Written Answers Nos. 254-269
254. Deputy Bríd Smith asked the Minister for Transport if he can clarify whether the TFI Real Time information app will have the same coverage and scope as the current Dublin Bus app; if he will further clarify whether route-60 will have real-time information on the TFI app; and if he will make a statement on the matter. [23140/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.The issues raised in relation to the TFI Live App is a matter for the National Transport Authority (NTA). Therefore, I have referred the Deputy's question to the Authority for direct response to the Deputy. Please advise my private office if you do not receive replies within ten working days.
255. Deputy John Lahart asked the Minister for Transport when BusConnects in Dublin South West will be rolled out; and if he will make a statement on the matter. [23146/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. In both of those areas there have been significant developments since this Government came into office with last year's publication of a new Sustainable Mobility Policy and its five-year action plan. This provides strong policy support to the continued expansion and enhancement of bus services. I am also delighted to say that this has been backed up by increased levels of Exchequer funding, which is supporting the roll-out of initiatives such as BusConnects Dublin.
The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including BusConnects Dublin.
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.
256. Deputy Catherine Murphy asked the Minister for Transport further to Parliamentary Question No. 290 of 18 April 2023, if he has made a submission or if his officials have made a submission; and if he will attend public consultations in Northern Ireland in respect of progressing the A5 project. [23174/23]
View answerThe planning and implementation of the A5 upgrade project is the responsibility of the authorities in Northern Ireland.
The funding arrangements in relation to the A5 have been governed by the 2014 Stormont House Agreement and Implementation Plan - A Fresh Start. Under this Agreement the Government is committed to provide funding of £75 million towards the cost of the A5 upgrade scheme once the statutory planning process in Northern Ireland is concluded. The Government is committed to deliver on its funding commitment to the A5 project, which is also included in the "New Decade, New Approach" document of 2020.
As is the case for all such capital projects, the A5 upgrade scheme is subject to the planning assessment and approval process in Northern Ireland and since 2012 there have been a number of legal challenges. This has led to unavoidable delays to the implementation of the proposed scheme.
The Planning Appeals Commission has advised that the public inquiry will re-open at 10.30am on Monday, 15th May 2023 in the Strule Arts Centre, Townhall Square, Omagh, and will continue there until Friday,19th May. After a week’s break, the inquiry will convene in Omagh Enterprise Centre, Gortrush Industrial Estate from Tuesday, 30th May to Friday, 2nd June 2023. There are currently no plans by my Department for a submission to be made to the public inquiry, and I will not be in attendance. It is my understanding that both Donegal County Council and Monaghan County Council will be making submissions.
Allowing for the time required for the conclusion of the public inquiry and for all new decisions to be implemented, together with the possibility of a further legal challenge, the timeframe for delivery of the A5 project is still uncertain. However, provision of £25 million sterling has been made by my Department in 2023 for funding the scheme, should this be required. The Government remains committed to supporting this crucial infrastructure project.
257. Deputy Martin Kenny asked the Minister for Transport if he intends to request a review of the current services of the A1/A2 bus route in Athlone, with a view to extending the service to Ballydangan; and if he will make a statement on the matter. [23190/23]
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 Rural Mobility Plan, including in Counties Westmeath and Roscommon, 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.
258. Deputy Martin Kenny asked the Minister for Transport if he is aware of the leasing of 14 hectares of space within the port of Dublin in order to service previously expected Brexit-related traffic; if he will provide details on the cost of leasing this land; and if he will make a statement on the matter. [23191/23]
View answerAs a consequence of Brexit, substantial physical infrastructure was put in place at Dublin Port to provide for the effective management of new check and control requirements on trade with Great Britain. This infrastructure was in place at the end of the Transition Period and has been operational since 1 January 2021. This was one of the most critical and visible aspects of the Government’s preparations for Brexit.
A range of departments and state bodies have been involved in the putting in place and continued operation of these facilities. The required infrastructure was developed by the Office of Public Works on behalf of the departments and state bodies now in situ on the site, namely the Revenue Commissioners, the Department of Agriculture, Food and the Marine, and the HSE - with input from a multi Department working group chaired by the Department of Public Expenditure, NDP Delivery and Reform.
The Department of Transport is not a tenant in Dublin Port and therefore is not involved in any leasing agreement.
259. Deputy Martin Kenny asked the Minister for Transport if he will provide details of penalties and deductions for Bus Éireann service disruption by county between 2017 and 2022, in tabular form; and if he will make a statement on the matter. [23192/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.
