Cathal Crowe
Question:229. Deputy Cathal Crowe asked the Minister for Finance the status of the provision of loan guarantee schemes for SMEs, as outlined in budget 2023; and if he will make a statement on the matter. [2763/23]
View answerBusiness Supports
Questions (229)
Written answers
The loan guarantee schemes for SMEs outlined in Budget 2023, which are being delivered through the Strategic Banking Cooperation of Ireland (SBCI) include the Energy Efficiency Loan Scheme, the Growth and Sustainability Loan Scheme, and the Ukraine Credit Guarantee Scheme. I am pleased to provide the Deputy with an update on their status.
Energy Efficiency Loan Scheme
The Energy Efficiency Loan Scheme (EELS), launched in July 2022, is a 10-year loan guarantee scheme focused on improving businesses’ sustainability and increasing investments in energy efficiency measures, including heat pumps, solar panels, LED lightning and other energy-saving technology.
This scheme is designed to help SMEs, farmers and fishers reduce their energy costs and transition to more sustainable business models. Borrowers can benefit from reduced interest rates, as low as 4%, and finance amounts ranging from €10,000 to €150,000 over terms of up to 10 years.
Growth and Sustainability Loan Scheme
Government approved the establishment of a €500 million Growth and Sustainability Loan Scheme on 9 November 2022. This Scheme will be a successor scheme to the Future Growth Loan Scheme (FGLS), as a longer-term loan guarantee scheme to enable investment.
The FGLS scheme is fully subscribed and new applications are no longer being accepted. An independent review of that scheme provided strong evidence of positive economic benefits for many SMEs that accessed finance through that scheme, including increases in employment and turnover. The review of the FGLS also confirmed that there is continued demand by SMEs for appropriate longer-term external finance for investment purposes.
Similar to its predecessor scheme, the Growth and Sustainability Loan Scheme will provide for loans ranging from €25,000 to €3 million; for terms of 7 to 10 years. Loans of up to €500,000 can be unsecured. The Growth and Sustainability Loan Scheme will be available to SME’s, including farmers and fishers, with maximum loans to mid-caps limited to €937,500 due to De Minimis State Aid restrictions.
Under the scheme, 70% of the lending volume will be provided for investment in business growth and sustainability, while a minimum of 30% of lending volume will be directed to investment in environmental sustainability. The SBCI will deliver the scheme on behalf of the Minister for Enterprise, Trade and Employment and the Minister for Agriculture, Food and the Marine. This scheme will be underpinned by a counter-guarantee from the European Investment Fund/European Investment Bank Group (EIF/EIBG). It is anticipated that this scheme will launch in Q2 2023.
Ukraine Credit Guarantee Scheme
The Statutory Instrument in relation to the Ukraine Credit Guarantee Scheme (UCGS) was signed on 08 December 2022 to unlock up to €1.2 billion of low-cost, unsecured working capital for SMEs, small Mid-Caps, and primary producers affected by the Ukraine crisis.
In order to qualify for the scheme, the borrower will have to declare that costs have increased by a minimum of 10% on their 2020 figures and that the loan is being sought specifically as a result on difficulties being experienced due to the Ukraine crisis. Loan facilities ranging from €10,000 to €1 million will be available. Loans of up to €250,000 can be unsecured, which can be used for overdrafts, working capital and term loan facilities. It is anticipated that this scheme will launch in the coming weeks.
Business Supports
Questions (230)
Jim O'Callaghan
Question:230. Deputy Jim O'Callaghan asked the Minister for Finance the number of businesses in each county that have successfully applied for inclusion under the temporary business energy support scheme; the estimated value or worth of the support in each county in tabular form; and if he will make a statement on the matter. [2819/23]
View answerWritten answers
The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs over the winter months.
Sections 100 to 102 of the Finance Act 2022 make provision for the TBESS. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023. The TBESS is available to eligible 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.
Qualifying businesses can claim for 40% of the increases in their energy bills between the ‘claim period’, September 2022 to February 2023 and the ‘reference period’, the corresponding calendar month in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade or profession. Businesses which are eligible for TBESS can register for the scheme via Revenue’s online service and comprehensive guidelines on the operation of the scheme are available on the Revenue website.
