Wednesday, 20 Sep 2023

Written Answers Nos. 128-147

Road Network

Questions (128)

Kathleen Funchion

Question:

128. Deputy Kathleen Funchion asked the Minister for Transport if there will be a new motorway going ahead on the N25 beside an address (details supplied). [40304/23]

Written answers

Minister for Transport

As Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.

Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Traffic Accidents

Questions (129)

Jim O'Callaghan

Question:

129. Deputy Jim O'Callaghan asked the Minister for Transport whether the Road Safety Authority keeps a record or database of accidents, collisions and incident reports involving powered personal transporters; if so, whether details of such accidents, collisions and incident reports for 2021, 2022 and to date in 2023 can be provided; and if he will make a statement on the matter. [40324/23]

Written answers

Minister of State at the Department of Transport

Road collision data are collected and published by An Garda Síochána. This information is shared with the Road Safety Authority for research and analysis purposes. Specific queries on the number of personal powered transporters involved in recorded collisions should be directed to An Garda Síochána as the data holder. For the Deputy's information, certain roads policing statistics to the end of August and for previous years can be accessed here: www.garda.ie/en/roads-policing/statistics/.

Departmental Reports

Questions (130)

Peadar Tóibín

Question:

130. Deputy Peadar Tóibín asked the Minister for Transport to provide a list of all studies, research and reports commissioned by his Department that were outsourced, in each year since the formation of this Government, in tabular form; the names of the companies to which each study, research and report was outsourced; the total cost for each; the number of reports finalised and presented to him that have yet to be released by his Department; the dates on which any such reports yet to be released were first provided to him; and if he will make a statement on the matter. [40381/23]

Written answers

Minister for Transport

The information requested by the Deputy is contained in the table below.

