Written Answers Nos. 58-72
58. Deputy Jackie Cahill asked the Minister for Transport the NTA's plans to roll out a permanent bus service in Clonmel town; the rationale behind the route and stops decided for the temporary service, given it differs from the previous local service; and if he will make a statement on the matter. [7469/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including delivering the Connecting Ireland Rural Mobility Plan, which is a major national public transport initiative with the aim of increasing public transport connectivity, particularly for people living outside the major cities and towns.
In light of the NTA's responsibilities for the rollout of services under the Connecting Ireland, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
59. Deputy Chris Andrews asked the Minister for Transport if he will provide an update on the introduction of micro-mobility scooters; when legislation will be advanced to allow companies to tender for contracts with local authorities; and when the tendering process will begin. [7489/23]
View answerThe Programme for Government has committed my Department to legislating for the use of e-scooter. The Road Traffic and Roads Bill, which completed committee stage before the Seanad on 1 February, will amend the Road Traffic Act 1961 to create a new vehicle class, Powered Personal Transporters (PPTs), which will include e-scooters. The Bill does not legalise the use of e-scooters but allows for the rules for the safe use of e-scooters and technical standards to be provided in regulations.
The completion of the e-scooter regulations is subject to the passage of the Bill before the Oireachtas and legal notification obligations to the Commission under the Single Market Transparency Directive (EU) 2015/1535, which will take a minimum of 12 weeks. Until such time as regulations are in place, the use of e-scooters on Irish roads will remain illegal.
As Minister, I have no role in the tendering of services between local authorities and private operators. However, in line with the Climate Action Plan 2023, a detailed scoping assessment of policy models for the development and management of shared micro-mobility schemes in the Greater Dublin Area, for subsequent nationwide implementation, is currently being undertaken by the National Transport Authority. Following the conclusion of this assessment, my Department intends developing guidance for local authorities on potential operating models for these types of service, including criteria for consideration at tender stage.
60. Deputy Fergus O'Dowd asked the Minister for Transport with consideration to the Port Access Northern Cross Route Phase 1 in Drogheda advancing to construction at present, if any discussions have taken place between his Department and Irish Rail to ascertain the viability of opening a Drogheda north railway station to prepare for the introduction of DART services to Drogheda in the coming years given the phenomenal population growth in the town and the need to reduce the significant number of commuter vehicles, and the carbon footprint travelling from the north of Drogheda to the south Drogheda railway station; and if he will make a statement on the matter. [7561/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, which includes the DART+ Programme, the various projects therein and the scope of same.
Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
61. Deputy Fergus O'Dowd asked the Minister for Transport to seek an update on when it is expected that DART services will commence in Drogheda; if the hybrid diesel units will be in place and in operation in advance of electrification of the line; the frequency of expected DART services and any other relevant details; and if he will make a statement on the matter. [7562/23]
View answerAs the Deputy may be aware, the Government approved a ten-year fleet framework agreement between Iarnród Éireann and Alstom in December 2021. This agreement allows for the purchase of up to 750 electric and battery-electric train carriages over the contract period.
Alongside approval of the framework in December 2021, the Government also gave specific approval for the first purchase under the framework of 30 electric carriages and 65 battery-electric carriages. The battery-electric carriages are expected to enter into service in 2025 to expand DART services on the Northern Line to Drogheda. This fleet will deliver more capacity and increased service frequency for commuters in advance of electrification of the line.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including the DART+ programme.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a more detailed reply on the specific issues raised. Please contact my private office if you do not receive a reply within 10 days.
62. Deputy Fergus O'Dowd asked the Minister for Transport further to Parliamentary Question Nos. 198 of 13 December 2022 and 160 of 18 January 2023m to detail if any State body is responsible to compel ship owners to progress survey application to the MSO, in particular in situations whereby the ship is causing environmental and general safety concerns as the Hebble Ship continues to cause as it lies on the Boyne River in the centre of Drogheda; and if he will make a statement on the matter. [7569/23]
View answerThe Marine Survey Office (MSO) of the Department of Transport is the regulator in relation to the safety of shipping and the prevention of pollution of the marine environment from ship-based sources. To ensure safe travel at sea, the safety of the vessel must be verified by means of an MSO survey. Before a vessel proceeds to sea it is required to undergo a Load Line survey and certification is required prior to release. It is the responsibility of the vessel owners, or agents acting on their behalf, to ensure their vessels undergo these surveys.
Regarding this particular vessel, whilst it is lying inoperative in the port of Drogheda, it falls to the owner and to Drogheda Port Company, in whose area the vessel is located, to address any issues that arise. Drogheda Port Company is under the aegis of Louth County Council.
