Written Answers Nos. 223-235
223. Deputy Fergus O'Dowd asked the Minister for Finance the position in respect of calls by a charity (details supplied) to see 0% VAT applied on sunscreen products to encourage use and decrease overall risk of skin cancers; and if he will make a statement on the matter. [26191/23]
View answerI am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they are exempt from VAT or fall within Annex III of the Directive, in respect of which Member States may apply reduced rates of VAT.
Under VAT law, there is no scope for a reduction in the rate of VAT on sunscreen products. The supply of sunscreen products is liable to the standard rate of VAT, currently 23%.
224. Deputy Sorca Clarke asked the Minister for Finance the value to the Exchequer of VAT returns on the assistive technology scheme for children in primary schools. [26197/23]
View answer225. Deputy Sorca Clarke asked the Minister for Finance the value to the Exchequer of VAT returns on the assistive technology scheme for children in post-primary schools. [26198/23]
View answerI propose to take Questions Nos. 224 and 225 together.
I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide an accurate estimate of VAT collected on the assistive technology scheme in schools using information provided on tax returns.
226. Deputy Ivana Bacik asked the Minister for Finance the amount paid by his Department to external legal teams, HR specialists, accountancy firms and consultants in 2022; and if he will make a statement on the matter. [26231/23]
View answerI wish to advise the Deputy that the following payments were made by my Department in 2022.
|
Consulting firms |
€608,133 |
|
Accountancy firms |
€0 |
|
Legal costs |
€232,057 |
|
HR Specialists |
€9,322 |
*Consultancy - €168,790 was recouped from the banks
**HR Specialists - €6,273 was recouped from the NTMA
*** Legal costs €223,588 were recouped from the banks
227. Deputy Patricia Ryan asked the Minister for Finance the measures and-or plans that he or the Government have in place, or intend to introduce, to assist the many struggling mortgage holders who find themselves again facing uncertainty following the sale of their mortgage to a vulture fund by the original lender; the options available to these mortgage holders if the vulture fund fails or refuses to negotiate in any way; and if he will make a statement on the matter. [26357/23]
View answer228. Deputy Patricia Ryan asked the Minister for Finance the number of family home mortgages, by county, that are now in the hands of vulture funds in 2023, in tabular form; the number of those mortgages that are or were the subject of alternative payment arrangements or split or shelved portion mortgages prior to their being sold to vulture funds; and if he will make a statement on the matter. [26362/23]
View answerI propose to take Questions Nos. 227 and 228 together.
There is a comprehensive consumer protection framework in place to ensure that Central Bank regulated entities are transparent and fair in all their dealings with borrowers, and that borrowers are protected from the beginning to the end of the mortgage life cycle; for example, through protections at the initial marketing/advertising stage, in assessing the affordability and suitability of the mortgage and at a time when borrowers may find themselves in financial difficulties.
In particular, the Central Bank Code of Conduct on Mortgage Arrears (CCMA) was introduced to ensure that regulated entities have fair and transparent processes in place for dealing with borrowers in or facing arrears on a mortgage which is secured on a primary residence.
The CCMA sets out the process that entities must follow when dealing with a borrower who is in arrears or who facing difficulties with their mortgage payments, and it makes clear that due regard must be given to the fact that each case is unique and needs to be considered on its own merits, and that all cases must be handled sympathetically and positively by the regulated entity with the objective at all times of assisting the borrower to meet his or her mortgage obligations. Central Bank regulated entities must 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.
Under the CCMA, a regulated entity may only commence legal proceedings for repossession where it has made every reasonable effort to agree a sustainable ARA with the borrower, or where the borrower has been classified as not co-operating.
The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating.
If a regulated entity and a co-operating borrower cannot agree on a bilateral arrangement to address a mortgage difficulty under the CCMA framework, the statutory personal insolvency process, including the Personal Insolvency Arrangement option if the borrower has a secured debt (including a debt which is secured on a primary residence), will be available to insolvent borrowers.
Where a creditor's rights under a credit agreement is sold or transferred to another regulated entity, the protections that were available to borrowers prior to the transaction continue to be in place with the new owner. This ensures that consumers whose loans are sold or transferred, maintain the same regulatory protections that they had, including under the various Central Bank statutory Codes of Conduct, such as the Consumer Protection Code 2012 and the Code of Conduct on Mortgage Arrears 2013 (CCMA).
Also it is worth noting that under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018, in such a situation the new holder of the legal title to the credit must also be regulated and must act in accordance with Irish financial services law that applies to ‘regulated financial service providers’.
