Tuesday, 15 Nov 2022

Post Office Network

Questions (202)

Seán Canney

Question:

202. Deputy Seán Canney asked the Minister for Finance the steps being taken to create a community banking system within the post office; and if he will make a statement on the matter. [56309/22]

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Written answers

Minister for Finance

As the Deputy may be aware, my Department published a report 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.

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.

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 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 per 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 2021, 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 shortly.

Tax Collection

Questions (203)

Kathleen Funchion

Question:

203. Deputy Kathleen Funchion asked the Minister for Finance the outstanding balance of local property tax for a person (details supplied). [56327/22]

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Written answers

Minister for Finance

I am advised by Revenue that there is a Local Property Tax (LPT) balance on the property concerned of €666.00, excluding interest, for the years 2018 to 2021. Revenue previously advised the liable owner that a phased payment arrangement option is available, whereby an individual can pay a set amount each month over an agreed period.

Alternatively, they may apply to defer payment of LPT. A deferral is not an exemption and the outstanding liability, including interest, remains as a charge on the property to be paid before the property is sold or transferred to another person. The deferred tax carries a reduced interest charge of 4% per annum for the years 2013 to 2021.

Separately, Revenue has advised that the 2022 LPT liability for the property concerned is being paid through deduction at source from Department of Social Protection and will be discharged in full by the end of the year.

Information regarding the various payment and deferral options for LPT is available on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx. Alternatively Revenue’s LPT helpline can be contacted at 01 73 83 626 if the person concerned requires further information or assistance to pay or defer the outstanding balance.

Credit Availability

Questions (204)

Peadar Tóibín

Question:

204. Deputy Peadar Tóibín asked the Minister for Finance if he has received any report detailing the level of finance being given in loans by banks to builders of homes over the past ten years; and if he will detail the totals that are being lent to construction companies to build homes for each of the past five years. [56380/22]

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Written answers

Minister for Finance

Through the implementation of the Housing for All strategy, the Government plans to increase the supply of housing to an average of 33,000 per year over the next decade. This is an ambitious plan which will provide increased housing supply and affordability.

While the plan is backed by unprecedented State investment, the Government cannot deliver on this programme alone. The only way we can deliver housing at the substantial scale we need is by also attracting private capital to the market.

Through modelling undertaken by the Department of Finance, it is estimated that €12 billion of development funding per annum, comprising both debt and equity, will be required to develop the Housing for All target of an average of 33,000 homes per year. Of this €12 billion per annum, an estimated €10 billion will be required from private capital sources.

It is not possible to quantify details of development lending for residential development by our domestic banks, owing to commercial sensitivity.

Given recent withdrawals from the banking market, there are fewer retail banks now lending for property development in Ireland than was previously the case. Domestic banks set risk limits around the type and nature of lending activity, resulting in selective and prudent lending practices. It is not desirable that domestic banks provide senior debt at unsustainable levels and levels of debt should appropriately reflect the risk profile of development projects.

A substantial increase in the supply of new homes is the only route to solving Ireland’s housing crisis. This will require significant private investment alongside our public investment and is necessary to meet the targets set out in the Housing for All strategy. While a portion of this private investment will come from our domestic banks, the majority will be required from international sources.

As a result, we will attract inward investment to our housing market, as we have successfully done with investment in other sectors of our economy. This private and patient capital coming from well-established investors such as pension funds is a normal facet of housing investment in many of our European neighbours and beyond.

Tax Code

Questions (205)

Michael Healy-Rae

Question:

205. Deputy Michael Healy-Rae asked the Minister for Finance his views on the fact farmers will have to pay a 3% tax on the value of the land when they might never have any intention of developing (details supplied); and if he will make a statement on the matter. [56385/22]

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Written answers

Minister for Finance

The Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners, including farmers, of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.

It is important to note that, to come within the scope of RZLT, farmland must be both zoned for residential use and serviced. Farmland that is zoned for residential use but which is not currently serviced is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future.

Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed on the land and with sufficient service capacity available for such development.

A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map is to allow landowners, including farmers, to see if their land is within the scope of the tax. If a landowner sees that their land is included on the draft map and believes that it should not be, there are two separate courses of action open to them:

1. If the landowner believes that the land is not serviced or falls into one of the specific exceptions provided for in the legislation, they can make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map. The local authority will consider the submission and make a written determination on whether the land should stay on the map or be removed from it. If the landowner disagrees with the determination, they can appeal to An Bord Pleanála.

2. If the landowner believes that the land should not be zoned as suitable for residential development, they can submit a request to the local authority, again by 1 January 2023, seeking to have the land rezoned. The local authority will consider the request and, if appropriate, they will commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process.

It should be noted that, while residential properties may appear on the local authority RZLT maps, residential property which is subject to LPT is exempt from RZLT. Further information regarding RZLT maps and related submission/variation processes are available on each local authority website, or at www.gov.ie/rzlt.