I am advised by Revenue of the following registrations and claims by county:
|
County |
All Applications |
Approved Registrations |
Value of Approved Claims |
|
Carlow |
179 |
177 |
€246,869 |
|
Cavan |
247 |
239 |
€288,170 |
|
Clare |
338 |
329 |
€445,847 |
|
Cork |
1,624 |
1,591 |
€1,769,841 |
|
Donegal |
486 |
480 |
€618,030 |
|
Dublin |
2,941 |
2,869 |
€3,917,659 |
|
Galway |
804 |
784 |
€800,288 |
|
Kerry |
532 |
516 |
€660,106 |
|
Kildare |
476 |
466 |
€503,351 |
|
Kilkenny |
306 |
294 |
€257,051 |
|
Laois |
176 |
173 |
€193,600 |
|
Leitrim |
125 |
124 |
€84,953 |
|
Limerick |
574 |
562 |
€589,309 |
|
Longford |
148 |
146 |
€114,108 |
|
Louth |
389 |
380 |
€464,029 |
|
Mayo |
441 |
431 |
€543,688 |
|
Meath |
503 |
497 |
€653,171 |
|
Monaghan |
223 |
219 |
€301,547 |
|
Offaly |
221 |
216 |
€199,788 |
|
Roscommon |
169 |
164 |
€195,799 |
|
Sligo |
203 |
194 |
€266,030 |
|
Tipperary |
498 |
487 |
€473,885 |
|
Waterford |
388 |
376 |
€362,935 |
|
Westmeath |
344 |
337 |
€280,950 |
|
Wexford |
483 |
471 |
€600,293 |
|
Wicklow |
336 |
327 |
€322,880 |
I am further advised by Revenue that applications received from businesses are reviewed to determine eligibility and this accounts for the variance in the figures for ‘all applications’ and ‘approved registrations’. In addition, Revenue is publishing detailed statistical reports in relation to the TBESS which are updated on a weekly basis. These reports are available on Revenue’s website.
Tax Code
Questions (231)
Paul Kehoe
Question:231. Deputy Paul Kehoe asked the Minister for Finance if he is considering extending the 9% VAT rate for the hospitality industry, given the challenging conditions the industry continues to face; and if he will make a statement on the matter. [2847/23]
View answerWritten answers
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.
Pension Levy
Questions (232)
Paul McAuliffe
Question:232. Deputy Paul McAuliffe asked the Minister for Finance his plans to review the pension levy imposed on retired Aer Rianta workers; and if he will make a statement on the matter. [2866/23]
View answerWritten answers
I assume the pension levy the Deputy is referring to is the levy which was charged on pension schemes from 2011 to 2015 in accordance with section 125B of the Stamp Duties Consolidation Act 1999.
The levy was introduced in the wake of the financial crash, at a time when the economy was in very serious difficulties. It was charged on the market value of assets in pension schemes held on 30 June in each year at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015) and was discontinued from 2016.
Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets.
Pension Levy
Questions (233)
Michael McNamara
Question:233. Deputy Michael McNamara asked the Minister for Finance if he has any plans to abolish the Government pension levy introduced in tandem with the jobs initiative in 2011, as the jobs initiative has now concluded; and if he will make a statement on the matter. [2890/23]
View answerWritten answers
As the Deputy is aware the Pension Levy on Private Funds was introduced in the wake of the financial crash and at a time when the economy was in serious difficulties. The intent of the levy was to raise revenue in respect of the generous tax reliefs that those contributing to pension arrangements had benefited from over many years.
The levy on pension funds was provided for in section 125B of the Stamp Duties Consolidation Act 1999 (as inserted by section 4 of "the 2011 Finance (No. 2) Act"). It was charged on the market value of assets in pension schemes held on 30 June in each year, at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015). Liability for the levy rested with trustees of pension schemes and others responsible for the management of pension fund assets.
It is important to note that this levy was discontinued from 2016.
Under the legislation, the payment of the levy was treated as a necessary expense of a pension scheme and it was a matter for the trustees or insurers to decide when and how the levy should be passed on to scheme members and to what extent, given the particular circumstances of the pension schemes for which they are responsible. I have no detailed information on the decisions made by pension fund trustees or others in relation to the passing on of the full or a partial impact of the levy to the current, deferred or former (retired) members of pension schemes. I am aware, however, that where trustees have made the decision to pass on the impact or part of the impact of the levy to pensioners that a smaller reduction in pension payments over the lifetime of the pension may have been made in many cases in preference to a larger reduction over a shorter period.