The Central Bank publishes regular data on the mortgages held by banks and by 'non-banks' (which comprise regulated retail credit and credit servicing firms). The latest available comprehensive data, which is for the end of December 2022, is set out in the Central Bank's Statistical Release on residential mortgage arrears and repossession statistics and it indicates that 115,259 principal dwelling house (PDH) mortgage accounts were held by 'non-banks'. (Separate data published at the end of April by the Central Bank in its paper entitled 'Protecting consumers in a changing landscape' indicates that, around 33,000 of these mortgages are held by what the Central Bank called 'lending retail credit firms' and that the balance of around 82,000 where held by 'non-lending firms').
Of these PDH accounts held by 'non-banks', 23,389 were classified as 'restructured', of which 6,799 were in a 'split mortgage' arrangement. The Central Bank does not publish a breakdown of this mortgage data by county.
The Central Bank has engaged intensively with regulated firms since last year on the operation of specific aspects of the consumer protection framework, including arrears and switching, with a particular focus on how consumers that need, or may need support, can be helped within the regulatory framework.
The Central Bank has advised that firms have responded with additional supports for borrowers and increased operational capacity. This has included proactive contact with vulnerable borrowers, including those at greatest risk of default, and continued provision of supports, including alternative repayment arrangements, to borrowers at risk of arrears.
The Central Bank will continue to engage with firms on areas where consumers could be better supported and where the information or options available to affected consumers could be enhanced.
I have also met with the CEOs of the retail banks and with a number of non-bank lenders and I have emphasised that they should take a consumer focused approach to assist their borrowers at this difficult time and to facilitate and mortgage switching where possible.
More generally, 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, including households with a mortgage. Furthermore, last February an extra €1.2 billion was provided to help households and businesses to meet cost of living increases.
229. Deputy Robert Troy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the amount of the BAR fund that has been allocated and drawn down to date; and if he is confident that all funds will be utilised before the expiration date. [25927/23]
View answerThe European Union’s Brexit Adjustment Reserve (BAR), provides support to counter the adverse economic, social, territorial and, environmental consequences of the withdrawal of the UK from the European Union.
The application for BAR funding must set out the negative impacts of the withdrawal of the UK from the European Union, and how the measures carried out under the Fund alleviate the adverse consequences. The Government has therefore, over a series of budgets, allocated BAR funding across a number of impacted sectors in order to mitigate those adverse effects of Brexit and to adapt to regulatory changes.
Ireland’s allocation from the reserve will be €1.015 billion. In order to be eligible for BAR funding, the expenditure must fall within the BAR eligibility period for expenditure which runs from the 1st of January 2020 to the 31st of December 2023.
Funding from the BAR will be disbursed in two allocation rounds. The first round (80%) was in the form of pre-financing and was paid in three instalments across 2021-2023. The third tranche of this pre-financing from the Brexit Adjustment Reserve of €164 million was received in recent weeks. This brings the total BAR funding received so far to €0.8 billion. The remaining amount will be paid in 2025.
Following the BAR Regulation coming into force in October 2021, specific funding of €389 million was provided in Budgets 2022 and 2023 across a number of sectors.
This was allocated as follows:
|
Department |
€m |
|
Agriculture |
271 |
|
Enterprise |
15 |
|
Further and Higher Education, Research, Innovation and Science |
37.3 |
|
Public Expenditure, NDP Delivery and Reform |
4.4 |
|
Foreign Affairs |
2.2 |
|
Tourism Culture Arts Gaeltacht Sports and Media |
7.75 |
|
Environment Climate and Communications |
24 |
|
Health |
5.5 |
|
Justice |
21.5 |
|
Transport |
0.1 |
|
Total |
389 |
Further funding can also be considered for allocation over the remainder of 2023. This would include consideration of funding in relation to permanent infrastructure at Rosslare port required for customs and SPS checks.
Officials in my Department are currently engaging in a review exercise of Brexit related spending, from the 1st of January 2020 to the end of December 2023, for possible inclusion in Ireland’s BAR claim to the EU Commission in September 2024. This involves engaging with Departments on spending outside of that allocated under Budgets 2022 and 2023 which may qualify for inclusion in the BAR claim. A figure of approximately €0.7 billion has been identified in this regard.
This work is ongoing and the exact makeup of Ireland's BAR claim will not be decided until the claim is submitted in September 2024. It should be noted that in addition to the above, the Government also provided significant funding to prepare for Brexit prior to the BAR eligibility period.
230. Deputy Seán Canney asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when retired OPW staff will receive a raise in their pension and arrears in relation to recent pension increases; and if he will make a statement on the matter. [26110/23]
View answerAll OPW State Industrial pensions are paid by National Shared Services, Paymaster General.
