Written Answers Nos. 214-229
218. Deputy Peter Burke asked the Minister for Transport what public transport strategies are in place to facilitate disabled wheelchair users in regional towns to allow them access essential services; and if he will make a statement on the matter. [32809/23]
View answerAs Minister for Transport, I have responsibility for policy and overall funding for public transport.
The National Transport Authority (NTA) has statutory responsibility for developing an accessible, integrated and sustainable public transport network. The NTA also has national responsibility for integrated local and rural transport, including TFI Local Link services and the rollout of services under the Connecting Ireland Rural Mobility Plan. The NTA works with the public transport companies, for example Bus Éireann, who have responsibility for the operation of services.
From a policy perspective, there are a number of strategies and plans which seek to progressively make public transport accessible for wheelchair users, including in regional towns. These include the Sustainable Mobility Policy, Our Rural Future: Rural Development Policy, the Climate Action Plan, the United Nations Convention on the Rights of Persons with Disabilities, and the Programme for Government.
I am fully committed to strengthening public transport offerings and progressively making them accessible for all, especially for disabled people. We are progressively making public transport accessible, including in rural areas, by ensuring that new infrastructure and services are accessible from the start, and retrofitting older (legacy) infrastructure and facilities to make them accessible. The Public Transport Accessibility Retrofit Programme is managed by the NTA and, amongst other initiatives, funds the construction of wheelchair accessible bus stops in regional towns nationwide.
One of the most significant recent developments in rural and regional areas is Connecting Ireland, which the NTA began rolling out last year. During 2022, 38 new and enhanced services were launched, while 67 new or enhanced bus services are proposed for 2023, strengthening existing services and connecting more towns and townlands across the state. These services build on the existing TFI Local Link network of services for people to travel from local towns and villages. Over 95% of TFI Local Link services are wheelchair accessible. Furthermore, NTA has a programme of work to introduce new and enhanced town bus services, including for example, the new Carlow Town services to be introduced this month.
219. Deputy Ivana Bacik asked the Minister for Transport the amount collected by road toll collectors in each month of 2022 and to date in 2023; the amount outstanding in payments yet to be collected; and the cost of recovering unpaid toll payments in 2022. [32842/23]
View answerAs Minister for Transport, I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Therefore, matters relating to the day to day operations regarding national roads, including toll roads are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll bye-laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended).
With regard to the payment mechanism associated with toll operations, it is a contractual obligation which incorporates a traffic guarantee mechanism. Therefore, the contracts for the privately-operated toll schemes are commercial agreements between TII and the Public Private Partnership (PPP) concessionaires concerned.
Noting the above position, I have referred the question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
220. Deputy Thomas Gould asked the Minister for Finance whether he is aware that insurance providers refuse travel insurance to people with congenital heart defects even when these have been repaired; and if he will make a statement on the matter. [32039/23]
View answer229. Deputy Mick Barry asked the Minister for Finance if he will support changes to regulations in relation to travel insurance to ensure that children who were born with congenital heart defects can obtain cover; his views as to whether he will contact a company (details supplied) who despite sponsoring charities that aid children with congenital heart defects, reject their applications for travel insurance and ask them to change their policy; and if he will make a statement on the matter. [32408/23]
View answerI propose to take Questions Nos. 220 and 229 together.
I note that both questions relate to a sensitive issue regarding access to travel insurance for individuals, including children, with congenital heart defects.
As the Deputies will appreciate, neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance companies (the Solvency II Directive).
On a general level, my understanding is that firms will use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. In addition, my understanding is that different insurers do not use the same combination of factors. Accordingly, the cost and availability of cover varies across the market, and will be priced in accordance with firms’ prior claims experience.
My officials have specifically contacted Insurance Ireland, the representative body for insurance providers in this country, in relation to both questions. It has advised that consumers can speak to a financial advisor or an insurance broker who should be able to use their experience of the market to assist them in accessing cover. According to Insurance Ireland, this is a specialist type of travel cover, as pre-existing conditions are not covered under a standard travel insurance policy. I understand that a further option for consideration would be that if an individual has health insurance in place, they may be able purchase travel insurance from the same provider.
