Written Answers Nos. 206-228
206. Deputy Richard O'Donoghue asked the Minister for Finance the reason VAT was added to products for the alleviation of flu and flu-like symptoms, given the escalating cost-of-living and the surge in flu and Covid symptoms this time of the year; and if he will make a statement on the matter. [2529/23]
View answerI 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.
I can confirm that there has been no change to the application of VAT to products for the alleviation of flu and flu-like symptoms. Oral medicines (for human consumption) which are licensed/authorised by the Health Products Regulatory Authority are liable to VAT at the zero rate and non-oral medicines (products such as injections and infusions) are liable to VAT at the standard rate, currently 23%. On this basis, products for the alleviation of flu and flu-like symptoms that are medicines for human oral consumption are zero rated; otherwise, they are subject to VAT at the standard rate. The administration of flu vaccines by medical doctors, nurses and pharmacists is exempt from VAT.
207. Deputy Jim O'Callaghan asked the Minister for Finance if measures can be introduced to reduce the red tape associated with importing goods for personal use from non-EU countries into Ireland; and if he will make a statement on the matter. [2559/23]
View answerRevenue, as Ireland’s Tax and Customs administration, is responsible for managing the importation and exportation of goods in accordance with European Union Customs legislation. Customs controls are necessary to protect public health, to ensure food safety and product standards and to protect EU businesses from unfair international competition thus preserving jobs for European workers including Irish workers.
I am advised by Revenue that across the European Union electronic Customs import declarations are now required for all goods coming from non-EU countries regardless of the value of the goods being sent. While goods valued at less than €150 may not be liable to a Customs duty charge, since 1 July 2021 all goods imported to the Union, regardless of their value, are liable to VAT.
In relation to importing goods for personal use, Ireland has implemented all measures available under the European Union Customs legislation to reduce the administrative burden including the introduction of an import declaration that can be used for consignments valued less than €150 which allows for the submission of significantly less information than a standard import declaration. However, as Customs is an EU competence and applies in all Member States, it is not possible for me, as Minister for Finance, to implement any further measures that are not provided for in European Union Customs legislation.
208. Deputy Jennifer Murnane O'Connor asked the Minister for Finance when the medical criteria for the primary medical certificate are expected to be updated; and if he will make a statement on the matter. [2642/23]
View answerMy predecessor Minister Donohoe committed to a comprehensive review of the Disabled Drivers and Passengers Scheme (DDS) as part of 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 NDIS TWG was tasked, under Action 104 of the NDIS, with reviewing all Government-funded transport and mobility supports for those with a disability and for making proposals for transport and mobility solutions for those with a disability.
The Working Group, under the Chairpersonship of Minister of State Anne Rabbitte, held a number of meetings across 2022. A draft final report was considered at its final meeting on 8th December. It is expected the final report will be published soon.
As part of its engagement in this process, the Department of Finance established an information-gathering Criteria Sub-group (CSG) at the start of 2022. Its membership comprised of former members of the Disabled Drivers Medical Board of Appeal (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.
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. I hope my Department's views with respect to introducing a new vehicular adaptation scheme, will be incorporated into the Working Group's final report.
209. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if he will reconsider the benefit-in-kind changes introduced in budget 2023; if any separate arrangements or grants have been made available for those in the taxi industry; and if he will make a statement on the matter. [2644/23]
View answerRecent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).
In Finance Act 2019, a CO2-based BIK regime for company cars was legislated for from 1 January 2023. From the beginning of this year, the amount taxable as BIK is determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands determines whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands has reduced from five to four.
In certain instances, this new regime will provide for higher BIK rates, for example in relation to above average emissions and high mileage cars. It should be noted, however, that the rates remain largely the same in the lower to mid mileage ranges for the average lower emission car. Additionally, EVs benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles are subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This brings the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
It is important to note that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its recent implementation.
Finally, on the issue of BIK and taxis, it should be noted that where a taxi driver is an employee and has an employer provided vehicle made available to him or her for private use he/she will be subject to BIK on the provision of same, as outlined above. Otherwise, it should be noted that the BIK regime does not apply to self-employed taxi drivers who operate their own taxi business.
