Written Answers Nos. 212-231
213. Deputy Duncan Smith asked the Minister for Transport the number of bus drivers that have left the service, including retirees, in each county since 2020; and if he will make a statement on the matter. [6489/24]
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 question raised by the Deputy is an operational matter for Dublin Bus, Bus Éireann, and Go Ahead Ireland. Therefore, I have referred the question to the bus operators for direct reply. Please advise my private office if you do not receive a reply within ten working days.I have, therefore, referred the Deputy's question to each of the companies for direct reply. Please advise my private office if you do not receive a reply within ten working days.
214. Deputy Duncan Smith asked the Minister for Transport the number of taxi drivers who have left the service, by month, since 2020; and if he will make a statement on the matter. [6490/24]
View answerThe regulation of the small public service vehicle (SPSV) industry, including SPSV licensing, is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Taxi Regulation Acts 2013 and 2016. The NTA is responsible for the collection and publication of statistics relating to SPSV licensing. I am not involved in the day-to-day operations of the SPSV industry.
Accordingly, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a response within 10 working days.
215. Deputy Duncan Smith asked the Minister for Transport the number of train drivers who have left the service since 2020; and if he will make a statement on the matter. [6491/24]
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 query raised by the Deputy is an operational matter for Iarnród Éireann. I have, therefore, referred the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
216. Deputy Sean Sherlock asked the Minister for Transport if he has given further consideration to funding the next phase of the Mallow relief road to enable the project to be brought to planning stage. [6556/24]
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 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.
I can confirm that €100,000 was allocated for the Mallow Relief Road scheme in 2023. The allocations for national roads for 2024 are expected to be announced in the near future.
Noting the above position, I have referred your question to TII for a direct reply updating you as to the latest status of this project. Please advise my private office if you do not receive a reply within 10 working days.
217. Deputy Matt Shanahan asked the Minister for Transport further to Parliamentary Question No. 121 of 17 October 2023, if Transport Infrastructure Ireland has responded to the initial information request; and if he will make a statement on the matter. [6579/24]
View answerA response was issued to the Deputy by Transport Infrastructure Ireland relating to the Dungarvan to Mallow Greenway on 27th October 2023 in response to Parliamentary Question No. 121 of 17th October 2023.
218. Deputy Patrick Costello asked the Minister for Transport further to Parliamentary Question Nos. 68 and 69 of 7 February 2024, in what quarter of 2024 there will be an agreement on the sharing of collision data; and if he will make a statement on the matter. [6584/24]
View answerAs I explained in my responses to the Questions to which the Deputy refers, the work in this area is ongoing with extensive engagement and I expect the issues to be resolved later this year. However, this is a complex area, requiring careful consideration of legal, data management and data protection matters and all parties are working to progress this matter as an utmost priority.
219. Deputy Patrick Costello asked the Minister for Transport for a detailed update in relation to the implementation of the actions across the seven safe system priority intervention areas outlined in Phase 1 Action Plan: 2021-2024 of the Road Safety Strategy; and if he will make a statement on the matter. [6585/24]
View answerIreland’s current framework for road safety is set out in the Government’s fifth Road Safety Strategy 2021-2030. The Strategy was published in December 2021 and follows international best practice, aligns with EU and UN targets, and is based on the Safe System approach. The Strategy is being delivered in partnership by my Department, the Road Safety Authority, An Garda Síochána and other road safety partners.The Strategy is currently in Phase 1, with close to 200 actions underway or already completed. These actions are aligned with the seven Safe System priority intervention areas:
1. Safe roads and roadsides
2. Safe speeds
3. Safe vehicles
4. Safe road use
5. Post-crash response
6. Safe and healthy modes of travel
7. Safe work-related road use
Progress has been steady, with a majority of Phase 1 actions on track to be delivered by the end of this year and commencement of Phase 2 in 2025. Key milestones include the signing into law of the Road Traffic and Roads Act 2023 in June, the publication of the National Cycling Manual and the publication of the Speed Limit Review, both in September of last year.The second annual review of the Road Safety Strategy took place in January, where road safety partners and agencies reviewed progress in the context of reversing the upward trend in road fatalities. In addition to closing out Phase 1 of the strategy in 2024, I have prioritised certain actions for the coming year, including development of a national strategy for camera-based enforcement, addressing the multiple learner permit issue and improving road safety education.Following the publication of the Speed Limit Review last September, work has commenced on implementation of the recommendations with road safety partners, including Local Authorities. My officials are working on guidelines and legislation to give effect to these recommendations as soon as possible.As part of implementing the Speed Limit Review, the Road Traffic Bill 2024 is expected to be enacted before the end of March. This a concise and focused piece of legislation introducing safer default speed limits on national secondary roads, rural roads and in built up areas, mandatory drug testing at the scene of serious traffic collisions and reforming the penalty points system so motorists receive multiple sets of penalty points where multiple offences are committed.