Insurance Ireland operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover. This can be accessed by calling 01-676-1820 or emailing feedback@insuranceireland.eu. In addition, Brokers Ireland has access to a wide range of providers and products, and can provide assistance to customers who are experiencing insurance accessibility issues. Brokers Ireland can be contacted at: 01-661-3067 or at insurancequeries@brokersireland.ie.
Finally, consumers who feel they have been treated unfairly by any financial service provider, including an insurer, can make a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. Investigations by the FSPO are free of charge to the complainant.
221. Deputy Cathal Crowe asked the Minister for Finance if he would consider establishing a national compensatory fund for people who have been financially frauded; and if he will make a statement on the matter. [32053/23]
View answerThis response presumes the reference to financial fraud is fraud that occurs through Payment Service Providers (PSPs). Payment services in Ireland are regulated by the Payment Services Directive (PSD2), which was transposed in Ireland as the European Union (Payment Services) Regulations 2018 (S.I. No. 6 of 2018). The Payment Services Regulations provide for refunds in the case of an unauthorised payment, requiring the PSP to refund the payer the amount of the unauthorised payment transaction immediately. However there is no such provision for authorised payment transactions.
A payer is also entitled to a refund from the PSP for an authorised payment transaction which was initiated by or through a payee and which has already been executed, where the authorisation both did not specify the exact amount of the payment transaction and the amount of the payment transaction exceeded the amount the payer could reasonably have expected.
On 28 June the European Commission issued the PSD2 Review, accompanied by a proposal for a Payment Services Regulation and a Payment Services Directive to replace the existing PSD2. The Commission considers that, with social engineering, the difference between authorised and non-authorised transactions is becoming more blurred and complex to apply in practice. This legislative package proposes to introduce additional refund rights for consumers beyond for unauthorised transactions e.g. a fraud where the fraudster pretends to be an employee of the consumer’s bank, for example using the bank’s telephone number or e-mail address (impersonation or spoofing).
The Deputy should be aware that I have just published the Terms of References for the National Payment Strategy, which will examine the issue of fraud nationally and measures to mitigate it. The Retail Banking Review contained a recommendation for the Department to lead on the development of a National Payments Strategy in 2024, developing a new strategy that will take account of the changing landscape and determine how best to adapt to it. The NPS will also take account of the EU legislative landscape, particularly the proposals on instant payments and payment services.
A key element of the work will be to examine and analyse the critical issue of payment fraud, ensuring that the legislative framework is there to help industry and central bank to combat fraud. While much of this is governed by EU legislation, it is important that the NPS examines and analyses payment fraud to see if it can identify further measures that could be taken to prevent fraud. In that regard, work on financial literacy is already underway within the Department, something that was set out in a separate recommendation of the Retail Banking Review.
222. Deputy Noel Grealish asked the Minister for Finance the total sum of tax relief deducted from the purchase of diesel-fuelled buses through the VAT71 scheme in 2021 and 2022; and if he will make a statement on the matter. [32103/23]
View answerI am advised by Revenue that the total amount of Value-Added Tax (VAT) refunded on touring coaches through the VAT-71 scheme in 2021 and 2022 is provided in the table below. These figures included all VAT refunds made under this scheme.
It should be noted that the majority of buses registered in the VRT system in each of these years are diesel powered, with a very small number powered by diesel hybrid and electric engines.
|
Year |
Amount €m |
|
2021 |
0.8 |
|
2022 |
6.0 |
223. Deputy Noel Grealish asked the Minister for Finance if his Department has considered extending the eligibility of the VAT71 scheme to include electric and alternatively fuelled buses as a means of incentivising operators to purchase these vehicles; and if he will make a statement on the matter. [32104/23]
View answer224. Deputy Noel Grealish asked the Minister for Finance if he will provide a breakdown of the categories of vehicles currently eligible for taxation relief under the VAT71 scheme; and if he will make a statement on the matter. [32105/23]
View answerI propose to take Questions Nos. 223 and 224 together.
I am advised by Revenue that the VAT treatment 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.
The Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of the VAT exemption to the transport of passengers and their accompanying baggage. This means that under Ireland’s VAT rules, the supplier of passenger transport services does not register for VAT, does not charge VAT on the supply of their services and, consequently, has no VAT recovery entitlement on their input costs.
In accordance with the EU rules, Ireland may continue to apply this existing, historic VAT exemption on the supply of domestic passenger transport but, for as long as the exemption remains, the conditions under which the exemption was granted cannot be changed. In fact, the introduction of a new entitlement to VAT recovery for the passenger transport sector could only be done if Ireland were to decide to end its historic exemption for the sector and bring passenger transport services into the VAT net; this would then require suppliers to register for VAT and charge VAT on their passenger fares.
Ireland has also maintained a relieving provision, the Value Added Tax (Refund of Tax) (Touring Coaches) Order of 2012, which provides for a refund of VAT on the cost of acquiring “qualifying vehicles” used for the carriage of tourists under contracts for group transport. The order defines qualifying vehicles by reference to their use and physical dimensions as follows:
(a) a single-deck touring coach having dimensions as designated by the manufacturer of not less than 2,700 millimetres in height, not less than 8,000 millimetres in length, not less than 775 millimetres in floor height and with an underfloor luggage capacity of not less than 3 cubic metres, or
(b) a double-deck touring coach having dimensions as designated by the manufacturer of not more than 4,300 millimetres in height and not less than 10,000 millimetres in length.
The order places no restriction on the fuel source of a qualifying vehicle and therefore electric and alternatively powered vehicles that conform to the physical dimensions and designated usage requirements of the order are already eligible under the Refund Order.
225. Deputy Holly Cairns asked the Minister for Finance to engage with an organisation (details supplied) concerning the implications of changing VAT rates on hospitality services. [32228/23]
View answerAs the Deputy will be aware, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework. Correspondence and meeting requests from any organisation in relation to Budget decisions are considered in the context of normal pre-Budget process.
As the Deputy will recall, I extended the 9% VAT rate for the tourism and hospitality sectors to 31 August 2023 from the previous end date of 28 February 2023. It will revert to the 13.5% VAT rate on 1 September 2023. The estimated cost of this measure is €300m. This extension strikes a balance between the cost to public finances and the provision of support for these sectors.
It is not intended to extend this 9% reduced rate for a further period. As you may know, officials from my Department compiled a ministerial briefing on a number of measures, including the temporary 9% VAT rate. This briefing included an economic assessment of the measure. This considered the macroeconomic backdrop to any extension of the 9% rate, noting that the economy has rebounded strongly from the pandemic and that economic activity is now above pre-pandemic levels. The briefing also noted that the reduced rate is both regressive and very costly, and that this cost represents a transfer from taxpayers to the sectors which it covers.
The Government accepted the Department’s economic assessment, which found that there was no longer an economic case for the temporary 9% rate, and, therefore, decided upon a reversion to the 13.5% VAT rate. Specifically, the Government decided that the 9% VAT rate for the tourism and hospitality sectors will only apply until 31 August 2023. This decision was made in recognition of the employment provided in the sectors to which the 9% rate applies, as well as to give businesses a transition period to adapt to the changing economic and policy environment. Finally, the Government was cognisant of avoiding adding to upward pressure on prices while inflation remains so elevated.
226. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of the grants, grant-aid, low-cost borrowing and funding that his Department can provide to an association (details supplied), heading under which the grants, grant-aid, low cost borrowing and funding is provided; the maximum amount that can be accessed; and the dates on which the schemes operate. [32277/23]
View answerI wish to advise the Deputy that my Department did not provide any grants, grand-aid, low cost borrowing or funding to the association referred to by the Deputy.
227. Deputy Claire Kerrane asked the Minister for Finance if he will advise on rates of heavy oil tax from 2020 to the end of 2024 including rate changes through each of these years; if he will provide a breakdown of the carbon and non-carbon components for each rate; if he will provide this information, in tabular form; and if he will make a statement on the matter. [32382/23]
View answerIreland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). ETD provisions covering liquid fuels are transposed into national law in Finance Act 1999 (as amended). Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels. Other, non-specified liquids that are used as fuels are also liable to MOT. MOT is comprised of a carbon component and a non-carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”. It is important to note that both components of MOT are excise.
