Tuesday, 23 May 2023

Written Answers Nos. 228-244

Departmental Data

Questions (228, 229)

Brian Leddin

Question:

228. Deputy Brian Leddin asked the Minister for Finance if he will provide a breakdown of new car sales based on car body type in each VRT band for 2020, 2021, 2022 and to date in 2023 [24123/23]

Brian Leddin

Question:

229. Deputy Brian Leddin asked the Minister for Finance the average VRT band, and the average emissions from the average car registered in 2020, 2021, 2022 and to date in 2023 for internal combustion engine vehicles only, i.e. excluding electric vehicles; and if he will make a statement on the matter. [24124/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 228 and 229 together.

In relation to Dail Question No. 228 (Ref: 24123/23), I am advised by Revenue that a breakdown of new car sales based on car body type in each VRT band for 2020, 2021, 2022 and to the end of March 2023 is provided in the table below. To protect taxpayer confidentiality and adhere to Revenue’s statistical disclosure protocol, values of less than 10 observations are presented as “<10”.  

Band	Body Type	2020	2021	2022	Jan-Mar 2023
Band 01	COUPE/CONVERTIBLE	<10	<10	<10	<10
Band 01	HATCHBACK	2,053	2,673	2,338	1,353
Band 01	MULTIPURPOSE	1,491	2,934	7,256	4,941
Band 01	SALOON	2,553	1,819	2,354	1,224
Band 01	STATION WAGON	2,778	8,177	11,959	6,547
Band 02	HATCHBACK	9,424	24	62	21
Band 02	MULTIPURPOSE	2,254	303	<10	<10
Band 02	SALOON	1,385	<10	<10	<10
Band 02	STATION WAGON	716	664	407	123
Band 03	COUPE/CONVERTIBLE	16	<10	<10	<10
Band 03	HATCHBACK	6,268	<10	<10	<10
Band 03	MULTIPURPOSE	7,198	<10	<10	<10
Band 03	SALOON	4,850	<10	<10	<10
Band 03	STATION WAGON	4,111	57	53	<10
Band 04	COUPE/CONVERTIBLE	16	<10	<10	<10
Band 04	HATCHBACK	4,067	1,455	1,384	986
Band 04	MULTIPURPOSE	4,989	<10	<10	<10
Band 04	SALOON	1,684	<10	<10	<10
Band 04	STATION WAGON	7,134	<10	<10	<10
Band 05	COUPE/CONVERTIBLE	34	<10	<10	<10
Band 05	HATCHBACK	2,787	308	256	206
Band 05	MULTIPURPOSE	5,096	<10	<10	<10
Band 05	SALOON	1,143	<10	<10	<10
Band 05	STATION WAGON	5,961	<10	<10	<10
Band 06	COUPE/CONVERTIBLE	101	<10	<10	<10
Band 06	HATCHBACK	769	271	116	81
Band 06	MULTIPURPOSE	954	<10	<10	<10
Band 06	SALOON	258	<10	<10	269
Band 06	STATION WAGON	3,324	<10	<10	<10
Band 07	COUPE/CONVERTIBLE	31	<10	<10	<10
Band 07	HATCHBACK	86	1,319	2,865	2,176
Band 07	MULTIPURPOSE	782	<10	<10	<10
Band 07	SALOON	173	1,398	1,392	187
