Michael Healy-Rae
Question:256. Deputy Michael Healy-Rae asked the Minister for Finance his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [42738/23]
View answerTax Code
Questions (256)
Written answers
Regarding taxation, recent policy has been focused on strengthening the environmental rationale behind company car taxation. From 1 January 2023, the amount taxable as BIK continues to be determined by the car’s Original Market Value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands determine whether a standard, discounted, or surcharged rate is taxable. Battery Electric vehicles (BEVs) now benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage while fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
However, as the new regime resulted in significant BIK increases for many high mileage and/or above average emission vehicles, given the broader inflationary context, temporary changes to BIK for the current year were introduced as part of Finance Act 2023. This temporary change comprised of a universal relief of €10,000 being applied to the Original Market Value (OMV) of vehicles in Category A-D in order to reduce the amount of BIK payable. This was introduced as a temporary measure for 2023 that is due to remain in place until 31 December 2023.
In addition to the favourable treatment for low emission vehicles in this new structure, there is currently also a BIK exemption for BEVs with an OMV up to €45,000 (€35,000 plus €10,000 OMV deduction). This ensures BEVs with an OMV of less than €45,000 have no BIK liability, while those with a higher OMV can reduce the taxable amount by €45,000. In Budget 2022, this preferential BIK treatment for electric vehicles was extended to end-2025, with a tapering mechanism on the vehicle value threshold. The tapering mechanism serves to reduce the OMV of the vehicle, for the purposes of determining the taxable cash equivalent, by €20,000 in 2024 and €10,000 in 2025. Any surplus OMV is subject to BIK in accordance with the standard rates, which incorporates the vehicle’s emissions and mileage. A flat rate of 8 per cent applies for van, irrespective of business mileage.
The BIK exemption was intended as a temporary measure and forms part of a broader series of generous tax related measures for EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000 (to end 2023), low motor tax of €120 per annum, and 0% BIK on electric charging. The relief is extended in support of Government policy to incentivise EV uptake, while the tapering mechanism represents a value for money consideration and serves to indicate the removing of the relief altogether in 2025.
Regarding any future decisions on EV relief, it is a longstanding practice of the Minister for Finance not to comment further, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
Regarding EV supports and EV charging infrastructure, the Department of Transport have advised that the Government has committed significant funding to support zero and low emitting vehicles through the National Development Plan, which currently includes an allocation of almost €500 million for the period 2021-2025 and additional support from the Climate Action Fund, the Shared Island Fund and the EU Just Transition Fund. €110m has been allocated in 2023, with an additional €19m of funding in carryover, to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.
In addition to the taxation supports outlined above, there are also a range of current financial supports from Zero Emission Vehicles Ireland (ZEVI), a dedicated office of the Department of Transport, and where applicable with support from the Department of Finance, for the transition to electric vehicles and for the rollout of electric vehicle charging infrastructure including:
• A purchase grant for battery electric vehicles (BEVs);
• A Home Charger purchase grant scheme - up to €600;
• An apartment charger scheme;
• eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
• AFHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle;and
• Tolling reductions of 50% for battery electric vehicles and 25% for plug-in hybrid electric vehicles.
The Government's investment strategy for electric vehicles over the next few years will see a rebalance towards supporting EV charging infrastructure. This change aligns with similar polices in other European nations, where countries have begun to curb their vehicle subsidies and refocus their investments in this sector towards provision of charging infrastructure.
In relation to EV charging, ZEVI launched the National En-Route EV Charging Network Plan on the 25 September 2023. This is the first element of the National EV Charging Network Plan which, will cover all publicly accessible EV charging in the country. In addition to En-Route charging infrastructure, ZEVI is also working with local authorities to develop the other elements of this national plan which will include destination and neighbourhood charging.
