Written Answers Nos. 141-156
141. Deputy Brian Leddin asked the Minister for Finance if consideration has been given to allocating some of the general Government surplus to investment into sustainable transport infrastructure; and if he will make a statement on the matter. [30152/23]
View answerLast year a General Government Surplus of approximately €8 billion was recorded. However, my Department estimates that in 2022, windfall corporation tax receipts were in the region of €11 billion. Once these windfall receipts are stripped out, the headline budgetary surplus masks an underlying deficit somewhere in the region of €3 billion. Going forward, an annual average of between €11-12 billion of corporation tax receipts was identified in the Stability Programme Update 2023 as being potentially at risk and an underlying surplus is not expected until next year.
In terms of transport infrastructure, this falls under the remit of my colleague, the Minister for Transport. However, as the Deputy is aware, this Government is committed to a fundamental change in the nature of transport in Ireland and at the heart of that change will be a shift toward increased use towards both active travel and public transport.
Exchequer investment reflects that commitment, with significantly increased funding being provided for public transport infrastructure and services. I understand that almost €1 million being spent every day on active travel to deploy enhanced and more secure walking and cycling infrastructure. That funding is supporting the delivery of transformative projects such as DART+, MetroLink and BusConnects programmes in all five cities, as well as the roll-out of new, enhanced and improved rural bus services across the country under Connecting Ireland. In addition to these projects, the Department of Transport has overseen fare reductions to make public transport more attractive, with a general 20 per cent reduction applied across Public Service Obligation services and an additional 50 per cent reduction introduced for holders of the Young Adult Card.
These investments are necessary if we are to achieve the targets set by the Climate Action Plan 2023 to reduce the modal share of daily car journeys from over 70 per cent to approximately 50 per cent by 2030.
On the broader question of the treatment of the projected budgetary surpluses, my Department continues to work on proposals for the establishment of a long-term savings vehicle, while also paying down debt and provisioning for additional targeted capital investment. These proposals will take account of the analysis contained in the Department’s paper ‘Future-proofing the Public Finances – the Next Steps’, which was published last month. Any additional targeted capital investment will take account of the existing Exchequer investment, while at the same time ensuring that capacity to deliver is not a constraint.
143. Deputy Alan Farrell asked the Minister for Finance if he will provide the details of the flat-rate expense allowances for the building industry allowed by Revenue, to include an itemised list for all the sub trades of this sector; the way in which apprentices are treated for flat-rate expenses in the building industry; if he will rebalance any variances upwards for all those workers operating in the building industry in Ireland; and if he will make a statement on the matter. [30172/23]
View answerI am advised by Revenue that the flat rate expense (FRE) regime it operates is done so on an administrative basis. It applies where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 Taxes Consolidation Act (TCA) 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned. A further requirement is that such expenses are not reimbursed by an employee’s employer.
The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary.
Applications are generally made by the representative bodies in the employment sectors concerned and are considered by Revenue based on the specific commonality of expenses within the employment category and compliance with the strictly applied statutory requirement for a tax deduction.
In relation to the building industry, the FRE categories are published on Revenue’s website and included in a table below for the Deputy’s convenience. Apprentices who operate in any of the employment categories outlined below are entitled to claim the corresponding FRE for their trade.
A review of the FRE regime was undertaken by Revenue in 2018/2019. Implementation of those findings has been deferred a number of times, pending consideration by the Tax Strategy Group of the tax deductibility of expenses in employment.
Given the time since the 2018/2019 review, it may be necessary for Revenue to further review a number of the FREs. With this in mind and given the prevailing circumstances, Revenue has deferred the implementation of the findings of the 2018/2019 review to allow time to complete its further review of certain FRE rates. Once this work is concluded, a further update on the implementation of changes to the FRE regime will be made available and published on the Revenue website.