List of all studies, research and reports commissioned by Minister for Transport and outsourced since the formation of the Government in each year to date	Details of the person or body to which each study, research and report was outsourced	Total Costs for each	Number of reports finalised and provided to Minister for Transport yet to be released and dates such reports were given to Minister.
June 2020
2020 – Value of Time Study	Systra Ltd	€87,555.62	Provided to Minister in 2020. Not published.
2021
Environmental reports for the National Investment Framework for Transport in Ireland (NIFTI)	Jacobs Engineering	€53,356.90	SEA Statement (2021) published online. SEA Report (2021) published online. Natura Impact Statement (2021) published online. Strategic Flood Risk Assessment Report (2021) published online.
The Impacts of Aviation Taxation in Ireland	Economic Social and Research Institute	€47,405.00	One report provided to the Minister and publicly released on 15 December 2021.
A review of the organisational structures underpinning marine accident investigation in Ireland in the context of national, EU and international obligations	Clinchmaritime Ltd.	€30,048.90	One report provided to the Minister and the report has not been published. Date report received – 20 July 2021.
Review of Health & Safety Documentation and Risk Assessment	Antaris Consulting Ltd.	€11,070.00	Report was for internal use by the Marine Survey Office.
Five Year Assessment Report (5YAR) - Writer Support Award – Volume 4 (Realising the benefits of transition and transformation)	TCD	€134,914.78	None, research ongoing.
2022
Health and Safety Assessment of the Wreck ‘MV Alta’	ABL London Ltd.	€36,285.00	One report received internally on 30 September 2022. Published online.
Public Consultation Summary Report for Ireland’s Road Haulage Strategy	ARUP	€25,000.00	Summary Report published in July 2022.
Environmental Reports for the National Investment Framework for Transport in Ireland (NIFTI)	Jacobs Engineering	€18,228.70	AA Determination Statement (2022) published online.
A Review of Requirements and Constraints on Biofuels in Ireland Arising from RED II and National Targets	Byrne O’CleirighMaREI (UCC)	Nil cost to the Department of Transport. Part of the study analysis was by UCC under the DECC CAMG Framework and the study report compiled by Byrne O’Cleirigh under the existing contract with the National Oil Reserves Agency (NORA) concerning advice to the Minister regarding renewable transport fuel via the overall funding envelope allocated to NORA.	One report provided to the Minister and publicly released on 7 October 2022.
Study to Devise pathway to deliver an additional 0.9 Mt CO2 reduction in the transport sector by 2030 (CAP 2021 Action 301) (Gap-to-target)	Jacobs EngineeringSYSTRA	A Memorandum of Understanding (MoU) was agreed between the Department of Transport and the National Transport Authority (NTA) in relation to the ongoing provision of planning, analysis and modelling to support policy development to reduce transport emissions, and this research & modelling is supported via the overall funding envelope allocated to the NTA.	The report was provided to the Minister and the Modelling Executive Summary was made publicly available on 21 December 2022.
DRIFT-HDV: DecaRbonisation Irish HDV FleeT	TCDMaREI (UCC)	€89,790.00 SEAI co-fund through SEAI National Energy Research Development and Demonstration (RD&D) Funding Programme. 50% Co-funded*.	None, research ongoing.
Inclusive Sustainable Cycling (ISCycle): Inclusive E-bike Uptake and Sustainable Use	UL	€321,359.00 SEAI co-fund through SEAI National Energy Research Development and Demonstration (RD&D) Funding Programme. 50% Co-funded*.	None, research ongoing
TRACT: TRAnsport Behaviour Change Trials	TCD	€305,826.50 SEAI co-fund through SEAI National Energy Research Development and Demonstration (RD&D) Funding Programme. 50% Co-funded*.	None, research ongoing.
Transboundary Climate Risks for Island of Ireland (TCRII)	Maynooth University	€24,946.38 EPA Co-fund through the annual EPA Research Call. 25% co-funded*.	None, research ongoing.
Climate Resilient Places	NUIG	€49,999.33 EPA Co-fund through the annual EPA Research Call. 20% Co-funded*.	None, research ongoing.
Investigating the impacts of urban railway STATION hubs on AIR quality in its environs (STATION-AIR)	TCD	€174,469.75 EPA Co-fund through the annual EPA Research Call. 50% Co-funded*.	None, research ongoing.
National Sustainable Mobility Forum Facilitators ReportandNational Sustainable Mobility Forum Workshops Report 1	Anatris Consulting Ltd.	€4,650.00 (excl VAT)	None.
Just Resilience and Adaptation in Ireland: Sectors and Regions (Just Adapt)	Economic Social and Research Institute	€23,589.49 EPA Co-fund through the annual EPA Research Call. 25% Co-funded*.	None, research ongoing.
2023
Report to establish current data availability and quality in respect of road freight (Commissioned September 2023)	Indecon International Consulting	€74,910.00	Report yet to be finalised.
Review of the Transport Management Certificate of Professional Competence Programme	Grant Thornton Consulting	€97,500.00 (excl VAT)	This Review was published in June 2023.
A review of the CycleRight Training Programme	Steer, Davies and Gleave Ltd.	€28,919.76	Report received internally by Department of Transport in April 2023.
National Cycle Network Plan	AECOM/Transport Infrastructure Ireland (TII)	€600,028.00	Report received internally by Department of Transport in May 2023. Not published to date.
EuroVelo Monitoring	ARUP/ Transport Infrastructure Ireland (TII)	€112,220.00	Report received internally by Department of Transport in November 2022. For internal use.
A review of the Disabled Parking Scheme 2023	Indecon International Consultants	€81,345.00	Report not yet finalised. It is due to be submitted to the Department in the coming weeks.
Long-term Attitudinal Impact Research Study on Sustainable Mobility	Red C Research	€275,800.00	None. Report on first tracker survey has yet to be finalised and/or presented to the Minister.
A Review of the form of aviation expertise utilised by EU Ministries with responsibility for civil aviation	Aerospace Qualified Entity (AQE)	€38,650.00	None. Review still in progress.
Review of the safety regulatory and infrastructural frameworks for the use of hydrogen as a transport fuel in Ireland and in Northern Ireland (Co-funded with Shared Island Fund)	DNV	€71,241.10 2	The report has been finalised and is currently being prepared for presentation to the Minister with a view to publication.
Internal Report on the Taxation ofBiofuels in Ireland	EY	€49,200.00	Internal report to inform policy and is in the process of being finalised.
ShipFUEL-ie (Developing pathways for a sustainable shipping and maritime fuel value chain in Ireland)	MaREI (UCC) Gavin & Doherty Geosolutions (GDG)	€31,7360.00 SEAI co-fund through SEAI National Energy Research Development and Demonstration (RD&D) Funding Programme. 50% Co-funded.	None, research ongoing.
Tax advisory services Report for Budget Submission - ZEVI	EY	€15,000.00 (excl VAT)	Internal research only – fed into 2023 Department of Transport budget proposals submission.
Research for EV infrastructure strategy - ZEVI	Element Energy	€5,000.00 (excl VAT)	Internal research only – fed into strategy documents.
Public and Stakeholder Consultation for EV Infrastructure Strategy - ZEVI	KPMG	€70,862.50 (excl VAT)	Released via gov.ie as “Stakeholder and Public Consultation Summary Report”.
Strategic Environmental Assessment reports for the National En-route EV Charging Network Plan producing: A. SEA screening report B. SEA screening scoping report C. SEA Environmental Report for consultation	ARUP	€63,207.00 (Excl VAT)	(A) Report A – Internal – fed into decision to progress to proceed to a full SEA scoping. (B) This SEA Scoping report was published for statuary consultation with statutory stakeholders. The outcome of this statutory consultation informed the SEA Environmental Report. (C) SEA Environmental Report will be published for public consultation alongside the Draft National En-route EV Charging Network Plan on 25th September 2023.
Appropriate Assessment for ZEVI - the National En-route EV Charging Network Plan producing: A. Appropriate Assessment B. AA determination. C. Natura Impact Statement	ARUP	€35,559.00 (Excl VAT)	A) Internal – fed into the AA determination. (B) The AA determination will be published alongside the Draft National En-route EV Charging Network Plan on 25th September 2023. (C) The Natura Impact Statement will be published for public consultation alongside the Draft National En-route EV Charging Network Plan on 25th September 2023.
All Island Strategic Rail Review	ARUP	2021: €265,4712022: €1,206,9432023: €314,380	Released.