The National En-Route EV Charging Network Plan and associated initiatives will drive the delivery of charging infrastructure on the National Road Network. The Plan sets out ambitious targets for the level and coverage needed for En-Route charging on our national roads network. We are already seeing significant increased capacity of EV charging on our national roads, and this plan provides additional reassurance and certainty for EV drivers and those thinking of making the switch to EVs that they will be able to find high powered, fast and convenient EV charge-points where and when they need them.
The Plan sets out a provision of EV charging that will be ahead of demand and meet European requirements for charging electric cars, LGVs and HGVs by 2025 and 2030. The implementation of this Plan through enhanced grid connections, funding interventions and enabling measures will remove barriers and accelerate the delivery of high-powered EV charging.
Tax Code
Questions (257)
Michael Healy-Rae
Question:257. Deputy Michael Healy-Rae asked the Minister for Finance his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [42759/23]
View answerWritten answers
As the Deputy will recall from my previous response, on 11 September 2023, the Value Added Tax (Refund of Tax) (Touring Coaches) Order of 2012 provides for a refund of VAT on the cost of acquiring “qualifying vehicles” used for the carriage of tourists under contracts for group transport.
This 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.
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.
It is not possible to expand the scope of this refund order.
Tax Code
Questions (258)
Michael Healy-Rae
Question:258. Deputy Michael Healy-Rae asked the Minister for Finance if consideration will be given to a matter (details supplied); and if he will make a statement on the matter. [42761/23]
View answerWritten answers
The current stamp duty rate for non-residential property, which includes agricultural land, is 7.5%.
Farming is first and foremost a business, and section 655 of the Taxes Consolidation Act 1997 states "For the purposes of the Tax Acts, farming shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains of farming shall be charged to tax under Case I of Schedule D. " It is therefore appropriate for acquisitions of farmland to be subject, in the normal course of events, to the rate of stamp duty applicable to other non-residential property.
However, in respect of agricultural land, there are a range of generous and targeted reliefs from stamp duty, specific to that type of property, which remove in full or reduce the rate of stamp duty payable on the acquisition of farmland, currently available. These include the young trained farmer stamp duty relief, consanguinity relief and farm consolidation relief. These reliefs are kept under regular review by my department, and are renewed, updated and added to in line with Government policy and prevailing circumstances, when necessary.
Departmental Policies
Questions (259)
Ivana Bacik
Question:259. Deputy Ivana Bacik asked the Minister for Finance if his Department has a policy on the use of artificial intelligence; and if any Departmental functions are assisted by language model-based chatbots (details supplied). [42815/23]
View answerWritten answers
I can confirm to the Deputy that Cybersecurity Guidance from the National Cyber Security Centre (NCSC) in relation to Generative AI issued to Government departments, including my department, during the year. A National AI Strategy, “AI – Here for Good”, prepared by the Department of Enterprise, Trade and Employment was also published in 2021.
The NCSC guidance referred to recommends that new technology should only be adopted based on a clearly defined business need following an appropriate risk assessment.
I understand that the Department of Public Expenditure, NDP Delivery and Reform and the Department of Enterprise Trade and Employment have established a working group on AI in Public Services. This group are currently drafting principles concerning the use of AI in public services, which the two Departments expect to publish shortly. Guidelines on the use of generative AI will also be produced in the near future.
Officials from my Department do not currently have access to the application in question to conduct official business.
Departmental Reviews
Questions (260)
Ivana Bacik
Question:260. Deputy Ivana Bacik asked the Minister for Finance if the review of Ireland's personal tax system will be published in advance of the fiscal budget; and if he will make a statement on the matter. [42838/23]
View answerWritten answers
The Deputy will be aware that, as signalled in Budget 2023, the Government is committed to a review of the personal tax system, having regard to the medium term. The Department of Finance was tasked with carrying out this review.
