Written Answers Nos. 67-86
67. Deputy Denis Naughten asked the Minister for Finance further to Parliamentary Question No. 16978/13 in light of the fact that the cost of travelling to a foreign property is deductible from rental income, if the same provision applies to domestic properties where the journey is undertaken wholly and exclusively for the purpose of earning rental income from the property; and if he will make a statement on the matter. [55629/23]
View answerI am advised by Revenue that, by virtue of sections 70 and 71 Taxes Consolidation Act 1997 (TCA) foreign rental income is taxable in Ireland under what is called Case III of Schedule D. Section 71(4) TCA provides that the computation rules for Irish rental income also apply to foreign rental income. The rules for computing rental profits or gains are set out in section 97 TCA, which provides that the amount of rental profits or gains is the aggregate of the “surpluses” computed in accordance with section 97(1)(c) TCA reduced by the aggregate “deficiencies” computed in accordance with section 97(1)(c) TCA in respect of each rent or easement. To arrive at a surplus or deficiency, the deductions permitted by section 97(2) TCA are subtracted from each rent received.
Section 97(2)(d) TCA provides that a deduction is authorised for “the cost of maintenance, repairs, insurance and management of the premises borne by the person chargeable that is, the landlord and relating to and constituting an expense of the transaction or transactions under which the rents or receipts were received, not being an expense of a capital nature”. Section 97(3)(a) provides that the amount of the deductions authorised under section 97(2) shall be the amount that would be allowed in computing the profits of a trade, if the receipt of rent was deemed to be a trade, during the period in which the lease was in place or, if there was no lease, during the period in which the landlord was entitled to the rent. This means that the expenditure must be wholly and exclusively for the purpose of receiving the rent, during the time that the lease or tenancy is in place.
Revenue guidance at www.revenue.ie/en/property/rental-income/foreign-rental-income/expenses-deductions-not-allowed.aspx outlines that the costs of travelling to a foreign rental property can only be deducted in calculating taxable rental income where the journey is undertaken wholly and exclusively for the purposes of earning rental income from the property. The circumstances in which this could be claimed are quite restrictive.
Where a landlord also uses the opportunity to take a holiday or short break, then the costs of travelling to the property are not deductible as they have not been incurred wholly and exclusively for the purposes of earning the rental income. A landlord can also not claim a deduction for travel expenses to view a property that she does not own or let, as that would not be expenditure during the period the lease was in place.
On a similar basis, a landlord’s costs in travelling to an Irish rental property can only be deducted in calculating taxable rental income where the journey is undertaken wholly and exclusively for the purposes of earning rental income from the property, and the journey is undertaken during the time the lease is in place. In this regard, a recent determination of the Tax Appeal Commission (TAC) (130TACD2020, available on the TAC website at www.taxappeals.ie/en/determinations/130tacd2020-income-tax) found that Revenue was correct to allow a partial deduction for a landlord’s fuel costs and to refuse an additional deduction for such costs, and also to refuse deductions for the cost of motor insurance, motor tax, NCT, repairs and maintenance for the landlord’s motor vehicle.
68. Deputy Brendan Smith asked the Minister for Finance when it is proposed to make much-needed amendments to the primary medical certificate eligibility criteria as many persons whom this scheme was intended to benefit are unable at present to get approval to avail of the scheme; and if he will make a statement on the matter. [55651/23]
View answerAs the Deputy may be aware, the final report of the National Disability Inclusion Strategy (NDIS) Transport Working Group's (TWG) review of mobility and transport supports which included 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 this was a clear deliverable for the near future.
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. Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report and to map a way forward. My officials are proactively engaging with this Senior Officials Group 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. Three meetings have been held, in July, November and December. Department of Taoiseach officials are considering ways forward based on meeting inputs to date.
In the above context, any further changes to the existing DDS, I believe would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
69. Deputy Marian Harkin asked the Minister for Finance for an update on a decision of the Tax Appeal Commission (details supplied); and if he will make a statement on the matter. [55663/23]
View answerI am advised by Revenue that each application for exemption or relief from Vehicle Registration Tax (VRT) under the Vehicle Registration Tax (Permanent Reliefs) Regulations 1993 is considered on a case-by-case basis. Such applications may, where appropriate, include the consideration of ‘normal residence’ criteria as defined in the Regulations.