*Please note, the Department of Transport is co-funding these transport relevant research topics, but as the EPA and SEAI administer the research they may be commissioned under the Department of Environment, Climate and Communications rather than the Department of Transport.

1) Both reports were completed in tandem, so it is not possible to disaggregate their costs.

2) The Department of An Taoiseach contributed €50,000 towards this project.

Dublin Bus

Questions (131)

Paul Donnelly

Question:

131. Deputy Paul Donnelly asked the Minister for Transport the amount of revenue generated through advertisement on the sides of the Dublin Bus fleet in the years of 2022 and to date in 2023; and the rates that Dublin Bus charges for such advertisement. [40389/23]

Written answers

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport.

Córas Iompair Éireann (CIÉ) is responsible for managing the advertising of its operating subsidiaries: Bus Átha Cliath, Iarnród Éireann and Bus Éireann. Therefore, I have forwarded the Deputy's question to CIÉ for direct reply. Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Defibrillators Provision

Questions (132)

Paul Donnelly

Question:

132. Deputy Paul Donnelly asked the Minister for Transport the number of defibrillators currently located in public areas of both terminals at Dublin Airport; and the number and percentage of DAA staff who are trained in the use of this vital equipment. [40390/23]

Written answers

Minister of State at the Department of Transport

As the deputy will be aware, daa has statutory responsibility to operate, manage and develop Dublin Airport. As the provision of defibrillators and training staff at the airport is an operational matter for the daa, I have forwarded your request to daa for a direct response.

If a response is not received within 10 days, please contact my private office.

A referred reply was forwarded to the Deputy under Standing Order 51

Bus Services

Questions (133)

Paul Donnelly

Question:

133. Deputy Paul Donnelly asked the Minister for Transport the amount that both Bus Éireann and the NTA will spend on refurbishment of Busáras station between now and the end of 2025; and the number of these refurbishment works that will be carried out during this period. [40391/23]

Written answers

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport and active travel. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the refurbishment of bus stations.

Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Projects

Questions (134)

Noel Grealish

Question:

134. Deputy Noel Grealish asked the Minister for Transport the current status of the N6 Galway City Ring Road; when he expects An Bord Pleanála to make a decision on whether or not the project can go ahead; and if he will make a statement on the matter. [40467/23]

Written answers

Minister for Transport

As Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.

Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.

In relation to the question on when An Bord Pleanála will make a decision, it is not appropriate for me as Minster for Transport to comment.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Projects

Questions (135, 136)

Noel Grealish

Question:

135. Deputy Noel Grealish asked the Minister for Transport the cost to date of the N6 Galway City Ring Road project, by category of expense, and the costs involved in the High Court challenges to the project; if he will provide an estimate of the likely ongoing monthly outlay; and if he will make a statement on the matter. [40474/23]

Noel Grealish

Question:

136. Deputy Noel Grealish asked the Minister for Transport he expected cost now of completing the N6 Galway City Ring Road; and if the Government will commit to make funding available for such a project if it is given the go-ahead by An Bord Pleanála; and if he will make a statement on the matter. [40475/23]

Written answers

Minister for Transport

I propose to take Questions Nos. 135 and 136 together.

As Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you.

Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Question No. 136 answered with Question No. 135.

Rail Network

Questions (137)

Richard Boyd Barrett

Question:

137. Deputy Richard Boyd Barrett asked the Minister for Transport the estimated cost of introducing light rail transport systems in the cities of Cork, Limerick, Waterford and Galway; and if he will make a statement on the matter. [40585/23]

Written answers

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has agreed responsibility for the implementation and development of public transport in our cities.

Noting the NTA's responsibility in relation to this matter, I am forwarding your query to the NTA for direct reply in respect of the specific details of the delay. Please contact my private office if you do not receive a reply within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

Transfer of Undertakings

Questions (138, 139)

Michael McNamara

Question:

138. Deputy Michael McNamara asked the Minister for Transport if the successful tender for the provision of Irish Coast Guard Aviation Service included an undertaking to comply fully with the provisions of Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, business or parts of undertakings or business and implemented in Irish law by Statutory Instrument No. 131 of 2003, the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003; and if he will make a statement on the matter. [40633/23]

Michael McNamara

Question:

139. Deputy Michael McNamara asked the Minister for Transport if the contract with a company (details supplied) signed on 22 August 2023 to deliver search and rescue aviation services on behalf of the Irish Coast Guard includes a clause requiring compliance with the provisions of Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, business or parts of undertakings or business and implemented in Irish law by Statutory Instrument No. 131 of 2003, the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003; and if he will make a statement on the matter. [40634/23]

Written answers

Minister of State at the Department of Transport

I propose to take Questions Nos. 138 and 139 together.

The Contract for the new IRCG aviation service includes a provision relating to the application of TUPE regulations, as follows: “The Contractor shall comply with all applicable obligations arising pursuant to the European Communities (Protection of Employees’ Rights on Transfer of Undertakings) Regulations 2003 (S.I. No. 131 of 2003) and Council Directive 2001/23/EC (together the “TUPE Regulations”)”.

The contract for the provision of next generation Coast Guard aviation services was signed with Bristow Ireland Limited on 11 August 2023. The contract provides for the operation of four helicopter bases all on 24/7 duty, with the addition of a Coast Guard Fixed Wing aircraft service for the first time.

The Department and the Irish Coast Guard will facilitate, support, and expects to see, an orderly and seamless transfer of operations between both contractors (CHCI and Bristow Ireland). The transition will be a gradual process, and the new aviation service will be introduced on a phased basis over the next 24 months.

I fully recognise the professionalism and dedication of all personnel engaged in the provision of this essential State service. The specialist expertise of the CHCI personnel is highly valued and the experience gained over many years in providing IRCG SAR and other aviation services will continue to be a valued and sought after resource. The nature of the skills, training and experience required to fulfil Search and Rescue roles is quite specialised and there is a limited pool of suitably qualified personnel in Ireland and internationally available to fill these posts. Ensuring continued safe, efficient, and effective aviation services for the Irish Coast Guard is the overarching priority for all concerned. To that end, it is imperative that existing and future staff be fully appraised of employment and advancement opportunities available under the new service, so as to reduce any uncertainty or distraction.

Bristow Ireland has given a commitment to my Department that the Company supports the principles of TUPE and that it will fully engage with the recognised Trade Unions – Forsa and Unite- as part of the transition and mobilisation phase of the new contract. The company has stated that it is fully committed to establishing pathways for personnel currently servicing the existing SAR contract to join Bristow Ireland on comparable salary structures and they will actively work to develop a positive and professional relationship with the Trade Unions to ensure that this commitment is fully honoured. Bristow Ireland will also engage directly with the management team of the incumbent contractor, CHCI, in the near future with a view to ensuring a seamless transition to the new IRCG aviation service.

Question No. 139 answered with Question No. 138.

National Car Test

Questions (140)

Alan Kelly

Question:

140. Deputy Alan Kelly asked the Minister for Transport the number of appointments booked and paid for more than 30 days in advance of a NCT test, per test centre; and the amount of revenue this has generated in 2022 and to date in 2023, in tabular form. [40677/23]

Written answers

Minister of State at the Department of Transport

The operation of the National Car Testing Service is the statutory responsibility of the Road Safety Authority. I have therefore referred the Deputy's query to the Authority for direct reply. I would ask the Deputy to contact my office if a response with the information requested has not been received within ten days.