Finally, I am advised by Revenue that further information on the taxation of employer-provided vehicles is included in Tax and Duty Manual Part 05- 01-01b, which is available online.
210. Deputy Pearse Doherty asked the Minister for Finance if a special needs assistant is not a qualifying or eligible profession for flat-rate expense allowances; if so, the reason this is the case; and if he will make a statement on the matter. [2681/23]
View answerThe legislation governing the deductibility of expenses incurred in employment is set out in section 114 of the Taxes Consolidation Act 1997 (TCA 1997), which provides that for an expense to qualify as a deduction against income from an office or employment, the expense must be wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment.
I am advised by Revenue that the flat rate expense (FRE) regime it operates is done so on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 of the TCA 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.
The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary.
Revenue has advised me that it will consider FRE applications where a large number of employees incur broadly identical qualifying expenses which are not reimbursed by their employer. Applications are generally made by the representative bodies in the employment sectors concerned and are considered by Revenue based on the specific commonality of expenses within the employment category and compliance with the strictly applied statutory requirement for a tax deduction.
As matters stand at present, Special Needs Assistants (SNA's) do not come within the scope of the FRE regime. Revenue has confirmed that a submission was received from a representative body for SNA's some time ago. However, it did not contain specific details of the expenses and costs incurred by SNA's and despite requests from Revenue to provide same, the details to assess such a claim in respect of a specific FRE category was never received. I am further advised, that should Revenue receive a submission from representatives for SNA’s, outlining details of expenses which satisfy the legislative conditions, that it will be considered.
Finally, Revenue advises me that it remains committed to the FRE regime and encourages all taxpayers to avail of their full tax relief entitlements. It should be noted that all employees retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which such expenses are not reimbursed by the employer.
212. Deputy Richard O'Donoghue asked the Minister for Public Expenditure and Reform if he can account for spending a record 21.5% increase in taxation revenues in 2022 (from €68.41 billion in 2021 to €83.13 billion in 2022) when it comes to delivering rural infrastructure and critical services across our regions; and if he will make a statement on the matter. [2527/23]
View answerThe response to this PQ is essentially the same as that which I gave to Priority Question 5 today from the Deputy.
Supporting rural Ireland is a major, cross governmental policy objective and priority.
Firstly, I should say that the amounts allocated to the Department of Rural and Community Development are themselves but a fraction of what we invest in our regions and rural communities. Government expenditure as a whole is directed to serving the needs of the entire nation, whether to people living in our cities, our regions, our towns or in our rural communities. Overall Government expenditure supports public services and investment in all the country, including in rural areas.
More specifically, the Department of Rural and Community Development (DRCD) was established in 2017 with a mission to promote rural and community development and to support vibrant, inclusive and sustainable communities throughout Ireland.
Since establishment the Department has helped deliver and implement a strong policy platform for rural development. In March 2021 the Government launched Our Rural Future, Ireland’s Rural Development Policy. This policy reflects a whole of Government commitment to the economic and social development of rural Ireland, which is also reflected in the National Development Plan.
While the Department of Rural and Community Development is only one aspect of Government investment, it is important to note the growth in funding for that Department. In 2022 the Department has a gross allocation of €398 million, of which €202 million was for the rural development programme. This compares to a rural development programme allocation of €80 million in 2017, when the Department was established. This 150% increase in funding has enabled unprecedented investment in rural development schemes including LEADER, Town and Village Renewal, the Local Improvement Scheme and the Rural Regeneration and Development Fund.
The Rural Regeneration and Development Fund has approved funding of €395 million for 225 projects since it first started approving projects in 2019. This demonstrates the level of investment and scale of ambition this Government has in terms of investment in rural economies and communities.
Our Rural Future, is a policy that is delivered right across Government, and investment in education, healthcare, transport, broadband, tourism, agriculture and food, and enterprise development is taking place across the relevant Departments and helping to ensure our rural communities and businesses are sustainable and continue to thrive.
