Catherine Murphy
Question:24. Deputy Catherine Murphy asked the Minister for Transport if any of the new busses in the Dublin Bus fleet will have the capacity to accommodate more than one wheelchair at any time. [23419/23]
View answerDublin Bus
Questions (24)
Written answers
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
Under the Dublin Transport Authority Act 2008, the National Transport Authority (NTA) has statutory responsibility for promoting the development of an integrated, accessible public transport network. The NTA also has statutory responsibility for securing the provision of public passenger transport services nationally.
In light of the NTA's responsibilities for the purchase of new buses for the Public Service Obligation (PSO) fleets I have forwarded your question to the NTA for direct reply to you. Please advise my private office if you do not receive a response within ten working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Road Network
Questions (25)
Holly Cairns
Question:25. Deputy Holly Cairns asked the Minister for Transport the steps he is taking to provide a bypass of Kinsale, County Cork; and if he will make a statement on the matter. [23548/23]
View answerWritten answers
The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources supplemented by State road grants. The initial selection and prioritisation of works to be funded is a matter for the local authority.
The major cuts to funding for regional and local roads during the post 2008 recession resulted in the build-up of a substantial backlog of works across the country. The estimated cost of the backlog is in excess of €5 billion. Because of the pressures on the regional and local road network, approximately 90% of available Exchequer grant assistance to local authorities for regional and local roads is being directed to maintenance and renewal works rather than for new roads or for road realignments.
Any road improvement projects proposed by local authorities for consideration for funding are assessed by the Department on a case-by-case basis. All projects put forward by local authorities for consideration must comply with the requirements of the Public Spending Code and my Department's Capital Appraisal Framework. Given the limited funding available for regional and local road improvement works it is important for local authorities to prioritise projects within their overall area of responsibility with these requirements in mind.
My Department has not received an application from Cork County Council regarding a bypass of Kinsale.
Road Network
Questions (26)
Holly Cairns
Question:26. Deputy Holly Cairns asked the Minister for Transport further to Parliamentary Question No. 7 of 2 March 2023, the steps he is taking to ensure that the Innishannon bypass is added to the national roads programme. [23549/23]
View answerWritten answers
As 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 planning, design and construction 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.
The current NDP was published in 2021, and the Innishannon bypass was not included in the list of new roads projects named in the Plan. As such, the advancement of the proposed scheme cannot be accommodated in the National Roads Programme at this point in time.
Departmental Funding
Questions (27)
Catherine Murphy
Question:27. Deputy Catherine Murphy asked the Minister for Transport if he will provide a schedule of the amount of funds, beneficiary of funds and use of funds released by his Department under the per cent for art scheme in each of the past five years to date in 2023, in tabular form. [23594/23]
View answerWritten answers
Deputy,
The Per-Cent for Arts scheme provides for a prescribed funding allocation to be made from capital budgets to support public arts schemes,. The scheme is not applied directly at Departmental level and funds are not released directly from the Department's budget. It is typically applied by the project sponsors in receipt of capital at project level. For the Department of Transport this includes TII and Local Authorities.
The Department is represented on the National Per Cent for Arts Committee, led by the Arts Council under the aegis of the Department of Tourism, Culture, Gaeltacht, Arts, Sport and Media. One of the objectives of the review is to work towards harmonisation of the scheme and agree a consistent approach on the practical application of the scheme, in order to maximise its benefits to the Arts and to society.
Driver Licences
Questions (28)
Robert Troy
Question:28. Deputy Robert Troy asked the Minister for Transport if he has held or intends holding discussions with the Indian authorities regarding a mutual recognition of driving licences; and if he will make a statement on the matter. [23634/23]
View answerWritten answers
Ireland currently has licence exchange agreements with Australia, Gibraltar, Guernsey, Isle of Man, Japan, Jersey, South Africa, Republic of Korea, Switzerland, New Zealand, Taiwan, seven Canadian provinces (Ontario, Manitoba, Newfoundland and Labrador, British Columbia, Saskatchewan, Alberta and New Brunswick), Northern Ireland and the UK.