A referred reply was forwarded to the Deputy under Standing Order 51

Rail Network

Questions (141)

Alan Kelly

Question:

141. Deputy Alan Kelly asked the Minister for Transport the likely timeframe for the resumption of onboard catering services on the remaining Intercity rail routes. [40678/23]

Written answers

Minister for Transport

As the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.

The issue raised by the Deputy regarding the timeframe for the resumption of onboard catering services on the remaining Intercity rail routes is an operational matter for Iarnród Éireann, and I have therefore forwarded the Deputy's question to the company for direct reply.

Additionally, I understand that many of the stations on the Intercity network have existing retail / catering facilities available for customers, and Iarnród Éireann have advised that they will work with CIÉ Property in the interim period to further enhance, where possible, station-based retail and catering options for customers while also working towards the resumption of on-board catering as soon as possible.

Please advise my private office if you do not receive a response from the company within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Projects

Questions (142)

Michael Healy-Rae

Question:

142. Deputy Michael Healy-Rae asked the Minister for Transport what financial assistance can be given in a particular case (details supplied); and if he will make a statement on the matter. [40687/23]

Written answers

Minister for Transport

The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources supplemented by State road grants.

Kerry County Council is responsible for deciding its annual programme for road maintenance and the Department has no role in that process.

Customs and Excise

Questions (143)

Catherine Murphy

Question:

143. Deputy Catherine Murphy asked the Minister for Finance the value of counterfeit prescription drugs and narcotics seized by customs officials at privately owned and State airports and ports of entry and exit that were passed to the HPRA for examination; and if he will provide the information in tabular form, by location, item and value, for the years 2019, 2020, 2021, 2022 and to date in 2023. [40692/23]

Written answers

Minister for Finance

I am advised by Revenue that suspected counterfeit drugs detected by Revenue are detained and transferred to the HPRA and as such Revenue does not hold statistics relating to counterfeit prescription drug seizures.

Tax Code

Questions (144)

Michael Healy-Rae

Question:

144. Deputy Michael Healy-Rae asked the Minister for Finance if he will review the hike in the excise duty on fuel (details supplied); and if he will make a statement on the matter. [39508/23]

Written answers

Minister for Finance

In recognition of the impact of increased fuel prices in 2022, the Government provided for excise rate reductions effective from 10 March 2022 on petrol, diesel and Marked Gas Oil (MGO) in the order of 20, 15 and 2 cent per litre VAT inclusive. A further 1 cent reduction was applied to auto diesel and petrol from 1 April 2022 to offset the anticipated increase in retail price arising from biofuel obligation rate changes, while a further 3.4 cent per litre reduction applied to MGO with effect from 1 May 2022. These rate reductions were due to expire in August 2022 but were extended initially to October 2022 and then to February 2023. In February 2023 the Government further extended the reductions with a phased restoration of rates which began in June 2023:

• 01 June – VAT inclusive increase of 6 cent on petrol, 5 cent on diesel and 1 cent on MGO.

• 01 September - VAT inclusive increase of 7 cent on petrol, 5 cent on diesel and 1 cent on MGO.

• 31 October - VAT inclusive increase of 8 cent on petrol, 6 cent on diesel and 3.4 cent on MGO.

This reflects a decision which considered both the impact on public finances and the need to support citizens and industry. The Mineral Oil Tax (MOT) reductions are estimated to have cost over €1 billion between March 2022 and July 2023 and there will continue to be an additional cost to the exchequer while reductions apply.

Both the June and September rate restorations have now been implemented and as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Tax Code

Questions (145)

Michael Healy-Rae

Question:

145. Deputy Michael Healy-Rae asked the Minister for Finance if he will reduce alcohol excise by 7.5% in upcoming budgets (details supplied); and if he will make a statement on the matter. [39520/23]

Written answers

Minister for Finance

In advance of the Budget, as Minister for Finance I receive a large number of pre-budget submissions on a wide range of issues. As the Deputy will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Tax Code

Questions (146)

Richard Boyd Barrett

Question:

146. Deputy Richard Boyd Barrett asked the Minister for Finance to outline his plans for a windfall tax, and the EU-wide plans for same; and if he will make a statement on the matter. [39526/23]

Written answers

Minister for Finance

I understand, following clarification from the Deputy’s office, that this question relates to the measures introduced by the EU Energy Council last year in Regulation 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices. This Regulation was introduced to address windfall gains identified as arising in the energy sector due to the increase in energy prices mainly as a result of the war in Ukraine and is effective across EU Member States.