OPW retired State Industrial personnel will receive a raise in their pension and arrears arising from recent public service wide pay increases. Pension increases and arrears due on foot of the 3% pay award of 1 October, 2022, retrospective to 2 February, 2022 are currently being processed by National Shared Services, Paymaster General. Relating balancing retirement lump sums due have already been paid by OPW.
Pension increases due on foot of the 2% pay award on 1 March, 2023 will be applied by the National Shared Services, Paymaster General.
231. Deputy Bríd Smith asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he can clarify in relation to a public sector worker (details supplied) who has suffered a critical illness and having returned to work, is diagnosed with a second, separate critical illness within months. [25609/23]
View answerAs Minister for Public Expenditure and Reform, I have responsibility for the Public Service Sick Leave Scheme.
This Scheme ordinarily provides for the payment of the following to public servants during periods of absence from work due to illness or injury:
• A maximum of 92 days on full pay in a rolling one-year period
• Followed by a maximum of 91 days on half pay in a rolling one-year period
This is subject to an overriding threshold of 183 days’ paid sick leave in a rolling four-year period.
Some individuals may become incapacitated as a result of critical illness or serious physical injury. If they have supporting medical evidence for an extended period of sick leave, they may, on an exceptional basis, be granted extended paid sick leave as follows under the Critical Illness Protocol (CIP):
• A maximum of 183 days on full pay in a rolling one-year period
• Followed by a maximum of 182 days on half pay in a rolling one-year period
This is subject to an overriding threshold of 365 days’ paid sick leave in a rolling four-year period
CIP does not distinguish between critical conditions. Access is based on the established criteria as per Part 4 of S.I. 124/2014 (Public Service Management [Sick Leave] Regulations 2014) and as laid out in relevant circulars.
An individual may apply more than once to access CIP, however they are subject to the thresholds as laid out above. As the granting of access to CIP is a management decision, medical advice must be sought from the Chief Medical Officer or Occupational Health Physician to aid the decision-making process.
232. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide a breakdown of allocations to date under the Brexit adjustment fund; the total amount allocated to Ireland; if he will confirm whether it all has to be spent by the end of 2023; and if he will make a statement on the matter. [25622/23]
View answerThe European Union’s Brexit Adjustment Reserve (BAR), provides support to counter the adverse economic, social, territorial and, environmental consequences of the withdrawal of the UK from the European Union.
The application for BAR funding must set out the negative impacts of the withdrawal of the UK from the European Union, and how the measures carried out under the Fund alleviate the adverse consequences. The Government has therefore, over a series of budgets, allocated BAR funding across a number of impacted sectors in order to mitigate those adverse effects of Brexit and to adapt to regulatory changes.
Ireland’s allocation from the reserve will be €1.015 billion. In order to be eligible for BAR funding, the expenditure must fall within the BAR eligibility period for expenditure which runs from the 1st of January 2020 to the 31st of December 2023.
Following the BAR Regulation coming into force in October 2021, specific funding of €389 million was provided in Budgets 2022 and 2023 across a number of sectors. This was allocated as follows:
|
Department |
€m |
|
Agriculture |
271 |
|
Enterprise |
15 |
|
Further and Higher Education, Research, Innovation and Science |
37.3 |
|
Public Expenditure, NDP Delivery and Reform |
4.4 |
|
Foreign Affairs |
2.2 |
|
Tourism Culture Arts Gaeltacht Sports and Media |
7.75 |
|
Environment Climate and Communications |
24 |
|
Health |
5.5 |
|
Justice |
21.5 |
|
Transport |
0.1 |
|
Total |
389 |
Further funding can also be considered for allocation over the remainder of 2023. This would include consideration of funding in relation to permanent infrastructure at Rosslare port required for customs and SPS checks.
Officials in my Department are currently engaging in a review exercise of Brexit related spending, from the 1st of January 2020 to the end of December 2023, for possible inclusion in Ireland’s BAR claim to the EU Commission in September 2024. This involves engaging with Departments on spending outside of that allocated under Budgets 2022 and 2023 which may qualify for inclusion in the BAR claim. A figure of approximately €0.7 billion has been identified in this regard.
This work is ongoing and the exact makeup of Ireland's BAR claim will not be decided until the claim is submitted in September 2024. It should be noted that in addition to the above, the Government also provided significant funding to prepare for Brexit prior to the BAR eligibility period.
233. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide a breakdown of allocations to date under the Recovery and Resilience Facility NextGenerationEU fund; the total amount allocated to Ireland; if transfers have been made from other funds, such as the BAR; what those have been allocated to; and if he will make a statement on the matter. [25623/23]
View answer236. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the use of funding under the recovery and resilience plan; and if he will make a statement on the matter. [25727/23]
View answerI propose to take Questions Nos. 233 and 236 together.