220. Deputy Alan Kelly asked the Minister for Transport the number of new full-time bus mechanics recruited by Bus Éireann in 2022, 2023 and to-date in 2024, in tabular form. [6597/24]
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 question raised by the Deputy is an operational matter for Bus Éíreann. Therefore, I have referred the question to the company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
221. Deputy Alan Kelly asked the Minister for Transport the current status of the Road Traffic Measures Bill 2023; and when this Bill will progress to the next stage. [6598/24]
View answerThe Road Traffic Bill 2024 (previously titled the Road Traffic Measures Bill 2023) was approved by Cabinet for drafting last October. The Bill was approved for publication in late December subject to a number of minor technical corrections, which have subsequently been remedied. It was published on 25 January 2024.
The Bill seeks to:
• Ensure that drivers will receive multiple sets of penalty points where two or more offences are committed on the same occasion
• Introduce mandatory drug testing at the scene of serious collisions on the same basis as existing requirements around alcohol testing
• Introduce safer default speed limits as recommended by the Speed Limit Review.
The Bill is due to be brought before the Dáil for Second Stage on 13 February. Given its concise and focused nature, it is hoped that the Bill will be signed into law in Q1 2024.
222. Deputy Cian O'Callaghan asked the Minister for Finance if he will push for an extension of the flexible EU fiscal rules introduced during the Covid-19 pandemic to allow for greater investment in the construction of new social and affordable housing; and if he will make a statement on the matter. [6110/24]
View answerThe General Escape Clause (GEC) of the Stability and Growth Pact was activated in March 2020. The clause allows for a temporary departure from the normal operation of the fiscal rules in a situation where there is a severe economic downturn in the EU. By activating this clause, the European Commission allowed EU Member States to temporarily deviate from their budgetary requirements in order to take necessary measures to effectively address the Covid-19 pandemic. The onset of the Ukrainian crisis introduced additional uncertainty into the economic and fiscal outlook. As such, in the spring of 2022, the application of the GEC was extended to include 2023.
In March 2023, the European Commission published a Communication on fiscal policy guidance for 2024 which confirmed that the GEC would be deactivated at the end of 2023, meaning Member States are now once again subject to the fiscal requirements underpinned by the European fiscal framework.
Notwithstanding this, it is important to note that the EU fiscal framework does not place any limits on public investment, as additional expenditure is always possible provided it is financed by revenue-raising measures or matched by offsetting reductions in current expenditure.
In this context, Budget 2024 announced a record €5.1 billion capital investment in housing this year - made up of €2.6 billion exchequer, €978 million Land Development Agency (LDA) and €1.5 billion Housing Finance Agency (HFA) funding.
As the Deputy is aware, increasing the supply of homes, both public and private, to cater for the housing needs of our citizens remains a key focus for Government under the Housing for All Strategy.
223. Deputy Ged Nash asked the Minister for Finance the number of firms that will receive a refund of interest paid on warehoused tax debt, based on economic sector, by county; the total amount of money to be refunded to businesses that have made repayments arising from the announcement recently of the changes to the operation of the tax debt warehousing scheme that will take effect shortly, in tabular form; and if he will make a statement on the matter. [6102/24]
View answer235. Deputy Thomas Pringle asked the Minister for Finance the annual turnover of companies availing of the tax debt warehousing scheme in each year the scheme has operated; and if he will make a statement on the matter. [6291/24]
View answerI propose to take Questions Nos. 223 and 235 together.
The Tax Debt Warehousing scheme was introduced in May 2020 to provide a vital liquidity support to businesses from the outset of the COVID-19 pandemic. As a further measure of support in light of the challenging economic situation that businesses continue to face, a significant extension to the scheme in October 2022 means that businesses do not have the challenge of making arrangements to pay their warehoused debt until 1 May 2024.