The value of the funds raised by way of the levies have been used to protect and create jobs and this has helped to support the improved financial and economic position of the State.
Business Supports
Questions (234)
Fergus O'Dowd
Question:234. Deputy Fergus O'Dowd asked the Minister for Finance if he will provide details on the way new businesses can apply for and access the much-needed temporary business energy support scheme; and if he will make a statement on the matter. [62066/22]
View answerWritten answers
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. The TBESS operates by reference to bills for the metered supply of natural gas and electricity through electricity accounts or gas connections identified by their own Meter Point Reference Number (MPRN) or Gas Point Reference Number (GPRN). 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. Where a business has not been issued with an electricity or natural gas bill for the corresponding reference period in the previous 12 months because, for example, the business commenced trading after the end of that reference period, its eligibility for the TBESS will be based on a deemed reference electricity or gas unit price. The Sustainable Energy Authority of Ireland (SEAI) has provided a deemed reference unit price for the range of MPRNs and GPRNs for each of the months from September 2021 to February 2022. These deemed reference unit prices are based on data provided to the SEAI by energy suppliers and the Commission for Regulation of Utilities. If the unit price on a relevant electricity or natural gas bill is at least 50% higher than the deemed reference unit price, the business will pass the threshold for support under the scheme. In these circumstances, the eligible cost amount will be calculated by reference to the difference between the actual and deemed unit prices and will be based on consumption levels in the current bill. All qualifying businesses, including new qualifying businesses, wishing to claim support under the TBESS are required to register for and make a claim using the Revenue Online Service (ROS). In circumstances where a deemed reference unit price is to apply, this will be done on behalf of the business on ROS. At registration, applicants for the TBESS are asked if the electricity account or gas connection has been held by the business since September 2021. If the answer is ‘No’, the business is then requested to provide the date of connection. This indicates, to ROS, what reference periods will require a deemed reference unit price. The business is then requested to input an item of information regarding their category of consumption because the applicable deemed reference unit price will depend on that category. In the case of an electricity account, it is the Distribution Use of System (DUoS) Group. The ‘DG’ number, which is on every electricity bill, indicates the DUoS profile. In the case of a gas account, it is the ‘AC band’. Most gas bills have an AC band listed but in the event that the AC band is not listed on the bill, customers can contact their suppliers for that information. The DG number and AC band are usually indicated clearly on the energy bill. Revenue has published an ‘Understanding Your Bill’ Guide on its website that applicants can consult for assistance with identifying this information. Revenue has also published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website at: www.revenue.ie/en/starting-a-business/documents/tbess-guidelines.pdf. Deemed reference unit prices for electricity and gas, which have been made available by the SEAI, are contained in Appendix III of the guidelines.
Tax Code
Questions (235)
Róisín Shortall
Question:235. Deputy Róisín Shortall asked the Minister for Finance if he is giving consideration to the difficulties facing co-habiting couples who jointly own a property and then must pay inheritance tax on their family home when one of them passes away; if he is considering the rights of co-habiting couples to apply to the Revenue Commissioners for a certificate to grant the same tax rights as married couples; and if he will make a statement on the matter. [3016/23]
View answerWritten answers
For the purposes of capital acquisitions tax (CAT), the relationship between the person who provides a gift or inheritance (the disponer) and the person who receives it (the beneficiary) determines the tax-free threshold (Group Threshold) below which CAT does not arise. Any prior gift or inheritance received by a person since 5 December 1991 from within the same Group Threshold is aggregated for the purposes of determining whether any CAT is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant Group Threshold, CAT at a rate of 33% applies on the excess. There are three Group thresholds:
- the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including certain foster children) of the disponer;
- the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;
- the Group C threshold (currently €16,250) applies in all other cases.
In the case of long-term cohabitants who are not related to each other, the relevant Group Threshold is the Group C threshold, which is €16,250. However, an exemption from CAT may be available in relation to certain gifts and inheritances between long-term cohabitants.