In the meantime, where the 2018/2019 review identified FRE categories for which an increase in the existing rate is appropriate, Revenue will implement these changes so that the benefit of such a change will apply from 1 January 2023. The Revenue website will be updated with regard to the necessary steps to avail of the increases once arrangements are finalised.
It should be noted that all employees retain their statutory right to claim a deduction under section 114 TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which such expenses are not reimbursed by the employer.
|
- |
2023 |
2022 |
2021 |
2020 |
|
€ |
€ |
€ |
€ |
|
|
Building Industry |
||||
|
Bricklayer |
175 |
175 |
175 |
175 |
|
Fitter mechanic, plasterer |
103 |
103 |
103 |
103 |
|
Electrician |
153 |
153 |
153 |
153 |
|
Mason, roofer slater, tiler, floor layer, stone cutter |
120 |
120 |
120 |
120 |
|
Driver, scaffolder, sheeter, steel erector |
52 |
52 |
52 |
52 |
|
Professionals: engineers, surveyors, etc. |
33 |
33 |
33 |
33 |
|
General operatives (labourers etc. incl. Public Sector) |
97 |
97 |
97 |
97 |
|
Carpentry and joinery trades |
||||
|
Cabinet makers, Carpenters, Joiners |
220 |
220 |
220 |
220 |
|
Painters, Polishers, Upholsterers, Wood Cutting Machinists |
140 |
140 |
140 |
140 |
|
Engineering Industry [and Electrical Industry from 1997/98] |
||||
|
(a)Skilled workers who bear the full cost of own tools and overalls |
331 |
331 |
331 |
331 |
|
(b)Semi-skilled workers who bear the full cost of own tools and overalls |
254 |
254 |
254 |
254 |
|
(c)All unskilled workers and skilled or semi-skilled workers who do not bear the full cost of own tools and overalls |
219 |
219 |
219 |
219 |
|
Plumbing Trades |
||||
|
Plumber (non-welder) |
177 |
177 |
177 |
177 |
|
Plumber-welder |
205 |
205 |
205 |
205 |
|
Pipe fitter-welder |
205 |
205 |
205 |
205 |
144. Deputy Peadar Tóibín asked the Minister for Finance the number of times he has corresponded or met with the Irish Fiscal Advisory Council; and if he will list the dates upon which these meetings and-or 'instances of correspondence took place. [29448/23]
View answerAs the Deputy will be aware, I took office as Minister for Finance on the 17 December 2022. Since taking office, I have not corresponded or had any formal meetings with the Irish Fiscal Advisory Council. My officials have, of course, met with the Fiscal Council over this period in the context of the endorsement process of the macroeconomic forecasts.
The Fiscal Council play an important role in Ireland’s budgetary architecture. I will issue a formal response to the Fiscal Council’s June 2023 Fiscal Assessment Report over the coming weeks. This will be published on my Department’s website.
147. Deputy David Stanton asked the Minister for Finance if he will outline the progress made to date by the Office to Promote Competition in the Insurance Market as it continues to work to help to attract new entrants into the Irish market; and if he will make a statement on the matter. [29961/23]
View answerInsurance reform is a key priority for this Government as evidenced through the implementation of the Action Plan on Insurance Reform as overseen by a specific Cabinet Committee Sub-Group chaired by the Tánaiste. The latest Implementation Report demonstrates that significant progress has been made, with 90 per cent of the actions contained in the Action Plan now being delivered or initiated.
The establishment of the Office to Promote Competition in the Insurance Market in December 2020 was a Programme for Government commitment. Its aims are to help expand the risk appetite of existing insurers and explore opportunities for new market entrants, thus increasing the availability of insurance. The Office, chaired by Minister of State Carroll MacNeill, includes officials from my Department as well as the Department of Enterprise, Trade and Employment.
Since its establishment, the Office has conducted intensive and ongoing engagement with a range of stakeholders, including insurance companies and representative organisations. As part of this, the Office is working closely with IDA Ireland to help leverage the ongoing reforms with the objective of targeting new entrants to the Irish market, or persuading current incumbents to expand their risk appetite. This will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market, such as high-footfall/activity sectors having difficulty in obtaining public liability insurance.