Reaching a driving licence exchange agreement with another country is a comprehensive process, carried out between the statutory licensing authorities in each state. To ensure the safety of road users, such agreements can be made only when the relevant authorities in each jurisdiction have studied and compared the two licensing regimes and are satisfied that they are comparable. If standards and procedures are not comparable, the process does not continue. On the Irish side, this task is undertaken by the Road Safety Authority (RSA).
The RSA has recently engaged with Ukraine, Moldova, North Macedonia and Argentina to consider exchange agreements. The Ukrainian process was paused and EU-wide arrangements are now in place on recognition of Ukrainian licences. Clarification is being sought from the Argentinian authorities on a number of issues, Moldova is undergoing further consideration and the review process with North Macedonia is complete.
With the current reviews at or nearing completion, and a number of representations received from other countries, I intend to write very shortly to the RSA to direct them to begin assessments for a number of new jurisdictions. India is not one of those states at this time. The Government's priority in these matters is to identify countries that may be the source of professional drivers (HGV or bus drivers), given the well documented shortages faced in Ireland and across the EU in these sectors.
Aviation Industry
Questions (29)
Robert Troy
Question:29. Deputy Robert Troy asked the Minister for Transport if he has held any discussions with relevant airlines about the possibility of direct flights between Ireland and India, given the large number of Indian nationals who call Ireland home. [23635/23]
View answerWritten answers
I have not had discussions with airlines about the possibility of direct flights between Ireland and India.
The operation of any scheduled air service is a commercial decision for airlines, in consultation with airports and other market actors, based on the commercial viability of the route in question and other operational factors. I do not have a role in such decisions.
Ireland has an air service agreement with India which provides the appropriate bilateral arrangements, should any airline consider the commencement of a direct route.
Tax Rebates
Questions (30)
Anne Rabbitte
Question:30. Deputy Anne Rabbitte asked the Minister for Finance the status of an application made by a person (details supplied); if the application can be processed speedily due to the strain placed on the couple applying; and if he will make a statement on the matter. [23469/23]
View answerWritten answers
The 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 of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
I am advised by Revenue that the HTB application of the persons concerned has been approved.
I am further informed that Revenue apologises to the couple for the delay in processing their application and will contact them directly.
Financial Services
Questions (31, 32)
Robert Troy
Question:31. Deputy Robert Troy asked the Minister for Finance the measures he will introduce to simplify switching mortgages. [23289/23]
View answerRobert Troy
Question:32. Deputy Robert Troy asked the Minister for Finance the engagement he has held with Central Bank on interest rates being charged by non-bank lenders in the mortgage market; the measures that can be introduced to enable mortgage holders to switch provider; if he will ensure that all lenders offer a fixed-rate option and prevent excessive rates crippling mortgage holders; and if he will make a statement on the matter. [23290/23]
View answerWritten answers
I propose to take Questions Nos. 31 and 32 together.
The Government is acutely aware of recent events which are impacting on mortgage interest rates. As you know the formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB).
However, research has indicated that there is potential for existing mortgage holders to make mortgage savings by switching their mortgage. This is a particularly important consideration at a time of rising interest rates.
I have met with the CEOs of the retail banks and a number of non-bank lenders where I emphasised that they should take a consumer focused approach to encourage switching where possible. I have also asked the Banking and Payments Federation to develop a campaign to ensure consumers are aware of the supports available.
On behalf of my Department, the Economic and Social Research Institute (ESRI) is currently carrying out work which will inform the development of tools to promote switching. However the ESRI’s work also serves to highlight consumer inertia as a critical issue which deserves further attention. The Competition and Consumer Protection Commission (CCPC) and Money Advice and Budgeting Service (MABS) also play an important role in informing consumers about the options available to them.
In the context of rising interest rates and the increase in the cost of living more generally, the Deputy may wish to note that Central Bank wrote to all regulated firms last November to set out its expectations on how regulated firms should support their customers.
With respect to mortgages, the Central Bank is especially focused on ensuring that firms have the resources and arrangements in place to assess applications from existing and new or switching borrowers in a manner that is timely and based on prudent lending standards applied consistently across all applicants.
The Central Bank is scrutinizing the switching and lending activity of the retail banks to ensure there is no discrimination based on who a borrower's current creditor is and it has confirmed that the work to date identified no evidence to date of such discrimination.