More generally, overall Government expenditure underpins:
(i) the provision of primary and secondary schools (including special needs provision and school transport) in rural areas;
(ii) the provision of health services to the population of rural areas;
(iii) investment in improving and maintaining rural roads;
(iv) the provision of public transport in rural areas;
(v) the provision of housing in rural areas;
(vi) the provision of environmental services in rural areas;
(vii) investment in our critical agricultural sector and support for our farming community;
(viii) investment in job creation and enterprise throughout our regions and rural areas;
(ix) support for sporting activity in rural areas, including capital investment in local sport infrastructure;
(x) support for the provision of broadband in rural areas; and
(xi) support for tourism-related employment and enterprise in rural areas by tourism marketing and investment in tourism product.
I could instance several other major sources of Government support for and investment in our rural communities. What I outlined demonstrates the overall Government commitment to rural communities and the specific focus of the Department of Rural and Community Development (with its significantly increased budgets in recent years) on promoting the development and prosperity of rural communities.
213. Deputy Fergus O'Dowd asked the Minister for Public Expenditure and Reform the measures he and his Department are taking to decrease the cost of building materials, which is having a very negative impact on the construction industry and consumer; and if he will make a statement on the matter. [56965/22]
View answerAs Minister for Public Expenditure, NDP Delivery and Reform, I have responsibility for public procurement policy, including the work of the Office of Government Procurement within my Department.
There are two main sources for the significant and sustained increases in the price of a broad range of commonly used materials in the construction sector since Q2 of 2021. The first arises from the pandemic and in particular with materials shortages due to a sudden surge in demand as economies reopened across the globe. Essential supplies were prioritised throughout the pandemic, whereas the manufacture of materials for non-essential areas was impacted disproportionately leading to shortages in certain sectors including construction.
Whilst global supply chains grappled with this challenge, the Russian invasion of Ukraine resulted in further disruption to the supply of raw materials and, crucially, increases in energy prices which impacts both the manufacturing and transportation of materials, and affects all sectors, including construction.
The elevated cost of building materials therefore is linked to global events that are impacting on all economies. There is evidence to suggest that the rate of increase in material prices has moderated but they remain elevated and energy prices remain extremely volatile. The Building and Construction index (i.e. Materials and Wages) increased by 0.4% in November 2022 and by 10.0% in the 12 months to November 2022. The Rough Timber (including plain sawn) category of the Wholesale Price Index has seen prices reduce in recent months and the index as of November 2022 is 14.6% lower than this time last year.
My department’s response to this issue has been twofold: firstly, to introduce measures to safeguard projects being delivered under the National Development Plan; and, secondly to invest in and promote measures that will drive efficiencies in the construction of buildings.
The volatility in the price of materials and energy is giving rise to significant challenges in the tendering process. Contractors have been unable to obtain fixed prices from materials suppliers which in turn means that contractors have to build in significant contingencies to deal with the risk of further inflation. For projects that were tendered prior to the onset of price increases, contractors were unable to absorb the additional costs, leaving them exposed.
In January 2022, the Office of Government Procurement introduced amendments to the standard public works contracts to enable contractors to recover price increases in excess of stated thresholds to bring greater certainty in the tendering process. In response to the further price escalation in materials and the exceptional increases in energy prices evident since the Russian invasion, additional measures were introduced in May to address the risk arising under live contracts.
In order to improve delivery efficiency, the Construction Sector Group (CSG), which is chaired by the Secretary General of my Department, has a number of initiatives currently underway to increase productivity in the sector. These include the recently established Construction Technology Centre, known as Construct Innovate, to accelerate research and innovation within the sector; the Build Digital Project, which is funded by my department, to support the sector in its transition to digital; the adoption of Building Information Modelling; and an analysis of the cost of residential construction.
Furthermore, work is underway in both the Department of Enterprise, Trade and Employment and in the Department of Further and Higher Education, Research, Innovation and Science on Modern Methods of Construction which also aims to improve productivity in construction.
214. Deputy Frankie Feighan asked the Minister for Public Expenditure and Reform when he intends to sign and approve the 3% pension increase, backdated to 1 July 2022, for the over 15,000 pensioners (details supplied), as approved by the company some months ago. [2468/23]
View answerGenerally, issues such as pension increases are matters for consideration of the sectoral Minister in the first instance and take into account the application of scheme rules as well as the overall sustainability of pension funds.
