Written Answers Nos. 290-308
290. Deputy Holly Cairns asked the Minister for Transport the steps he is taking to ensure the provision of a bus service to enable young persons in Beara, County Cork, to access day services in Bantry, County Cork. [2298/23]
View answerI refer the Deputy to her Questions on the same matter (Dáil Question no. 141, reference 60371/11 and Dail Question no. 142 reference 60376/22) which I replied to on 06 December 2022.
In my reply of 06 December 2022 to both Questions, I explained that as Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including TFI Local link services, and delivering the Connecting Ireland Rural Mobility Plan.
In light of the NTA's responsibilities for bus services in West Cork, including to and from the Beara peninsula, I referred the Deputy's Questions to the NTA for direct reply. The NTA replied to the Deputy on 12 December 2022 advising that its aim was for route 236A to commence during the first half of 2023.
I will refer the Deputy's current Question to the NTA for direct reply.
291. Deputy Paul Murphy asked the Minister for Transport the actions that his Department is going to take to improve the No. 15 bus service, given the numerous complaints that have been received concerning unreliable bus services in the Dublin south west area (details supplied); and if he will make a statement on the matter. [2323/23]
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 issue raised in relation to the number 15 bus service is a matter for the company. Therefore, I have referred this question to Dublin Bus for direct response to the Deputy. Please advise my private office if you do not receive a reply within ten working days.
292. Deputy Darren O'Rourke asked the Minister for Transport the status of the Boyne Greenway project; the progress that will be made in 2023; and if he will make a statement on the matter. [2390/23]
View answerAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to Greenways. The planning, design and construction of individual Greenways is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
293. Deputy Darren O'Rourke asked the Minister for Transport if he will provide a 2022 end-of-year report on the Connecting Ireland plan for County Meath; the funding that was allocated and spent; the services that have been delivered; the funding that is allocated for 2023; the services that are expected to be delivered in 2023 in County Meath; and if he will make a statement on the matter. [2391/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including delivering the Connecting Ireland Rural Mobility Plan.
In light of the NTA's responsibilities for Connecting Ireland, including the funding and rollout of services in County Meath, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
294. Deputy Darren O'Rourke asked the Minister for Transport the measures that he is taking to support hauliers in 2023; and if he will make a statement on the matter. [2392/23]
View answerThe Ukraine crisis and matters arising from it continue to adversely affect European and Global oil markets, causing a sustained increase in the price of crude and in the price of refined products on the retail market.
The Government recognises the important role the haulage sector plays in supporting the economy and is fully aware of cost pressures on haulage businesses arising from high fuel prices, in particular since the outbreak of the conflict in Ukraine.
I can confirm that my Department will operate a new €18 million support scheme for licensed hauliers in early 2023. The scheme will cover eligible heavy goods vehicle authorised on the licence of a current road haulage operator as of 15 December 2022, subject to the operator satisfying the terms and conditions of the scheme at the time of application.
The full details of how the support scheme will operate will be finalised and communicated directly to road haulage operators in Q1 of 2023. Final approval of the scheme is dependent on a number of factors, including State Aid approval from the European Commission.
Further, since March 2022, the Government has put in place several measures to help ease cost pressures on haulage businesses:
- On 10 March 2022, to alleviate the impact of rising fuel prices, the Government introduced VAT inclusive excise duty reductions of 15 cent per litre of diesel and 20 cent per litre on petrol. A further reduction of 1 cent per litre (VAT inclusive) applied from 1 April 2022 to offset the impact of anticipated increased prices as a result of the increase in the Biofuel Obligation Scheme administered by Minister for Transport and Environment, Climate and Communications. These reductions were due to expire on 12 October 2022 but in recognition of continuing elevated costs these measures were extended out in Budget 2023 to 28 February 2023.
- On 15 March 2022, the Government introduced the Licensed Haulage Emergency Support Scheme. The Scheme was administered by the Department of Transport and provided a temporary financial support of €100 per week, for eight weeks, for each eligible heavy goods vehicle authorised on the licence of a road haulage operator as of 11 March 2022. There was good uptake of the scheme, with over €15.6 million paid out to c. 3,080 operators (approx. 80% of licensed haulage operators.).