A taxpayer has the right to appeal Revenue’s decision to refuse a Transfer of Residence (TOR) exemption through Revenue’s Complaint and Review Procedures mechanism, and via the Tax Appeals Commission (TAC). Further guidance in relation to both VRT exemptions and reliefs, including TOR relief and the VRT appeals procedure can be found on the Revenue website at: www.revenue.ie/en/vrt/index.aspx
I am further advised that Revenue carefully considers all TAC determinations and is continually reviewing its processes, procedures and Tax and Duty Manuals to ensure compliance with all legislative requirements. In relation to the TAC determination concerned, Revenue confirms that it has considered all aspects of this determination, together with the guidance available to staff, and is satisfied that the printed guidance and the tests applied in determining ‘normal residence’ are appropriate and are applied in a consistent manner. In that regard, four subsequent TAC determinations on this subject have been published in Revenue’s favour in the intervening period.
Finally, Revenue confirms that all reasonable steps are taken to ensure that customers are treated fairly and consistently and with due regard to the specific facts and circumstances of each case. Notwithstanding, Revenue advises each applicant of their right to appeal should they disagree with Revenue’s decision.
70. Deputy Niall Collins asked the Minister for Finance if he can advise on correspondence (details supplied); and if he will make a statement on the matter. [55691/23]
View answerAs Minister for Finance, I do not have a role in the setting of deposit rates in any bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks, which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
Not withstanding the above, officials in my department contacted AIB in relation to this matter and the bank has provided the below information:
"In September 2023 EBS increased its Family Savings rate to 3%, and the EBS Children & Teens Savings rates increased to 2.50%. At the same time EBS also increased the rate of its Instant Access account 0.25%. EBS Family Saver rate of 3% (previously 2%) applies to savings between €100 and €1,000 per month for the first year and a rate of 1.25% applies in Year 2 onwards.
EBS’ Children’s and Teen Savings rate increases to 2.50% up to a max balance of €5,000 (previously 1.50%).
Actions taken in 2023:
• Interest rates have increased across a range of EBS deposit accounts which include Instant Access, Regular Savings and Children/Teen type accounts.
• EBS has made changes to its deposit interest rates on 3 separate occasions in 2023.
• Q1: Increased interest rates for 4 EBS Deposit Products
• Q2: Increased interest rates for 4 EBS Deposit Products
• Q3: Increased interest rates for 5 EBS Deposit Products
• All changes to deposit interest rates in 2023 have been communicated via:
• Press release via media – with widespread coverage received
• EBS Savings and Deposits website pages updated with new deposit interest rates
• Staff FAQ and briefing material to support customer engagement
• Interest rate changes for Variable Deposit Products appear on the customer’s bank statements
Note: Customers who hold Fixed Interest Rate accounts are engaged with prior to their fixed term maturing."
71. Deputy Brendan Griffin asked the Minister for Finance the reason repayment of VAT on milk tanks for unregistered farmers has been withdrawn by the Revenue Commissioners without any notice; if milk tanks will be reinstated in the unregistered farmers VAT scheme; and if he will make a statement on the matter. [55754/23]
View answerThe VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, farmers can elect whether or not to register for VAT in respect of their farming business, and this affects how VAT incurred on their inputs (such as the purchase of bulk milk tanks) is treated.
I understand that Farmers who elect to register for VAT are obliged to account for VAT on their supplies and are entitled to claim a deduction for VAT incurred on inputs used for the purposes of their taxable supplies. Therefore, VAT-registered farmers would be entitled to reclaim the VAT incurred on bulk milk tanks, and this should be done through their normal VAT returns.