Section 10 of the Eircom scheme rules specifies that discretionary pension increases may be authorised by the Minister for Environment, Climate and Communications, with the concurrence of the Minister for Finance on foot of the recommendation of the Minister for Public Expenditure and Reform.
My Department received a request for a pension increase for members of the Eircom pension scheme via the Department of Environment, Climate and Communications (DECC) on the 10th November 2022.
DECC and DPER have been engaging with the New Economy and Recovery Authority (NewERA) in recent weeks in relation to the increase requested. NewERA has been asked to prepare a report analysing the proposed increase and this is expected to be finalised shortly.
When NewERA’s analysis of the proposed increase has been provided, my officials and I will give full consideration to the requested pension increase. Following the granting of Ministerial consent for a pension increase the timing of the payment of the increase will be a matter for the employing body.
215. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform further to the meeting between the community surrounding Lough Funshinagh and the Minister of State with responsibility for the OPW on 10 November 2022, the steps that have been taken to date and the engagements with other State actors to progress a planning solution for the ongoing flooding and threat to homes and farmyards; and if he will make a statement on the matter. [2545/23]
View answerRoscommon County Council is leading the response to the flooding risk at Lough Funshinagh, Co. Roscommon.
Under my direction senior officials from the OPW met with officials from Roscommon County Council on 20th June 2022 with those discussions focused on identifying possible approaches to a viable solution to manage the flooding risk at Lough Funshinagh.
On-going engagement with the Council and other State agencies have taken place during 2022.
In December the Council and the OPW agreed to establish an Expert Working Group to support and help to identify the pathway to finding a means of progressing a viable solution. The initial work of the Expert Group, would be to scope out the requirements for a commission(s) to undertake the necessary surveys and investigations. This work is being informed by a review of the evidence and research on the nature and functioning of Lough Funshinagh completed by the OPW in 2022.
The Council is making contact with the proposed membership of this Expert Working Group, with cross departmental and agency representation.
A Steering Group for the work being led by the Council, with representation from the OPW will oversee the work to identify a viable solution to manage the flooding risk at Lough Funshinagh.
I can assure the Deputy that I am doing all that I can to support both the community and Roscommon County Council in progressing this matter to find an effective and sustainable solution to address the flooding risk in the area.
219. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the Departments that fared worse in efforts to ensure reduced costs through the medium of reform; and if he will make a statement on the matter. [2583/23]
View answerAll Government Departments are required to carefully manage public funds and to ensure that the best possible value is obtained whenever public money is spent or invested. Budgetary and expenditure reforms remain a key feature of public expenditure management throughout all Departments. This important goal has been fully embedded across the system of Government and is progressed in a number of ways including the day-to-day management of resources, regular engagement across Departments on cross-cutting issues and through the public service reform programme. It is also progressed through a range of core budgetary reform initiatives such as Performance Budgeting which was introduced in 2011.
A key part of the overall budgetary process, Performance Budgeting aims to deliver transparency and accountability on public expenditure by showing what has been delivered with financial allocations. Performance metrics are reported twice yearly in both the Revised Estimates Volume each December, and also in the dedicated Public Service Performance Report in early quarter two. All Government Departments identify relevant metrics which are reported, and with the current Public Service Performance report being the 6th edition, this information also provides trends in areas of expenditure. The Deputy might wish to note that the Public Service Performance reports are published on my Department's website on: www.gov.ie/en/collection/61d3f-public-service-performance-reports/
Performance Budgeting is a valuable tool to enable Oireachtas scrutiny of public expenditure and the format of the information is presented to the Budgetary Oversight Committee each year for feedback on how this can best serve as the tool intended.
220. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which public expenditure has been affected by international events; the way such fluctuations can be ameliorated in the short and medium term; and if he will make a statement on the matter. [2584/23]
View answer221. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which public expenditure targets remain in line with expectations and are likely to do so in the coming year; and if he will make a statement on the matter. [2585/23]
View answer224. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which his Department continues to measure the impact of inflation which might affect his Department’s ability to maintain good practice and at the same time ensuring that efficiencies and reforms continue in such a way as to be of most benefit to the economy; and if he will make a statement on the matter. [2588/23]
View answerI propose to take Questions Nos. 220, 221 and 224 together.