Band 07	STATION WAGON	1,964	232	362	250
Band 08	COUPE/CONVERTIBLE	32	<10	<10	<10
Band 08	HATCHBACK	21	351	1,711	926
Band 08	MULTIPURPOSE	448	11	<10	20
Band 08	SALOON	105	623	461	311
Band 08	STATION WAGON	876	131	96	124
Band 09	COUPE/CONVERTIBLE	16	<10	<10	<10
Band 09	HATCHBACK	61	5,334	5,218	2,641
Band 09	MULTIPURPOSE	65	551	769	464
Band 09	SALOON	<10	1,310	1,359	334
Band 09	STATION WAGON	256	386	437	196
Band 10	COUPE/CONVERTIBLE	21	<10	<10	<10
Band 10	HATCHBACK	<10	5,458	5,649	3,361
Band 10	MULTIPURPOSE	156	686	607	475
Band 10	SALOON	<10	981	650	359
Band 10	STATION WAGON	375	887	354	191
Band 11	COUPE/CONVERTIBLE	10	27	25	16
Band 11	HATCHBACK	<10	6,320	4,962	2,983
Band 11	MULTIPURPOSE	<10	2,416	3,508	2,118
Band 11	SALOON	<10	1,397	994	259
Band 11	STATION WAGON	<10	2,087	2,476	1,323
Band 12	COUPE/CONVERTIBLE	<10	99	49	62
Band 12	HATCHBACK	<10	3,603	3,173	2,030
Band 12	MULTIPURPOSE	<10	4,894	3,653	1,548
Band 12	SALOON	<10	2,118	1,768	1,234
Band 12	STATION WAGON	<10	5,058	5,138	3,492
Band 13	COUPE/CONVERTIBLE	NA	23	18	<10
Band 13	HATCHBACK	NA	2,139	2,243	1,498
Band 13	MULTIPURPOSE	NA	2,875	2,684	1,693
Band 13	SALOON	NA	1,023	727	400
Band 13	STATION WAGON	NA	3,294	2,246	1,642
Band 14	COUPE/CONVERTIBLE	NA	17	18	11
Band 14	HATCHBACK	NA	1,216	747	504
Band 14	MULTIPURPOSE	NA	4,990	8,047	2,223
Band 14	SALOON	NA	965	862	380
Band 14	STATION WAGON	NA	1,604	2,197	1,135
Band 15	COUPE/CONVERTIBLE	NA	124	88	62
Band 15	HATCHBACK	NA	359	131	40
Band 15	MULTIPURPOSE	NA	3,119	1,991	1,030
Band 15	SALOON	NA	640	587	342
Band 15	STATION WAGON	NA	3,041	2,036	1,135
Band 16	COUPE/CONVERTIBLE	NA	18	15	<10
Band 16	HATCHBACK	NA	489	131	20
Band 16	MULTIPURPOSE	NA	2,469	635	407
Band 16	SALOON	NA	247	289	91
Band 16	STATION WAGON	NA	3,176	2,551	1,228
Band 17	COUPE/CONVERTIBLE	NA	50	36	26
Band 17	HATCHBACK	NA	45	43	24
Band 17	MULTIPURPOSE	NA	279	115	35
Band 17	SALOON	NA	107	97	29
Band 17	STATION WAGON	NA	1,303	924	441
Band 18	COUPE/CONVERTIBLE	NA	80	22	<10
Band 18	HATCHBACK	NA	82	55	19
Band 18	MULTIPURPOSE	NA	1,159	209	157
Band 18	SALOON	NA	138	60	28
Band 18	STATION WAGON	NA	2,065	978	409
Band 19	COUPE/CONVERTIBLE	NA	38	13	<10
Band 19	HATCHBACK	NA	53	41	21
Band 19	MULTIPURPOSE	NA	229	80	12
Band 19	SALOON	NA	150	88	15
Band 19	STATION WAGON	NA	461	246	65
Band 20	COUPE/CONVERTIBLE	NA	51	59	30
Band 20	HATCHBACK	NA	28	30	27
Band 20	MULTIPURPOSE	NA	303	605	220
Band 20	SALOON	NA	29	26	<10
Band 20	STATION WAGON	NA	387	254	84