- As part of Budget 2023, and in further recognition of the rising cost of fuel, the Government announced a reduction of the National Oil Reserves Agency (NORA) Levy to €0.001. The reduction of the NORA levy, which had been collected at a rate of 2 cent per litre, will help offset the carbon tax increase of just over 2 cent which took effect on 12 October, meaning that the price of fuel will not go up as a result of taxes or levies.
In addition to above measures, the Diesel Rebate Scheme (‘DRS’), which is administered by Revenue, has been in place since 2013 and remains available to licensed road transport operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided. It has always been the case that some operators do not avail of this support – I would encourage all those eligible to do so.
However, it should be noted that the causes of the current fuel price pressures are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis. Unfortunately, it is not possible to fully insulate citizens and businesses from the impact of these fuel price increases.
With the benefit of the Excise reduction, the 8 weeks support under the Licensed Haulage Emergency Support Scheme and the ongoing Diesel Rebate relief and NORA levy reduction, haulage businesses have had the opportunity to revise and renegotiate contracts with their clients in order to reflect increased prices, as is an unfortunate reality in all sectors across the economy.
In this context, it is important that all businesses, large and small, across the economy share the pain of these cost increases and where it is possible review contractual arrangements to provide for such sharing in these difficult times. I would encourage all businesses to adopt a fair and reasonable approach. I understand that smaller businesses, in particular, have had some difficulties in this space.
Finally, I wish to bring to your attention that on 15 December 2022, the Government published Ireland’s Road Haulage Strategy 2022–2031. The Strategy identifies 39 actions. These actions are split into ‘Short-term priorities’ which are expected to be completed in a 2-3 year timeframe and ‘Enablers for Medium- to Long-term progress’ which will ensure the delivery of policy objectives over the full term of this strategy. Implementation of the short-term actions contained in the Strategy has begun and their progress will be monitored by a new Road Freight Forum, which will consist of relevant stakeholders from Government and the haulage and road freight sector.
295. Deputy Darren O'Rourke asked the Minister for Transport if he will further reduce fares on public transport to help drive down road emissions; if he will extend the 20% fare reduction to private bus operators and cut the price of fares for under-18s to help increase passenger numbers; the estimated carbon emission savings that the increase in passenger numbers as a result of the 20% fare reduction has achieved in 2022; and if he will make a statement on the matter. [2393/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; I am not involved in the day-to-day operations of public transport, nor decisions on fares. It is the National Transport Authority (NTA) that has responsibility for the regulation of fares charged to passengers in respect of public transport services, provided under public service obligation (PSO) contracts.
The 20% average PSO fare reduction was introduced earlier last year as part of a suite of Government measures to help combat the rising cost of living. I am pleased to advise that I secured funding for the continuation of this discount on PSO services in 2023, however, funding was not provided to broaden the discount to include commercial operators.
I can further advise that in October 2022, the Young Adult Card initiative was broadened to include third level students aged 16- to 18-year-olds, who can now avail of the 50% fare discount. On PSO services, those aged under 18 can avail of child fares across the network.
In light of the NTA's responsibility in this area, I have forwarded the Deputy's specific questions in relation to the passenger numbers and carbon emissions to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
296. Deputy Darren O'Rourke asked the Minister for Transport the wait times for each driving test centre; the actions that he is taking to reduce the long waiting times being experienced to access driving tests; the number of driving instructors whose contracts expire within the next three months; if he has engaged with the RSA in relation to retaining these instructors to help alleviate the long wait times; and if he will make a statement on the matter. [2394/23]
View answerThe Road Safety Authority (RSA) has statutory responsibility for the operation of the national driving test and deals with all application and scheduling matters. I have therefore referred the specific parts of the question related to test times and driver tester contracts to the Authority for direct reply. I would ask the Deputy to contact my office if a reply is not received within 10 days.
On the broader issue of driver testing delays, I am informed that the current increase in demand for driving tests and the time to invitation for learner drivers has a number of contributing factors which include: an increase in learner permits in circulation which has grown by about 30% since Q3 2019; increased capacity in the Driver Theory Test when the service resumed post Covid-19 pandemic and an increase in Advanced Driving Instructors capacity to deliver lessons to learner drivers which has increased the volume of learners becoming eligible and ready to take their actual test.
