Written Answers Nos. 191-212
191. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which he proposes to maximise sufficient places on commuter trains serving north Kildare with a view to ensuring that sufficiently seating places are available throughout the journey in both directions; and if he will make a statement on the matter. [43426/23]
View answerAs 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 Deputy's query in relation to capacity on commuter trains serving north Kildare is an operational matter for Iarnród Éireann and I have therefore forwarded the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a response within ten working days.
192. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which efforts can be made to manage the traffic, particularly at peak times, on all roads to Dublin city; and if he will make a statement on the matter. [43427/23]
View answerAs 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 operation and management 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.
With regard to regional and local roads, traffic management is a matter for the local authority concerned.
193. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which the electrification of the commuter lines to Maynooth is progressing; and if he will make a statement on the matter. [43428/23]
View answerAs the Deputy is aware, as Minister for Transport I have responsibility for policy and overall funding of public transport in Ireland, including in relation to the rail network. The National Transport Authority, or NTA, has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including, in consultation with Iarnród Éireann, the DART+ programme.
Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
194. Deputy Bernard J. Durkan asked the Minister for Transport whether it is intended that the public consultation progress and hearings in respect of the electrification of the Maynooth, Kilcock, Confey, Louisa Bridge and Enfield is likely to receive any further consideration along the lines suggested by Kildare County Council and the public representatives of north Kildare in relation to the need to move to a terminus or parking complex nearer to Enfield in order to provide for a wider catchment area; and if he will make a statement on the matter. [43429/23]
View answerAs the Deputy is aware, as Minister for Transport I have responsibility for policy and overall funding of public transport in Ireland, including in relation to the rail network. The National Transport Authority, or NTA, has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including the proposal referred to by the Deputy.
Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
195. Deputy Bernard J. Durkan asked the Minister for Transport when it is expected that work on the upgrade and extension to the Leixlip, Maynooth and Kilcock commuter rail link might commence; and if he will make a statement on the matter. [43430/23]
View answerAs the Deputy is aware, as Minister for Transport I have responsibility for policy and overall funding of public transport in Ireland, including in relation to the rail network. The National Transport Authority, or NTA, has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including any upgrades to commuter lines in County Kildare.
Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
196. Deputy Bernard J. Durkan asked the Minister for Transport when it is expected that work on the upgrade and extension to the Celbridge, Hazelhatch, Newbridge and Sallins commuter rail link might commence; and if he will make a statement on the matter. [43431/23]
View answerAs the Deputy is aware, as Minister for Transport I have responsibility for policy and overall funding of public transport in Ireland, including in relation to the rail network. The National Transport Authority, or NTA, has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including any upgrades to commuter lines in County Kildare.
Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
197. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which trains serving north Kildare and west Dublin continue to arrive and depart on time as advertised; and if he will make a statement on the matter. [43432/23]
View answerAs 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 Deputy's query in relation to the extent to which trains serving north Kildare and west Dublin continue to arrive and depart on time as advertised is an operational matter for Iarnród Éireann and I have therefore forwarded the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a response within ten working days.
198. Deputy Bernard J. Durkan asked the Minister for Transport if consideration is likely to be given to the opening of any extra rail stations on the north Kildare rail commuter routes; and if he will make a statement on the matter. [43433/23]
View answerAs the Deputy is aware, as Minister for Transport I have responsibility for policy and overall funding of public transport in Ireland, including in relation to the rail network. The National Transport Authority, or NTA, has statutory responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area, including any proposed train stations in County Kildare.
Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
199. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which any action can be taken to reduce the number of road traffic accidents currently taking place on the M4, N4, N7, N9 and all routes towards the capital city; and if he will make a statement on the matter. [43434/23]
View answerAs 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 operation and management 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.
200. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which all bus services from Naas to Blanchardstown are in need of improvement, with particular reference to reliability, availability and punctuality; and if he will make a statement on the matter. [43435/23]
View answerAs 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 National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators.