*Prior to 2021 a different CO2 emissions reference system was in place and therefore the figures and bands are not directly comparable with later years. 

In relation to Question Dail Question No. 229 (Ref: 24124/23), I am advised by Revenue that the average emissions from category A vehicle registered (new and used) in 2020, 2021, 2022 and to the end of March 2023 and the VRT band associated with these averages are provided in the table below.  These figures include Hybrid & Plug-in Hybrid electric vehicles that also have an internal combustion engine while purely battery powered vehicles are excluded.  

Year	Average emissions (CO2 g/km)	Associated Band / (CO2 g/km)
Jan- Mar 2023	120.1	Band 11 (120 – 125)
2022	124.7	Band 11 (120 – 125)
2021	129.6	Band 12 (125 – 130)
2020*	112.5	A04 (111 – 120)

*Prior to 2021 a different CO2 emissions reference system was in place and therefore the figures and bands are not directly comparable with later years. In 2021, the CO2 reference for calculating VRT switched from the New European Driving Cycle (NEDC) emissions test to the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), which is a more realistic test and therefore produces higher CO2 ratings on average.

Question No. 229 answered with Question No. 228.

Interest Rates

Questions (230)

Robert Troy

Question:

230. Deputy Robert Troy asked the Minister for Finance if, in light of a recent decision by Tullamore Circuit Court to instruct a vulture fund to offer fixed interest rates, he will engage with vulture funds operating in Ireland to ensure this option with be offered to all customers; and if he will make a statement on the matter. [24127/23]

Written answers

Minister for Finance

While individual insolvency proposals and arrangements are matters for the parties to a particular insolvency situation, I nevertheless welcome the judgement in the recent case to which the Deputy refers. 

I believe that mortgage creditors should note that case and I would encourage mortgage creditors to consider all possible options to assist their borrowers experiencing mortgage difficulty and, both inside and outside the formal insolvency process, to agree fair and sustainable solutions with their customers in order to address individual cases of mortgage difficulty.

From a regulatory perspective, 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 regulated entities are transparent and fair in all their dealings with their borrowers, and that borrowers are protected from the beginning to the end of the mortgage life cycle including at times when borrowers may find themselves in financial difficulties. 

This consumer protection framework includes the various Central Bank statutory codes such as 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 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.

However, in circumstances where the borrower is experiencing significant financial difficulty and is insolvent, and where it has not possible for the borrower and regulated entity to agree a sustainable ARA on a bilateral basis, the statutory personal insolvency system (which falls within the remit of the Minister for Justice) will be available to the borrower to deal with his/her insolvency. 

This includes the Personal Insolvency Arrangement (PIA) framework option which will, in consultation with a personal insolvency practitioner, allow the debtor to make a formal proposal to his/her creditors to restructure his/her debts, including his/her secured debts and which can include a debt secured on a primary residence. 

This PIA will provide an option, as an alternative to bankruptcy, to return the debtor to solvency in a way which will protect a reasonable standard of living for the debtor and his/her dependents and which is also fair to creditors in the circumstances of a particular case.  If a PIA proposal which includes a debt secure on a primary residence is not acceptable to a sufficient majority of the creditors, it can still be approved by a court under the provisions of the Personal Insolvency (Amendment) Act 2015. 

The terms of any individual PIA will be a matter, in the first instance for the debtor and his/her personal insolvency practitioner and then a matter for the creditors to accept or, failing creditor approval, for the courts if it deals with a debt secured on the debtor’s principal private residence.

Tax Code

Questions (231)

Seán Canney

Question:

231. Deputy Seán Canney asked the Minister for Finance if owners of zoned residential lands will be liable for the RZLT while the landowner is in the process of applying for planning permission and is awaiting the outcome of the process; and if he will make a statement on the matter. [24136/23]

Written answers

Minister for Finance

Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3 of the market value of the land within its scope. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.

The primary aim of the tax is to incentivise landowners to engage with planning authorities and seek planning permission on land which is suitably zoned and appropriately serviced and to activate existing planning permissions for housing on such lands. As such, landowners are subject to the tax while they are in the process of applying for planning permission and it is not until development commences that a deferral may apply or the land may fall out of scope.

Section 653AF of the Taxes Consolidation Act 1997 provides for a deferral of RZLT where a grant of planning permission in respect of land within the scope of the tax is the subject of an appeal or request for judicial review by a third party, who is unconnected with the applicant or, if different, the owner of such land. In such circumstances, the development in respect of which permission has been granted cannot commence until such time as the appeal or judicial review concludes; as such, tax arising in the course of the appeal or judicial review is deferred until the relevant process is complete. If the appeal or judicial review concludes with the grant of planning permission being upheld, the tax deferred in accordance with this provision is no longer due and payable. If the appeal or judicial review results in the grant of planning permission being overturned, the tax deferred is payable.

Finance Act 2022 introduced a deferral of RZLT in respect of land which is currently subject to an unauthorised use but meets all other conditions to be excluded from RZLT. Under section 653AFA of the Taxes Consolidation Act 1997, the tax may be deferred if an application is made to the relevant local authority or An Bord Pleanála for retrospective authorisation of the development, pending the outcome of the application. If retention permission or substitute consent is granted, then the land will not be considered a relevant site for the purposes of RZLT from the date the application was made, and the liable person may make a claim for repayment of any RZLT paid after that date. Under section 653AFB of the Taxes Consolidation Act 1997, provision is made for a further deferral of RZLT if an application for retrospective permission or consent is unsuccessful and the owner takes an appeal or seeks judicial review of the decision.