Firstly, where a cohabitant inherits the family home from his or her deceased partner, he or she may be in a position to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the deceased cohabitant’s principal private residence at the date of his or her death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in a nursing home. The inheriting cohabitant must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. In addition, the inheriting cohabitant must not have a beneficial interest in another residential property. Detailed guidance on the dwelling house exemption has been published on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf
Secondly, gifts and inheritances taken by a qualified cohabitant in accordance with a Court Order made under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 are exempt from CAT. Part 15 of that Act provides for a redress scheme whereby court orders can be obtained in certain circumstances in relation to the transfer of property. A “qualified cohabitant” is a person who has been in a committed relationship with another person for a minimum period of 5 years (or 2 years where they are parents of one or more dependent children), whose relationship has ended due to death or separation and neither of whom was married to and living with another person in 4 of the 5 years immediately prior to the end of the relationship.
In relation to the Deputy’s question as to whether I am considering the rights of cohabiting couples to apply to Revenue for a certificate to grant the same tax rights as married couples, it is important to note that differences in the tax treatment of the different categories of couples arise from the objective of dealing with different circumstances while also respecting the constitutional requirement to protect the institution of marriage. Cohabitants do not have the same legal rights and obligations as a married couple or couple in a civil partnership, which is why they are not accorded similar tax treatment to couples who have a civil status that is recognised in law. Any change in the tax treatment of cohabiting couples can only be addressed in the broader context of future social and legal policy development in relation to such couples. As such, there is no statutory basis on which Revenue could issue the type of certificate the Deputy has referred to.
Further information on the taxation of cohabiting couples has been published on the Revenue website at: www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/cohabiting-couples/index.aspx
Primary Medical Certificates
Questions (236)
Pauline Tully
Question:236. Deputy Pauline Tully asked the Minister for Finance the number of people awaiting an appeal with the Disabled Drivers Medical Board of Appeal on the decision to refuse them a primary medical certificate; and if he will make a statement on the matter. [3017/23]
View answerWritten answers
The Disabled Drivers and Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal (DDMBA). 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.
As of 31st December 2022, there are currently 759 people awaiting an appeal hearing with 382 of those dating back to 2021 and the remaining 377 people applying for an appeal in 2022.
Requests for appeal hearings can be sent to the DDMBA secretary in the National Rehabilitation Hospital (NRH). The NRH provides clinical facilities and staffing (including a secretary) to facilitate the DDMBA in carrying out its remit, and costs incurred are reimbursed to the NRH annually by DFIN. Appeal hearing dates for the outstanding appeals will be issued once the new Board is in place.
You should be aware that assessments for the primary medical certificate, by the HSE, are continuing to take place. In this regard, an important point to make is that even though there has been no appeal mechanism since the previous Board resigned, applicants who have been deemed not to have met one of the six eligibility criteria required for a PMC are entitled to request another PMC assessment six months after an unsuccessful PMC assessment.
Question No. 237 answered with Question No. 68.
Business Supports
Questions (238)
Alan Dillon
Question:238. Deputy Alan Dillon asked the Minister for Finance if he is willing to extend the eligibility of the temporary business energy support scheme to include farmers and rural publicans; and if he will make a statement on the matter. [3031/23]
View answerWritten answers
Details of the Temporary Business Energy Support Scheme (TBESS) are set out in Finance Act 2022.
Farmers and rural public houses are eligible for payments under the TBESS in the same way as any other business that is carrying on a trade which is taxable under Case I of Schedule D where they meet all eligibility criteria. A person engaged in a trade of farming or hospitality who has suffered an increase of at least 50% in the average unit price of electricity and/or natural gas for the relevant billing period in 2022 or 2023 as the case may be, as compared with the average unit price for electricity and/or gas for the corresponding reference period in the previous year, will be eligible under the scheme.
In accordance with the scheme rules, the TBESS only applies to the metered supply of natural gas and electricity. The scheme is designed around determining increases in unit prices and actual consumption for each month falling within the period of the scheme as compared to the same month in the previous year based on information made available through electricity and gas meters.
Energy sources such as oil and LPG do not qualify for the scheme as it would be difficult to accurately determine the actual usage for each claim period (month), the relevant unit price for each claim period, or the actual increase in that unit price and usage over the same period in the reference period. For instance, an oil tank could be filled during the summer, with the oil being used in the winter months, or in February 2023 with the oil being used in the months that follow.