The performance of all public transport operators is monitored by the NTA as part of the contractual arrangements in place between it and the operators. These contractual arrangements allow for not just the monitoring of performance by the NTA and the publication by it of annual performance reports, but importantly, the contracts also allow for the imposition of financial penalties where performance does not meet the required standard.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's question in relation to all bus services from Naas to Blanchardstown, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
201. Deputy Róisín Shortall asked the Minister for Finance if he has considered recommendation one of the Commission on Taxation and Welfare that, given the medium-to long-term threats to the State’s fiscal sustainability, the tax base should be broadened; if he will commit to implementing this recommendation; if he intends to act on this key recommendation in budget 2024; and if he will make a statement on the matter. [43389/23]
View answerAs the Deputy has indicated, the Commission on Taxation and Welfare has recommended that the overall level of revenues raised from tax and PRSI must increase materially as a share of national income to meet the medium- to long-term threats to fiscal sustainability.
However, as the Commission’s recommendations are significant and wide ranging, it is important to allow sufficient time for detailed consideration. In fact, I would note that, in its report “Foundations for the Future ”, the Commission acknowledged that its recommendations are not intended to be implemented all at once. Instead, they are intended to provide a clear direction of travel for this and future Governments around how the sustainability of the taxation and welfare systems may be improved in a fair and equitable manner.
On the subject of broadening the tax base generally, the Government is aware of the importance of implementing a broad-based tax system. To this end, a range of structural tax changes have been implemented over the last two decades. These include the introduction of the Universal Social Charge, Local Property Tax, the Carbon Tax and the Sugar-Sweetened Drinks Tax. Steps have also been taken to broaden and enhance the stability of our corporation tax base, including through the introduction of the 80 per cent cap on capital allowances for intangible assets and the introduction of a broader Exit Tax regime. Significant progress was also made in phasing out and curtailing many tax expenditures. As a result, the tax base was widened considerably and re-oriented towards more stable revenue streams.
I would note that all taxheads have a role to play in ensuring the stability of the tax base. The Government is fully aware of the risks associated with the current level of concentration and volatility in the tax base and will continue to monitor the situation closely so that the risks of over-reliance on potentially cyclical or over-concentrated receipts under specific tax heads can be understood and mitigated. However, excessive changes that adversely impact on the tax base would risk repeating the mistakes of the past by narrowing the overall tax base and leaving our public finances vulnerable to external shocks.
As the Deputy will be aware, the Government is working to mitigate these risks. As such, €6 billion in windfall corporation tax receipts have been transferred to the National Reserve Fund to rebuild our fiscal buffers. This will also ensure that these receipts are not used to fund permanent expenditure commitments. In May 2023, my Department also published a scoping paper which sets out a number of proposals for a longer-term investment vehicle. This will enable Government to use some of this windfall to prepare for the structural fiscal challenges on the horizon, including the costs associated with an ageing population.
Finally, I would note that the best way to ensure the sustainability of our tax base is by continuing to pursue a budgetary policy that balances continued investment in our public services and infrastructure with the long-term sustainability of our public finances. However, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions.
203. Deputy Peter Fitzpatrick asked the Minister for Finance if and when he plans to reinstate the disabled drivers medical board of appeal; if he plans to amend the criteria of the primary medical certificate process; if he plans on implementing a comprehensive needs-led transport support scheme to replace the mobility allowance and motorised transport grant; and if he will make a statement on the matter. [43235/23]
View answer204. Deputy Pauline Tully asked the Minister for Finance for an update on the progress made to date on the reestablishment of the disabled drivers medical board of appeal; if the engagement with the National Rehabilitation Hospital has been successful in retaining their service; and the number people currently waiting on an appeal. [43242/23]
View answerI propose to take Questions Nos. 203 and 204 together.
Progress has been made on efforts to convene a new Disabled Drivers Medical Board of Appeals (DDMBA), to secure new hosting arrangements for the DDMBA and to recommence the appeals process.