The deferral of RZLT during the retrospective authorisation process, including any associated appeals or judicial reviews, was introduced to support the Department of Housing, Local Government and Heritage’s policy of encouraging landowners to regularise unauthorised development of land, with the RZLT liability accruing where an application is unsuccessful.

Wildlife Conservation

Questions (232)

Holly Cairns

Question:

232. Deputy Holly Cairns asked the Minister for Finance if his Department and public bodies/agencies that operate under his remit have policies in place to install artificial structures that provide shelter and habitat space for wild species, such as, but not limited to, insect hotels, bat boxes, nesting towers and beehives; and if he will make a statement on the matter. [24261/23]

Written answers

Minister for Finance

I wish to advise the Deputy that my Department, currently, has no policy in place to install structures - artificial or otherwise - which may provide shelter and habitat space for wild species.

My Department recognises its responsibility to support Ireland’s environmental and wider sustainable development objectives. To this effect, a Green Committee was established in the Department in 2018 to raise awareness of environmental sustainability and promote green behaviours.  The Green Committee is actively exploring how we can practically support biodiversity and provide opportunities for engagement at all levels across the workplace.

The bodies under the aegis of my Department do not currently have such policies in place. However, the Central Bank of Ireland has an overarching integrated policy demonstrating a commitment to improving environmental performance but does not have any specific policies in place to install artificial structures that provide shelter and habitat space for wild species. In line with its environmental policy, the Central Bank operates to a Biodiversity Action Plan and has been progressing a number of initiatives to improve the natural environment and biodiversity, including:

• Signed up to the All-Ireland Pollinator Plan

• Commenced the “Don’t mow, let it grow” rewilding campaign between May and September giving slower growing wildflowers the chance to flower amongst the grass

• Introduced 10,000 bees to the roof of its North Wall Quay building

Legislative Process

Questions (233)

Brian Stanley

Question:

233. Deputy Brian Stanley asked the Minister for Finance when we can expect the Credit Union (Amendment) Bill 2020 to complete all stages in Dáil Éireann and be enacted. [24312/23]

Written answers

Minister for Finance

I thank the Deputy for his question. I am aware that the prompt enactment of this Credit Union (Amendment) Bill is widely sought by credit unions and both Minister Carroll MacNeill and I are working hard to progress this legislation as quickly as possible. However, at present, it is not possible to determine the precise timeframe by which the Bill will complete all stages in the Dáil. 

The reason that no precise timeline can be provided at present, is that this the speed at which the Bill can be progressed will be heavily determined by both the capacity and availability of the Office of the Parliamentary Council (OPC) for the drafting process and by the availability of Dáil time to debate the Bill. 

As the Deputy will be aware, the Bill was published in November 2022. In December 2022 the Bill completed the legislative process in the Seanad and in March 2023 it was introduced in the Dáil.

Since this time, both Minister Carroll MacNeill and the Department of Finance have engaged extensively with key stakeholders, including the credit union representative bodies and the Central Bank. As a result of this engagement, a number of amendments have been identified and will be brought forward at Committee Stage.

The enactment of the Credit Union (Amendment) Bill 2020 is a key priority of Government and as the first substantive credit union legislation since 2012, it will deliver on the Programme for Government commitment to support the credit union sector to expand their services.

Business Supports

Questions (234)

Jim O'Callaghan

Question:

234. Deputy Jim O'Callaghan asked the Minister for Finance if he will provide an update in tabular form on a county basis the number of businesses in each county that have successfully applied for inclusion under the temporary business energy support scheme as of 16 May 2023; the estimated value or worth of the support in each county to date; and if he will make a statement on the matter. [24411/23]

Written answers

Minister for Finance

The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs arising from Russia’s invasion of Ukraine.

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 31 May 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.  

Section 7 of Finance Act 2023 extends the scheme to 31 May 2023 (with an option to further extend to not later than 31 July 2023 by Ministerial Order), expands eligibility and increases the level of payment to qualifying businesses. The Act reduces the energy cost threshold for businesses from a 50% increase to a 30% increase in energy costs, effective from 1 September 2022. It also increases the amount of temporary business energy payment from 40% of eligible costs to 50% of eligible costs for claim periods from 1 March 2023, subject to monthly limits. 