The Office has had success in assisting to remove ‘pinch points’ in the insurance market, with various solutions found for a variety of sectors including childcare, equestrian and inflatable hire. In addition, there have been announcements from new entrants to the market, as well as commitments by existing insurers that they will expand their risk appetite to cover new areas, particularly in the SME space. This is a welcome development and I am hopeful that sectors currently experiencing issues with the availability of insurance will be positively impacted.
Upcoming developments, such as the reform of the “common Duty of Care” (via amendments to the Occupiers’ Liability Act 1995), will further enhance the insurance market by addressing the issue of ‘slips, trips and falls’ which is particularly prevalent in high-risk public-facing sectors.
I wish to assure the Deputies of my intention to continue to work closely with my Government colleagues to ensure further implementation of the Action Plan which, in tandem with the work of the Office to Promote Competition, should have a positive impact on the affordability and availability of insurance for all consumers.
148. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which fraudulent claims are having a negative impact on the price of premiums for private motor-car insurance, home insurance and public liability insurance for businesses in Ireland; and if he will make a statement on the matter. [30013/23]
View answerThis Government recognises that insurance fraud is one of several factors that contribute to the cost of insurance. Of course, it is important to remember that the vast majority of insurance claims are genuine and far outnumber the fraudulent cases.
Nevertheless, when it does occur, insurance fraud impacts on all policyholders, by increasing overall costs. That is why as part of the wide-ranging Action Plan for Insurance Reform, Government has included a number of targeted measures to help reduce fraud.
These measures, which are the responsibility of the Minister for Justice, include the establishment of a dedicated Insurance Fraud Coordination Office (IFCO) within the Garda National Economic Crime Bureau (GNECB). The Office was established with the aim of improving cooperation and coordination with the insurance industry, bringing consistency to the handling and investigation of insurance fraud referrals from industry, and improving subsequent referrals to the Director of Public Prosecutions.
I understand that the GNECB is providing training and support to all Garda Divisions in how to investigate fraud. It has also put in place reporting mechanisms between An Garda Síochána and the insurance industry, and has drafted Memorandums of Understanding in association with Insurance Ireland and the Alliance for Insurance Reform.
Separately, the Criminal Justice (Perjury and Related Offences) Act 2021 was signed into law in June 2021, representing another tool to help tackle fraud. This places perjury on a criminal footing for the first time, thereby making the offence easier to prosecute. The Act increases the range of options for investigation, prosecution and the penalties on conviction which can be considered for those making false and misleading claims.
It is widely acknowledged that lowering insurance costs requires a multi-faceted approach, targeting several areas, as recognised by the whole-of-Government reform agenda. In summary, the Action Plan for Insurance Reform has delivered a suite of measures aimed at addressing the factors that influence insurance costs, including fraud.
Alongside actions to reduce fraud, reforms have been implemented in several other key areas, from the Personal Injuries Guidelines, which set new levels for personal injury awards, to legislation to enhance the Personal Injuries Assessment Board.
It is important to note that the impact of reforms takes time to transmit to price levels for a variety of reasons. These can include: uncertainty arising from ongoing legal challenges; the inherent complexity of the insurance sector’s operating environment; or even dynamic, external developments which can determine price or supply in a small market such as Ireland.
It is therefore vital that reforms are given sufficient time to take effect, and are supported by all stakeholders to do so. In this way, I believe that the cumulative impact of the Action Plan will lead to an improved insurance environment for all policyholders, including motorists, homeowners and businesses.
149. Deputy Bernard J. Durkan asked the Minister for Finance the extent of the impact that micro sectoring by the insurance industry in Ireland is having on the availability of insurance cover for niche markets such as thatched cottages, adventure tourism, playcentres and community events; whether a fairer balance can be achieved in these instances so that cover can be more readily available for those seeking insurance in such niche markets; and if he will make a statement on the matter. [30014/23]
View answerAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).