In addition to electricity demand reduction provisions, the Regulation contains two measures targeted at windfall gains in the energy sector as follows:

(i) A Temporary Solidarity Contribution (TSC) on a measure of “excess” taxable profits for the fossil fuel production and oil refining sector for the years 2022 and/or 2023, and

(ii) An electricity market price cap for non-gas electricity generators, for the period 01 December 2022 to 30 June 2023, that have not seen significant increases in their generation costs (i.e. primarily renewables).

Energy policy is under the remit of the Department of the Environment, Climate and Communications (DECC), who have led on domestic implementation of the Regulation, with support from the Department of Finance and other Departments and agencies.

On 13 June last, the Government approved the implementation of the Energy Windfall Regulation in two separate pieces of legislation as follows:

1. The Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023. This contains provisions relating to the TSC, was signed into law on 17 July, and was commenced by the Minister for the Environment, Climate and Communications with effect from 02 August.

2. The Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill 2023. This contains provisions relating to the electricity market price cap, and is currently before the Houses of the Oireachtas.

With these measures recently introduced (TSC) or still in progress (Market Cap), there are no plans at this time to introduce a windfall tax on the profits of energy companies.

Real Estate Investment Trusts

Questions (147)

Richard Boyd Barrett

Question:

147. Deputy Richard Boyd Barrett asked the Minister for Finance to provide full details of the tax regime for REITs; and if he will make a statement on the matter. [39527/23]

Written answers

Minister for Finance

A Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. The REIT regime was introduced in Finance Act 2013 and its function is to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle.

A REIT (or a group REIT) is generally exempt from corporation tax on income from its rental property business and chargeable gains accruing on disposal of assets of their property rental business. There are extensive conditions that must be met in order to qualify as a REIT, including:

• A REIT must be incorporated under the Companies Acts and must have its shares listed on the main market of a recognised stock exchange in an EU Member State;

• REITs are obliged to distribute at least 85% of property profits annually, for taxation at the level of the shareholder;

• a REIT must derive at least 75% of its aggregate income from property rental business;

• it must have at least three properties, no one of which may exceed 40% of the total market value of all its rental business properties;

• it must maintain a property to financing costs ratio of 1.25:1;

• at least 75% of the aggregate market value of the assets of the REIT must relate to assets of the property rental business;

• it must ensure that the aggregate of the specified debt does not exceed 50% of the aggregate market value of the business assets of the REIT; and

• There is a diverse ownership requirement to ensure that no one person or group of connected persons can control the REIT.

REITs are obliged to operate Dividend Withholding Tax (DWT), at the standard rate of 25%, on distributions to shareholders. The DWT is available as a credit against the shareholder’s tax liability. Shareholders resident in treaty-partner countries may be able to reclaim some of this DWT under the relevant tax treaty. Excluded investors, such as pension schemes or charities investing in the REIT, may receive distributions gross, subject to completion of appropriate declarations. Such entities are more generally exempt from tax or subject to gross roll-up regimes in view of their own purposes or objectives.

Further information on the REIT regime is available in Revenue’s Tax and Duty Manual on REITs, available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-25a/25a-00-01.pdf

In its 2022 Report, the Commission on Taxation and Welfare recommended that a review of both the REIT and IREF (Irish Real Estate Funds) tax regimes with regard to institutional investment in the Irish property market should be undertaken. This recommendation has been incorporated into the Terms of Reference for the “Funds Sector 2030” Review which were published on 6 April this year.

In line with the Terms of Reference, the Funds Review will consider:

“an examination of the regimes for Real Estate Investment Trusts (REITs) the Irish Real Estate Funds (IREFs) and their role in the property sector, including how they support housing policy objectives”.

A multi-disciplinary team Review Team, made up of Department of Finance and Central Bank of Ireland officials, has been established. The Review Team, led by the Department of Finance, will also work closely with the Revenue Commissioners. A public consultation was launched in late June with a deadline of 15 September. In addition to this consultation exercise, there will be extensive direct engagement with relevant public sector and private sector stakeholders throughout the period of the Review.