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 as of 18 May 2023:

County	Registration Applications	Registrations Approved	Approved Claims	Value of Approved Claims	Value of Paid Claims
				€m	€m
Carlow	420	412	610	1.44	1.3
Cavan	640	632	836	1.83	1.73
Clare	777	771	1,018	2.04	1.87
Cork	3,715	3,668	5,256	10.12	9.7
Donegal	1,263	1,248	1,693	3.32	3.14
Dublin	6,415	6,284	9,601	27.05	25.31
Galway	1,716	1,694	2,333	5.46	5.28
Kerry	1,264	1,238	1,663	3.36	3.22
Kildare	1,052	1,036	1,544	3.72	3.49
Kilkenny	682	666	894	1.56	1.48
Laois	419	414	589	1.07	1.01
Leitrim	258	252	319	0.4	0.37
Limerick	1,270	1,246	1,771	3.58	3.43
Longford	295	288	408	0.79	0.7
Louth	832	821	1,208	2.43	2.31
Mayo	918	908	1,246	2.53	2.39
Meath	1,058	1,045	1,551	3.52	3.23
Monaghan	612	604	761	1.86	1.73
Offaly	455	449	619	1.03	0.98
Roscommon	371	365	518	1.08	0.99
Sligo	412	406	585	1.22	1.06
Tipperary	1,199	1,178	1,575	2.46	2.2
Waterford	869	854	1,258	2.56	2.32
Westmeath	652	643	951	1.72	1.6
Wexford	1,043	1,030	1,452	2.92	2.85
Wicklow	717	706	1,027	2.03	1.81
Total	29,324	28,858	41,286	91.09	85.53

I am advised by Revenue that as of 18 May, 28,858 businesses have registered for the scheme. 24,259 of these have commenced the claim process. 18,349 businesses have fully completed the claims process and 5,910 have partially completed the claims process. Until the claims process is fully complete, the claim cannot be processed by Revenue and for approved claims, a payment made. To date, the vast majority of completed claims have been approved by Revenue. Applications received from businesses are reviewed to determine eligibility and this accounts for the variance in the figures for ‘all applications’ and ‘approved registrations’. 

Revenue publishes detailed statistical reports in relation to the TBESS which are updated on a weekly basis. These reports are available on Revenue’s website.

Tax Reliefs

Questions (235)

Claire Kerrane

Question:

235. Deputy Claire Kerrane asked the Minister for Finance the specific tax reliefs available to farmers which are due to expire in 2023/2024; and if he will make a statement on the matter. [24421/23]

Written answers

Minister for Finance

The following table lists the tax reliefs specific to the farming sector which are due to expire in either 2023 or 2024, including the relevant legislative provision and sunset date:

Relief	Legislative provision	Sunset
Stamp Duty Consanguinity Relief on Non-Residential Transfers	Schedule 1 Stamp Duties Consolidation Act 1999	31 December 2023
Acceleration of wear and tear allowances for farm safety equipment	Section 285D Taxes Consolidation Act 1997	31 December 2023
General Stock Relief	Section 666 Taxes Consolidation Act 1997	31 December 2024
Stock Relief on Income Tax for Certain Young Trained Farmers	Section 667B Taxes Consolidation Act 1997	31 December 2024
Stock Relief on Income Tax for Registered Farm Partnerships	Section 667C Taxes Consolidation Act 1997	31 December 2024

Any extension of the reliefs beyond their current sunset dates will fall to be considered by Government as part of the Budget and Finance Bill process.

Revenue Commissioners

Questions (236)

Catherine Murphy

Question:

236. Deputy Catherine Murphy asked the Minister for Finance the number of and value of motor vehicles seized by the Revenue Commissioners over the past five years to date; the amount of VRT recovered in respect of the seizures; and the number of vehicles returned following payment of outstanding VRT. [24554/23]

Written answers

Minister for Finance

An Authorised Officer of the Revenue Commissioners may lawfully seize vehicles liable to forfeiture for excise offences, which include VRT related offences, in accordance with Section 141 of the Finance Act 2001.

I am advised by Revenue that its approach to enforcement of the law relating to Vehicle Registration Tax (VRT) is that in each instance where a failure to comply with the relevant legal requirements is detected, the matter is dealt with in a manner that is fair and proportionate in the circumstances of the particular case. Revenue officers are faced with a variety of situations in dealing with enforcement of compliance with VRT obligations. The type of scenario that may be encountered, and the action considered appropriate in each such scenario, is set out at section 5.4.2 of the VRT Enforcement Manual available on the Revenue website.