International events such as Brexit; Covid-19; inflation and the humanitarian consequences of the war in Ukraine have posed significant challenges to Ireland in recent years. Public expenditure has adjusted to meet the changed circumstances imposed by these external events through providing additional temporary funding to support our public services, households, individuals and businesses. These international events are expected to be temporary challenges and have been treated as such. Nonetheless mitigating the impacts of these challenges has required public resources to be deployed at an exceptional scale. Funding of supports for these external shocks has been treated separately from the core day-to-day expenditure allocations. This allows continued focus on longer term goals such as investment in infrastructure and public services while dealing with key emerging temporary issues as non-core spending. This seeks to ensure our public finances are sustainable into the future.
The extent of the additional funding provided can be seen in the end 2022 spending figures which were published at the beginning of this month with gross voted expenditure reaching €88.8 billion. This reflects both the supports provided towards the challenges posed by international events and continued investment in public services — including substantial increases in capital investment and delivery through the National Development Plan. Compared to the total amount allocated after supplementary estimates, total gross spending was €1.9 billion or 2.1% lower than expected. For 2023 spending, Departments are due to submit a breakdown of how they intend to spend their allocations by month to my Department in February. This will be used to monitor how spending is progressing compared to plan with figures published each month in the Fiscal Monitor.
The rate of inflation continues to remain elevated and my Department, alongside the Department of Finance, will continue to closely monitor economic developments during 2023. Measures introduced to date provide substantial support. However, Government cannot protect all households and businesses against the full effects of inflation as the level of resources available are finite and to do so would lead to further inflationary pressures. The measures that have been introduced recognise the particular challenges faced by those on lower and fixed incomes, were capable of being introduced swiftly and are largely temporary in nature. This seeks to ensure the most effective use of public resources.
Budgetary and expenditure reforms remain a key feature in terms of public expenditure and budgetary management throughout all Departments. This important goal is progressed in a number of ways including through day-to-day management of resources, regular engagement across Departments and through the public service reform programme. It is also progressed through a range of important budgetary reform initiatives including, but not limited to:
- Performance Budgeting;
- Equality Budgeting;
- Green Budgeting;
- Well-being budgeting; and
- The Spending Review Process. These reforms place an emphasis on broadening the approach to how public expenditure is appraised, implemented and reviewed, and also the impact of public expenditure across different cohorts of society and different categories of expenditure. They work in tandem with broader initiatives, such as the establishment of the Irish Government Economic and Evaluation Service (IGEES), to develop capacity and enhance the role of economics and value for money analysis in public policy making.
While each reform may be considered in isolation, it is important to recognise that each represents one part of the overall reform process. Together, these budgetary reforms aim to provide a more comprehensive and thorough insight into how public services are supporting the Irish population.
222. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which public procurement can be improved in line with reforms and the achievement of value for money while speeding up public procurement issues; and if he will make a statement on the matter. [2586/23]
View answer223. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he continues to recognise the challenges faced through public procurement, with particular reference to the necessity to eliminate delays while maintaining best practice; and if he will make a statement on the matter. [2587/23]
View answerI propose to take Questions Nos. 222 and 223 together.
Public procurement is governed by EU legislation and national regulations with the aim of promoting an open, competitive and non-discriminatory public procurement regime that delivers the best value for money. All Irish public bodies are obliged to spend or invest public funds with care, and to obtain optimal value for money in accordance with the Public Spending Code.
In line with the Programme for Government: Our Shared Future, the focus now is to develop further the potential of strategic procurement, with an emphasis on sustainability and social considerations, public works reform and innovation. While value for money remains a key consideration, the strategic use of public procurement will support green, social and innovation policies strategic objectives in line with the Programme for Government, international developments and EU priorities such as the Green Deal and digitalisation.