I would like to assure the Deputy that the RSA is making every effort to address this issue. The Authority conducted a review of the current and evolving needs of the driver testing service in 2022, following which my Department sanctioned an increase in the permanent driver tester headcount from 100 to 130.
I am informed that the RSA is currently deploying a number of successful candidates across the driver testing service, with a focus on geographical areas with the longest waiting lists. It is expected that the remainder will be deployed by Q1 2023.
The RSA has assured me that they are keeping the situation under constant review and the Authority will report back to my Department on the steps being taken to continue to reduce waiting times. If sanction requests for further increases in driver testers are received, my Department will evaluate them promptly.
297. Deputy Darren O'Rourke asked the Minister for Transport if he will outline the plans to expand public transport provision in County Meath; the status of the Navan Rail Line plan; and if he will make a statement on the matter. [2395/23]
View answerAs the Deputy may be aware, the National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including the development of the Transport Strategy for the Greater Dublin Area.
The draft Strategy recommends the development of a rail link to Navan by 2042. I understand that this rail link will utilise the old Kingscourt Line over a short distance to connect the proposed Navan Central station and a proposed Navan North station. The Strategy is subject to a formal statutory approval process and the final version is expected to be published in the near future.
Noting the NTA's responsibility in the specific issue of public transport provision in County Meath, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
298. Deputy Darren O'Rourke asked the Minister for Transport if he is concerned about the financial liability to the State due to the traffic guarantee clauses in the M3 and Limerick tunnel toll contracts; if these payments will increase over the coming years as a result of the efforts to move persons to public transport modes thereby reducing traffic levels on these motorways; the estimated liability for such from now until the expiry of both contracts; and if he will make a statement on the matter. [2396/23]
View answerAs Minister for Transport I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Therefore, matters relating to the day to day operations regarding national roads, including toll roads and the establishment of a system of tolls, are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll bye-laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended).
With regard to the payment mechanism associated with M3 and Limerick Tunnel, it is a contractual obligation which incorporates a traffic guarantee mechanism. Therefore, the contracts for the privately-operated toll schemes are commercial agreements between TII and the Public Private Partnership (PPP) concessionaires concerned.
Noting the above position, I have referred the question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
299. Deputy Darren O'Rourke asked the Minister for Transport the status of driver recruitment at Dublin Bus, Bus Éireann and a company (details supplied); if these companies will be equipped to deliver planned service expansion in 2023; if not, if timelines will be altered in this regard; if so, the details of same; and if he will make a statement on the matter. [2397/23]
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 relation to driver recruitment, the NTA continues to meet with the bus operators, including Go-Ahead Ireland, regularly to review performance. Both operators and the NTA have taken a number of steps to try to mitigate the current driver shortages being experienced across the public transport network. These include:
- Running recruitment campaigns;
- Engaging with the RSA to expedite the testing and licence process;
- Reducing some service frequency;
- Delaying the introduction of phases of the BusConnects network redesign and;
- Reassigning resources to better match the demand.
The NTA also uses all the contractual and regulatory powers available to it to measure, report on and seek to maintain and improve standards across all PSO public transport services. Further, in instances where performance drops, financial penalties are rigorously applied unless the cause of the loss of performance is outside of the control of the operator, for example, high levels of Covid sickness absence.
Furthermore, my Department engaged with the Department of Enterprise, Trade and Employment to secure changes to the employment permit system. A quota of 1,500 employment permits for bus and coach drivers from non-EU and non-EEA Countries has been established which will also help address the recruitment challenges being faced by the sector. The changes came into effect on 16th December 2022 and my Department engaged with all PSO operators, including Bus Éireann, and representatives from the commercial bus sector as part of this process.
It should be noted that driver recruitment has improved. For example, in December 2022, Dublin Bus reported that the company recruited 319 drivers since January 2022.
The NTA will continue to work with operators in this regard, and in light of their responsibility in this area, I have also forwarded the Deputy's question to the Authority for direct reply. Please advise my private office if you do not receive a response within ten working days.