I have now formally appointed all five members to the new DDMBA. Funding arrangements between the Department of Finance and the Department of Health have been agreed. On this basis the National Rehabilitation Hospital (NRH) has confirmed that they will again host the DDMBA. Preparatory work is underway, that will include due deliberation on how best to clear the backlog. The appeals process will re-commence upon completion of this work. In parallel, my officials are working with the NRH to conclude other conditions for new hosting arrangements, which may continue after the appeals process is again up and running.
I appreciate that it has taken far longer than anticipated to get to this point. With the Department of Health we have had to run four Expression of Interest campaigns over 18 months to source the legislatively required five members. We have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.
As of end August 2023 (latest data available) there were 1,079 appeals outstanding.
In relation to the Deputy’s query about amending the criteria of the Primary Medical Cert process, she should note that the final report of the NDIS Transport Working Group's review of mobility and transport supports including the Disabled Drivers and Disabled Passengers Scheme (DDS), endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS, as it is no longer fit-for-purpose on any and all aspects. The proposals note that the most prevalent international practice is to provide for the specific vehicular adaptations needed to improve functional ability for those with a disability and with mobility impairments.
The NDIS TWG was chaired by Minister Anne Rabbitte and led by the Department of Children, Equality, Disability, Integration and Youth (DCEDIY).
Access to transport for people with disabilities is a multifaceted issue that involves work carried out by multiple Government departments and agencies. Officials from relevant Departments and agencies under the aegis of the Department of Taoiseach are meeting to discuss the issues arising from the NDIS report and to map a way forward. My officials are proactively engaging with this work as an important step in considering ways to replace the DDS, as one specific personal transport response, in the context of broader Government consideration of holistic, multifaceted and integrated transport and mobility supports for those with a disability.
Until a Government decision is made, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme in line with international practice.
Finally the Deputy should note that the Department of Health is responsible for the mobility allowance and the motorised transport grant.
206. Deputy Éamon Ó Cuív asked the Minister for Finance whether he intends changing the rules that to qualify for agricultural relief for capital acquisitions tax that the farm must represent 80% of the recipient of lands assets, in view of the fact that this rule mitigates against farmers on smaller holdings or holdings on poorer land particularly in the west of Ireland; and if he will make a statement on the matter. [43330/23]
View answerAs the deputy is aware, agricultural relief allows the value of agricultural assets gifted or inherited (including farmland, buildings, stock) to be reduced by 90% of their value for the calculation of a Capital Acquisition Tax (CAT) liability. To be eligible for the relief, at least 80% of the gross market value of the property to which a person is beneficially entitled must comprise agricultural property. It should also be noted that a beneficiary may qualify for agricultural relief on non-agricultural property (such as cash) where a gift or inheritance is made subject to the condition that it be invested in agricultural property and that condition is satisfied within 2 years after the date of the gift or inheritance.
This is a valuable relief which supports the inter-generational transfer of family-farms. Therefore, a fundamental objective of this relief is that it is availed of by genuine, and active farmers, and that it relates to agricultural land which is being actively farmed.
The deputy should also note, that the Commission on Taxation and Welfare’s 2022 report recommend that the level of Agricultural relief be reduced, and that the qualifying conditions for this relief be amended to incentivise, and ensure active participation in the farm by the recipient.
With respect to the query on whether there are plans to reform the relief, the options available for the operation of agricultural relief are kept under review by my Department, and must be balanced against competing demands and as part of the annual Budget and Finance Bill process.
207. Deputy Michael Fitzmaurice asked the Minister for Finance to provide, in tabular form, a sectoral breakdown of the estimated annual costs to the Exchequer of reverting to the previous temporary 9% VAT rate for tourism-related industries; and if he will make a statement on the matter. [43336/23]
View answer208. Deputy Michael Fitzmaurice asked the Minister for Finance to provide the estimated annual cost to the Exchequer of creating a specific 9% VAT, as opposed to the current 13.5% VAT rate, which would apply only to food sales, be it restaurant, takeaway, hotel food sales and so on, assuming that bed and breakfast deals would simply attract the current rate of 13.5%; and if he will make a statement on the matter. [43337/23]
View answerI propose to take Questions Nos. 207 and 208 together.