As part of this broader approach to ensuring value for money, the introduction of centralised procurement in earlier phases of reform continues to be embedded in the delivery of services to clients and customers. My Department continues to actively explore new areas and mechanisms to further embed reforms and efficiencies that will enhance the cost-effectiveness of public services; for example, through greater use of opportunities presented through digitalisation, intelligent automation, innovation and the implementation of new ways of working and service design.
To support best practice and the timely delivery of public procurement procedures, a number of initiatives are being implemented. The Office of Government Procurement (OGP) recently launched a new website in conjunction with the Environmental Protection Agency that allows contracting authorities to search for Green Public Procurement (GPP) Criteria for their competitions. The online search tool allows users to rapidly find, select and download GPP criteria relevant to a specific procurement project.
The OGP is responsible for the implementation of updated digital procurement notices, known as e-forms, which are central to the digital transformation of public procurement nationally and across the EU. Introduced by Commission Implementing Regulation (EU) 2019/1780, implementing the new e-forms will support best practice, improve the accuracy of information included on procurement notices, increase transparency in public procurement and make it easier for suppliers to find and identify relevant notices. All of which will contribute to the timely delivery of procurement procedures.
225. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he expects all Government projects to continue to be completed on time and within budget; and if he will make a statement on the matter. [2589/23]
View answerThe National Development Plan (NDP) published in October 2021 provides a detailed and positive vision for Ireland over the next 10 years and delivers total public investment of €165 billion over the period 2021-2030. As Minister for Public Expenditure, NDP Delivery, and Reform I am responsible for setting the overall capital allocations across Departments. Management and delivery of individual investment projects within the allocations agreed under the NDP is a key responsibility of every Department and Minister. My department is also responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure.
It is important to acknowledge that the majority of public investment projects are delivered on budget and on time and there is a high level of professionalism across the sectors. To build on these strengths, the NDP set out the range of actions that are being taken to strengthen delivery, maximise value for money, and ensure to the greatest extent possible that projects are delivered on time, on budget and with the benefits targeted at the outset.
The update of the Public Spending Code in 2019 combined with lessons learned from domestic projects and international best practice highlighted the need for more structured scrutiny of major public investment projects, particularly in the areas of planned delivery, costings and risk. This is to ensure that Government is making decisions with a full picture of the proposal, its costs, risks and benefits.
Two initiatives were introduced to strengthen the assurance process for major public investment projects to provide more structured scrutiny; an External Assurance Process (EAP) to provide independent scrutiny for major public capital projects over €100 million and the establishment of the Major Projects Advisory Group (MPAG) who scrutinise project proposals and external reviews as a prerequisite to seeking Government approval for major projects.
The Project Ireland 2040 Delivery Board oversees the delivery of the NDP and in 2022, five external members were appointed to the Board to bring additional expert knowledge, independent and regional perspectives, and an enhanced challenge function to the deliberations of the Board.
These reforms, alongside ongoing engagement with the construction sector regarding capacity and innovation, will support the effective delivery of the public capital programme under the NDP.
226. Deputy Bernard J. Durkan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the extent to which provision is being made to ensure the hotel and leisure industry is adequately prepared for the tourist season, both in terms of staff and accommodation; and if she will make a statement on the matter. [2560/23]
View answerThe potentially lower supply of tourism accommodation in 2023 due to a range of factors, including Ireland's response to the current humanitarian emergency, is of concern given the multiplier impact in the wider tourism economy of visitor spend on tourism accommodation. My officials are engaging on this with a number of Departments, including the Department of Children, Equality, Disability, Integration and Youth which is working urgently across Government with agencies, NGOs and local authorities to bring new accommodation on board so that the State’s humanitarian responsibilities can be met. Ireland is resolute in our solidarity and support for Ukraine and we are honouring our commitment to help people who have been displaced by this horrendous war. This is by some distance the largest humanitarian operation ever undertaken by the Irish State and tourism accommodation has played a vital part in this national response.
The Government is monitoring the impact of the humanitarian response on the tourism sector, and I have secured continued additional funding for tourism in Budget 2023 totalling €30 million. Of this, €15 million was secured for overseas marketing of Ireland and the development of The Invitation project. As global competition heightens, sustaining extensive marketing campaigns will be vital to support the on-going recovery effort, building on the initial inbound tourism demand seen in 2022. Ensuring the resilience and growth of this demand is vital to the industry, to jobs and to communities right across the island of Ireland.