300. Deputy Holly Cairns asked the Minister for Transport the number of staff, including full-time or part-time equivalents, employed in each driving test centre; the extent of staff shortages for each centre; and the steps he is taking to recruit and retain staff. [2447/23]
View answerThe Road Safety Authority (RSA) has statutory responsibility for the operation of the national driving test and deals with all workforce and scheduling matters. Therefore I have referred the relevant parts of the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.
On the broader issue of driver testing delays, I am informed that the current increase in demand for driving tests and the time to invitation for learner drivers has a number of contributing factors which include: an increase in learner permits in circulation which has grown by about 30% since Q3 2019; increased capacity in the Driver Theory Test when the service resumed post Covid-19 pandemic and an increase in Advanced Driving Instructors capacity to deliver lessons to learner drivers which has increased the volume of learners becoming eligible and ready to take their actual test.
I would like to assure the Deputy that the RSA is making every effort to address this issue. The Authority conducted a review of the current and evolving needs of the driver testing service in 2022, following which my Department sanctioned an increase in the permanent driver tester headcount from 100 to 130.
I am informed that the RSA is currently deploying a number of successful candidates across the driver testing service, with a focus on geographical areas with the longest waiting lists. It is expected that the remainder will be deployed by Q1 2023.
The RSA has assured me that they are keeping the situation under constant review and the Authority will report back to my Department on the steps being taken to continue to reduce waiting times. If sanction requests for further increases in driver testers are received, my Department will evaluate them promptly.
301. Deputy Holly Cairns asked the Minister for Transport the steps that he is taking to improve the 226X service in County Cork. [2448/23]
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 those services in conjunction with the relevant transport operators.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's question regarding improvements to the 226X service in County Cork, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
303. Deputy Catherine Connolly asked the Minister for Finance if he will provide details of the processes and mechanisms used by Ireland’s customs and excise authorities to identify goods from illegal Israeli settlements in occupied Palestinian territory, and in particular to distinguish between such goods and services and those from Israel. [2025/23]
View answerI am advised by Revenue that there are no restrictive measures on goods coming from Palestine. Both Palestine and Israel have Free trade agreements with the EU.
However, goods produced in the Israeli settlements located within the territories brought under Israeli administration since June 1967 are not entitled to benefit from preferential tariff treatment under the EU-Israel Association Agreement.
Where there is a claim for preferential tariff treatment under the EU-Israel Association Agreement, Revenue implements appropriate checks to ensure that the goods covered by such claims are eligible for preferential tariff treatment.
304. Deputy Cathal Crowe asked the Minister for Finance if he will address the issues facing disabled people (details supplied) in terms of financial barriers to accessing adapted vehicles; and if he will make a statement on the matter. [2158/23]
View answerThe Department of Finance does not provide any grants for the purchase of a vehicle but instead administers the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme which 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. It is the Department’s understanding that this generally covers the needs of most of those who are eligible for the scheme.
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. The terms of the Disabled Drivers and Disabled Passengers Scheme set out six medical criteria, at least one of which is required to be satisfied in order to obtain a Primary Medical Certificate. The criteria are as follows:
- Be wholly or almost wholly without the use of both legs.
- Be wholly without the use of one of their legs and almost wholly without the use of the other leg such that they are severely restricted as to movement of their 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.
305. Deputy Neale Richmond asked the Minister for Finance the number of applications that have been made to the trade and business energy support scheme, TBESS, to date; and if he will make a statement on the matter. [63204/22]
View answer312. Deputy Jim O'Callaghan asked the Minister for Finance if addiction services funded under section 39 can avail of the trade and business energy support scheme in order to receive financial support to assist with escalating fuel costs. [63531/22]
View answerI propose to take Questions Nos. 305 and 312 together.
Details of the Temporary Business Energy Support Scheme (TBESS) are set out in Finance Act 2022. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023 and is 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.
I can confirm that 10,773 businesses had registered for the scheme with over 3,600 businesses fully completing the claims process - some for multiple claim periods. 4,392 claims have been approved under the scheme to the value of €9.5m, with €9m already paid out. Revenue publishes statistics weekly on its website on the numbers registering for and claiming under the scheme.