Alternatively, farmers can remain unregistered for VAT and opt for the Flat-Rate Farmer’s Scheme. The Scheme is a simplification arrangement permitted under the Directive. It is designed to reduce the administrative burden for farmers by allowing unregistered farmers to be compensated on an overall basis for VAT on inputs, while remaining outside the VAT system, thereby avoiding the burdens associated with registration and filing. It allows such farmers to add a percentage charge (known as the “flat-rate addition”) onto the amount they invoice VAT-registered businesses (e.g. co-ops, meat processors, etc.) whom they supply with agricultural goods and services in the course of their farming business. Unlike VAT-registered businesses, unregistered farmers are not entitled to a deduction for VAT incurred on individual inputs used in their farming business; instead, the Flat-rate Scheme permits them to charge and retain the flat-rate addition in order to compensate them, on an overall basis, for the VAT across all their inputs.
I understand that there are certain limited situations in which flat-rate farmers are specifically permitted to claim a refund of the VAT incurred by them on particular inputs. The Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012) allows for refunds to be claimed on outlay incurred on:
- the construction, extension, alteration or reconstruction of a farm buildings or structures;
- the fencing, draining and reclamation of farmland; and
- the construction and/or installation of qualifying equipment for the purpose of micro-generation of electricity for use in a farm business.
I am advised by Revenue that on this basis, outlay incurred by flat-rate farmers on the installation of milk tanks has been allowed in certain circumstances where their installation is considered to constitute an alteration or reconstruction of a farm building or structure. Otherwise, outlay incurred on milk tanks is not allowable. Given the range of milk tanks available, each application needs to be considered on a case-by-case basis, having regard to the size of the tank and the level of structural works required for the installation in a farm building.
72. Deputy Brendan Griffin asked the Minister for Finance if he has engaged with a financial company (details supplied) or the regulator regarding behaviour by the company, raised by this Deputy in Dáil Éireann; and if he will make a statement on the matter. [55872/23]
View answerAs Minister for Finance I cannot comment on individual credit cases or particular arrangements that may be agreed between a borrower and a Central Bank regulated entity in order to address a specific repayment difficulty.
However, there is a robust consumer protection framework in place in relation to credit agreements. This framework provides the same protections for borrowers, regardless of the regulated entity with whom they are dealing, such as a bank, a retail credit firm (RCF) or a credit servicing firm (CSF). These regulated entities must be authorised and supervised by the Central Bank of Ireland, and are subject to the full suite of relevant regulatory requirements and financial services legislation, including the Code of Conduct on Mortgage Arrears (CCMA) and the Consumer Protection Code (CPC).
As the independent regulator, the Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times. In this context, any entity which is involved in the business of providing credit to consumers, or who subsequently acquires or services such credit agreements, falls within the authorisation and regulatory scope of the Central Bank.
If a customer is not satisfied with how a regulated firm is dealing with them in relation to the handling of a mortgage or other debt, or if a customer believes that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the statutory Financial Services and Pensions Ombudsman (FSPO). The FSPO can be contacted on 01 567 7000 or at info@fspo.ie.
In addition, there are a number of public initiatives to assist people who are in mortgage or other debt difficulty. For example, the Abhaile service which is made up of the Insolvency Service of Ireland (ISI), the Legal Aid Board, the Money Advice and Budgeting Service (MABS) and the Citizens Information Board provides free financial advice, and where appropriate also, legal advice to people experiencing difficulty with their mortgage. Further information on this service can be found on the Mabs website and their number is 0818 072000. I would encourage any person who is experiencing difficulty with their debt situation to contact MABS for advice and assistance.
73. Deputy Cormac Devlin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide an update on the ongoing review into the terms and conditions of pension provisions for former members of An Garda Síochána (details supplied); and if he will make a statement on the matter. [55454/23]
View answerAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, the current method of post-retirement pension adjustment for retirees of pre-existing (pre-2013) public service pension schemes is known as ‘pay parity’.
This method of pension adjustment was agreed by Government in 2017 the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which is due to expire at the end of this year.
