Written Answers Nos. 184-201
184. Deputy Mairéad Farrell asked the Minister for Transport if the extension of the No. 424 Galway to An Cheathrú Rua-Leitir Mealláin bus route is being considered in order to provide a more regular service to Leitir Mealláin; if a feeder bus service between Leitir Mealláin and Casla to connect to the No. 424 has been considered; and if he will make a statement on the matter. [56024/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The independent Transport Regulator, the National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of those services.
In light of the Authority's responsibility in this area I have forwarded the Deputy’s specific question, in relation to the No 424 bus route, to the NTA for direct reply. Please advise my private office if you do not receive a reply within ten working days.
188. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which the bus services serving north Kildare will be reorganised to give a better service to all areas; and if he will make a statement on the matter. [56047/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling of these services in conjunction with the relevant transport operators.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific questions in relation to the reorganisation of bus services in north Kildare to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days
192. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which all bus services from Naas to Blanchardstown are in need of improvement, with particular reference to reliability, availability and punctuality; and if he will make a statement on the matter. [56051/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific question in relation to the bus services from Naas to Blanchardstown, to the NTA for directly reply. Please advise my private office if you do not receive a response within ten working days.
195. Deputy Ruairí Ó Murchú asked the Minister for Finance if the newly announced temporary business energy support scheme can be used by companies supplying heat through communal and district heating schemes; and if he will make a statement on the matter. [53088/22]
View answerDetails of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme will provide support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023. The scheme is designed to be compliant with the EU state aid Temporary Crisis Framework and will need to be approved by the EU Commission in advance of making payments.
The TBESS will be available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria. Sporting bodies that carry on certain activities that would be chargeable to tax under Case I or II of Schedule D but for an available exemption are included in the scheme. Charities that carry on activities that would be chargeable to tax as trading income, but for an available tax exemption, are also included in the scope of the scheme. The scheme will operate on a self-assessment basis.
Where companies are supplying heat through communal and district heating schemes and those companies are carrying on a trade that is chargeable to tax under Case I of Schedule D, they will be eligible for support under TBESS where the conditions of the scheme are met.
However, if companies are supplying heat through communal and district heating schemes and those companies are not for profit entities, it is unlikely that they would be regarded as carrying on a trade that is chargeable to tax. Such companies would not be within the scope of TBESS and would not be eligible to apply for support under the scheme.
TBESS is aimed at businesses whose average unit gas or electricity price has risen by over 50% for the relevant billing period between September 2022 and February 2023, as compared with their average unit gas or electricity price in for the corresponding reference period in the previous year.
Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade or per profession. However, where a business carries on its trade or profession from more than one location, as identified by the business having multiple electricity accounts/ MPRNs in different locations, the cap may be increased by €10,000 per electricity account/ MPRN, subject to an overall monthly cap of €30,000 per trade. The increased cap is available in relation to both electricity and natural gas costs relating to the trade or profession. An overall cap on the amount of support that a business can claim will also apply in line with requirements of the European Commission’s Temporary Crisis Framework.
Any amount charged on an energy bill for a claim period that is not expended wholly and exclusively for the purpose of the trade or profession must be deducted from the relevant energy bill amount for the claim period when calculating the eligible cost. This could be the case where, for example, a single electricity connection supplies both the business and a domestic dwelling.
Registration and claims must be made through the Revenue Online Service (ROS). It is expected that the TBESS system will go live over the weekend of 26th to 27th November.
Revenue has published comprehensive guidelines on the operation of the scheme on the Revenue website, which includes information on eligibility for the scheme and how claims may be made.
196. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he, together with his Finance Minister colleagues at ECOFIN, continues to explore ways and means of minimising the impact of the Russian invasion of Ukraine on European and global economies. [48659/22]
View answerThe economic and financial impact of the Russian aggression against Ukraine was discussed at ECOFIN in Brussels, on 8 November.
The economic outlook continues to be dominated by the impact of the war in Ukraine, with implications for inflationary pressures across global and EU economies. Ministers agreed to continue to take necessary actions to mitigate the impact on our economies, targeting supports to protect vulnerable households and businesses, while ensuring the sustainability of public finances. Any budgetary measures, which aim to mitigate the impact of rising energy prices, should be temporary and targeted.
Nevertheless, the evolution of the war and accompanying uncertainty will continue to present ongoing risks and there is a need to continue to closely monitor the situation in Ukraine along with inflation, energy price developments, second round effects and the impact which they have on economies.
Ministers also received an update on progress on the implementation of the Recovery and Resilience Facility, including on the REPowerEU proposal, which is a plan to phase out the Union’s dependency on Russian fossil fuel imports. This aims to strengthen the strategic autonomy of the Union by diversifying energy supplies and boosting the independence and security of the Union’s energy supply.
Ministers also discussed the scale of challenges facing Ukraine in both the short term and the long-term, including providing a more strategic approach to future EU financing to support Ukraine.
197. Deputy Bernard J. Durkan asked the Minister for Finance the steps that are being taken to alleviate price increases, with consequent inflation affecting consumers throughout the country at large; and if he will make a statement on the matter. [53767/22]
View answerThe Consumer price (HICP) inflation picked up sharply over the course of the last year and in October stood at 9.6 per cent. Almost every advanced country in the world is in the same position, with euro area inflation reaching a record 10.7 per cent in October.