Detailed guidelines on the operation of the scheme, and how to claim are available on the Revenue website. I would encourage all eligible businesses to register for and claim under the scheme, noting that the deadline for claiming in respect of September 2022 is 31 January 2023.
National Asset Management Agency
Questions (239)
Eoin Ó Broin
Question:239. Deputy Eoin Ó Broin asked the Minister for Finance the engagement he has had with NAMA and or the Minister for Housing regarding NAMA's commercial interest in the land at the Poolbeg SDZ, and whether this interest could be transferred to Dublin City Council to ensure the delivery of genuinely affordable homes at that location as per the SDZ agreement. [3037/23]
View answerWritten answers
I wish to advise the Deputy that the Poolbeg West SDZ Planning Scheme includes a requirement for 25% of the residential units delivered in the SDZ to be reserved for social and affordable housing, comprising 10% Part V social housing and 15% affordable housing. NAMA retains a 20% minority interest in a 37.2 acre development site located within the SDZ. A consortium of Ronan Group Real Estate, Oaktree Capital Management, and Lioncor Developments owns the controlling 80% stake in the site. The development site has capacity for up to 3,800 residential units, of which 950 will be social and affordable homes, and approximately 1 million sq. ft. of commercial development, as well as educational facilities, public open spaces, civic spaces and other community amenities. The development of the site is being undertaken by the Consortium as controlling shareholders.
I am advised that planning permission has been granted by Dublin City Council for 570 residential homes on the site. This permission includes a provision for 86 affordable homes and 57 social homes – the requisite 25% as required by An Bord Pleanála’s grant of planning condition for the SDZ. Separate planning applications are currently under consideration by DCC for an additional 872 residential units (including 221 social and affordable homes) and 495,000 sq. ft. of commercial space. Planning applications for later phases of residential development will also be required to provide for 25% social and affordable homes per the Planning Scheme. In total, it is expected that 950 social and affordable homes will be delivered on the site.
As the Deputy may be aware, Section 9 of the NAMA Act provides that NAMA is independent in the performance of its functions and that I, as Minister, have no role in relation to its commercial operations or decisions. Nor am I a party to commercial transactions or agreements in which NAMA is engaged. NAMA is progressing its objective of facilitating the development of the site, including the delivery of the social and affordable homes, to achieve the maximum return to the taxpayer. The transfer of NAMA’s 20% shareholding to a suitable State body is a matter that I may have to consider in conjunction with NAMA as the Agency winds down by end-2025
Question No. 240 answered with Question No. 76.
Question No. 241 answered with Question No. 121.
Question No. 242 answered with Question No. 95.
Question No. 243 answered with Question No. 134.
Question No. 244 answered with Question No. 134.
Tax Reliefs
Questions (245)
Jackie Cahill
Question:245. Deputy Jackie Cahill asked the Minister for Finance the reason the help to buy scheme is only open to first-time buyers when they are purchasing a newly built home; his views on whether it is fair that this funding cannot be made available to a first-time buyer who is seeking to get on the property ladder by purchasing their first home when it is not a new build; if he will consider extending this scheme to all first-time buyers; and if he will make a statement on the matter. [3179/23]
View answerWritten answers
Help to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in Section 477C of the Taxes Consolidation Act 1997.
An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling.
A move to include properties which were previously used as residential homes/second-hand properties within the scope of the scheme itself would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply. Extending the HTB scheme in this way would provide no incentive effect to encourage the building of new homes and would be likely to have a significant dead-weight element and a high Exchequer cost. For these reasons, there are no plans at present to extend the HTB scheme to include such properties.
Tax Code
Questions (246)
Martin Kenny
Question:246. Deputy Martin Kenny asked the Minister for Finance the estimated cost of extending the existing reduced rates applicable to petrol and diesel until the end of June 2023; and if he will make a statement on the matter. [3181/23]
View answerWritten answers
I am advised by Revenue that the estimated cost of extending the reduced rates of Mineral Oil Tax (MOT) applicable to petrol and diesel until the end of June 2023 are shown in the following table.
|
Fuel Type |
MOT €m |
VAT €m |
Total €m |
|
Petrol |
54.4 |
12.5 |
67.0 |
|
Diesel |
161.6 |
11.9 |
173.5 |
These estimates are based on recent consumption data and do not account for any behavioural change.