MOT law specifies rates of taxation according to fuel type and use. Mineral oils are categorised into light oils, which include petrol and aviation gasoline, and heavy oils which include auto-diesel, jet fuel, heating kerosene, fuel oil and marked gas oil (MGO)/green diesel. Standard rates of MOT apply to fuels used for propellant purposes and reduced rates apply to fuels used for other purposes such as heating. In addition, MOT law provides for certain exemptions and reliefs for fuels used for particular purposes.
As the Deputy will be aware, my predecessor introduced legislation in Finance Act 2020 to provide for annual increases in the carbon component of MOT up to 2030. This means that carbon tax rates on auto-fuels increase on Budget night each year, and on the remaining fuels, predominantly used for heating, from 1 May of the following year to coincide with the end of the heating period. The Deputy will also be aware that certain MOT rates were reduced last year in response to the global energy crisis. I brought forward legislation earlier this year to provide for a three-stage restoration of these MOT rates and the first stage impacted on 1 June.
I am advised by Revenue that current MOT rates, broken down by carbon and non-carbon components are published at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf. This information is updated shortly before changes to rates come into effect. Historic MOT rates are also published on the Revenue website and are available at www.revenue.ie/en/companies-and-charities/excise-and-licences/excise-duty-rates/mineral-oil-tax.aspx. Future MOT rates, up to 2030, are set out in Finance Act 1999, as amended. MOT rates on heavy oils for the period 2020 to end 2024 are provided in the tables below. For completeness, rates for light oils have also been included.
|
Heavy oil - Auto-diesel/Jet fuelRates per 1,000 litres |
MOT non-carbon component |
MOT carbon component |
Total MOT |
|
9 October 2019 to 13 October 2020 |
€425.72 |
€69.18 |
€494.90 |
|
14 October 2020 to 12 October 2021 |
€425.72 |
€89.66 |
€515.38 |
|
13 October 2021 to 9 March 2022 |
€425.72 |
€109.74 |
€535.46 |
|
10 March 2022 to 31 March 2022 |
€303.77 |
€109.74 |
€413.51 |
|
1 April 2022 to 11 October 2022 |
€295.64 |
€109.74 |
€405.38 |
|
12 October 2022 to 31 May 2023 |
€295.64 |
€129.81 |
€425.45 |
|
1 June 2023 to 31 August 2023 |
€336.29 |
€129.81 |
€466.10 |
|
1 September 2023 to 10 October 2023 |
€376.94 |
€129.81 |
€506.75 |
|
11 October 2023 to 30 October 2023 |
€376.94 |
€149.89 |
€526.83 |
|
31 October 2023 to 8 October 2024 |
€425.72 |
€149.89 |
€575.61 |
|
9 October 2024 to 7 October 2025 |
€425.72 |
€169.96 |
€595.68 |
|
Heavy oil – Kerosene for heatingRates per 1,000 litres |
MOT non-carbon component |
MOT carbon component |
Total MOT |
|
1 May 2012 to 30 April 2020 |
€0.00 |
€50.73 |
€50.73 |
|
1 May 2020 to 30 April 2021 |
€0.00 |
€65.74 |
€65.74 |
|
1 May 2021 to 30 April 2022 |
€0.00 |
€84.84 |
€84.84 |
|
1 May 2022 to 30 April 2023 |
€0.00 |
€103.83 |
€103.83 |
|
1 May 2023 to 30 April 2024 |
€0.00 |
€122.83 |
€122.83 |
|
1 May 2024 to 30 April 2025 |
€0.00 |
€141.82 |
€141.82 |
|
Heavy oil - Fuel oilRates per 1,000 litres |
MOT non-carbon component |
MOT carbon component |
Total MOT |
|
1 May 2012 to 30 April 2020 |
€14.78 |
€61.75 |
€76.53 |
|
1 May 2020 to 30 April 2021 |
€14.78 |
€80.27 |
€95.05 |
|