The circumstances where vehicles may be seized for VRT related offences are set out in 5.7.2 of the VRT Enforcement Manual. This includes where an Officer forms the view that a person is a resident of the State and in possession of an unregistered vehicle contrary to section 139 of the Finance Act 1992, and that the person has had the vehicle in the State for in excess of a 30-day period.

I am advised that depending on the circumstances of a particular case, an Officer may then offer local release of the seized vehicle at the roadside pursuant to the provisions of s.144(2) of the Finance Act 2001 on payment of a compromise sum. Upon release of a seized vehicle in such circumstances, the alleged offender is required to give an undertaking, on a Form 20A that the VRT will be paid or the vehicle will be removed permanently from the State. As the option to register the vehicle within 30 days of release or to remove the vehicle permanently from the State is provided, it is not possible to identify from Revenue’s records the amount of VRT recovered linked to vehicles that were the subject of a seizure at a point in time from those where an individual was timely compliant and paid  VRT in accordance with the relevant legal requirements and was not therefore the subject of a seizure.  

The number of motor vehicles seized for VRT related offences and the value of seized vehicles, based on their open market selling price (OMSP) at the time of seizure, for the period 2018 to end April 2023, is set out below.

Year	No. of Vehicle Seized	Value of Vehicles Seized
2018	1,223	€12,424,560
2019	1,263	€12,378,776
2020	411	€4,299,538
2021	444	€6,789,493
2022	877	€11,197,894
2023 (to end April)	362	€3,562,012

Tax Reliefs

Questions (237)

Alan Dillon

Question:

237. Deputy Alan Dillon asked the Minister for Finance to outline, in tabular form, how much has been spent on the bike-to-work scheme for each year to date since its introduction; and if he will make a statement on the matter. [24614/23]

Written answers

Minister for Finance

Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme was introduced in 2009 and provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment for an employee.

The scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.  Accordingly, there are no records available on the number of people availing of the scheme or the cost of the scheme.

Tax expenditure reports prepared by my Department have estimated the cost in the full years 2017 – 2019 at €4 million and notes that this figure is an estimate as separate returns are not required under the scheme. This estimate was increased to €4.5 million in 2020 on foot of the changes made to the scheme by Section 9 of the Financial Provision (Covid-19)(No.2) Act 2020. This increased the allowable expenditure from €1,000 to €1,500 in respect of e-bikes and €1,250 in respect of bicycles and allowed the purchase of a new bicycle every 4 years instead of 5. The estimate was €5.5 million for 2021 with the full year impact of the changes.

Further, an additional cost is anticipated on foot of an extension of the exemption limit of up to €3,000 in respect of cargo bikes which was introduced in Finance Act 2022. The additional cost will depend on uptake and the marginal rate of tax being paid by the employee, however, it is not expected that the cost will be significant.

Housing Schemes

Questions (238)

Willie O'Dea

Question:

238. Deputy Willie O'Dea asked the Minister for Finance why the help-to-buy (HTB) scheme does not apply to second-hand homes; if he will consider extending the HTB scheme to second-hand homes; and if he will make a statement on the matter. [24720/23]

Written answers

Minister for Finance

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 Credits

Questions (239)

Aengus Ó Snodaigh

Question:

239. Deputy Aengus Ó Snodaigh asked the Minister for Finance the estimated cost of restoring the regional uplift of 5% to the film tax credit. [24744/23]

Written answers

Minister for Finance

Section 481 provides relief in the form of a corporation tax credit related to the cost of production of certain films. The scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of the Irish culture.

Finance Act 2018 introduced a short-term, tapered regional uplift for productions being made in areas designated under the State aid regional guidelines. The purpose of the regional uplift is to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.

The uplift originally provided an increased level of credit for four years, with 5% available in years 1 and 2 (2019 and 2020), 3% available in year 3 (2021), 2% available in year 4 (2022). However, in recognition of the detrimental impact the COVID-19 crisis had on the audio-visual sector, Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive year lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarted, reducing to 3% 2022, 2% in 2023, and it will be Nil thereafter.