Ireland is expected to receive €915m in grants over the lifetime of the EU’s Recovery and Resilience Facility (RRF). In order to access this funding, Ireland has developed the National Recovery and Resilience Plan (NRRP). The RRF is a performance-based instrument with payment contingent on the satisfactory achievement of milestones and targets. The NRRP is based on sixteen investment projects and nine reform measures and their associated 109 milestones and targets covering the following priorities:
• Priority 1: Advancing the Green Transition
• Priority 2: Accelerating and Expanding Digital Reforms and Transformation
• Priority 3: Social and Economic Recovery and Job Creation
An Implementing Body in Department of Public Expenditure, NDP Delivery and Reform oversees NRRP implementation. The delivery of the plan is well underway. The attached table provides a summary of the NRRP investment projects and reform measures.
REPowerEU is the EU’s response to the global energy market disruption caused by Russia's war on Ukraine and provides the potential for further funding via the Recovery and Resilience Facility. Ireland expects to receive almost €90m in grants for REPowerEU projects, and the Government has also requested a transfer of €150 million of Brexit Adjustment Reserve funding to REPowerEU.
To avail of the REPowerEU funding, a new chapter will need to be added to Ireland’s National Recovery and Resilience Plan (NRRP). My Department is considering potential investment and reform proposals that could be funded under REPowerEU in consultation with a number of Government Departments. These proposals will be subject to negotiation and assessment by the Commission. Final funding decisions are a matter for Government.
234. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the changes, if any, that have been made to capital allocations to Departments and agencies in 2023 to account for construction inflation; his plans to do so in the future; and if he will make a statement on the matter. [25624/23]
View answerIn the interest of safeguarding public projects that are already under construction and to mitigate the risks of significant losses being sustained by contractors, in May 2022 the then Minister for Public Expenditure and Reform announced details of the “Inflation Co-operation Framework" (the Framework) for those parties engaged under a public works contract.
The Framework facilitates both parties to engage with one another for the purpose of addressing the impacts of the most recent onset of exceptional inflation and supply chain disruption and operates on an ex gratia basis. Reports from Departments suggest that agreements have been reached on a wide range of projects and, where formal agreement has not yet been reached, parties continue to engage with works progressing.
The use of the Framework is voluntary, but participation by the parties is strongly encouraged. It represents a pragmatic and proportionate response to the current challenges caused by inflation that are not within either party’s control.
Costs relating to implementation of the Framework are to be met from within existing capital expenditure ceilings in 2023. The levels of capital spending set out in the NDP, at close to 5% of GNI*, are already among the highest in the EU and are close to the limit of the overall capability to deliver in the coming decade. Similar to any process of Vote management, it will be up to sectors and Accounting Officers to assess whether existing timelines for the implementation of key projects will need to be adjusted on account of the Framework implementation or if there will be a need for prioritisation within their existing five year departmental ceilings.
The cost associated with the implementation of the Framework are not collated centrally. It is managed at a project level by contracting authorities and reported to approving authorities so the impact on their overall capital ceiling can be assessed and the programme adjusted accordingly.
235. Deputy Mary Lou McDonald asked the Minister for Public Expenditure, National Development Plan Delivery and Reform his position on the reinstatement of criminal legal aid fees to pre-2008 levels. [25673/23]
View answerAs the Deputy may be aware, based on Government decisions and as part of a broader Government need to reduce costs across the public service, the Minister for Justice exercised powers conferred to them under section 10(1)(b) of the Criminal Justice (Legal Aid) Act 1962 to apply reductions to professional fees paid to barristers under the Criminal Legal Aid Scheme in 2009, 2010 and 2011.
The Department of Justice established a Criminal Legal Aid Oversight Committee in 2016, and my officials have been engaging with their counterparts in the Department of Justice since then regarding these matters.
I understand that the Minister for Justice intends to publish the General Scheme of a Criminal Legal Aid Bill that will allow for improved accountability for expenditure, management and control in line with audit requirements. I also understand that the Department of Justice has recently decided to refocus the work of the Criminal Legal Aid Oversight Committee to, amongst other things, advise on the necessary reforms to fees to incentivise greater efficiency in the courts and to ensure that all fees are auditable.
I fully acknowledge and appreciate the very important work undertaken by barristers who prosecute criminal work on behalf of the State. Annual expenditure under the Scheme has risen by €20.5m (39%) in the period 2016-2021, which gives some sense of the scale of the State’s investment in this area.
Officials in my Department continue to engage with the Department of Justice and other relevant stakeholders in relation to this issue as appropriate. It is important that any proposal to adjust legal fees paid under the Criminal Legal Aid Scheme is considered in the context of reform measures that improve the administration of justice, support a transparent and rational framework for providing legal aid, and which help to control costs.