Under the current policy, pay increases granted under those agreements fall to be passed on to pensions awarded under pre-existing public service schemes where the salary on which the pension is based is lower than or equal to the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that, in general, a salary increase awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
Pensions in payment under the Single Public Service Pension Scheme are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
As the Deputy may be aware, confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
74. Deputy Patrick Costello asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the current status of the statues of the Earl of Carlisle and Field Marshall Gough which formally resided in the Phoenix Park until being damaged in the 1950s; if the OPW retain ownership of them; and if plans are in place for their future use in a cultural institution. [55502/23]
View answerMy officials have advised me that the Earl of Carlisle Statue has been erected in Castle Howard in Yorkshire which is his ancestral home and the statue of Field Marshall Gough has been erected at Chillingham Castle in Northumberland which is the home of Sir Humphrey Wakefield.
Both statues have been restored and the restoration of the Gough Monument was the subject of a Channel 4 documentary some years ago. Neither of these statues are owned by the Irish State.
There are no plans at present to purchase either statue but this situation may be reconsidered should they become available for sale in the future.
75. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the way in which he intends to proceed in respect of his plans to discontinue the long-standing and well-established pay-pension parity link which retired gardaí share with serving officers in An Garda Síochána. [55538/23]
View answerAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, the current method of post-retirement pension adjustment for retirees of pre-existing (pre-2013) public service pension schemes is known as ‘pay parity’.
This method of pension adjustment was agreed by Government in 2017 the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which is due to expire at the end of this year.
Under the current policy, pay increases granted under those agreements fall to be passed on to pensions awarded under pre-existing public service schemes where the salary on which the pension is based is lower than or equal to the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that, in general, a salary increase awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
Pensions in payment under the Single Public Service Pension Scheme are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
As the Deputy may be aware, confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
76. Deputy Niamh Smyth asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to review correspondence (details supplied); if he will ensure parking is provided for staff at his Department; and if he will make a statement on the matter. [55622/23]
View answerThe Commissioners of Public Works (OPW) lease part of a building in Cavan town that is allocated to the Department of Social Protection. This lease included the use of 15 car parking spaces on a site across the road from the office. Earlier this year the landlord advised the OPW that the car park site was being sold to the County Council, consequently staff would no longer be able to use the car park once the sale completed.
It is the OPW policy that car parking is leased only when it forms part of a building lease and new leases or licences for stand-alone parking are not entered into. The OPW will review parking facilities at other owned and leased properties in Cavan town to establish if there are surplus parking spaces that can be allocated to staff affected by the sale of this car park.
77. Deputy Niamh Smyth asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to review a letter (details supplied), if he will provide an update on this matter; and if he will make a statement on the matter. [55730/23]
View answerAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, the current method of post-retirement pension adjustment for retirees of pre-existing (pre-2013) public service pension schemes is known as ‘pay parity’.
This method of pension adjustment was agreed by Government in 2017 the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which is due to expire at the end of this year.
Under the current policy, pay increases granted under those agreements fall to be passed on to pensions awarded under pre-existing public service schemes where the salary on which the pension is based is lower than or equal to the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that, in general, a salary increase awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
Pensions in payment under the Single Public Service Pension Scheme are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
As the Deputy may be aware, confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
78. Deputy Seán Canney asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he intends to continue the long-standing and well-established pay-pension parity link which retired gardaí share with serving colleagues in An Garda Síochána (details supplied); and if he will make a statement on the matter. [55752/23]
View answerAs Minister for Public Expenditure, NDP Delivery and Reform, I have overarching responsibility for public service pension policy, including in relation to pension increases in the public service.
As the Deputy may be aware, the current method of post-retirement pension adjustment for retirees of pre-existing (pre-2013) public service pension schemes is known as ‘pay parity’.
This method of pension adjustment was agreed by Government in 2017 the context of the Public Service Stability Agreement (PSSA) 2018-2020, and was extended under the successor pay agreement, Building Momentum 2021-2023, which is due to expire at the end of this year.
Under the current policy, pay increases granted under those agreements fall to be passed on to pensions awarded under pre-existing public service schemes where the salary on which the pension is based is lower than or equal to the salary of serving staff with the same grade and scale point, after the pay increase has been applied. If it qualifies, the pension is eligible for an increase to the extent that this will ensure alignment with the pay of serving staff. This means that, in general, a salary increase awarded to serving public servants will be passed through to the pensions of those persons who have retired on an equivalent grade and pay scale point.