Nevertheless, this Government is aware that certain groups are currently facing difficulty in terms of affordability and availability of insurance, and has therefore continued to prioritise the delivery of the Action Plan for Insurance Reform. The latest implementation report indicates that significant progress has been achieved, with the vast majority of actions now completed, and the remainder ongoing.
Key reforms include the introduction of the Personal Injuries Guidelines, with data from the Personal Injuries Assessment Board (PIAB) indicating that the overall average award has fallen by 38 per cent compared to awards made in 2020 under the Book of Quantum. Another key, complementary action is the Personal Injuries Resolution Board Act 2022, which aims to increase the number of personal injury claims settled through the PIAB, thereby reducing the expense and time associated with personal injuries litigation. Further reforms aimed at lowering costs include measures to reduce fraud, and placing perjury on a statutory footing for the first time.
In my engagement with industry, including its representative body Insurance Ireland, I have clearly impressed upon them Governments expectation that insurers increase their risk appetite, especially to provide cover for small, niche sectors experiencing affordability and availability issues. Furthermore, Minister of State Carroll MacNeill in her meetings with the CEOs of the main insurers in the Irish market has reiterated this message and in particular the need to pass-on the savings arising from the Government reform programme.
In addition, the Office to Promote Competition in the Insurance Market is working closely with IDA Ireland to help leverage the ongoing reforms, with the objective of targeting new entrants to the Irish market, or persuading existing incumbents to expand their risk appetite.
In terms of next steps, rebalancing the “common Duty of Care” legislation (the Occupiers’ Liability Act 1995) is now a priority for completion. This legislation would help to reduce frivolous claims proceeding to litigation. In time, cost savings from reduced claims should also help to lower premiums for businesses, particularly those engaged in high-risk/heavy-footfall areas, where claims associated with ‘slips, trips and falls’ are more prevalent.
I note the Deputy’s concerns regarding potential “micro-sectoring” by insurers resulting in certain groups having difficulty in accessing insurance cover. While the increased use of data analytics and technology by insurers brings risk and stability benefits, we must also consider the possibility that this can create issues around availability and cost of cover. Officials in the Department of Finance continue to monitor developments in this regard.
In conclusion, I wish to assure the Deputy that seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. For my part, I am committed to working with colleagues to complete outstanding reforms, and monitoring their impact, with a view to achieving an improved insurance environment for all policyholders, including in niche sectors.
150. Deputy Brendan Griffin asked the Minister for Finance if he will detail what lessening of personal taxation has occurred since 2011 in terms of entry points, rate changes, band changes, tax credits, and so on; if he will provide examples of how these changes have affected earners from both single-income households and double-income households on €25,000, €45,000, €65,000, €85,000 and €105,000, providing comparisons in each case of net pay in 2011 versus today; and if he will make a statement on the matter. [30084/23]
View answerAs the Deputy may be aware, all Budget tax changes are set out each year as part of the overall Budget documentation and the publications can be obtained on the following Government website:
www.gov.ie/en/campaigns/budget/
In addition, the Budget documentation includes detailed distributional analysis of the tax measures announced in the Budget. The distributional analysis incorporates tables demonstrating the impact of the Budget changes in respect of income tax, PRSI and USC on various household types, including single persons, married couples with and without children, PAYE and self-employed income earners over a wide distribution of income levels. The tables in the Budget documentation also demonstrate the effect of changes to some payments from the Department of Social Protection such as Child Benefit and the Working Family payment. While not all of the specific income levels specified by the Deputy are included in the distributional analysis, I am satisfied that the distributional analysis covers a range of income levels which are broadly comparable.
It should also be noted that married two earner couples are not included in the distributional tables due to the wide range of potential scenarios that could arise depending on the split of income in the household. However, married two earner couples are generally catered for in the illustrative examples which also form part of the material published each year on Budget day.