Finally, Finance Bill 2022 proposes to introduce an exemption for land that is within the scope of the tax but is subject to contractual arrangements that preclude the landowner from developing it. For the exemption to apply, the contract must have been entered into prior to 1 January 2022, i.e. prior to the introduction of RZLT. For example, where a farmer leased land prior to 1 January 2022 and the requisite conditions are met, the farmer may be able to claim an exemption from the tax for the period of the lease.

Tax Code

Questions (206)

Noel Grealish

Question:

206. Deputy Noel Grealish asked the Minister for Finance the status of the working group to consider the taxation of funds, life assurance policies and other investment products, as mentioned during his budget 2023 speech; if he will provide the names of the working group membership; if representatives of the insurance and brokerage industries will be included; and if he will make a statement on the matter. [56416/22]

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Written answers

Minister for Finance

As the Deputy may be aware, the working group he refers to is a recommendation of the Commission on Taxation and Welfare who published their report Foundations for the Future earlier this year.

The Commission considered how the overall balance of taxation might shift in order to sustainably fund public services over the longer-term, and made a range of recommendations aimed at improving the sustainability of the taxation and welfare systems.

Chapter 6 of the report addresses Tax Equity and Base Broadening. One of the recommendations in this chapter is the establishment of a working group to examine and make recommendations for modernising the taxation and administration of investments.

The Commission set out a number of matters that should be considered by the group including: identifying the range of investment products and investors; reviewing the tax treatment of investors in these products; consideration and analysis of the different treatment of different products; options for harmonisation; and anti-avoidance rules.

My Department is currently considering how best to implement the Commission’s recommendations, taking into account the fact that a comprehensive review of this complex area, with a view to presenting options for reform, is a significant task and will, as the Commission’s report notes, require time and resources to be allocated to it. The Commission has recommended that the group include officials from the Revenue Commissioners and my Department, and consult with relevant experts and stakeholders.

Question No. 207 answered with Question No. 191.

Primary Medical Certificates

Questions (208)

Chris Andrews

Question:

208. Deputy Chris Andrews asked the Minister for Finance if the relevant funding will be made available to enable the expansion of the criteria for eligibility for the primary medical certificate. [56499/22]

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Written answers

Minister for Finance

I committed to a comprehensive review of the DDS to include a broader review of mobility supports. In order to achieve this objective, Minister O’Gorman agreed in September 2021 that the DDS review should be incorporated into the work of the National Disability Inclusion Strategy (NDIS) Transport Working Group (TWG).

The Working Group, under the Chairpersonship of Minister of State Anne Rabbitte, held a number of meetings across 2022 and is expected to hold its final meeting later this month. The Working Group will produce its report shortly afterwards.

As part of its engagement in this process, the Department of Finance established an information-gathering Criteria Sub-group (CSG) at the start of this year. Its membership comprised of former members of the DDMBA and Principal Medical Officers (PMOs) in the HSE. Its purpose was to capture their experiences, expertise and perspectives in relation to the practical operational and administrative challenges of the DDS, as well as to explore what alternative vehicular arrangements were available for those with mobility issues based on international experience. The CSG work led to the production of five papers and a technical annex, submitted to the Department of Children, Equality, Disability, Integration and Youth in July 2022.

The main conclusion of the CSG is that the DDS needs to be replaced with a fit for purpose, needs-based vehicular adaptation scheme in line with best international practice. Both I and my Department share this view.

In relation to the argument that the scope of the DDS should be broadened, I do not believe this is either feasible or credible as any change or expansion of eligibility criteria for the DDS will still require an individual to 'prove' they meet that criteria and conversely there will still be individuals that will be deemed not to meet the criteria i.e. the scheme will still adhere to an 'in or out' policy rationale. Such an approach has the potential to make already highly contested Primary Medical Certificate and appeals processes even more difficult, for the HSE, for the DDMBA, and for individuals.

This conclusion, together with design principles and parameters for the new scheme as based on international practice, were incorporated into a response to three questions posed in September 2022 to members of the NDIS Transport Working Group, in respect of proposals for enhanced, new and/or reconfigured supports to meet the transport and mobility needs for those with a disability.

Question No. 209 answered with Question No. 191.

Primary Medical Certificates

Questions (210)

Niamh Smyth

Question:

210. Deputy Niamh Smyth asked the Minister for Finance if he will provide an update on a primary medical certificate appeal for a person (details supplied); and if he will make a statement on the matter. [56551/22]

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Written answers

Minister for Finance

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.

Efforts are on-going to establish a new DDMBA. 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 successfully completed Garda vetting. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. Two other candidates have recently been interviewed and if nominated by the Minister for Health will undergo Garda vetting.

Once these processes have been completed for all candidates I 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.

Primary Medical Certificates

Questions (211)

Niamh Smyth

Question:

211. Deputy Niamh Smyth asked the Minister for Finance if he will provide an update on the primary medical certificate appeal of a person (details supplied); and if he will make a statement on the matter. [56553/22]