023. [55041/22]
View answerWritten answers
As the Deputy is aware, my Department’s analysis of the distributional impact of Budget 2023 is calculated on a nominal basis. It compares a baseline scenario of no-policy change against a reform scenario solely incorporating the budgetary policy changes. As such, it examines the discrete impact of the tax and welfare measures announced in the Budget.
On this basis, lone parents are estimated to see a 2.8 per cent gain in disposable income as a result of the Budget’s Cost-of-Living measures and a further 4.2 per cent gain in 2023 as a result of the main tax and welfare changes.
In contrast, the ESRI approach as outlined at their Post-Budget Briefing on 30 September, is based on comparisons with a hypothetical inflation-adjusted scenario. The results of this approach, by its nature, are dependent on the projected rate of inflation and will vary should that forecast be revised or the outcome differ from the forecast. Specifically, the ESRI examine the distributional impact of Budget 2023 compared to the impact on income if the tax and welfare system was indexed to an inflation rate of 7.1 per cent.
As the ESRI have stated, both approaches are valid but are answering different questions.
The ESRI’s analysis estimates that lone parents’ inflation-adjusted weekly disposable income is slightly lower in 2023 by around 0.2 per cent. However, from an overall perspective, the ESRI states that “welfare increases in 2022 and 2023, together with one-off measures, are large enough to leave the lowest-income households better-off on average than they would have been had welfare payments risen in line with inflation both this year and next.” Furthermore, this leads the ESRI to conclude that "the Government's approach to insulating households from the recent rise in energy prices has been effective."
The ESRI’s Post- Budget Briefing, with relevant distributional graphs, is available at:
esri.newsweaver.com/enewsletter/45ywtphvv12ciwo13848jk/external?email=true&a=5&p=62168701&t=26436355
Primary Medical Certificates
Questions (288)
Robert Troy
Question:288. Deputy Robert Troy asked the Minister for Finance when the medical criteria for the primary medical certificate is expected to be updated. [55137/22]
View answerWritten answers
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 cost to the Exchequer of the scheme, (excluding Motor Tax) was €62 million in 2021 and is currently at €59m Y.T.D., reflecting reductions in fuel grant claims arising from COVID-19 travel restrictions within Ireland. The cost of the scheme in 2023 is expected to be similar to that of previous years.
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. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.
To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the following medical criteria, in order to obtain a Primary Medical Certificate:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs
In relation to the review of the Disabled Drivers and Disabled Passengers Scheme, as the Deputy will be aware, I gave a commitment to the Dail 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.
As part of the Department of Finance’s contribution to the review, it established an information-gathering group to capture the experiences, expertise and perspectives of former DDMBA members and Principal Medical Officers (PMOs) in the HSE. A range of outputs were produced, providing information on the DDS scheme and were submitted to the Department of Children, Equality, Disability, Integration and Youth in July.
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 a number of meetings earlier this year. The group finalised a stock-taking exercise of existing transport and mobility schemes currently supporting people with disabilities and members have been asked to put forward proposals for next steps that will be discussed at the next NDIS working group meeting, scheduled for end November. In this regard, I have recently written to Minister’s O’Gorman and Rabbitte submitting the Department of Finance’s response to the various questions on which views were sought.
Department of Finance officials will continue to work closely with officials from the Department of Children, Equality, Disability, Integration and Youth to progress the wider review and on foot of that it is hoped that the NDIS working group will bring forward proposals for consideration.
I cannot comment on any potential changes to the scheme in advance of these proposals.
Fuel Prices
Questions (289)
Éamon Ó Cuív
Question:289. Deputy Éamon Ó Cuív asked the Minister for Finance if the rates paid under the fuel grant for disabled drivers will be reviewed in light of the increasing costs of fuel; and if he will make a statement on the matter. [55297/22]
View answerWritten answers
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) set against the purchase and use of an adapted car, and for transport of a person with specific severe and permanent physical disabilities. The Scheme also provides payment of a Fuel Grant, and an exemption from Motor Tax. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.
The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. The Fuel Grant Scheme covers annual payments to those incurring fuel costs in the past 12 months, up to a maximum of 2,730 litres.
2022 rates of payment are as below.
|
Fuel Type |
Rate per litre |
|
Petrol |
€0.636 |
|
Heavy oil |
€0.535 |
|
Liquefied petroleum gas |
€0.130 |
The fuel grant covers the excise tax elements of petrol, diesel and liquefied petroleum gas (LPG). These rates are adjusted annually in line with excise tax increases.
I have no plans to adjust fuel grant rates outside of the annual adjustment, as such changes would be administratively and operationally complex to deliver.