It is important to note that businesses do not have to pay all their warehoused debt by that date. All that is required is for businesses to proactively engage with Revenue and make arrangements to pay the debt over a period of time, based on their individual circumstances and capacity to pay.
The scheme allowed businesses to temporarily defer VAT and Employer PAYE, certain self-assessed income tax liabilities, and Temporary Wage Subsidy Scheme and Employment Wage Subsidy Scheme overpayments on an interest-free basis for an extended period of time until end December 2022 (or end April 2023 for those in the extended scheme).
After this interest-free period, a reduced interest rate of 3% was to be applied either until the warehoused debt was paid or the business otherwise exited the scheme. However, on 5 February 2024, I announced that the interest rate has been further reduced to 0%, and that the necessary legislation to implement the reduction will be introduced at the next available opportunity.
Revenue has confirmed that it will operate the reduced interest rate on an administrative basis pending the legislative change. Revenue has also confirmed that, where a business has already paid warehoused debt which was subject to interest at 3%, it will receive a refund of that interest.
At the end of January 2024, a total of €1.71 billion was warehoused for 57,244 taxpayers, with 70% of the taxpayers concerned having outstanding liabilities of less than €5,000. The overall debt has decreased substantially since January 2022 when almost €3.2 billion was warehoused for approximately 105,000 customers.
This reduction in debt is largely due to online payments made by businesses on an ongoing basis as their financial circumstances permitted. Other customers availed of short-term payment arrangements to manage the payment of their debt which have now completed and their debt is paid in full. For these customers, payments made during the initial interest-free period (i.e. up to end December 2022 for the majority) did not incur an interest charge. However, the interest rate of 3% was previously applicable on payments made for warehoused debt since 1 January 2023.
In this regard, a total of 475 customers have paid €487,500 interest on payments of their warehoused debt since 1 January 2023. This results in an average of just over €1,000 to be refunded per customer. It is not possible to provide the breakdown of this amount by economic sector or by county. In the coming weeks, Revenue have confirmed they will pro-actively contact each customer directly to arrange a refund of the interest.
In addition to this, it should be noted that almost 2,200 customers are currently in active Phased Payment Arrangements (PPAs) for warehoused debt of an aggregate €169 million. When these PPAs were agreed, the interest rate of 3%, which was applicable at the time, was included in the monthly payment calculations.
To ensure that these customers benefit from the interest rate reduction, the schedule of future monthly payments for each arrangement will be recalculated and adjusted downwards to reflect the interest rate reduction. Therefore, no refund of interest is required for these customers as they will receive credit for the interest through adjustment of their ongoing payment arrangements. Over the coming weeks, Revenue will contact each customer to outline the action required by them to agree their revised payment schedule at the new 0% interest rate.
With regard to Deputy Pringle's question, I would note that at the end of January 2024 of the total remaining warehouse customers, 92% were business taxpayers with an annual turnover less than €3 million and managed by Revenue’s Business Division. Further detail on the annual turnover of companies availing of the Tax Debt Warehousing scheme in each year the scheme has operated is not available.
The following table gives details on the size of businesses currently availing of the Debt Warehouse scheme by reference to their assigned Division within Revenue, which is based on their annual Irish turnover.
|
Division |
€m |
Unique Customer Count |
|
Business |
1,053 |
52,983 |
|
Medium Enterprises |
535 |
1,545 |
|
Large Corporates |
104 |
60 |
|
Personal |
12 |
2,629 |
|
Large Cases - High Wealth Individuals |
7 |
27 |
|
Total |
1,711 |
57,244 |
All businesses managed by Revenue’s Personal and Business Divisions qualified automatically for the Debt Warehousing scheme. Other businesses (those dealt with in Medium Enterprises Division, Large Corporates Division and Large Cases High Wealth Individuals Division) had to apply for Debt Warehousing and were approved subject to certain criteria. Revenue’s Business Division manages enterprises with an annual turnover less than €3 million, which accounts for the majority of business taxpayers. Personal Division deals with all business entities with no trade or professional income such as trusts, charities, sporting bodies. Medium Enterprises Division deals with businesses with an annual Irish turnover of more than €3 million (but less than €190 million) as well as the subsidiaries/parents of such companies. Large Corporates Division deals with the largest companies with an annual Irish turnover of more than €190 million per annum. Large Cases High Wealth Individuals Division deals with high wealth individuals.