On the 8th March, I launched a public consultation in respect of the review of the personal tax system, with the consultation period closing on 5 April. The terms of reference for the review were also published. In broad terms the review encompassed:
• A strong focus on the Programme for Government commitments relating to income tax and USC, such as indexation, and the progress made to date on achieving these commitments;
• Further analysis of the introduction of an intermediate or third rate of income tax, building on the work of last year’s Tax Strategy Group;
• Further analysis of the recommendations of the Commission on Taxation and Welfare directly relevant to income tax and USC; and
• An international comparative analysis of Ireland’s personal tax system compared to other jurisdictions.
The review is now complete and it is my intention to publish the report on Budget Day this year, 10 October.
Departmental Records
Questions (261)
Ivana Bacik
Question:261. Deputy Ivana Bacik asked the Minister for Finance if his Department records the type of vehicle involved in road accidents which become the subject of a civil trial involving an insurance company. [42842/23]
View answerWritten answers
The Department of Finance does not record such data and does not have a role in such matters as the type of vehicles involved in road traffic accidents which are the subject of a civil trial involving an insurance company.
As the Deputy will be aware, the Courts Service may be able to advise what data is recorded during the case of a civil trial. As the Court Services come under the remit of the Minister for Justice, this question is more appropriate for that Department.
Budget 2024
Questions (262)
Joe McHugh
Question:262. Deputy Joe McHugh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to ensure increased investment in the Shared Island Fund in the upcoming Budget; and if he will make a statement on the matter. [42138/23]
View answerWritten answers
The Government established the Shared Island Fund in Budget 2021, providing ring-fenced resourcing for delivery of the all-island investment commitments and objectives set out in the Programme for Government and the National Development Plan 2021-2030 (NDP).
The Shared Island Fund aims to create a more prosperous, connected and sustainable island. Under the NDP it has a funding envelope of €500 million between 2021 and 2025. The Fund provides significant new, multi-annual capital funding for investment on a strategic basis in collaborative North/South projects that will support the commitments and objectives of the Good Friday Agreement.
My Department in consultation with the Department of the Taoiseach manages draw down from the Shared Island Fund consistent with the capital allocations and commitments set out under the NDP. The total allocations set out for the Shared Island Fund in the NDP are increasing from €100 million in 2023 to €150 million in 2024, allowing for more projects to be supported next year.
Work is continuing in all Departments to develop new Shared Island investment, policy and co-operation projects, to implement Programme for Government objectives and revised NDP priorities on Shared Island. This is overseen by an inter-Departmental Group convened at Assistant Secretary General level and chaired by the Department of the Taoiseach.
Office of Public Works
Questions (263)
James Lawless
Question:263. Deputy James Lawless asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the mediation process currently underway in relation to lands at Castletown Estate, County Kildare (details supplied); and if he will make a statement on the matter. [42212/23]
View answerWritten answers
The Office of Public Works has been engaged in dialogue with the private landowners at Castletown Estate and attended mediation, as requested by private landowners. The details of the process are confidential. This mediation concluded on 29 September 2023. The OPW is disappointed that it was not possible to reach agreement.
It should be noted that it has long been the policy of the OPW to seek to reunite the historic Castletown Estate. In 1994, when the Office of Public Works took responsibility for Castletown House and Estate there was an initial landholding of only 13 acres of land. In 1997, one hundred acres south of the house was acquired. The farmyard adjacent to the house was acquired in 2001. In 2006, lands associated with the Batty Langley Lodge were acquired with former Coillte lands to the north and east of the House acquired in 2007. Since 2008, the OPW has reassembled 227 acres of the original 580 acres of land which formed the historic demesne.
As part of the policy to seek to reunite the historic Castletown demesne lands with the house and lands in the care of the State, the OPW has sought on several occasions to purchase the lands in question from Janus Securities including when the lands were offered for sale on the open market in 2022. However, despite the very best efforts of the OPW, the State was out-bid in the open market process and ultimately, the lands were acquired by a private purchaser.
As Minister, I have spoken with my government colleagues on this issue and my officials in OPW have engaged with the relevant departments. The OPW remains committed to acquiring lands that formed part of the original estate, where they became available. This objective will be pursued in line with the requirements of the Public Spending Code.