63. Deputy Holly Cairns asked the Minister for Transport to ensure that a survey of the integrity of roadside banks on the N71 between Innishannon and Bandon is carried out, especially concerning the section between the junctions with the L-3204-0 and L-97103-1. [7758/23]
View answerAs Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and maintenance of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
64. Deputy Holly Cairns asked the Minister for Transport to provide an additional bus stop on the western side of Bandon to facilitate elderly residents. [7759/23]
View answer65. Deputy Holly Cairns asked the Minister for Transport to ensure that a bus stop is put in place in Ballinhassig, County Cork. [7760/23]
View answer66. Deputy Holly Cairns asked the Minister for Transport to ensure the reinstatement of the east bound bus stop on North Street, Skibbereen, County Cork. [7761/23]
View answerI propose to take Questions Nos. 64 to 66, inclusive, together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the provision of bus stops.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
67. Deputy Paul Murphy asked the Minister for Finance if any data centres applied for assistance under the business energy support scheme; and if any data centres were granted assistance under the scheme. [7615/23]
View answerSections 100 to 102 of the Finance Act 2022 make provision for the Temporary Business Energy Support Scheme (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’ (a calendar month from 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 e-Registration facility on ROS and can submit claims through the e-Repayments facility on ROS.
Precise trade descriptions are not recorded by businesses registering for the scheme and it is therefore difficult to determine if data centres are involved. I am advised by Revenue that less than 10 businesses applied for registration under this scheme with a connection to the economic activity defined as ‘Data processing, hosting and related activities’ which may be relevant.
Revenue will publish details of recipients of the scheme in accordance with the legislation in due course. The information to be published includes the name and address of the qualifying business along with the total amount of the temporary business energy payment made to the business. This information will be published after the scheme ends and when all outstanding claims have been finalised.
68. Deputy Maurice Quinlivan asked the Minister for Finance if those suffering from dementia and Alzheimer’s disease who are late paying their local property tax will be required to pay the 8% per day interest fee; and if he will make a statement on the matter. [7642/23]
View answerLocal Property Tax (LPT), in common with all other taxes and duties, must have a robust but reasonable set of sanctions open to Revenue to apply in appropriate cases. Section 1080 of the 1997 Taxes Consolidation Act provides for the charging of interest on the late payment of Income Tax. The current rate applied to such late payments is 8% per annum (0.0219% per day). This rate also applies to LPT.
These statutory charges, which Revenue is obliged to apply, are designed to compensate the Exchequer for the late payment of monies due and to maintain a level playing field for the vast majority of taxpayers and businesses that meet their tax obligations in full and on time. The application of interest charges to the late payment of tax is well established as a core strategy for ensuring timely compliance. The onus is on all taxpayers and businesses, assisted by their agents or tax practitioners, to organise their financial affairs to ensure that tax debts are paid as they fall due thereby avoiding interest charges.
However, while Revenue is obliged to collect all tax and interest liabilities as they fall due, it is acknowledged that there will be cases where normally compliant taxpayers experience difficulties, as a result of ill health or other issues, that result in a failure to meet their tax obligations at all or on time. In such scenarios, Revenue is committed to working with any taxpayer who experiences such difficulties. Revenue’s long standing approach is to make it as easy as possible for people to comply with their obligations. Revenue facilitates a number of different payment options by which a taxpayer can discharge their liability to LPT through a single payment or in a weekly or monthly phased payment arrangement. The full range of payment options, which include phased arrangements, are available to property owners via the LPT portal on the Revenue website at https://www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx
While the legislation does not provide a specific exemption from LPT for persons who are suffering from dementia or Alzheimer’s disease, Section 5 of the Finance (Local Property Tax) Act 2012 (as amended) provides for an exemption from LPT where a person is unable to continue living in their sole or main residence as a result of a mental or physical infirmity which has been certified by a medical practitioner.
Finally, it is possible for persons who are struggling to pay an LPT liability to qualify for a full or partial deferral of their liability on a property in which they live if their income is below a certain limit. The income thresholds were increased in 2022 and are now €18,000 for a single person and €30,000 for a couple to qualify for a full deferral. The income limits to qualify for a partial deferral are €30,000 for a single person and €42,000 for a couple. It is also possible to apply for a deferral on the grounds of hardship if a person suffers an unexpected and unavoidable significant loss or expense as a result of which a person cannot pay their LPT liability without suffering financial hardship. This category applies to persons who do not qualify for a deferral based on their income. The type of loss or expense that would be considered under this category includes a sudden medical expense.
Any person wishing to avail of a deferral must make an application in writing to Revenue.