Revenue Commissioners
Questions (290)
Paul Donnelly
Question:290. Deputy Paul Donnelly asked the Minister for Finance the number of full-time staff by rank in the large cases-high wealth individuals’ division within Revenue Commissioners as of 1 November 2022; the number of vacancies by rank; and when these vacancies will be filled in tabular form. [55340/22]
View answerWritten answers
I am advised by Revenue that the number serving in Large Cases – High Wealth Individuals Division on 1 November 2022 is as follows:
|
Division |
MAC |
PO |
AP |
HEO |
|
FTE |
FTE |
FTE |
FTE |
|
|
Serving |
1.0 |
7.8 |
37.0 |
23.8 |
|
Vacancies |
0 |
0 |
0 |
5 |
|
Division |
AO |
EO |
CO |
Totals |
|
FTE |
FTE |
FTE |
FTE |
|
|
Serving |
10.0 |
29.1 |
10.4 |
119.1 |
|
Vacancies |
7 |
8 |
0 |
20 |
It is envisaged that over the coming weeks all vacancies will be filled through open competition, interdepartmental competition, transfer and internal competition, as appropriate in line with sequencing.
Housing Schemes
Questions (291)
Pádraig Mac Lochlainn
Question:291. Deputy Pádraig Mac Lochlainn asked the Minister for Finance his plans to apply the 'fresh start’ principle to the help-to-buy scheme, similar to the local authority home loan scheme; and if he will make a statement on the matter. [55342/22]
View answerWritten answers
Section 10 of the Affordable Housing Act 2021 sets out the Government's "fresh start" principle, which provides for certain exceptions to the eligibility criteria for affordable dwelling purchase arrangements. These are, where the person applying:
- had previously purchased/built a dwelling as part of a marriage/civil partnership/intimate and committed relationship that has now ended, and that person does not retain a beneficial interest in the dwelling;
- had previously purchased a dwelling, but sold it/became divested of it as part of insolvency/bankruptcy proceedings;
- owns or owned a dwelling that it is now too small/unsuitable for current household needs (according to regulations and/or guidelines issued to housing authorities).
Section 477C of the Taxes Consolidation Act 1997 (TCA) requires that applicants for the Help to Buy (HTB) scheme must be first-time purchasers, which is defined as:
" 'first-time purchaser' means an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;"
There are no exceptions to the HTB definition of first time purchaser. This includes circumstances where there is more than one person involved in the purchase or building of a new home. The intention behind this is to target the tax relief on those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property and those who could not have availed of HTB relief previously.
While I am aware of the recent stance adopted by the Central Bank on this issue, there are no plans at the present moment to broaden out HTB to include those who might qualify under the "fresh start" heading. This position has regard among other things to the fact that, as announced in the Budget and as provided for in Finance Bill 2022, HTB is being extended for a further two years to end-2024 in its enhanced form first put in place in July 2020.
Banking Sector
Questions (292)
Holly Cairns
Question:292. Deputy Holly Cairns asked the Minister for Finance the steps that he is taking to support community banking. [55432/22]
View answerWritten answers
As the Deputy may be aware, my Department published a paper in December 2019 by Indecon Consulting on an Evaluation of the Concept of Community Banking in Ireland. This was a follow on to a previous paper on Local Public Banking published by my Department in 2018.
The Indecon report concluded that there is no business case for the State to establish a community banking system in Ireland, supporting the outcome of the previous report on Local Public Banking. The report notes that the Exchequer costs and risks involved would not be justified. The report also notes concerns over the ability of a new State owned bank to provide effective competition.
While Indecon’s report concluded there are some areas of market failure, it noted that there is extensive provision of and access to banking services through bank branches, credit union offices and An Post branches, as well as a wide range of Exchequer funded existing supports. Notwithstanding recent announcements in the banking sector, this continues to be the case.
The Indecon report looked at the credit union sector, and concluded that credit unions are considered to be a ‘community bank’. Credit unions are a key provider of financial services throughout Ireland and are continuing to expand the range of services they provide. The Government is supportive of the Credit Union movement and the current Programme for Government contains commitments to enable the movement to grow as a key provider of community banking in the State.
In order to provide “additional services” to member savings and lending, a credit union must receive approval from the Central Bank. In 2016, the Central Bank defined and described a suite of additional services known as Member Personal Current Account Services (MPCAS), under which approved credit unions may offer personal current accounts with debit cards, overdrafts and a wide range of payment services within an appropriate risk framework. To date, 77 credit unions are approved to provide such MPCAS/current accounts.
The Government is supportive of credit unions who have the financial strength, the competence and the capability to undertake SME and mortgage lending. However, the decision to lend is to be made by the board of each individual credit union, taking into account their own specific commercial, risk appetite and regulatory factors.