The issue raised by the deputy in relation to details of penalties and deductions for Bus Éireann service disruption by county between 2017 and 2022, in tabular form, is an operational matter for Bus Éireann.I have, therefore, referred the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
260. Deputy Noel Grealish asked the Minister for Finance if he is concerned by the results of a recent Revenue survey which found that 30% of cigarettes smoked in Ireland are either illegal cigarettes or are being sourced by smokers from other countries; if he will take action to prevent access to and or the sale of such products; and if he will make a statement on the matter. [22840/23]
View answer267. Deputy Noel Grealish asked the Minister for Finance the new or improved enforcement actions he proposes to take in light of a recent Revenue survey which found that 30% of cigarettes consumed in Ireland are either non-Irish-duty paid or illegal cigarettes; and if he will make a statement on the matter. [22841/23]
View answer268. Deputy Noel Grealish asked the Minister for Finance if he is aware of a recent survey by Revenue which found that one-third of smokers purchased their cigarettes on the black market or overseas in 2022; if he will initiate a public campaign to deter the high numbers of smokers who are purchasing illegal cigarettes; and if he will make a statement on the matter. [22842/23]
View answer270. Deputy Michael Lowry asked the Minister for Finance the number of prosecutions secured against those involved in tobacco smuggling in 2022; if he considers this level of prosecutions sufficient, in light of the recent Revenue Commissioners’ survey which found that 30% of tobacco products consumed in 2022 were non-Irish duty paid and illegal; and if he will make a statement on the matter. [22943/23]
View answer271. Deputy Michael Lowry asked the Minister for Finance the measures he has in place to enforce adherence to duty-free travel allowances for tobacco and alcohol at Ireland’s ports and airports; and if he considers these enforcement measures adequate, in light of a recent Revenue Commissioners’ survey which found that 30% of tobacco products consumed in 2022 were non-Irish duty paid and illegal cigarettes; and if he will make a statement on the matter. [22944/23]
View answer272. Deputy Michael Lowry asked the Minister for Finance if he is aware that the cost to the Exchequer of illegal cigarettes in 2022 was approximately €384 million in lost excise and VAT receipts, a figure that represents an additional loss of €120 million when compared to 2021; the new measures he proposes to resolve the significant increases in illicit tobacco products; and if he will make a statement on the matter. [22945/23]
View answerI propose to take Questions Nos. 260, 267, 268, 270, 271 and 272 together.
I am advised that each year since 2009, Revenue, in conjunction with the HSE’s National Tobacco Control Office, has commissioned Ipsos MRBI to conduct independent market research among smokers about the source of their cigarettes. The survey is an independent research study into illegal tobacco products behaviour patterns, the purpose of which is to estimate the volume of non-Irish duty paid cigarettes being consumed in Ireland. Since 2013, this cigarette research has been complemented by an additional survey on roll your own tobacco. The survey was paused in 2020 due to the COVID-19 pandemic and the associated public health restrictions.
The survey resumed in 2021 and the 2022 findings have just recently been published and can be viewed on the Revenue website.
The key findings of the 2022 survey are:
- 17% of the cigarette packs held by smokers surveyed were classified as illegal
- 13% of the packs were found to be legal but non-Irish Duty Paid
- 17% of pouches of roll your own tobacco held by smokers surveyed were classified as illegal
- 10% of the pouches were found to be legal but non-Irish Duty Paid.
Of the 17% of cigarette packs found by the survey to be illegal:
- 88% were classified as contraband (i.e. normal commercial brands of cigarettes bought duty paid or duty-free outside the country and smuggled into Ireland).
- 12% were classified as “illicit whites” (cigarettes manufactured for the sole purpose of being smuggled into and sold illegally in another market).
The Deputies should be aware that as regards the 30% figure referred to in their questions, this is made up of 17% of cigarettes classified as being illegal whereas 13% of are legal, although non-Irish Duty Paid.
Revenue recognises the risks associated with the availability of duty-free tobacco and cigarettes and takes appropriate measures to mitigate those risks. I am advised that Revenue has a programme of engagement with duty free operators, airlines, ferry companies, etc. who sell duty free goods to ensure that they are kept up to date with the regulations covering duty free sales. They are also reminded to inform passengers of their duty-free entitlements when purchasing duty free goods. Additionally, Revenue has controls in place in airports and ports to combat abuses of the duty-free regime. Where passengers are encountered carrying goods in excess of their duty-free allowances and have not declared same to Customs, these excess goods may be seized with a view to prosecuting those involved.
I am assured that Revenue is committed to targeting the illicit tobacco trade and implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco products, including duty free tobacco in excess of normal allowances and where possible prosecuting those involved. In this work, Revenue’s Customs Officers at national ports and airports, regularly deploy detector dog units and use a combination of risk analysis, profiling, intelligence, and the screening of checked-in and carry-on baggage.