It is a priority for me to ensure that the regulatory framework supports borrowers in the mortgage switching process. In the context of the review of the Consumer Protection Code, I have indicated that the Central Bank should review the existing regulatory provisions and consider whether more dedicated mortgage switching resources, such as a standalone mortgage switching code, could better encourage and facilitate switching in the mortgage market.
Question No. 32 answered with Question No. 31.
Banking Sector
Questions (33)
Patrick Costello
Question:33. Deputy Patrick Costello asked the Minister for Finance if, in light of recent bank frailty evident internationally and the failure of deposit insurance schemes developed pre-digital banking, he will provide the value of uninsured deposits above the €100,000 threshold of the deposit guarantee scheme nationally, broken down by institution and the number of individual depositors whose deposits above the threshold are exposed, in tabular form; and if he will make a statement on the matter. [23302/23]
View answerWritten answers
Deposit Guarantee Schemes (DGSs) across Europe were revised and improved in 2015, with uniform protection for depositors, improved operational procedures and a harmonised target level of 0.8% of covered deposits. This target level means that as deposits grow, so too does the DGS fund. In Ireland, the DGS has been successfully invoked five times to protect depositors, most recently with the liquidation of Drumcondra Credit Union in 2020.
The DGS has to reach funds equivalent to 0.8% of covered deposits by July 2024. The most recent calculations completed for DGS contributions estimated that the target to be reached by July 2024 is €1.05 billion. As at May 2023 the level of funds currently available to the DGS is €884 million.
The DGS protects eligible deposits up to a limit of €100,000 per person per credit institution. The DGS does not pay compensation in respect of any balances in excess of €100,000 (unless the additional amount relates to a temporary high balance).
Information published by the EBA indicates that as of end-2022, the total amount of covered deposits in Ireland is c.€136bn. Statistics published by the Central Bank indicates that as of March 2023, the total amount of deposits held by the Irish private sector, which would include covered and uncovered deposits, is circa €297bn, which is made up of c. €151bn from households, c. €75bn from non-financial corporations and c. €71bn from insurance corporations, pension funds and other financial intermediaries.
The temporary high balance feature allows for the payment of compensation in excess of €100,000 in the case of qualifying deposits. The temporary high balance feature is applicable to individuals only.
I am advised by the Central Bank of Ireland that the institution and depositor specific information sought by the Deputy is confidential. However, the Central Bank and the European Banking Authority do publish more general information regarding deposits covered under the DGS, relevant links are provided below.
Information relating to the DGS in EU Member States is published by the EBA here:
www.eba.europa.eu/regulation-and-policy/recovery-and-resolution/deposit-guarantee-schemes-data
Money and banking statistics, including those related to deposits, are published by the CBI here:
www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/bank-balance-sheets
Information related to Temporary High Balances is published by the Deposit Guarantee Scheme here:
www.depositguarantee.ie/en/compensation-process/calculation-of-compensation
Departmental Contracts
Questions (34)
Catherine Murphy
Question:34. Deputy Catherine Murphy asked the Minister for Finance the names of external cleaning companies that have provided cleaning services to his Department in the years of 2021, 2022 and to date in 2023; and the amount paid to each company for such works, in tabular form. [23406/23]
View answerWritten answers
I wish to advise the Deputy that the figures sought are provided below.
It should be noted that these figures refer to both the Department of Finance and the Department of Public Expenditure, National Development Plan Delivery and Reform as there is a shared service in respect of Facilities Management including cleaning for both Departments.