While I have overall responsibility for pension increase policy, responsibility for implementing pension increases, where they fall due, rests with individual public service bodies and their associated pension administrator.
Pensions in payment under the Single Public Service Pension Scheme are adjusted in line with increases in the Consumer Price Index (CPI), as provided for under section 40 of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
As the Deputy may be aware, confidential negotiations are currently ongoing in relation to the successor to the Building Momentum agreement. These public service pay talks are attended by Trade Unions and Staff Representative Associations, who represent current public service employees.
79. Deputy Brendan Griffin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the up-to-date position regarding efforts to prevent flooding at Castlemaine Quay and surrounding properties; and if he will make a statement on the matter. [55867/23]
View answerThe Office of Public Works (OPW) is responsible for the maintenance of arterial drainage schemes completed under the Arterial Drainage Acts, 1945 and 1995, as amended. The OPW's South West Region will examine the flood risk at this area and will contact the Deputy directly.
80. Deputy Brendan Griffin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform his plans for sites in the vicinity of Killarney National Park in 2024; and if he will make a statement on the matter. [55868/23]
View answer81. Deputy Brendan Griffin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform his major capital plans for Kerry sites in 2024; and if he will make a statement on the matter. [55869/23]
View answerI propose to take Questions Nos. 80 and 81 together.
The Office of Public Works manages the conservation, presentation and preservation of some 780 National Monuments in the ownership and/or guardianship of the State using leading conservation practices to protect the fabric of these sites.
In County Kerry, there are approximately 80 heritage properties in the care of OPW. The conservation of heritage properties in the care of the OPW in Co. Kerry is carried out by the Killarney National Monuments Depot. Some priorities for this team in 2024 include the continuation of conservation maintenance works to protect Muckross Abbey and Ross Castle, plans to repair and conserve the Sea Wall at Derrynane, repairs to the roof of Derrynane House as well as repair works to the Derrynane Cashel.
Repair works are being undertaken also to the walls of Lislaughtin Abbey. There are also plans to install an internal porch in Ardfert Cathedral.
The OPW will also upgrade welfare facilities at Listowel Castle in 2024.
I trust this information is helpful.
82. Deputy Brendan Griffin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the up-to-date position regarding embankment works on the River Maine in Keel, from Castlemaine to Caherfealane; and if he will make a statement on the matter. [55870/23]
View answerThe Office of Public Works (OPW) is responsible for the maintenance of arterial drainage schemes completed under the Arterial Drainage Acts, 1945 and 1995, as amended. The OPW's South West Region will examine the flood risk at this area and will contact the Deputy.
83. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment what options are under consideration by the Government to help energy intensive industries with energy costs following his decision to join the governments of Belgium, Denmark, Estonia, Finland and The Netherlands in asking the EU Commission that the Temporary Crisis and Transition Framework not be extended beyond 31 December 2023. [55463/23]
View answerIreland has always been a strong supporter of robust State Aid control at EU level to protect a level playing field for Irish businesses to compete in the EU. In order to maintain a level playing field, any flexibility in State Aid rules must be limited to what is strictly necessary and be provided in a way that benefits all Member States equally. It is important that we avoid a damaging subsidy race.
To enable Member States to provide State Aid in response to the energy cost crisis triggered by the war in Ukraine, the EU Commission introduced flexibility with State Aid rules to enable temporary, targeted and limited State Aid to support businesses impacted by the energy crisis.
As with the wider economy including households and SMEs, energy intensive industries, have experienced rising energy costs in recent years.
There are a range of incentives and advice available to business to help them use energy efficiently, diversify their fuel use and switch to renewable energy sources.
We encourage all businesses to avail of the wide range of supports in particular the Climate action and energy supports which are all detailed on the Department’s website.
Schemes under the Temporary Crisis and Transition Framework, and those administered under other parts of the broader State Aid framework, have reached many Irish businesses, and have provided timely and effective support when required.