A deferral is not an exemption or a ‘write off’ of any outstanding liability. The liability still remains due. Interest at a rate of 3% applies on all outstanding deferred liabilities from 1 January 2022. Up to 31 December 2021, the rate was 4%. Where a deferral is in place, the outstanding liability automatically attaches as a charge on the property and must be paid before a sale or transfer can be completed.
Further information on applying for a deferral of LPT is available from the Revenue website at: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx.
69. Deputy Michael Ring asked the Minister for Finance if he will reconsider the increase in rates (details supplied) in view of the hardship being caused; and if he will make a statement on the matter. [7475/23]
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.
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 am aware that there have been arguments surrounding the mileage bands in the new BIK structure, as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars that are more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the number 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 means that the quantum of the relief is phased down from €50,000 in 2022, to €35,000 in 2023, €20,000 in 2024, and €10,000 in 2025. 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.
Finally, it should be noted 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.
70. Deputy Louise O'Reilly asked the Minister for Finance if the thresholds for the temporary business energy support scheme, namely the need to experience a 50% or more increase in electricity and or natural gas average unit price, and the claim for 40% of the increases in energy bills, are the fullest extent to which the relaxed State aid rules can be applied for the scheme; if not, if the Government has scope to go further; and if he will make a statement on the matter. [7689/23]
View answerThe 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. Ireland received State Aid approval from the EU Commission for the TBESS scheme under the Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia.
The aid was granted based on the parameters which are set out in the TBESS legislation contained in Finance Act 2022. These parameters are that businesses must have experienced increases of at least 50% in the average unit price of electricity or natural gas for claim period (calendar month) when compared to the same month in the previous year, and that such qualifying businesses would be eligible for aid equal to 40% of the increase in costs over the same period.
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.
The TBESS is currently due to expire at the end of February and, in that context, I am currently examining the rules and operation of the scheme.
71. Deputy Brendan Griffin asked the Minister for Finance if a demand for repayment of a State support will be reviewed (details supplied) given the evidence provided to show compliance with the spirit of the scheme as designed by the Minister; and if he will make a statement on the matter. [7697/23]
View answerSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which was an economy-wide enterprise support for eligible businesses in respect of eligible employees. The scheme closed with effect from 31 May 2022.
As the Deputy will be aware, eligibility to EWSS was based on the employer demonstrating that its business was likely to experience a 30% reduction in turnover or orders during a specific reference period and that the disruption to business was caused by the Covid-19 pandemic. In addition, the business was required to be tax compliant.
I am advised by Revenue that it is currently conducting an EWSS eligibility review intervention in respect of the claimant in question and the intervention has not yet been finalised. As part of finalising the intervention Revenue will review the claimant’s eligibility based on all the information provided.
72. Deputy Emer Higgins asked the Minister for Finance further to Parliamentary Question No. 246 of 22 November 2022, if he will explain his statement that the Central Bank cannot dictate the pricing or provision of insurance products, given that it has recently banned the practice of price walking, thus intervening in the pricing of motor insurance; and if he will make a statement on the matter. [7712/23]
View answerIn order to provide a complete response, my officials contacted the Central Bank of Ireland in relation to the Deputy’s query. The Central Bank has advised that the Consumer Protection Code sets out its expectations of how regulated entities, including insurance companies, should treat consumers. The Code states that regulated entities must act honestly, fairly and professionally in the best interests of their customers and that they must act with due skill care and diligence.
However, the Central Bank has stated that it has no remit over the pricing of insurance products or the practices of insurers in relation to underwriting particular risks, these are commercial decisions for the insurers themselves. In line with market intervention limitations, the Central Bank has indicated that it only intervenes on pricing matters where there is a legal basis to do so and where it sees firms engaging in unfair, hidden or discriminatory practices which seek to take advantage of customer vulnerabilities.
In the case of the Central Bank’s differential pricing review, it was determined following an extensive and detailed review by the Bank that the practice of price walking was unfair and could result in unfair outcomes for some groups of consumers in the private car and home insurance markets. Price walking occurs where customers are charged higher premiums relative to the expected costs the longer they remain with an insurance provider.
The Central Bank subsequently implemented new Regulations to ban price walking from July 2022. This means that insurers can no longer charge consumers who are on their second or subsequent renewal a premium that is higher than they would have charged them if they were a year one renewal customer.
The Government supports this ban, and believes the approach taken by the Central Bank is appropriate, proportionate and well-suited to the Irish insurance market. Importantly, it still allows insurers to offer new business discounts, which should encourage beneficial switching activity, encourage healthy competition, and assist potential new entrants to the Irish market to attract customers. It achieves all of this, while still removing the unfair “loyalty penalty”.