Question No. 247 answered with Question No. 74.
Business Supports
Questions (248)
Louise O'Reilly
Question:248. Deputy Louise O'Reilly asked the Minister for Finance if the temporary business energy support scheme will be expanded to cover businesses that use oil. [62043/22]
View answerWritten answers
Details of the Temporary Business Energy Support Scheme (TBESS) are set out in Finance Act 2022. The TBESS 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 and to certain sporting bodies and charities. The scheme operates on a self-assessment basis.
In accordance with the scheme rules, the TBESS only applies to the metered supply of natural gas and electricity. The scheme is designed around determining increases in unit prices and actual consumption for each month falling within the period of the scheme as compared to the same month in the previous year based on information made available through electricity and gas meters.
For energy sources such as oil and LPG, it would be difficult to accurately determine the actual usage for each claim period (month), the relevant unit price for each claim period, or the actual increase in that unit price and usage over the same period in the reference period. For instance, an oil tank could be filled during the summer, with the oil being used in the winter months, or in February 2023 with the oil being used in the months that follow.
The TBESS is currently due to expire at the end of February and, in that context, in the coming weeks I will examine the operation of the scheme.
Tax Code
Questions (249)
Thomas Pringle
Question:249. Deputy Thomas Pringle asked the Minister for Finance if charitable donations from outside the State are taxed on arrival in the State; if not, if any other State charge is placed on a charitable donation when it arrives in the State for a charitable purpose within the State; and if he will make a statement on the matter. [3219/23]
View answerWritten answers
The Deputy has indicated that his question concerns donations from abroad made in response to a recent tragedy in the State. It is assumed that the donations are in monetary form, however, it is not clear from the information received who is receiving the donations and whether the money is going to a registered charity.
I am advised by Revenue that, where money is transferred from outside the State and is donated to a registered charity, the donation is not subject to Irish tax, or any other State charge, when the money comes into the State.
Where a person takes a gift for public or charitable purposes, it will be exempt from capital acquisitions tax (CAT) to the extent that Revenue is satisfied that it is used, or will be used, for public or charitable purposes in accordance with the law of the State. The public or charitable purposes may be either inside or outside of the State.
However, if the Deputy wishes to provide further details or has a particular case in mind he may contact Revenue directly in relation to the matter. In addition, the recipients of the donations may wish to make direct contact with Revenue for guidance as the CAT treatment would depend on the exact facts and circumstances involved. Revenue's National CAT Unit can be contacted through ROS or myAccount, by post at 9-15 Upper O’Connell Street, Dublin 1, or on 01 738 3673 from 9.30 am to 1.30 pm, Monday to Friday.
Banking Sector
Questions (250)
Thomas Pringle
Question:250. Deputy Thomas Pringle asked the Minister for Finance the discussions his Department has had with the banking sector in relation the treatment of homeowners affected by mica by the banks and the way they will be dealt with in the future; and if he will make a statement on the matter. [3220/23]
View answerWritten answers
I understand the difficult situation faced by homeowners whose houses are affected by defective concrete blocks.
The Government response to the MICA issue is led by my colleague the Minister for Housing, Local Government and Heritage. It has put in place a scheme of financial support to help affected homeowners. In terms of financial institutions who provide mortgages to help people buy or build their own home, as the Deputies are aware, the Central Bank is responsible for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements. Through its consumer protection role, the Central Bank sets out requirements in its codes of conduct which detail how regulated firms such as banks should deal with and treat their customers. In particular, the Code of Conduct on Mortgage Arrears 2013 (CCMA) places a requirement on regulated entities to have fair and transparent processes in place to deal with borrowers in, or facing, mortgage arrears and it sets out the process that entities must follow when a borrower is experiencing repayment difficulty. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits. All cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations. In the case of a repayment difficulty entities must explore all of the options for alternative repayment arrangements (ARAs) offered in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances. The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating. However, the Central Bank does not have remit over the commercial decisions of the entities it regulates and the nature of the particular support it provides to its customers in any particular case is a matter for that financial institution.
However, the Central Bank has stated that it encourages borrowers to engage as early as possible with their lenders and to provide the information required to enable an assessment of the individual circumstances commence.