Public Expenditure Policy
Questions (264)
Joe McHugh
Question:264. Deputy Joe McHugh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to indicate if he is considering an enhanced national infrastructure fund with an additional commitment of upwards of €30 billion; and if he will make a statement on the matter. [42237/23]
View answerWritten answers
In late 2021, the Government launched the revised National Development Plan 2021-30 (NDP) detailing €165 billion of public investment. In Budget 2024, a significant uplift in capital funding for 2024 will be provided through alignment with the capital expenditure ceilings detailed in the NDP. Total capital allocations will increase by almost €1 billion from €11.86 billion in 2023 to €12.82 billion in 2024.
In addition, as part of the Summer Economic Statement 2023, Government agreed that an additional amount of €0.25 billion will be made available for capital expenditure in 2024, along with an additional €0.75 billion in 2025 and €1.25 billion in 2026. This additional provision is to enable more rapid development of key Programme for Government commitments and targeted at projects at an advanced stage of development.
To support the consideration of NDP ceilings out to 2028, my Department has commissioned the ESRI to carry out an independent evaluation of the NDP focused on the capacity to deliver current Government priorities, sectoral needs, ongoing constraints to delivery and an approach to support delivery priorities over the period ahead. The work of the ESRI is at an advanced stage and they are reflecting on some final considerations before reaching a final draft of the report. I expect to receive the ESRI report before the end of this year. I will present some of the key findings of the report to Government prior to commencing the revision of the NDP allocations. Following this, and post the publication of the Revised Estimates Volume for 2024, my Department will engage with sectoral Departments to commence the process of agreeing sectoral NDP allocation out to 2028. Once this engagement process is complete, it is my intention to publish revised NDP allocations for 2024 – 2028 during Q1 2024.
National Parks and Wildlife Service
Questions (265)
Michael McNamara
Question:265. Deputy Michael McNamara asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if a person (details supplied) in County Clare who is currently an existing executive officer and has applied for a conservation ranger position with the National Parks and Wildlife Service, will retain their existing salary pay scale, given their experience as an executive officer, and not a reduction in pay scale; and if he will make a statement on the matter. [42251/23]
View answerWritten answers
Appointments to the civil service through open competition are made subject to the advertised terms of the competition. In general, the terms allow that different conditions may apply to currently serving civil/public servants.
There are policies in place which allow currently serving civil/public servants to start above the minimum subject to certain conditions. Examples of such policies include, inter alia;
- Incremental Credit, as provided for through Circular 21/2004 and Circular 40/2007; and
- Appointment to Analogous Grades, as provided for through Circular 08/2019.
It is a matter for the employing department to determine the policies that apply to any particular appointment.
National Parks
Questions (266)
Paul Murphy
Question:266. Deputy Paul Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if, in relation to the report that OPW is to commission a cull of wild rabbits at a national park in Kerry, he will instruct the OPW to seek alternative methods of population control (details supplied); and if he would be open to meeting to discuss these options with a named organisation. [42293/23]
View answerWritten answers
The Office of Public Works is responsible for the maintenance and conservation of the lands surrounding Derrynane House and Gardens. This area is not a National Park but some of the habitats there are home to small local populations of some incredibly rare species such as natterjack toads which are found in only a handful places in Ireland, choughs, where Derrynane is one of their main habitats, and the narrow-mouthed whorl snail is also found at Derrynane.
The overall dune system at Derrynane supports a plethora of wild flora and fauna, as well as providing a natural buffer against climate impacts. Unfortunately, over the past few years the rabbit population has exploded and extensive damage is being done due to their extensive grazing in the vicinity of the sand dunes.
The Office of Public Works has a responsibility to control the rabbit population and has researched ecological studies that support the control of rabbits in dune habitats. "The Irish Wildlife Manual for Annex 1 Sand Dune habitats, commissioned by NPWS, notes that rabbit burrowing and grazing can cause extensive damage to the structure of sand dunes if populations are uncontrolled ". Rabbits do not have protected wildlife status in Ireland, unlike the species and habitats that they are harming at Derrynane.