These illustrative cases examine the impact of the Budget changes on various categories of income earners including single, married, single parents and elderly in a variety of different occupations and with varying income levels, and not only demonstrate the Budget tax changes but also the impact of changes to a number of payments from the Department of Social Protection such as Working Family payment, Child Benefit, State Pension and One Parent Family payment were relevant.
The Budget documentation also contains tables showing the effective tax rate at a range of income points over a number of years.
Collectively, the wide array of documentation published is intended to be informative and to communicate how individuals and families will be impacted by the changes announced in each Budget.
151. Deputy Damien English asked the Minister for Finance to provide an update on the progress of the Credit Union (Amendment) Bill 2022; to outline the engagement at ministerial and official level with the credit union representative bodies this year on the Bill; the way in which the Bill will assist the modernisation of credit unions and help to future-proof financial services for their members; and if he will make a statement on the matter. [29816/23]
View answerI thank the Deputy for his question. Minister of State Jennifer Carroll MacNeill has met with the four main representative bodies and has had extensive engagement with several credit union CEOs and directors around the country.
So far in 2023 alone, Minister Carroll McNeill has attended 20 meetings and events with various credit union stakeholders including the representative bodies, the Credit Union Advisory Committee and individual credit unions. Separately, Department officials from the Credit Union Policy team have very regular engagement with sector stakeholders, including chairing a quarterly stakeholder roundtable. They also act as secretariat to the Credit Union Advisory Committee, which meets on a monthly basis.
In relation to the Credit Union (Amendment) Bill, 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.
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.
Department officials have been in contact with the Office of the Parliamentary Council (OPC) and the Clerk of the Finance, Public Expenditure and Reform, and Taoiseach (FPERT) Committee to explore a possible date for Committee stage. However, the timing of Committee Stage and the subsequent completion of the legislative process is, to a large extent, outside the control of the Department of Finance.
This Government’s aim is to introduce enabling legislation, and provisions in the Bill, such as allowing for member referral and the establishment of corporate credit unions, will help future-proof and strengthen the sector for the years ahead.
The introduction of corporate credit unions and member referral, should support greater collaboration between credit unions, facilitating a sharing of resources and greater access to funding. While member referral is not mandatory, it is a new option for making additional services available to members.
152. Deputy Damien English asked the Minister for Finance if he will provide, by county, in tabular form, the name of each credit union, the euro amount of assets for each credit union, the euro value of loans on issue by each credit union, and the loan-to-asset ratio in each instance; how he envisages additional lending by credit unions to be enabled; and if he will make a statement on the matter. [29815/23]
View answerI thank the Deputy for his question. The Central Bank is subject to strict confidentiality requirements in accordance with Section 33AK of the Central Bank Act 1942 and cannot provide financial information in relation to individual credit unions.
I can however provide the Deputy with aggregate information in regard to the credit union sector. As at end March 2023 there are 198 active credit unions with an average size of approximately €104.4 million.
The sector has a total loan book of €5.8 billion. Over 90% of credit unions total lending, €5.26 billion, is in personal loans.
The sector’s average loan to asset ratio is 29%. The issue of low loan to asset ratios is not a new one and to build a sustainable business model, credit unions must continue to grow lending by expanding and enhancing their product offerings.
This Government is encouraged by the growth of credit union mortgage and SME lending, with mortgage lending up 26.6% and SME lending up 12.4% year on year to March 2023.
Enabling provisions contained in the Credit Union (Amendment) Bill, such as allowing for member referral and the establishment of corporate credit unions, will further help credit unions develop their business model.
153. Deputy Marc Ó Cathasaigh asked the Minister for Finance if, in light of the Taoiseach’s plans to organise a half-day seminar to review the outcome of the Wellbeing Framework, led by the Department of the Taoiseach, his Department has considered creating an additional dimension within the Wellbeing Framework dealing with language and culture, as has been done in New Zealand and Wales; and if he will make a statement on the matter. [29887/23]
View answerAn overriding objective of the Programme for Government is to improve the well-being of Irish society. To that end, the Programme specifically commits to incorporating a well-being perspective into our policy-making system by developing a set of well-being indices to complement existing economic measures and by assessing these well-being measures to provide a holistic view of how Irish society is faring.