1 May 2021 to 30 April 2022 |
€14.78 |
€103.23 |
€118.01 |
|
1 May 2022 to 30 April 2023 |
€14.78 |
€126.34 |
€141.12 |
|
1 May 2023 to 30 April 2024 |
€14.78 |
€149.45 |
€164.23 |
|
1 May 2024 to 30 April 2025 |
€14.78 |
€172.56 |
€187.34 |
|
Heavy oil - Marked Gas Oil (MGO)Rates per 1,000 litres |
MOT non-carbon component |
MOT carbon component |
Total MOT |
|
1 May 2012 to 30 April 2020 |
€47.36 |
€54.92 |
€102.28 |
|
1 May 2020 to 30 April 2021 |
€47.36 |
€70.42 |
€117.78 |
|
1 May 2021 to 9 March 2022 |
€47.36 |
€90.81 |
€138.17 |
|
10 March 2022 to 30 April 2022 |
€29.74 |
€90.81 |
€120.55 |
|
1 May 2022 to 30 April 2023 |
€0.00 |
€111.14 |
€111.14 |
|
1 May 2023 to 31 May 2023 |
€0.00 |
€131.47 |
€131.47 |
|
1 June 2023 to 31 August 2023 |
€8.81 |
€131.47 |
€140.28 |
|
1 September 2023 to 30 October 2023 |
€17.62 |
€131.47 |
€149.09 |
|
31 October 2023 to 30 April 2024 |
€47.36 |
€131.47 |
€178.83 |
|
1 May 2024 to 30 April 2025 |
€47.36 |
€151.81 |
€199.17 |
|
Light oil – Petrol/Aviation gasolineRates per 1,000 litres |
MOT non-carbon component |
MOT carbon component |
Total MOT |
|
9 October 2019 to 13 October 2020 |
€541.84 |
€59.85 |
€601.69 |
|
14 October 2020 to 12 October 2021 |
€541.84 |
€77.52 |
€619.36 |
|
13 October 2021 to 9 March 2022 |
€541.84 |
€94.87 |
€636.71 |
|
10 March 2022 to 31 March 2022 |
€379.24 |
€94.87 |
€474.11 |
|
1 April 2022 to 11 October 2022 |
€371.11 |
€94.87 |
€465.98 |
|
12 October 2022 to 31 May 2023 |
€371.11 |
€112.23 |
€483.34 |
|
1 June 2023 to 31 August 2023 |
€419.89 |
€112.23 |
€532.12 |
|
1 September 2023 to 10 October 2023 |
€476.80 |
€112.23 |
€589.03 |
|
11 October 2023 to 30 October 2023 |
€476.80 |
€129.59 |
€606.39 |
|
31 October 2023 to 8 October 2024 |
€541.84 |
€129.59 |
€671.43 |
|
9 October 2024 to 7 October 2025 |
€541.84 |
€146.94 |
€688.78 |
228. Deputy Jim O'Callaghan asked the Minister for Finance whether consideration is being given to improving investments in Exchange Traded Funds and whether consideration is being given to changing the deemed disposal rules that exist for ETF investments; and if he will make a statement on the matter. [32398/23]
View answerOn 6 April 2023, I published the Terms of Reference for a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. This review will look at a range of issues relevant to the funds sector including taxation in line with the recommendations of the Commission on Taxation and Welfare 2022 report, Foundations for the Future.
The review will specifically examine the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible; and to do so with a net revenue-raising or neutral mandate. Exchange Traded Funds (ETFs) are an important part of the funds landscape and will therefore be within the scope of this aspect of the review.
The Consultation Paper issued as part of this review was published on 22 June 2023 and is available at on our website. Responses to the Consultation Paper are due by 15 September 2023. I have sent a letter to all members of the Oireachtas highlighting the publication of the consultation paper.
While it would not be appropriate to presuppose any outcomes of the Review, I would encourage all stakeholders with an interest in matters relating to the funds sector, as well as in relation specifically to ETFs to fully engage with the consultation process. The Review Team will report to me by summer 2024.