The TBESS operates by reference to bills for the metered supply of natural gas and electricity. It is available to eligible businesses whose average unit price of electricity or gas has increased by at least 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. Where this threshold is met, payments will be made to qualifying businesses 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.
Community, voluntary and not for profit agencies funded under section 39 of the Health Act 2004 to deliver health and social care services, which are not businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D, are not within the scope of the TBESS and are not eligible for support under the scheme. Where health and social care services are provided by businesses that are carrying on a trade that is chargeable to tax under Case I of Schedule D, for example nursing homes that operate with a view to making a profit, those businesses will be eligible for support under TBESS where the conditions of the scheme are met. 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.
Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme. The guidelines are available on the Revenue website on the starting and running a business page. I would urge eligible businesses to submit their claims as soon as possible, noting that the deadline for submission of claims in respect of September 2022 is 31 January 2023.
306. Deputy Jackie Cahill asked the Minister for Finance if he intends to direct all State agencies and public-facing offices, such as tax offices, that take payments from the public as part of the services they provide, to be able to take card payments as part of the transaction process; and if he will make a statement on the matter. [63213/22]
View answerCurrently, there is no law requiring the acceptance of card payments by State agencies or public facing offices. Entities will consider a number of factors before choosing to accept any type of payment instrument.
In the case of accepting card payments, typically, one of the more relevant factors considered is the fees that an entity must pay. One of the most common fees affecting card acceptance across the EU is the interchange fee i.e. the fee paid between the payer’s bank (the card issuer) and the payee’s bank (the bank used by the entity accepting the transaction) to cover handling costs.
There may be other relevant considerations such as the acceptance infrastructure e.g. the availability of card terminals, typically supported by an internet connection, which may not be reliable in all cases, particularly in rural areas.
My officials will continue to monitor develops in the area to ensure that consumers have access to a broad range of reliable and innovative services that meet their needs.
I would also add that, the recently published Retail Banking Review set out a number of recommendations in relation to payments that are relevant to this issue and my officials are currently examining how best to progress them.
307. Deputy Michael Lowry asked the Minister for Finance if he has considered extending the 9% tourism VAT rate beyond 28 February 2023 as raised in correspondence by a person (details supplied); and if he will make a statement on the matter. [63277/22]
View answer333. Deputy Catherine Connolly asked the Minister for Finance his plans to retain the 9% tourism VAT rate beyond February 2023; the analysis that his Department has carried out in this regard; and if he will make a statement on the matter. [1221/23]
View answer341. Deputy Pearse Doherty asked the Minister for Finance if it is permissible to apply separate rates of VAT to hotel accommodation and meals in hotels that is, food and drink for consumption; and if he will make a statement on the matter. [1396/23]
View answer376. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of extending the reduced rate of VAT applicable to the hospitality and tourism sector until end-March 2023 and end-June 2023, respectively. [2172/23]
View answer377. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of extending the reduced rate of VAT applicable to the hospitality and tourism sector for all categories to which it applies except hotel accommodation; and if he will list the categories of goods and services in the hospitality and tourism sector to which the reduced rate currently applies. [2173/23]
View answer381. Deputy Holly Cairns asked the Minister for Finance his views on retaining the 9% tourism VAT rate for all of 2023 to support the hospitality sector. [2290/23]
View answerI propose to take Questions Nos. 307, 333, 341, 376, 377 and 381 together.
I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.
Currently, the 9% rate applies on a temporary basis to the hospitality and tourism sectors which includes the supply of hotel accommodation and the supply of meals in hotels (excluding alcohol and soft drinks) until 28 February 2023. From 1 March 2023, these sectors are due to return to the 13.5% rate. The supply of alcohol and soft drinks remains unchanged at the standard rate of VAT (23%). As I have said on a number of occasions, the government will in the coming weeks examine the full suite of taxation and other measures that are due to expire at the end of February.
It would be possible within the terms of the Directive to apply different rates of VAT to the supply of hotel accommodation and the supply of meals in hotels. However, a decision could not be confined to hotels only; in accordance with the principle of fiscal neutrality, the VAT rate applicable to hotel accommodation would apply to all holiday accommodation providers such as guest houses, bed and breakfasts, serviced apartments, web-based guest and holiday accommodation, camp sites, and other holiday accommodation. The VAT rate on hotel meals would also apply to all restaurants, catering businesses and establishments providing hot takeaway food. Furthermore, any policy decision in relation to the rates would need to be considered carefully having regard to a range of factors including the impact on Exchequer revenues.