As of June 2022, credit unions had a combined mortgage and SME loan book of circa €445 million, an increase of 19% year-on-year. The Strategic Banking Corporation of Ireland (SBCI) has 19 credit unions engaged as SME lending partners, across 3 credit unions groups: Metamo, Irish League of Credit Unions (ILCU) and Credit Union Development Association (CUDA).
The Indecon report also looked at An Post, noting that there is a significant network of post offices in areas where there is no bank branch within five kilometres. An Post has begun transforming its retail network by delivering new financial products. These include loans, credit cards and more foreign exchange products, local banking in association with the major banks and a full range of state savings products.
Two new dedicated sub-brands, An Post Money and a new business-to-business brand - An Post Commerce, were launched in 2019. An Post invested €50 million in the network to encourage communities to use the enhanced services in their local post office.
The Government is committed to a sustainable An Post and post office network as a key component of the economic and social infrastructure throughout Ireland. This commitment can be seen in the recent agreement by Government that €10 million/annum will be provided to An Post from within the existing capital provision of the Department of Environment, Climate and Communications, over a three-year fixed term 2023–2025.
This funding aims to ensure access to important services of social value across the post office network throughout the State. These include banking services, social welfare and state savings, together with SME services and support. Currently 900 Post Offices are providing these essential services nationwide, acting as an important community-based provider, in relation both to access to credit and to basic financial services.
As the Deputy may also be aware, on 23 November 2022, I published the terms of reference for a broad-ranging review of the retail banking sector in Ireland. This review will consider retail banking in a broad sense. The review team is well advanced in drafting the report, which I expect to be delivered to me later this month as scheduled.
Question No. 293 answered with Question No. 281.
Question No. 294 answered with Question No. 281.
Question No. 295 answered with Question No. 281.
Post Office Network
Questions (296)
Bríd Smith
Question:296. Deputy Bríd Smith asked the Minister for Finance if his Department is reconsidering allowing post offices to become community banks, permitting them to provide all financial services and facilities that banks currently do but with increased advantages and value for communities and ensuring the survival of these important service providers into the future; and if he will make a statement on the matter. [55463/22]
View answerWritten answers
The role of the Department of Finance in relation to the provision of financial services by the post office network relates primarily to payment services. As Minister for Finance, I have authorised An Post to provide these services under the Postal and Telecommunications Services Act 1983 (Section 67) Order 2016.
An Post is a body under the aegis of the Department of the Environment, Climate and Communications. Responsibility for all other matters related to the post office network is held by the Minister for the Environment, Climate and Communication, Mr Eamon Ryan, TD.
However, I am aware that An Post has begun transforming its retail network by delivering new financial products. These include loans, credit cards and more foreign exchange products, local banking in association with the major banks and a full range of state savings products.
Two new dedicated sub-brands, An Post Money and a new business-to-business brand - An Post Commerce, were launched in 2019. An Post invested €50 million in the network to encourage communities to use the enhanced services in their local post office.
The Government is committed to a sustainable An Post and post office network as a key component of the economic and social infrastructure throughout Ireland. This commitment can be seen in the recent agreement by Government that €10 million/annum will be provided to An Post from within the existing capital provision of the Department of Environment, Climate and Communications, over a three-year fixed term 2023–2025. This funding aims to ensure access to important services of social value across the post office network throughout the State.
These include banking services, social welfare and state savings, together with SME services and support. Currently 900 Post Offices are providing these essential services nationwide, acting as an important community-based provider, in relation both to access to credit and to basic financial services.
As the Deputy may be aware, on 23 November last, I published the terms of reference for a broad-ranging review of the retail banking sector in Ireland. This review will consider retail banking services in a broad sense, including those provided by An Post. The review team is well advanced in drafting the report, which I expect to be delivered to me later this month as scheduled.
Departmental Staff
Questions (297)
Catherine Murphy
Question:297. Deputy Catherine Murphy asked the Minister for Finance the number of officials in his Department who have undertaken the Harvard Business School advanced management programme in the past ten years to date; the grade of each official; and the cost for each attendee in tabular form. [55481/22]
View answerWritten answers
I wish to advise the Deputy that one staff member from my Department has attended this Programme in 2021. This staff member is on secondment from another organisation. As a result my Department paid only one third of the cost with the parent organisation paying the balance.