As both the main 32% credit and the regional uplift are approved State aids, any further extension of the uplift would require approval from the European Commission. In addition, it should be noted that a further extension of the Uplift in its current form may not be possible. While not a Regional Aid, the current relief operates by reference to the regional aid map applicable at the time it was introduced. A new regional aid map, covering a smaller geographic area, was introduced from April 2021 and, while approval was granted by the European Commission for the uplift to continue to reference the previous map for its remaining term, it is not clear that a similar approval would be granted for a longer extension.

With regard to the potential cost of an extension, the Exchequer cost of the regional uplift is dependent on the number of qualifying films, as well as the timing and value of claims made for the relief in future. Therefore it is not possible to provide an accurate forecast of potential future costs. However, it may be of assistance to the Deputy to note that, based on information outlined in the Cost Benefit Analysis of Section 481, published on Budget Day 2022, the estimated cost of the regional uplift in 2020 and 2021 was €5.9 million and €4.7 million respectively, both being years in which a 5% uplift was available. The Cost Benefit Analysis is available at www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.   

I would note that the main film tax credit of 32% will remain available to qualifying productions in all areas of the country following the winding-down of the uplift. Furthermore, other non-tax supports are also available to regional productions, such as Screen Ireland's fund to support regional activity. The Regional Support Fund is designed to support the development of skills around the country, outside of the established hubs in Dublin and Wicklow. It is targeted at crew across all grades, including new entrants, and will also require commitments in the area of Diversity and Inclusion, sustainable production and on-set initiatives.

Primary Medical Certificates

Questions (240, 241)

Frankie Feighan

Question:

240. Deputy Frankie Feighan asked the Minister for Finance when it is expected the Disabled Drivers Medical Board of Appeal will be formed and be in a position to hear appeals again. [24755/23]

Frankie Feighan

Question:

241. Deputy Frankie Feighan asked the Minister for Finance when it is expected the Disabled Drivers Medical Board of Appeal will be formed and be in a position to hear appeals again, given the backlog of applications. [24756/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 240 and 241 together.

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 set out in the Finance Act 2020.

In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA).

At an appeal hearing the Board reviews the decision by a HSE Primary/Senior Area Medical Officer and determines if an appellant does, or does not meet, one of the six medical criteria. Only if an appellant meets one of the six eligibility criteria will the Board issue a Board Medical Certificate.

I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.

Following the resignation of all previous DDMBA members in November 2021, I had hoped that I would be in a position to establish a new DDMBA and recommence the appeals process by this point.

With respect to the recruitment of new members, as background five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. The Department of Health has led on all actions and tasks with respect to Expression of Interest Campaigns to recruit candidates. Department of Finance officials have provided support to the Department of Health in this matter. Active recruitment efforts began shortly after the resignation of all members in November 2021, with the first Expression of Interest Campaign launched in January 2022. By November 2022 after three recruitment campaigns, five individuals had been nominated by the Minister of Health, pending successful completion of Garda vetting of two final candidates. These candidates successfully completed Garda vetting in January 2023.

Engagement began in December 2021 with the National Rehabilitation Hospital (NRH), to ascertain the conditions for their continued hosting of the new DDMBA. In February 2023, the National Rehabilitation Hospital (that has hosted the DDMBA since 2000) indicated their intention to withdraw their services with immediate effect. Finance and Health officials are actively seeking to implement new arrangements, including engaging with the NRH. As there are a range of requirements and complex issues involved this may take some time.

In March 2023, one nominated member of the DDMBA resigned for personal reasons. The Department of Health with support from Department of Finance officials launched another Expression of Interest Campaign on 3rd April 2023 with a closing date of 28th April 2023. One candidate has been interviewed.

Requests for appeal hearings can still be sent to the DDMBA secretary based in the National Rehabilitation Hospital.

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. 241 answered with Question No. 240.

Mortgage Interest Rates

Questions (242)

Holly Cairns

Question:

242. Deputy Holly Cairns asked the Minister for Finance the steps he is taking in response to rising mortgage repayments on family homes as a result of the ECB increasing interest rates; and if he will make a statement on the matter. [24795/23]

Written answers

Minister for Finance

The formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation. 

The level of official interest rates influences the overall level of interest rates throughout the economy.  However, the setting of retail lending rates by individual lenders is a commercial matter for that lender and I have no function or role in such decision making matters by financial institutions. 

The weighted average interest rate on new Irish mortgage agreements at end-March 2023 was 3.54 per cent and, while it has recently increased, it is still among the lowest in the euro area.