I am advised by Revenue that it uses a range of measures to tackle the sale of illicit cigarettes on the black market. At the core of these measures is identifying and targeting the smuggling of illicit tobacco products into the State, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. In that context, I am aware that Revenue monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.
Government has also ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade and I am open to considering any proposals from Revenue for further legislative changes, as needed. Legislative reforms made over the years in this area include:
- The Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excise products.
- The Finance Act 2013 introduced new offence and forfeiture measures relating to the illicit production of tobacco and strengthened the offence provisions relating to the sale or delivery of unstamped tobacco products.
- The Finance (No. 2) Act 2013 provided that a person suspected of an offence of dealing in, or with, unstamped tobacco products must provide information to a Revenue Officer or a Garda and may be required to present any tobacco product concerned for examination, and make provision for search by a Revenue Officer or Garda of any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence.
Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2022, it seized 51.6 million cigarettes valued at €39.5million and 11,803kgs of tobacco with an estimated value of €8.5million. Additionally, it obtained 41 summary convictions relating to the sale of illicit tobacco, 4 of which were on indictment with fines of €76,250 imposed. There were 24 convictions relating to tobacco smuggling in 2022, 4 of which were on indictment, with fines of €35,100 imposed.
I am advised that Revenue optimises media engagement in terms of successful prosecutions, significant seizures and enforcement initiatives, ensuring the general public is aware of the commitment by Revenue to tackling the illicit cigarette and tobacco trade and to deter those involved. To further encourage the general public to engage with Revenue in its efforts targeting the shadow economy and the supply of illegal tobacco products, Revenue includes a message on all press releases relating to tobacco products seizures, notifying that businesses or members of the public can contact Revenue in confidence on the free phone number 1800 295 295.
The smuggling of tobacco products is an illegal transnational activity. The production and distribution of illicit cigarettes crosses international boundaries. In response Revenue, in conjunction with national and international law enforcement partners, undertakes a programme of activity to counter those involved in such illegal activity. In addition, Revenue engages in joint operations with international partners, including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation in countering the activities of those involved in the illicit international tobacco trade.
I am satisfied that Revenue is very alert to the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer. I commend Revenue and all the relevant State agencies for their work in this important area and I am satisfied that there is an appropriate focus on tackling this form of criminality.
261. Deputy Matt Shanahan asked the Minister for Finance if he can explain the reason the main banks are not paying any interest on deposit accounts held on behalf of ordinary citizens, despite the increase in revenue resulting from the higher interest rates being paid on these deposits by the European Central Bank; and if he will make a statement on the matter. [22371/23]
View answer262. Deputy Brian Stanley asked the Minister for Finance his views on the very low interest rate levels that retail banks are offering for deposit rates to customers; and if he will make a statement on the matter. [22560/23]
View answer263. Deputy Brian Stanley asked the Minister for Finance if his Department has spoken to the Central Bank or retail banks around increasing deposit interest rates for customers. [22561/23]
View answerI propose to take Questions Nos. 261, 262 and 263 together.
Deposit interest rates are a means for banks to attract or maintain a stable source of funding. The determination of the rate of interest to offer to attract depositors is a commercial decision, which is the sole responsibility of the board and management of each bank.
Neither the Central Bank of Ireland nor I have a role in setting the interest rates offered by banks on monies held on deposit. Although the State is a shareholder in some of the banks operating in the jurisdiction, those entities must also be run on a commercial and independent basis, and their independence in this regard is protected by the relationship framework agreements.
In terms of the interest rates currently available on deposits, the European Central Bank (ECB) released March 2023 Euro Area Bank Interest Rate Statistics on 5 May 2023. The Central Bank of Ireland Retail interest rates release was released on 10 May 2023, and it can be accessed at: www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/retail-interest-rates.
I am informed by the Central Bank of Ireland, that:
• Interest rates on household overnight deposits stood at 0.03 per cent in March 2023, while the euro area equivalent was 0.151 per cent.
• Interest rates on new household deposits with agreed maturity was 1.14 per cent in March in Ireland, while the euro area equivalent was 2.11 per cent.
• Interest rates on outstanding deposits’ rates with agreed maturity was 0.43 percent in March 2023 an annual increase of 34 basis points since March 2022. Interest rates on outstanding deposits’ rates with agreed maturity in the euro area was 1.51 percent in March 2023.
As at end-March 2023, €150.9 billion was held on deposit by Irish households with Irish resident credit institutions, of which €141.4 billion is in overnight deposits and €2.5 billion is on deposit with agreed maturity.