|
Supplier |
2021 |
2022 |
2023 to date |
||||||
|
DFIN |
DPER |
2021 Total |
DFIN |
DPER |
2022 Total |
DFIN |
DPENDR |
2023 Total to date |
|
|
Accent |
€ 158,739.00 |
€ 72,349.00 |
€ 231,088.00 |
€ - |
€ - |
€ - |
€ - |
€ - |
€ - |
Revenue Commissioners
Questions (35)
Catherine Murphy
Question:35. Deputy Catherine Murphy asked the Minister for Finance the capital budget allocation for the Revenue Commissioners in the years of 2021, 2022 and 2023, in tabular form. [23420/23]
View answerWritten answers
The capital budget allocation for the Revenue Commissioners in the years of 2021, 2022 and 2023 is as follows:
|
V09 Capital Allocation |
2021 |
2022 |
2023 |
|
|
€ 000 |
€ 000 |
€ 000 |
|
Gross Total |
33,000 |
21,000 |
28,457 |
|
Appropriations in Aid |
1,400 |
400 |
957 |
|
Net Total |
31,600 |
20,600 |
27,500 |
National Asset Management Agency
Questions (36)
Catherine Murphy
Question:36. Deputy Catherine Murphy asked the Minister for Finance if, in the context of Section 10 of the National Asset Management Agency Act 2009, he will provide a schedule of the funds released to its debtors and receivers in cases where it was demonstrated that such funding would enhance or protect the value of the assets securing NAMA’s loan portfolio, on an annual basis to date in 2023; and the names of debtors and receivers that were granted funding, by amount. [23432/23]
View answerWritten answers
I refer the Deputy to my response of 10th May 2023 to question 56 which states that, by virtue of Sections 99 and 202 of the NAMA Act, NAMA is legally precluded from disclosing confidential debtor information, including specific details relating to loans advanced to individual debtors or receivers.
I am advised by NAMA that, from inception to end-2022, and to end-April 2023, €5.3 billion has been advanced by the Agency to its debtors and receivers. This funding includes funding advanced by NAMA to enhance or protect the values of secured assets.
The table below sets out cumulative funding advanced by NAMA per annum to its debtors and receivers. Owing to NAMA’s statutory confidentiality obligations already referred, a more detailed debtor-by-debtor breakdown cannot be provided to the Deputy.
|
Year |
Total Advances (€m) |
|
2010 |
240 |
|
2011 |
304 |
|
2012 |
278 |
|
2013 |
328 |
|
2014 |
624 |
|
2015 |
855 |
|
2016 |
640 |
|
2017 |
572 |
|
2018 |
492 |
|
2019 |
405 |
|
2020 |
245 |
|
2021 |
136 |
|
2022 |
173 |
|
2023 to end-April |
43 |
|
Total |
5,334 |
Departmental Data
Questions (37)
Mairéad Farrell
Question:37. Deputy Mairéad Farrell asked the Minister for Finance if he will provide a breakdown of the asset allocation of the National (Surplus) Reserve Fund, disaggregated by asset type and location, in tabular form; and if he will make a statement on the matter. [23478/23]
View answerWritten answers
The NTMA have advised me that the investment objective of the National (Surplus) Reserve Fund is to preserve, to the extent possible, the full nominal value of the fund having regard to the credit rating of the financial institution or issuer of the investments. The NTMA has informed me that in line with that objective, the Fund is currently invested in Irish Exchequer notes at commercial rates. This portfolio has a positive return
Tax Code
Questions (38)
Michael Healy-Rae
Question:38. Deputy Michael Healy-Rae asked the Minister for Finance the reason persons are expected to pay such a high rate of tax (details supplied) when they are exiting from investments; and if he will make a statement on the matter. [23492/23]
View answerWritten answers
Individual investors who are tax resident in Ireland may be subject to exit tax at a rate of 41% on the following types of investments under what is known as the “gross roll-up” taxation regime:
• Investments in Irish funds,
• Investments in life policies,
• Investments in offshore funds, and
• Investments in offshore life policies.
The taxation of individuals who are not tax resident in Ireland is a matter for the country in which they are tax resident.
The general thrust of the gross roll-up regime is that there is no annual tax on income or gains arising within the investment. However, exit tax must be deducted on the occurrence of a “chargeable event”.
With respect to an investment in Irish funds, exit tax applies to the profit element of each chargeable event, and such chargeable events include –
• the making of relevant payments (which includes any dividend),
• the redemption of the investment,
• the transfer by an investor of their investment,
• the appropriation or cancellation of units by a fund to discharge tax payable on a gain arising from a transfer of units by a unit holder; and
• on the ending of an 8-year period beginning with the acquisition of a unit in a fund, and each subsequent 8-year period beginning when the previous one ends. This is commonly referred to as a deemed disposal. The purpose of the deemed disposal is to prevent indefinite roll-up within the fund.