The OPW is continually looking at options to successfully manage the landscapes and properties in a way that is beneficial to wildlife and biodiversity, particularly at locations such as Derrynane, which contains wildlife habitats protected at a European level that we have a responsibility to nurture and protect.
A range of methods of control (contraception, translocation etc.) were examined and unfortunately they are not feasible approaches given the number of rabbits present and the likelihood of detrimental impacts on other species.
Flood Risk Management
Questions (267)
Mark Ward
Question:267. Deputy Mark Ward asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if there is any rationale for an area (details supplied) to be considered a flood risk; if recent reviews of the area have been carried out; and if he will make a statement on the matter. [42331/23]
View answerWritten answers
The Catchment Flood Risk Assessment and Management Programme (CFRAM) was the largest ever flood risk study carried out in the State. It culminated with the launch, in 2018, of 29 flood risk management plans which proposed 118 new outline flood relief projects. These were in addition to the major projects already completed and the schemes that were ongoing at the time within the existing capital works programme of the Office of Public Works (OPW).
The Camac River, which runs adjacent to / through the area concerned was covered by the CFRAM Programme, and the flood mapping for the area is available on www.floodinfo.ie.
The flood maps currently available indicate that certain sections of the area in question are susceptible to some form of fluvial flooding in a Medium Probability flood event, which has approximately a 1-in-100 chance of occurring or being exceeded in any given year. This is also referred to as an Annual Exceedance Probability (AEP) of 1%. The wider area would also be vulnerable to pluvial flooding during this type of flood event.
The area is currently being assessed under the River Camac Flood Alleviation Scheme (FAS) as it lies within the catchment of the scheme and where more up to date flood information will become available. Dublin City Council and South Dublin County Council in partnership with the OPW, have commissioned the River Camac FAS to address flooding within the catchment of the Camac River. The River Camac FAS is being designed to protect properties from fluvial flooding in a Medium Probability flood event and will also make recommendations in regard to minimising the risk of pluvial flooding in a Medium Probability flood event.
Flood Risk Management
Questions (268)
Michael Ring
Question:268. Deputy Michael Ring asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to outline the position regarding a scheme (details supplied); and if he will make a statement on the matter. [42353/23]
View answerWritten answers
My Department has engaged independent environmental consultants to carry out the relevant environmental assessments as required by EU Directives 2011/92 and 2014/52.
On the basis of advice received, I have sought supplementary information from the Office of Public Works as provided for under Section 7(4)(b) of the European Union (Environmental Impact Assessment) (Arterial Drainage) Regulations 2019 in order to reach a full, reasoned conclusion on the environmental impacts of the scheme.
Data Protection
Questions (269)
Peadar Tóibín
Question:269. Deputy Peadar Tóibín asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of data breaches experienced by his Department in each of the past ten years and to date in 2023. [42371/23]
View answerWritten answers
The Deputy will be aware that the General Data Protection Regulation (GDPR) came into effect on 25 May, 2018. To prepare for this critical date, my Department agreed a range of new internal data protection policies including a formal data breach management policy, the objective of which is to ensure that any data breaches are dealt with as required under Articles 33-34 of the GDPR.
Since the introduction of the data breach management policy in 2018, the Department has identified and recorded 39 data breaches as set out in the table below. Of the breaches identified in the Department since then, only a small proportion warranted formal notification to the Data Protection Commissioner under the GDPR. The majority of the breaches identified were determined to be minor in nature and these were handled in accordance with the Department's data breach management policy.
|
Year |
Number of Data Breaches |
|
2018* |
9 |
|
2019 |
7 |
|
2020 |
10 |
|
2021 |
6 |
|
2022 |
4 |
|
2023** |
3 |
* 25 May, 2018 onwards
** to-date in 2023