224. Deputy Catherine Murphy asked the Minister for Finance if he plans to review the help-to-buy scheme from a socioeconomic impact perspective; and his plans to review the scheme in the context of economic impact. [6128/24]
View answer225. Deputy Catherine Murphy asked the Minister for Finance the total expenditure on a review of the help-to-buy scheme that was delivered in 2022; if he will provide a schedule of actions and progress of same in relation to the conclusions that were drawn from the review; and if he accepts them in part, in full or if he rejects them. [6129/24]
View answerI propose to take Questions Nos. 224 and 225 together.
The Help to Buy Scheme was introduced in 2017 with the purpose of assisting first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand.
To date, the Help to Buy scheme has been a significant support for first time buyers of new homes. To 1 February 2024, some 44,556 first-time buyers, either singly or as part of a couple, have benefited from the scheme.
The most recent independent review of the Help to Buy scheme was conducted by external consultants, Mazars, and took place in 2022. The cost of this review was €64,300 (excluding VAT). The report can be found at the following link: www.assets.gov.ie/235748/3b8ca22f-969c-40ab-a278-08583d533b48.pdf.
As part of this review Mazars made a number of recommendations, one of which was that the scheme should be extended for a further two years. This recommendation was adopted in Finance Act 2022 and I took the decision in Budget 2024 to extend the scheme for one further year to provide market certainty while awaiting the increase in new housing supply envisaged by the Government’s Housing for All strategy. The Help to Buy scheme forms part of this multi-faceted approach to increase the supply of new housing.
I also made amendments to ensure that a greater number of affordable homes purchasers under the Government’s Local Authority Affordable Purchase schemes can benefit from Help to Buy. This was an issue highlighted in the Mazars report, and the amendment will mean that more affordable home purchasers will be eligible for the Help to Buy scheme, subject to all other conditions of the scheme being met.
As I have outlined, the Mazars review took place in 2022 and even since then, there have been some very significant changes in the market. For example, the rapid increase in interest rates in the intervening period means that further stability and certainty is needed for first time buyers who now face much higher mortgage interest rates. For this reason I decided that now is not the time for the withdrawal of supports for those purchasers.
It remains the case that, as with any tax expenditure, the scheme will be kept under review.
As I have stated many times, housing is a top priority and I confirm that the Help to Buy scheme will continue to be examined and if required, additional changes will be considered this year.
226. Deputy Cian O'Callaghan asked the Minister for Finance if he will provide a breakdown of the dwellings purchased where the 10% stamp duty was paid, broken down by month of payment since the increased stamp duty was introduced, in tabular form; and if he will make a statement on the matter. [6134/24]
View answerThe application of the 10% rate of stamp duty to certain acquisitions of residential property is provided for in section 31E of the Stamp Duties Consolidation Act 1999, as introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2021.
I am advised by Revenue that the available information in respect of tax collected under this provision is the number of properties and associated amount of stamp duty for the years 2021 to 2023. A breakdown by month of payment is not available due to the low number of taxpayers associated with these transactions and Revenue’s obligations to protect taxpayer confidentiality.
|
Stamp Duty Section 31E |
10% Duty payable (€m) |
Number of Properties |
|
2021 |
4.7 |
187 |
|
2022 |
14.3 |
395 |
|
2023 |
22.1 |
623 |
227. Deputy Michael Lowry asked the Minister for Finance if he will report on the plans for the end of the motor fuel subsidy on 31 March 2024 (details supplied); if he plans to review or reverse this decision; and if he will make a statement on the matter. [6143/24]
View answerAs the Deputy will be aware, in 2022 in light of the acute impact rising prices were having on households and business, Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, diesel and Marked Gas Oil (MGO) respectively. These temporary reductions were due to end initially on 31 August 2022 but following review and monitoring of fuel prices were extended until February 2023 with a phased restoration beginning in June 2023, followed by a second restoration in September 2023. A final restoration of excise rates was due to take place on 31 October 2023 but in Budget 2024, I provided for a further extension until 31 March 2024 with a phased restoration legislated to occur in two final stages on 1 April 2024 and 1 August 2024.
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends.
To note national average prices have eased considerably from highs of over €2.00 per litre which we saw in 2022. As per the Central Statistics Office Consumer Price Index, average national retail prices of auto diesel and petrol have decreased from approximately €1.85 per litre in October 2023 to approximately €1.71 per litre in December 2023. More recently the European Commission Weekly Oil Bulletin shows that the national average price as of 5 February 2024 was approximately €1.69 for both fuels.