As the Deputy may be aware, it is possible to change the VAT rate for hospitality or accommodation without reference to the other. The respective costs of extending the 9% VAT for different sectors are set out in the below table but for the year 2024 the estimated cost would be €159.5 for accommodation, €569.3m for hospitality, €24m for other entertainment, and €36m for hairdressing.
While the Deputy's assumption that under any such arrangement that bed and breakfast deals would attract the 13.5% rate is noted, Revenue believes there is likely to be still significant practical operational concerns in having different VAT rates applying to hotel accommodation and meals given how the sector operates, with various packages other than just bed and breakfast such as all-inclusive board and lodging packages.
This could lead to the underpayment of VAT because the charge for accommodation and meals would have to be apportioned. In the views of Revenue, it would undoubtedly provide opportunities for tax planning, which would be difficult to police. This would give rise to administrative and operational complexity as well as increased risk of avoidance and scope for manipulation of the VAT system.
Estimated cost in €m of applying a 9% VAT rate to tourism and hospitality sectors
|
Sector |
Jan/Feb 2024 |
Mar/Apr 2024 |
May/Jun 2024 |
Jul/Aug 2024 |
Sep/Oct 2024 |
Nov/Dec 2024 |
Total |
|
Accommodation only |
20.9 |
22.2 |
27.3 |
33.4 |
30.3 |
25.4 |
159.5 |
|
Food and Catering Services only |
83.7 |
92.8 |
97.9 |
97.9 |
96.2 |
100.8 |
569.3 |
|
All Entertainment |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
4.0 |
24.0 |
|
Hairdressing Services |
6.0 |
6.0 |
6.0 |
6.0 |
6.0 |
6.0 |
36.0 |
|
Total Cost per VAT period |
114.6 |
125.0 |
135.2 |
141.3 |
136.5 |
136.2 |
788.8 |
|
Total Cumulative Cost |
114.6 |
239.6 |
374.8 |
516.1 |
652.6 |
788.8 |
788.8 |
209. Deputy Michael Fitzmaurice asked the Minister for Finance if his Department has conducted a balancing exercise to determine the impact of the reversion of temporary VAT rate of 9% to the current VAT rate of 13.5% for tourism-related activities, in the context of reduced employment, closures, and so on; and if he will make a statement on the matter. [43338/23]
View answer210. Deputy Michael Fitzmaurice asked the Minister for Finance if his Department has not conducted a balancing exercise to determine the impact of the reversion of temporary VAT rate of 9% to the current VAT rate of 13.5% for tourism-related activities, in the context of reduced employment, closures and so on, if it will do so; and if he will make a statement on the matter. [43339/23]
View answerI propose to take Questions Nos. 209 and 210 together.
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 reverted to the 13.5% VAT rate on 1 September 2023. The estimated cost of the final extension of the measure is €300m. This extension struck a balance between the cost to public finances and the provision of support for these sectors.
I made it clear at the time of the most recent extension that it was not intended to further extend this 9% reduced rate after 1 September 2023. 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 would 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.
211. Deputy Michael Fitzmaurice asked the Minister for Finance if he or his Department has considered splitting VAT rates on accommodation between rural accommodation providers and urban accommodation providers, given the vast differences in rates and price gouging being engaged in by some urban accommodation providers; and if he will make a statement on the matter. [43340/23]
View answerAs 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.
However the Deputy should note that the European VAT Directive, with which Irish VAT legislation must comply, would not permit VAT rates for a particular good or service to vary depending on geography.
212. Deputy Carol Nolan asked the Minister for Finance if he will reinstate the VAT equalisation measure for rental cars in budget 2024 (details supplied); and if he will make a statement on the matter. [43341/23]
View answer213. Deputy Michael Lowry asked the Minister for Finance if consideration will be given to reinstating the VAT equalisation measure for rental cars in budget 2024 (details supplied); and if he will make a statement on the matter. [43377/23]
View answerI propose to take Questions Nos. 212 and 213 together.
As the Deputies 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.