Over the last two years, we have continued to integrate a well-being perspective into policy-making, including through the budget cycle. Efforts include well-being considerations featuring at the National Economic Dialogue, in the Summer Economic Statement and in the budget day documentation, including the Department’s Beyond GDP – A Quality of Life Assessment publication.
In addition, Understanding Life in Ireland: The Well-being Framework 2023 was published earlier this month, providing a positive picture across ten of the eleven well-being dimensions, and across twenty-seven of the thirty-five well-being indicators. The report highlights the social progress being made, while also identifying areas that require further work to build a more sustainable economy and inclusive society.
In terms of developing our approach further, we have committed to a full, formal review of the Framework in approximately four years. This allows us to get a clear understanding of how the dashboard is performing over time, and assess potential changes to existing indicators. It will be critical that the Framework remains true to its underlying principles of accessibility, prioritisation, and low complexity. This necessitates limiting the number of well-being dimensions and indicators.
In the interim, we continue to monitor, identify, and develop data to inform the formal review. While culture and the Irish language are included explicitly in the conceptual framework developed for the well-being initiative, an appropriate indicator could not be identified when the dashboard was developed in 2021. I understand that new data on cultural activities will be available from the CSO later this year.
We also continue to engage with a range of stakeholders on the Framework. This includes a recent technical briefing on the 2023 Well-being Analysis and the half-day seminar which will be held later this year. The seminar will discuss progress to date, consider the next steps in integrating well-being considerations into decision-making, and review other countries’ experiences.
154. Deputy Peadar Tóibín asked the Minister for Finance if he will detail the salaries of the top ten highest paid civil servants in his Department. [29447/23]
View answerI wish to inform the Deputy that the top ten highest paid civil servants in my Department are on the following Pay Scales:
1 Secretary General Level I appointed on/after 1/6/11 - €242,250
1 Deputy Secretary appointed on/after 1/7/10 – PPC €199,040
2 Assistant Secretary - €146,454.00 - €153,109 - €160,321 - €167,534
3 Assistant Secretary – PPC €154,160 - €161,166 - €168,760 - €176,350.00 (MAX)
1 Advisory Counsel Grade 2 – PPC €104,618 - €108,925 - €113,254 - €117,572 - €121,255 - €125,135 - €129,016 (MAX)
2 Principal Higher Scale – PPC €104,618 - €108,925 - €113,254 - €117,572 - €121,255 (MAX) - €125,135 (LSI 1) - €129,016 (LSI 2)
156. Deputy Duncan Smith asked the Minister for Finance what plans there are to reform the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [30224/23]
View answerThe National Disability Inclusion Strategy Transport Working Group (NDIS TWG), comprising members from a range of Departments, agencies and Disabled Persons Organisations, was tasked under Action 104 to review all Government-funded transport and mobility supports for those with a disability, including the Disabled Drivers and Disabled Passengers Scheme (DDS). The NDIS TWG final report was published on 24th February 2023 and welcomed the proposal put forward by my Department that the DDS should be replaced with a needs-based, grant-aided vehicular adaptation scheme, i.e. to provide direct financial assistance to individuals needing vehicle adaptations according to their needs, to meet their personal transport requirements and ultimately to facilitate independence and participation in society.
The NDIS TWG final report also noted both the outdated approach of the Disabled Drivers and Disabled Passengers Scheme and the fact that the scheme needed to be addressed as a matter of priority. The Working Group agreed that proposals in this regard was a clear deliverable on which work could begin in the relatively near future.
The NDIS TWG final report does not set out next steps with respect to the new scheme. This will be a matter for Government to decide.