I am advised by Revenue, that there would be significant practical operational concerns in having different VAT rates applying to hotel accommodation and meals, given how the sector operates with various packages ranging from bed and breakfast through to all-inclusive board and lodging packages. This could lead to the underpayment of VAT because the charge for accommodation and meals would have to be apportioned. It would undoubtedly provide opportunities for tax planning which would be difficult to police. This would give rise to administrative and operational complexity and increased risk of avoidance and the scope for manipulation of the VAT system. This could lead to further leakage, and this does need to be factored into any deliberations over the splitting of VAT rates in this sector.
I am further advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide a costing for extending the reduced rate of VAT applicable to the hospitality and tourism sector using information provided on tax returns. However, a tentative estimate is provided below based on third-party data sources.
|
|
1 – 31 March 2023 |
1 March – 30 June 2023 |
|
Accommodation only |
€8m |
€36m |
|
Food and Catering Services only |
€35m |
€141m |
|
Other Entertainment |
€1.3m |
€5.4m |
|
Total Temporary Rate Reduction in the Tourism and Hospitality Sector |
€44.3m |
€182.4 |
The 9% rate currently applies to the following activities within the hospitality and tourism sectors:
- The provision of guest or holiday accommodation in hotels, guesthouses, serviced apartments, B&Bs, aparthotels, web-based guest and holiday accommodation and the letting of a place in a caravan park, camp site, or glamping site.
- The provision of restaurant and catering services by restaurants, canteens, caterers, establishments providing hot takeaway food, etc.
- Admission to cinemas, theatres (with certain exceptions), museums, art galleries, musical performances (with certain exceptions), historic houses, natural heritage facilities, open farms, fairgrounds, and amusement parks.
As the Deputies will be aware, the 9% rate for the tourism and hospitality sectors was reintroduced in Budget 2021 from 1 November 2020 to 31 December 2021 at an estimated cost of €401m. This measure was initially extended in Budget 2022 to 31 August 2022 at a further estimated cost of €251m. It was then extended again for another six months until 28 February 2023 at an additional estimated cost of €250m. This was done to provide further support to the tourism and hospitality sectors over the busy November/December period and into the early New Year.
The Government recognises the impacts of the current energy crisis and understands how it has contributed to a rise in the cost of doing business across the country.
That is why on Budget Day, the new TBESS (Temporary Business Energy Support Scheme) was announced. This scheme is aimed at businesses whose average unit gas or electricity price has risen by over 50% compared with their average unit gas or electricity price in 2021. It will run from September 2022 to the end of February 2023. Qualifying businesses can apply to Revenue for a cash payment, representing an advance credit for energy expenses (ACEC) that are deductible for income and/or corporation tax purposes.
The ACEC will be calculated as 40% of the excess of the 2022 bill over the 2021 bill, capped at €10,000 per business per month, or up to €30,000 if the business operates from multiple locations. Overall caps at business level will also apply as set out in the EU Temporary Crisis Framework.
The Scheme opened for registration on November 26 and for claims on December 5th. Further information on the scheme can be found at the following link from the Revenue website: www.revenue.ie/en/starting-a-business/tbess/index.aspx.
308. Deputy Mairéad Farrell asked the Minister for Finance further to Parliamentary Question No. 347 of 8 September 2022, if he will provide an update on in-person Revenue Commissioners services in Limerick, Cork and Galway; and if he will make a statement on the matter. [63294/22]
View answerI am advised by Revenue that in-person appointments are currently being provided at its offices in Blackpool, Cork; Sarsfield House, Limerick and Geata na Cathrach, Galway. The service allows customers to schedule an appointment at a time that suits them by calling the Appointment Helpline on 01 738 36 60, from 09.30 to 13.30 (Monday to Friday).
The provision of in-person appointments supplements the virtual appointment service, which largely reduces the need to visit Revenue offices in-person. Virtual appointments can also be arranged through the Appointment Helpline.