With respect to life policies, Life Assurance Exit Tax (“LAET”) applies to the profit element of each chargeable event and chargeable events in relation to an investment in a domestic life policy written on or after 1 January 2001 include –
• the maturity of the life policy,
• the surrender in whole or in part of the rights conferred by the life policy,
• the assignment in whole or in part of the life policy, and
• the ending of an 8-year period beginning with the inception of the life policy and each subsequent 8-year period beginning when the previous one ends. Again, the purpose of the deemed disposal is to prevent indefinite roll-up within the policy.
Rate of exit tax and collection mechanism
The rate of exit tax applied is generally 41% in the case of an individual (or 60% in certain instances where the investment is under the personal control of the taxpayer). A rate of 80% applies where a payment from a personal portfolio life policy is not correctly included in the taxpayer’s tax return.
USC and PRSI do not generally apply where exit tax applies. The fund or life company is responsible for operating exit tax and paying it over to Revenue.
Review of the taxation of investments
On 6 April 2023, I published the Terms of Reference fort a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. This review will look at a range of issues including taxation (on foot of the recommendations of the Commission on Taxation and Welfare). The Terms of Reference are available at www.gov.ie/en/publication/153a5-funds-sector-2030-a-framework-for-open-resilient-developing-markets-terms-of-reference/
Tax Code
Questions (39)
Richard Boyd Barrett
Question:39. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of reversing the 2023 carbon tax increase and postponing the 2024 increase; and if he will make a statement on the matter. [23527/23]
View answerWritten answers
I am advised by Revenue that the Revenue Ready Reckoner can be used to estimate the effect of changes to the tax code, including on page 23, the estimated full year cost or yield of potential changes to the Carbon tax rates. The Ready Reckoner is available at the following link:
www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
Universal Social Charge
Questions (40)
Richard Boyd Barrett
Question:40. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of abolishing USC for all earners and replacing it with a higher income social charge of 10% on all earnings over €100,000 per year; and the estimated revenue that would be generated by the introduction of this new higher charge. [23528/23]
View answerWritten answers
The Universal Social Charge (USC) was designed and incorporated into the Irish taxation system in 2011 to replace the Health and Income Levies. Its primary purpose was to widen the tax base and to provide a steady income to the Exchequer to provide funding for public services. The USC is an individualised tax, meaning that a person’s liability to the tax is determined on the basis of a person’s own individual income and personal circumstances. It is a more sustainable charge than those it replaced and is applied at a low rate on a wide base.
The USC has played a vital role in meeting the many expenditure demands placed on the Exchequer. Receipts from the USC in 2022 were in the region of €5 billion. If USC were to be abolished, it would be necessary to raise this amount from other sources.
I am advised by Revenue that the estimated costs to the Exchequer, i.e., the shortfall between the tax revenue that would be generated by the introduction of a new additional 10% social charge on income above an annual threshold of €100,000 and the approximately €5 billion that would be foregone if the USC were to be abolished, are €2.8 billion and €3.3 billion, on a first and full year basis, respectively.
Further, such a proposal would significantly narrow the income tax base and would expose our economy to significant risks in the event of a future economic downturn. A high income social charge could increase the marginal tax rate, which could create a clear disincentive to work and impact on the competitiveness of our tax code.
Ireland has one of the most progressive personal income tax systems in the world, which plays a crucial role in the process of income redistribution. Our redistributive tax system has been acknowledged by the IMF, the OECD and the ESRI. It is my view a broad-based, progressive income tax system, where the majority of income earners make some contribution but according to their means, is the most fair and sustainable income tax system in the long term.
As such, I have no plans to abolish the USC and replace it with a high income social charge.
Tax Code
Questions (41)
Richard Boyd Barrett
Question:41. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of increasing tax bands by 10%; and if he will make a statement on the matter. [23530/23]
View answerWritten answers
I am advised by Revenue that the estimated costs to the Exchequer, on a first and full year basis, for the proposal outlined by the Deputy of increasing the tax bands by 10% are €810 million and €935 million respectively.
Departmental Funding
Questions (42)
Catherine Murphy
Question:42. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of the amount of funds, beneficiary of funds and use of funds released by his Department under the per cent for art scheme in each of the past five years to date in 2023, in tabular form. [23576/23]
View answerWritten answers
My Department has not released any funds under the per cent for art scheme in any of the five years to date in 2023.