It is worth noting that banks currently hold an unusually large share of overnight deposits by historical standards. This large share of monies held in overnight deposit reflects two factors:
• First, when interest rates were low (or negative up until July 2022), there was effectively little or no difference between the return on overnight versus term deposits for savers; and
• Second, much of the current build-up of deposits represents ‘passive’ pandemic savings – that is, savings that households built up when there were restrictions on economic activity and therefore reduced spending opportunities during the pandemic.
The difference between interest rates on overnight deposits and term deposits represents an increased opportunity cost of holding overnight deposits. Over time, it would be expected to see some flow from overnight to term deposits for savers to achieve a greater return.
Increasing competition to attract these relatively stable sources of funding could also contribute to a greater pass-through of policy rates into deposit rates over time.
The Deputies may also wish to note that the Competition and Consumer Protection Commission's (CCPC) website includes a number of comparison tools to help consumers shop around. These tools can be used to compare the features and rates of both lump sum deposit products and regular savings accounts.
264. Deputy Richard Boyd Barrett asked the Minister for Finance when the help-to-buy scheme will be expanded to help private renters who are facing eviction to buy their home; and if he will make a statement on the matter. [22712/23]
View answerThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.
HTB allows claimants to select all or any of the previous four tax years for the purposes of calculating the refund available to them. Enhancements to the scheme were provided for in Section 8 of the Financial Provisions (COVID-19) (No. 2) Act 2020 such that the maximum rebate is currently the lower of:
• €30,000 (increased in 2020 from €20,000);
• the total income tax and DIRT paid in the previous four years; or
• 10 per cent (increased in 2020 from 5 per cent) of the purchase price of a new build property, including self-builds.
The scheme, which is scheduled to sunset at the end of 2024, is open to all qualifying first-time buyer/builder taxpayers regardless of their current tenure status and any difficulties of the type set out in the question.
Finally, and as the Deputy will appreciate, decisions regarding changes to taxation measures such as HTB, are usually made in the context of the annual Budget and Finance Bill processes. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.
265. Deputy Patrick Costello asked the Minister for Finance the legal basis under which the hypothecation of the betting tax for the Horse and Greyhound Fund, as is stated in Section 12 (4) of the Horse and Greyhound Act 2001, was ended in 2009 (details supplied). [22717/23]
View answerUnder the provisions of the Horse and Greyhound Racing Act 2001, from 2001-2008 the Horse and Greyhound Racing Fund received a guaranteed level of funding each year, which was based on betting duty receipts from the preceding year, subject to a minimum level based on the year 2000 amount, adjusted for inflation.
In 2009, given the economic climate at the time, the funding basis was changed in the context of departmental savings. A policy change was made whereby the annual payment to the Fund was no longer to be automatically calculated by reference to the previous year’s betting duty. This policy change was outlined in the Budget 2009 “Summary of Budget Measures”, and the procedure as a result has changed. However, there has been no amendment to section 12 of the Horse and Greyhound Racing Act 2001.
The current position therefore is that betting receipts accrue to the Exchequer and the amount allocated to the Horse and Greyhound Racing Fund is decided as part of the annual estimates process, overseen by the Minister for Public Expenditure, NDP Delivery and Reform and the Minister for Agriculture, Food and the Marine. Any increase of the Fund limit requires the approval of the Government and the Oireachtas. The level of the Fund is increased by regulations made by the Minister for Agriculture.
266. Deputy Michael Lowry asked the Minister for Finance his plans to expand the help-to-buy scheme to include help for first-time buyers with the purchase of second-hand homes; and if he will make a statement on the matter. [22752/23]
View answerHelp 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, I have no plans at present to extend the HTB scheme to include such properties.
269. Deputy Joe McHugh asked the Minister for Finance his views on potential low-interest bridging loans to address working capital difficulties for Mica homeowners, contractors and suppliers; and if he will make a statement on the matter. [22845/23]
View answerI appreciate the difficulties being faced by Mica homeowners and, as the Deputy is aware, the Government response on this issue is led by my colleague the Minister for Housing, Local Government and Heritage.
The provision of bridging loans or any other form of credit by Central Bank regulated entities, subject to complying with the general legal and regulatory requirements which govern the provision of credit to consumers and other borrowers, remains a matter for each regulated lender.
It is up to each lender to determine their own credit policies such as on the types of credit they wish to offer to the public and the interest rate to charge for such credit, and also to make their own decisions on individual applications for credit. These are commercial decisions, which is the sole responsibility of the board and management of each bank.
That said, as I have recently indicated in the House, both Minister Carroll MacNeill and I are willing to meet the Banking and Insurance sub-group of the Mica Homeowners’ Action Group to further discuss these issues and to be as helpful as we possibly can be.