In conclusion, I have no plans to postpone the excise restorations due to commence on 31 March 2024.
228. Deputy Neasa Hourigan asked the Minister for Finance his plans to reassess the VAT rate for new electric vehicles, including new electric vehicles imported from the United Kingdom; and if he will make a statement on the matter. [6187/24]
View answerThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.
Motor vehicles are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate, which in Ireland is currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT either to motor vehicles generally or to any particular group of them, such as new electric vehicles imported from the UK, about which the Deputy has asked.
229. Deputy Jim O'Callaghan asked the Minister for Finance the reason karate, judo and other martial arts are vatable at 23% whilst fitness classes have a reduced rate; and if he will make a statement on the matter. [6197/24]
View answerThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. The EU VAT Directive also allows for historic VAT treatment to be maintained under certain conditions on certain goods and services not provided for in Annex III. Currently Ireland has a standard VAT rate of 23% and two reduced rates of 13.5% and 9%. Ireland is also permitted to retain some historic VAT arrangements, under strict conditions.
The reason that a reduced rate of VAT applies to services consisting of the care of the human body supplied in the course of a health studio business or similar business, such as a yoga studio, is on the basis of a historical derogation. In the absence of this derogation, these business would have paid the standard 23% rate of VAT.
Following changes to the VAT Directive in 2022 a Member State may apply a reduced rate to the supply of sport or physical exercise classes. The Deputy should note while I did give the matter some consideration, no decision was made in Budget 2024 to reduce the VAT rate on sports and fitness classes.
I decided, on balance, that there would be challenges in determining how it would be defined in such a way as to avoid one type of activity having an advantage over another and thus be in breach of the principle of fiscal neutrality. For instance it would be challenging to provide a reduction on the basis of age or type of class.
The Deputy should note that when sports or fitness classes are provided by companies or sole traders who are not registered for VAT because they operate below the VAT registration threshold no VAT is charged.
Finally, as with other VAT rate reductions it should be noted that while the VAT charged must always be correct a company can increase the base price of the service so that the final consumer does not benefit from such a reduction
230. Deputy Gary Gannon asked the Minister for Finance the measures he and his Department are taking to ensure that no products from illegal Israeli settlements in Palestine are imported into Ireland; if he and his Department are taking measures to prevent Irish goods being exported to Israeli companies which are complicit in the illegal settlement of Palestinian land; and if he will make a statement on the matter. [6204/24]
View answerAs Minister for Finance, I have no direct role or responsibility in respect of taking measures such as those to which the Deputy refers. However, I have asked government colleagues for information to help address some of the matters raised.
I am informed by my colleague, the Tánaiste and Minister for Foreign Affairs, that Ireland and the EU distinguish between the territory of the State of Israel and the territories occupied since 1967, in line with international law and the relevant UN Security Council resolutions. A whole of Government approach is applied to this policy of differentiation, and this position is common across all Government Departments.
I am informed by my colleague, the Minister for Enterprise, Trade and Employment, that Ireland’s trade relations with Israel are governed by a Free Trade Agreement as part of an overarching EU-Israel Association Agreement, which came into force in June 2000. The Free Trade Agreement does not recognise Israel’s sovereignty over the occupied territories. Products requiring origin labelling which are produced in Israeli settlements may not carry the indication ‘product of Israel’ as settlements do not form part of Israeli territory according to international law. Regarding Ireland’s economic and trade relationship with Israel, the EU's common commercial policy, which covers trade in goods and services, is a matter of exclusive EU competence.
For further consideration of this issue, the Deputy may wish to raise this matter with the responsible Ministers, which are the Tánaiste and Minister for Foreign Affairs; and the Minister for Enterprise, Trade and Employment.
231. Deputy Cormac Devlin asked the Minister for Finance if State aid approval has been given for the Budget 2024 announcement of an increase to the cap on section 481 film tax credit; and if he will make a statement on the matter. [6253/24]
View answerAs part of Budget 2024 I announced the intention to increase the section 481 per project cap from €70 million to €125 million, subject to receipt of the necessary European Commission approval.
I believe the proposed increase to €125 million will strike an appropriate balance between providing a sufficient increase to attract big budget films, while also being mindful of the possible cost to the public finances if a number of such films were to come to Ireland.
An application for State aid approval was submitted to the European Commission in December and this process is currently ongoing.