Domestically, an additional €15 million will underpin a range of measures to support the sector including boosting the industry’s recruitment and retention efforts, sustainable tourism initiatives and establishment of a register of short-term letting properties as part of the Government’s “Housing for All” reforms.
Recruitment and retention of staff continues to be a significant challenge for the tourism sector, not just in Ireland but in many countries around the world. Prior to Covid, the sector had registered consistent increases in the numbers employed in Ireland’s regions and was an important driver of greater regional balance and dispersed economic activity. A sustained, and sustainable, rebuild is essential as tourism supports communities and drives regional development in a manner unlike other sectors.
My Department participates on the Tourism and Hospitality Careers Oversight Group which brings together industry representatives, state agencies, Government Departments and the education sector. The Group has pivoted to focus on supporting the industry to address some of its immediate recruitment challenges this year. My Department and Fáilte Ireland are also working with industry and across Government Departments to ensure a co-ordinated approach to addressing the labour and skills shortages in the sector across all roles.
With regard to working conditions in the sector, Fáilte Ireland’s research indicates that 70% of people within the sector see tourism as a long-term career option. While this is a good proportion, Fáilte Ireland has a range of programmes to build skills and capability for businesses and individual employees including a suite of online self-directed professional development courses.
The number of vacancies across the industry has fallen, and is now estimated at 22,000, down from the previously estimated 40,000. Around 70% of businesses that are recruiting are increasing their pay and offering flexible work patterns, more stable work schedules and other benefits such as compensation for working unsocial hours which is becoming increasingly common. The research also shows that staff retention has become less difficult, with employers reporting improvements in day-to-day operations. From an employee perspective, job security among workers has grown and acceptability around working hours has increased. However, while these improvements in employee sentiment are encouraging, more still needs to be done to make working in the industry as appealing as possible.
As part of the drive to promote tourism as an attractive sector within which to work, Fáilte Ireland has launched a new “Employer Excellence” programme to help all participating businesses to improve their employer practices, and enhance their reputation as excellent employers. This will help employers to drive great employee engagement, build the appeal of their workplace and unlock greater levels of performance across their business. This new programme should lead to greater retention of staff and improve the view of the industry as career of choice.
227. Deputy Ged Nash asked the Minister for Housing, Local Government and Heritage when his Department will provide clarity on the amount of funding to be made available to Louth County Council to acquire homes under the tenant-in-situ scheme; when the resources will be allocated to the local authority; and if he will make a statement on the matter. [2469/23]
View answerHousing for All, is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. This includes the delivery of 90,000 social homes by 2030. Housing for All is supported by an investment package of over €4bn per annum, through an overall combination of €12bn in direct Exchequer funding, €3.5bn in funding through the Land Development Agency and €5bn funding through the Housing Finance Agency. Under Housing for All, the Government will deliver 47,600 new build social homes and 3,500 social homes through long-term leasing in the period 2022-2026. Our clear focus is to increase the stock of social housing through new build projects delivered by local authorities and Approved Housing Bodies (AHB) and, with this, to reduce the numbers of social homes delivered through acquisition programmes.
My Department does not operate a specific Tenant-in-Situ Scheme, rather acquisitions of second hand properties for social housing fall under a number of local authority and AHB acquisitions programmes. On 19 January 2022, my Department issued a circular letter to local authorities advising that social housing acquisitions by local authorities and AHB CALF acquisitions in 2022 would be focussed on a number of priority areas, as follows: - One-bedroom units to deliver on Housing First and meet the short supply in this category;
- Other properties that allow persons/families to exit homelessness; and
- Specific housing required for/suitable for individuals with a disability or other particular priority needs.