Also it should be noted that the structure of the Irish mortgage market is changing and that there has been an increase in the take up of fixed rate mortgages over recent years - in March 2023 for example 89% of new mortgages were at a fixed interest rate - and this protects borrowers from ECB interest rate increases for the period that the interest rate is fixed.

A number of measures have been implemented to support households facing rising interest rates.  In terms of regulation, the Central Bank has introduced a number of increased protections for variable rate mortgage holders in recent years which help mortgage holders identify lower cost mortgage options. 

Firstly it made changes to the Consumer Protection Code which required lenders to explain to borrowers how their non tracker variable interest rates have been set and to clearly identify the factors which may result in changes to variable interest rates. 

Secondly, it also increased the level of information lenders are required to provide their customers including where there is a possibility for the borrower to move to a lower ‘loan to value’ interest rate band and signpost the borrower to the Competition and Consumer Protection Commission's mortgage switching tool.

More recently, the 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.

I have also met with the CEOs of the retail banks and with a number of non-bank lenders where I emphasised that they should take a consumer focused approach to encourage switching where possible. 

In addition, 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.  

The Central Bank is scrutinising 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 identified no evidence to date of such discrimination.

In addition, as the Deputy is aware, the total size of Budget 2023 was €11 billion and it contained many measures to assist families with the increased cost of living. Furthermore, on 21 Feb 2023, an extra €1.2 billion was provided to help households and businesses to meet cost of living increases.

However, I am aware that some borrowers will experience repayment difficulty on a mortgage secured on a primary residence and the Code of Conduct on Mortgage Arrears (CCMA) was introduced to ensure that regulated entities have fair and transparent processes in place for dealing with such cases. 

The CCMA sets out the process that entities must follow when a borrower is in or facing difficulties with their mortgage payments and it states that all arrears 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.  

There is an obligation on regulated entities to explore all of the options for alternative repayment arrangements (ARAs) offered by that entity, in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances.

Public Sector Pay

Questions (243, 245)

Richard Boyd Barrett

Question:

243. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the estimated full-year cost of ensuring that every public sector worker is paid a minimum of €15 per hour; and if he will make a statement on the matter. [24032/23]

Richard Boyd Barrett

Question:

245. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of people working in the public sector earning less than the living wage of €15 per hour; and if he will make a statement on the matter. [24034/23]

Written answers

Minister for Public Expenditure, National Development Plan Delivery and Reform

I propose to take Questions Nos. 243 and 245 together.

In relation to the civil service, for which my Department holds detailed data, the suggested Living Wage at €15 per hour based on the civil service 35 hour standard net working week equates to an annual salary of approximately €27,395. Detailed data on civil service staff indicates that approximately 6% of staff (FTE) in the civil service are on salary points less than the suggested Living Wage. It is expected that this number will reduce significantly on implementation of the final adjustment of 1.5% or €750 due on October 1 2023 under the extension to Building Momentum.

Those currently on an annual salary of less than €27,395 may be receiving remuneration in excess of the suggested living wage through additional premium payments in respect of shift work or atypical working hours. In addition, these salary scales progress to the suggested Living Wage and above through normal incremental progression.

The current public service agreement is Building Momentum - A New Public Service Agreement 2021-2023. The pay measures in the extended agreement amount to total headline adjustments of 9.5% over the lifetime of the Agreement. The extended Agreement is weighted towards those at lower incomes headline increases of approximately 12.5% for the lowest paid public servants. This would include all those earning less than €27,395 per annum.

The public service information sought in this request would require detailed data on the position of staff on each salary scale across the public service and details of the standard working hours per week for each individual grade. This data is not held in my Department.

Public Sector Pay

Questions (244)

Richard Boyd Barrett

Question:

244. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the estimated full-year cost of ensuring that every public sector worker earning under €100,000 receives a pay increase of 10% in 2024; and if he will make a statement on the matter. [24033/23]

Written answers

Minister for Public Expenditure, National Development Plan Delivery and Reform

The total public service pay bill figure (inclusive of Local Authorities) for 2023 is estimated to be €25.9 billion. This includes all elements of pay, including basic pay, allowances, overtime, premia, and employer PRSI. The estimated cost of a 10% pay increase for public service workers earning less than €100,000 would be approx. €2.4 billion.