The key driver of global inflationary pressures at present is the sharp rise in energy, food and other commodity prices as a result of the war in Ukraine. While oil and other commodity prices have eased of late, wholesale gas prices picked up sharply over the summer due to supply concerns and will feed into higher inflation over the coming months. Spillover effects from higher energy prices are also being felt in other sectors, such as food (via fertiliser and fuel costs) and consumer goods and services (via higher energy inputs). As a result, non-energy inflation has picked up sharply in recent months, suggesting broad based inflationary pressures.
The Government is acutely aware of the cost pressures facing households and businesses, especially the increase in fuel and other energy prices. That is why Budget 2023 focused on mitigating inflationary pressures. Budget 2023 includes an overall package of €6.9 billion for next year, including adjustments to income tax bands and increases in social welfare and pension rates. Complementing this is a set of one-off measures amounting to €4.1 billion, which take effect from the final quarter of this year. The one-off package includes three €200 electricity credits to each household, an additional social welfare payment, a double payment of child benefit, the extension of the reduction in excise duties and VAT rate on gas and electricity to end-February as well as the Temporary Business Energy Support Scheme.
This approach balances the need to provide necessary fiscal support to households and firms while at the same time, avoiding a situation in which the Government’s fiscal response becomes part of the inflation problem.
198. Deputy Peadar Tóibín asked the Minister for Finance if his Department has undertaken any study to determine the impact of real estate investment trusts on the Irish housing market; and if he will make a statement on the matter. [46923/22]
View answerOfficials in my Department produced a report on Real Estate Investment Trusts (REITs), Irish Real Estate Funds (IREFs) and Section 110 companies with respect to their investment in the Irish property market in 2019. The report was presented to the Tax Strategy Group and provided a basis for policy discussions and for amendments which were introduced in Finance Act 2019 to strengthen the regimes. The report is available online at the following link: www.gov.ie/en/collection/dc3850-budget-2020-tax-strategy-group-papers/
A number of amendments were made to the taxation of REITs as part of Finance Act 2019, to ensure the regime operates as intended. The obligation to deduct Dividend Withholding Tax (DWT) was extended to include distributions of the proceeds of capital disposals. New measures were introduced to require the proceeds of property disposals to be re-invested in property assets or distributed within a set period. The deemed disposal provisions upon cessation of REIT status were restricted to REITs that have been in operation for at least 15 years, in line with the regime's stated objective of encouraging long-term, stable investment in rental property. Finance Act 2019 also introduced the “wholly and exclusively” test when calculating the REIT profits available for distribution. This is a common test throughout the taxes acts, its inclusion in the REIT legislation ensures fair and consistent treatment for those investing in Irish property.
As you may be aware, the Commission on Taxation and Welfare published its report “Foundations for the Future” on 14 September 2022. The report considered how the overall balance of taxation might shift in order to sustainably fund public services over the longer-term. The Commission recommended that the Government undertake a review of REITs and IREFs, having regard to the role of institutional investment in the Irish property market. Institutional investment has played a key role in the provision of housing in recent years. It is important to consider how best these structures can continue to support our housing policy objectives.
In light of this recommendation the Deputy will be aware that, as part of my Budget speech, I announced the intention to commence a review of both the REIT and IREF regimes. The parameters of these reviews and the timelines for delivery have yet to be finalised. However the Department can confirm that stakeholder engagement will be an important element of this work.
199. Deputy Alan Dillon asked the Minister for Finance if the Government has considered removing VAT on print and online newspapers; and if he will make a statement on the matter. [47597/22]
View answerI can confirm that in line with my Budget Speech it is my intention to apply a zero rate of VAT to print and online newspapers from 1 January 2023.
200. Deputy Brendan Griffin asked the Minister for Finance the way the temporary business energy support scheme will apply to farmers in County Kerry and elsewhere; and if he will make a statement on the matter. [53116/22]
View answer201. Deputy Brendan Griffin asked the Minister for Finance if farmers can avail of both the temporary business energy support scheme and the €600 electricity credit; and if he will make a statement on the matter. [53117/22]
View answerI propose to take Questions Nos. 200 and 201 together.
Farmers will be eligible for payments under the TBESS in the same way as any other business that is carrying on a trade which is taxable under Case I of Schedule D where they meet all eligibility criteria. A person engaged in a trade of farming who has suffered an increase of at least 50% in the average unit price of electricity and/or natural gas for the relevant billing period in 2022 or 2023 as the case may be, as compared with the average unit price for electricity and/or gas for the corresponding reference period in the previous year, will be eligible under the scheme.
Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade, increasing to a maximum of €30,000 in certain circumstances.
In line with the EU Temporary Crisis Framework, there is also an overall cap on the amount that an undertaking can claim. The cap that currently applies in relation to farmers in the Framework is €250,000 and a Committee Stage amendment to the Finance Bill will reflect this.
If any amount charged on an energy bill for a claim period is not expended wholly and exclusively for the purpose of the farming trade, then this amount must be deducted from the relevant energy bill amount for the claim period for the purpose of calculating the eligible cost. This could be the case where, for example, a single electricity connection supplies both the farm and a domestic dwelling.
An enhanced electricity credit of €600 was announced in Budget 2023 to be applied to electricity bills, €200 before Christmas and the remainder (in two tranches) early in the New Year. This will benefit all Irish households including farmers with a domestic connection.