Details are set out in the table below:
|
No. of Officials |
Grade |
Cost |
|
1 |
Assistant Secretary level |
€20,541.07 |
Vehicle Registration Tax
Questions (298)
Matt Shanahan
Question:298. Deputy Matt Shanahan asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [55596/22]
View answerWritten answers
In the absence of the details of the person/vehicle concerned Revenue cannot give a definitive answer. However, Revenue has advised that since the withdrawal of the United Kingdom (UK) from the European Union (EU) on 31 December 2020, the importation of a motor vehicle from the UK (excluding Northern Ireland (NI)) is treated as an import from a third country, i.e., a non - EU Member State.
When a vehicle is imported from the UK (directly or via NI), the importer is required to complete a Customs import declaration, pay Customs Duty, (if applicable), and Value Added Tax (VAT) on import, prior to presenting the vehicle for registration. Vehicle Registration Tax (VRT) is payable at registration.
Subject to certain eligibility criteria, a resident who inherits a motor vehicle from outside of the State may apply to Revenue for Inheritance Relief from VRT, (extended to Customs Duty and VAT where applicable). The application form and further details can be found on Revenue’s website at: https://www.revenue.ie/en/vrt/guide-to-vrt/reliefs-and-exemptions/other-permanent-reliefs.aspx
If the person has already presented the vehicle to Customs and/or the NCTS and paid some or all of the duties and taxes due, a retrospective claim for Inheritance Relief can be made to Revenue, and if successful a repayment will issue.
Student Accommodation
Questions (299)
Michael McNamara
Question:299. Deputy Michael McNamara asked the Minister for Finance the reason that students who are staying in "digs" type accommodation as opposed to students who are staying in Residential Tenancies Board-registered accommodation are not entitled to the recently announced tax credit for student accommodation given that the parents of these students and some of the students are taxpayers; and if he will make a statement on the matter. [55635/22]
View answerWritten answers
As announced in Budget 2023 and provided for in Finance Bill 2022, an income tax credit of €500 per year will be available to each tenant in an RTB registered private tenancy agreement, rent-a-room/"digs" arrangements, student accommodations and licence arrangements where the renter pays sufficient rent.
Rent paid of €2,500 in a tax year will be sufficient to avail of the full credit of €500. A person must also pay income tax to avail of the credit. In the case of a single person, the amount of tax that must be paid to fully avail of the relief is €3,900 in 2022 and €4,050 in 2023.
Only one credit may be claimed per person per year. However, it is proposed that the value of the credit will be doubled in the case of jointly assessed married couples and civil partners.
The credit will also be available to parents who pay rent on behalf of their student children who are in third-level education. Where a student is under 23 years of age on 1st January of the year of their first point of entry into an approved course, the parent(s) will be able to claim the tax credit for the duration of that course. This will only apply in the case of RTB registered tenancies to ensure compliance with the terms of the credit and to minimise any possible abuse.
Ukraine War
Questions (300, 301)
Catherine Murphy
Question:300. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if his Department and all bodies under his Department’s aegis have reviewed their estates' portfolio in the context of identifying unoccupied buildings that may be suitable for use in the context of meeting the accommodation needs of persons arriving in Ireland from Ukraine. [54222/22]
View answerCatherine Murphy
Question:301. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the number and type of unused and or unoccupied buildings in his Department’s estates’ portfolio and all bodies under his Department’s aegis. [54240/22]
View answerWritten answers
I propose to take Questions Nos. 300 and 301 together.
I wish to advise the Deputy that my Department (including the Office of Government Procurement) does not lease or own any properties that are currently unoccupied.
With the exception of the Office of Public Works (OPW), this is also the case for each of the bodies under the aegis of my Department.
I am advised by the Commissioners of Public Works that the OPW manages a property portfolio in excess of 2,500 properties which includes heritage buildings, commercial office blocks, green field sites, warehouses, Coast Guard Stations and Garda Stations. As would be the norm in such a large portfolio, at any given time, there will be a number of properties being refurbished or vacant. The State will always retain a number of vacant properties for future use.
Many of these types of buildings are not readily adaptable to full time residential use. The OPW however has actively engaged with the relevant State agencies to ensure that they are fully aware of vacant properties in the portfolio that could be considered for either use for housing or for use as part of the current humanitarian response to the war in Ukraine. The relevant agencies then assess those buildings in terms of what might be suitable for residential use. Many of these properties were deemed unsuitable as they were constructed over 50 years ago and would require significant investment to comply with current regulations for residential use or are located in rural areas without the necessary services and supports.
The OPW is preparing three vacant sites in the ownership of the Commissioners which have been identified as suitable for the installation of modern quality off-site housing units for Ukrainians fleeing the war. Enabling works are scheduled to start shortly, with a view to completing the overall programme for the installation and occupation of several hundred units on a range of State owned sites around the country, on a phased basis up to end February 2023. The successful delivery of these homes will form a significant component of the State’s overall humanitarian response to the Ukrainian crisis.