Business Supports
Questions (251)
Pádraig O'Sullivan
Question:251. Deputy Pádraig O'Sullivan asked the Minister for Finance the number of applications made to the temporary business energy support scheme; and if he will make a statement on the matter. [3240/23]
View answerWritten answers
The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas (energy) costs over the winter months. A business can make a claim under the scheme if it is tax compliant, carries on a Case I trade or Case II profession, and has experienced a significant increase of 50 percent or more in its electricity and/or natural gas average unit price. The scheme runs from 1 September 2022 to 28 February 2023. Claims may be made in respect of each calendar month within this time frame.
The scheme, which is being administered by Revenue, provides for a cash payment to qualifying businesses. Revenue’s online system for registration for the scheme opened on 26 November 2022 and claims can be submitted under the scheme since 5 December 2022. Finance Act 2022 was signed into law on 15 December 2022; payments to qualifying claimants commenced after this date.
Revenue publishes statistics weekly regarding the numbers registering for and claiming under the scheme.
As of 18 January 12,357, businesses had registered for the scheme, of which 6,727 have commenced the claims process and 4,861 have submitted completed claims - some for more than one month or claim period. 5,793 claims have been approved with a value of €12.38m of which €10.99m has been paid out.
Mortgage Interest Rates
Questions (252)
Pádraig O'Sullivan
Question:252. Deputy Pádraig O'Sullivan asked the Minister for Finance if he will review matters in correspondence (details supplied); and if he will make a statement on the matter. [3241/23]
View answerWritten answers
The interest rate charged by a Central Bank regulated entity is, subject to the terms of the particular contract, a commercial matter for the creditor and, as you know, I cannot instruct mortgage creditors on the interest rate they charge or the type of mortgage products they offer to their customers.
However, the Central Bank has put in place a range of measures in order to protect consumers who take out or have a mortgage. This consumer protection framework seeks to ensure that lenders are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle.
For example, through protections at the initial marketing/advertising stage, in assessing the affordability and suitability of the mortgage and at a time when borrowers may find themselves in financial difficulties.
This consumer protection framework includes the various Central Bank statutory Codes of Conduct such as the Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013 (CCMA) and all regulated entities, including retail credit firms and credit servicing firms, are required to comply with the provisions of these codes in their dealings with consumers.
The framework includes increased protections for variable rate mortgage holders introduced by the Central Bank in February 2017. The enhanced measures, which are provided for in an Addendum to the Consumer Protection Code 2012 require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an increase.
The measures also improve the level of information required to be provided to borrowers on variable rates annually about other mortgage products available from their lender which could provide savings for the borrower. The lender must also signpost the borrower to the CCPC’s mortgage switching tool.
In addition the Bank has informed me that it has engaged with lenders to ensure the operational capacity is in place to facilitate people to switch at a system wide level.
The CCMA provides specific protections for borrowers in arrears or facing a prospect of arrears on a loan secured on a primary residence. In particular, a regulated entity must pro-actively encourage borrowers to engage with it about financial difficulties which may prevent the borrower from meeting his/her mortgage repayments.
Also, where a borrower is experiencing repayment difficulty, a regulated entity must explore all of the options for alternative repayment arrangements (ARAs) offered by the entity to determine if a more suitable and sustainable repayment option is available based on the borrower’s individual circumstances. If a borrower is not satisfied with the options proposed, or if the regulated entity declines to offer an ARA, an appeals mechanism is provided for in the CCMA.
In addition, there are a number of public initiatives to assist people who are in mortgage or other debt difficulty. For example, the Abhaile service which is made up of the Insolvency Service of Ireland (ISI), the Legal Aid Board, the Money Advice and Budgeting Service (MABS) and the Citizens Information Board provides free financial advice, and where appropriate also, legal advice to people experiencing difficulty with their mortgage.
Further information on this service can be found at on the MABS website and their number is 0818 072000. I would encourage any person who is experiencing difficulty with their debt situation to contact MABS for advice and assistance.
Banking Sector
Questions (253)
Pádraig Mac Lochlainn
Question:253. Deputy Pádraig Mac Lochlainn asked the Minister for Finance what efforts he and his predecessor, Minister Donohoe, have made recently to ensure that banks and financial institutions provide reasonable support and assistance to their mortgage-holders who will have to have their homes remediated due to defective concrete blocks. [3244/23]
View answerWritten answers
I understand the difficult situation faced by homeowners whose houses are affected by defective concrete blocks.