As provided for by the Temporary Crisis and Transition Framework (TCTF), the Ukraine Enterprise Crisis Scheme (UECS) was introduced to address liquidity shortages faced by businesses affected by the war in Ukraine, and to provide aid for energy-intensive businesses that were impacted by severe increases in energy prices. The Government is committed to providing necessary supports to businesses and the general State Aid rules provide ample opportunities to achieve this and following the Commission’s adoption of an amendment to prolong the crisis provisions of the TCTF, consideration will now be given to an extension of the UECS into 2024.
84. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment the Government’s response to the European Commission proposal to extend the crisis element of the Temporary Crisis and Transition Framework to 31 March 2024, at the request of the German and French governments. [55464/23]
View answerIreland has always been a strong supporter of robust State Aid control at EU level to protect a level playing field for Irish businesses to compete in the EU. In order to maintain a level playing field, any flexibility in State Aid rules must be limited to what is strictly necessary and be provided in a way that benefits all Member States equally. It is important that we avoid a damaging subsidy race.
To enable Member States to provide State Aid in response to the energy cost crisis triggered by the war in Ukraine, the EU Commission introduced flexibility with State Aid rules to enable temporary, targeted and limited State Aid to support businesses impacted by the energy crisis.
Since these rule changes were first proposed, the Government has engaged with the EU Commission and other Member States to express our concerns and to call for safeguards, including time limits, to be attached to any new measures.
A continuation of the temporary and exceptional crisis measures risks distorting the level playing field in favour of the larger Member States and making it harder for Irish businesses to compete in the EU.
My Department has worked closely with several other Member States and presented our concerns in a Joint Statement to the EU Commission regarding the proposed extension of the exceptional crisis element of the Temporary Crisis and Transition Framework beyond the expected expiry date of 31 December 2023.
In Ireland, the schemes under the Temporary Crisis and Transition Framework, and those administered under other parts of the broader State Aid framework, have reached many Irish businesses, and have provided timely and effective support when required. The Government is committed to providing necessary supports to businesses and the general State Aid rules provide ample opportunities to achieve this.
85. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment how many companies based in Ireland have availed of the support under section 2.4 of the Temporary Crisis and Transition Framework, and the amounts involved. [55465/23]
View answerThe agencies that come within my Department's remit are statutorily independent in their functions and this is an operational matter for them. I have referred the Deputy's question to the agencies and will update the Deputy on the information sought at the earliest opportunity.
86. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment if his Department would consider supporting energy intensive industries in quarter 1 2024 using the crisis provisions of the Temporary Crisis and Transition Framework, despite the joint letter signed by the Minister asking that said provision not be extended beyond 31 December 2023. [55466/23]
View answerIreland has always been a strong supporter of robust State Aid control at EU level to protect a level playing field for Irish businesses to compete in the EU. In order to maintain a level playing field, any flexibility in State Aid rules must be limited to what is strictly necessary and be provided in a way that benefits all Member States equally. It is important that we avoid a damaging subsidy race.
To enable Member States to provide State Aid in response to the energy cost crisis triggered by the war in Ukraine, the EU Commission introduced flexibility with State Aid rules to enable temporary, targeted and limited State Aid to support businesses impacted by the energy crisis.
As with the wider economy including households and SMEs, energy intensive industries, have experienced rising energy costs in recent years.
There are a range of incentives and advice available to business to help them use energy efficiently, diversify their fuel use and switch to renewable energy sources.
We encourage all businesses to avail of the wide range of supports in particular the Climate action and energy supports which are all detailed on the Department’s website.
Schemes under the Temporary Crisis and Transition Framework, and those administered under other parts of the broader State Aid framework, have reached many Irish businesses, and have provided timely and effective support when required.
As provided for by the Temporary Crisis and Transition Framework (TCTF), the Ukraine Enterprise Crisis Scheme (UECS) was introduced to address liquidity shortages faced by businesses affected by the war in Ukraine, and to provide aid for energy-intensive businesses that were impacted by severe increases in energy prices. The Government is committed to providing necessary supports to businesses and the general State Aid rules provide ample opportunities to achieve this and following the Commission’s adoption of an amendment to prolong the crisis provisions of the TCTF, consideration will now be given to an extension of the UECS into 2024.