Local authorities were also advised that limited acquisitions through the Capital Assistance Scheme will also be approved, subject to the available budget for specific vulnerable cohorts, such as housing for older people, accommodation for individuals and families who are homeless and for people with a disability. On 20 April 2022, a further circular letter issued to local authorities in relation to social housing acquisitions. The key purpose of this circular was to advise local authorities that I had reinstated the delegated sanction to local authorities in respect of social housing acquisitions which are: (i) in one of the priority categories set out in the January circular letter;
(ii) in line with acquisition cost guidelines; and
(iii) could be completed during 2022. In November 2022 I extended the arrangements relating to the delegated sanction to the end of June 2023. I have requested local authorities to be proactive in acquiring properties which can prevent homelessness, including properties where a notice of termination has been issued to the tenant. Funding is available in my Department to support properties acquired by Louth County Council, in line with the delegated sanction in place.
228. Deputy Catherine Murphy asked the Minister for Housing, Local Government and Heritage if he will provide a schedule for the development of social and affordable housing on public land banks in County Kildare in 2023 and 2024. [2482/23]
View answerHousing for All is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade. This includes the delivery of 90,000 social homes, 36,000 affordable purchase homes and 18,000 cost rental homes. Housing for All is supported by an investment package of over €4bn per annum, through an overall combination of €12bn in direct Exchequer funding, €3.5bn in funding through the Land Development Agency and €5bn funding through the Housing Finance Agency.
Under Housing for All, the Government will deliver 47,600 new build social homes; 3,500 social homes through long-term leasing and 28,500 new affordable homes in the period 2022-2026. Kildare County Council has a target to deliver 400 new build social homes in 2023 and 409 new build social homes in 2024. I have also set individual five-year Affordable Housing delivery targets, with Kildare assigned a target of 226 Affordable Housing Fund supported homes by 2026. It should be noted that this excludes affordable purchase and cost rental delivery via the Land Development Agency and Approved Housing Bodies.
A key action of Housing for All required local authorities to develop Housing Delivery Action Plans to include details of social and affordable housing delivery. The Plans set out details of both social and affordable housing delivery as appropriate over the period 2022-2026, in line with targets set under Housing for All. In preparing the Plans, local authorities were required to include details of land available to delivery housing and details of land acquisition requirements. The Plans also include details of the locations and delivery streams for social housing schemes. Kildare’s Housing Delivery Action Plan is available on Kildare County Council’s website at this link: kildarecoco.ie/YourCouncil/Publications/Housing/Kildare%20County%20Council%20Housing%20Delivery%20Action%20Plan.pdf
My Department publishes comprehensive programme level statistics on a quarterly basis on social housing delivery activity. This data is available to the end of Quarter 3 2022, and is published on the statistics page of my Department’s website, at the following link: www.gov.ie/en/collection/6060e-overall-social-housing-provision/
My Department also publishes the Social Housing Construction Status Report (CSR). The CSR provides details of social housing developments that have been completed, are under construction or are progressing through the various stages of the design and pre-tender process. The most recent publication was for Q3 2022. The report is available at the following link: www.gov.ie/en/publication/2b4cd-social-housing-construction-projects-status-report-q3-2022/. A version of the CSR file can also be downloaded for analysis at this link: data.gov.ie/dataset/social-housing-construction-status-report-q3-2022?package_type=dataset
Local authorities have begun collating information on the delivery of affordable homes in their area in the same manner as is currently undertaken for social housing. It is intended that information on delivery across all delivery streams will be coordinated by my Department and I expect that my Department will be in a position to commence reporting on affordable delivery figures in national quarterly delivery statistics for Q4 2022.
The First Home affordable purchase scheme, launched in July 2022, supports first-time buyers in purchasing new homes in the private market through the use of an equity share model. The scheme, which has issued over 200 approvals in Kildare to date, is available nationwide and more information can be found at: www.firsthomescheme.ie/
The Land Development Agency (LDA) has been granted planning permission for a Strategic Housing Development (SHD) on the lands of the former Devoy Barracks in Naas intended to deliver 219 affordable purchase, cost rental and social homes. The LDA is also tasked with unlocking stalled private, planning-consented developments through Project Tosaigh. Work is underway in assessing proposals submitted and details of current LDA developments can be found at: www.lda.ie
Other measures, such as the Help to Buy Scheme and the Local Authority Home loan are also nationally available to eligible first-time purchasers to make home ownership more affordable.