The Government response to the MICA issue is led by my colleague the Minister for Housing, Local Government and Heritage, who has put in place a scheme of financial support to help affected homeowners.
In terms of financial institutions who provide mortgages to help people buy or build their own home, as the Deputy is aware, the Central Bank is responsible for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements. Through its consumer protection role, the Central Bank sets out requirements in its codes of conduct which detail how regulated firms such as banks should deal with and treat their customers. In particular, the Code of Conduct on Mortgage Arrears 2013 (CCMA) places a requirement on regulated entities to have fair and transparent processes in place to deal with borrowers in, or facing, mortgage arrears and it sets out the process that entities must follow when a borrower is experiencing repayment difficulty. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits. All cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations. In the case of a repayment difficulty entities must explore all of the options for alternative repayment arrangements (ARAs) offered in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances. The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating. However, the Central Bank does not have remit over the commercial decisions of the entities it regulates and the nature of the particular support it provides to its customers in any particular case is a matter for that financial institution.
Nevertheless, the Central Bank has stated that it encourages borrowers to engage as early as possible with their lenders and to provide the information required to enable an assessment of the individual circumstances commence.
Further that Bank has also informed me that the protection of mortgage loan borrowers, including those in arrears, is a key priority and that it will continue to supervise compliance by regulated entities with the CCMA and will investigate any issues that arise, including patterns of behaviour which suggest that the CCMA process is not being followed.
Public Procurement Contracts
Questions (254)
Mattie McGrath
Question:254. Deputy Mattie McGrath asked the Minister for Finance the details of each publicly funded Government contract awarded to a company (details supplied); the exact value and location of each contract, including the tendering procedures involved, the number of other companies and entities tendering for the same contracts since June 2017, in tabular form; and if he will make a statement on the matter. [3299/23]
View answerWritten answers
I can advise the Deputy that my Department does not have any record of contracts awarded by the Department to the company mentioned in the details supplied since June 2017.
The Deputy will be aware that the ‘National Public Procurement Policy Framework’, issued by the Office of Government Procurement (OGP) in November 2019, sets out the procurement procedures to be followed by government departments and state bodies in accordance with EU rules and national guidelines. My Department endeavours to operate its procurement practices in line with these procedures when seeking to purchase works, goods, or services from suppliers.
Economic Policy
Questions (255, 263)
Bernard Durkan
Question:255. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he remains satisfied that Ireland’s economy remains adequately competitive; and if he will make a statement on the matter. [3317/23]
View answerBernard Durkan
Question:263. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which foreign direct investment remains an attractive, option given the need to ensure Ireland continues to benefit; and if he will make a statement on the matter. [3325/23]
View answerWritten answers
I propose to take Questions Nos. 255 and 263 together.
Ireland has a long-standing reputation internationally as a stable and pro-enterprise economy, reflected in our continued ability to attract and retain foreign direct investment (FDI). I am conscious of the need to maintain our competitive position on an international stage, given the contribution of this FDI to the domestic economy.
Latest data shows that the stock of FDI in Ireland stands at almost €1.4 trillion. Furthermore, the IDA reported the highest ever increase in FDI-related employment last year, with a 9 per cent increase in employment on 2021. The numbers employed in the multinational sector in Ireland last year are estimated at over 300,000 according to the IDA, with even more jobs in indigenous SMEs supported indirectly by the presence of this investment. Multinational enterprises also contribute to the economy by way of income and corporation tax receipts.
However, the world is facing into another year of considerable uncertainty. As a small, open economy, Ireland is particularly exposed to risks in the global economy, including further shocks to energy supplies and heightened geopolitical tensions.
Given that many of these factors are out of our control, it is important to focus on what we can control to ensure that Ireland retains our competitive advantage. This includes strengthening our strong legal and regulatory landscape, promoting our reputation as a stable economy in which to start and scale up a business, while continuing to invest in our talented and flexible workforce. Indeed, recently introduced measures in Budget 2023 aimed at incentivising employment via income tax cuts and increased childcare subsidies will have added to Ireland’s reputation for attracting and retaining talent.
In the year ahead, this Government will continue to support FDI, investing in key infrastructure and skills, as continued investment will be critical in supporting the domestic economy through the current global crisis.