Thursday, 18 Apr 2024

Written Answers Nos. 149-168

Tax Code

Questions (149)

Eoin Ó Broin

Question:

149. Deputy Eoin Ó Broin asked the Minister for Finance if stamp duty is paid on any Part V, affordable housing fund turnkey purchase or CREL-funded turnkey purchase homes. [17190/24]

Written answers

Minister for Finance

I am advised by Revenue that the standard rates of stamp duty applying on the purchase of residential property are 1% on values up to €1 million and 2% on values exceeding €1 million. Section 31E of the Stamp Duties Consolidation Act (SDCA) 1999 provides for a higher 10% rate of stamp duty to be charged on the acquisition of residential properties situated in the State, excluding apartments, where a person acquires at least 10 such properties during any 12-month period.

I am also advised that stamp duty is a self-assessed tax and is payable by the purchaser of  the property.

The charge to stamp duty in respect of the schemes referred to by the Deputy are as follows: 

1. Part V homes

With regard to Part V homes, I assume the Deputy is referring to situations where properties are transferred to a local authority or Approved Housing Body (AHB) at “existing use value” for the provision of social and affordable housing.  Sections 93A and 106B(2) SDCA 1999 provide for an exemption from stamp duty on conveyances, transfers or leases of property to AHBs and local authorities respectively. Further information on sections 93A and 106B SDCA 1999 is available on the Revenue website at:

www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/part-07.pdf

Where a Part V home is subsequently sold on to an individual purchaser, stamp duty will be chargeable at the appropriate rate.  However, where such a property is sold by a local authority the stamp duty liability will be capped at €100 in accordance with section 106B(3) SDCA 1999.

2. Affordable Housing Fund turnkey purchases

Where AHBs and local authorities acquire properties for the provision of affordable housing an exemption from stamp duty applies under sections 93A and 106B(2) SDCA 1999 respectively. Where a developer (as arranged by a local authority) acquires property for the provision of affordable housing, a charge to stamp duty will arise.  However, section 83DA SDCA 1999 provides for a full repayment of stamp duty where a property is acquired by such a developer and the property is then sold, within 12 months of its acquisition, to an affordable home purchaser under the Affordable Housing Act 2021. Detailed guidance on section 83DA is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-83da-repayment-of-stamp-duty-under-affordable-dwelling-purchase-arrangements.pdf.

Purchases of affordable housing by eligible members of the public under the Local Authority Affordable Purchase scheme are chargeable to stamp duty at the standard rates applying on the acquisition of residential property, which are 1% on values up to €1 million and 2% on values exceeding €1 million. If, however, the housing is purchased directly from a local authority, the stamp duty liability will be capped at €100 in accordance with section 106B(3) SDCA 1999.

3. Cost Rental Equity Loan (CREL) funded turnkey purchases

It is my understanding that only AHBs, local authorities and the Land Development Agency (LDA)  are currently engaged in the delivery of Cost Rental homes. As I have previously stated, conveyances, transfers or leases of property to AHBs and Local Authorities are exempt from stamp duty under the SDCA 1999.

The LDA does not benefit from a stamp duty exemption, however, it may be eligible for a partial repayment of stamp duty paid on the acquisition of residential property at the higher rate of 10% pursuant to section 31E where the property is designated as a cost rental dwelling under the Affordable Housing Act 2021.  Section 83DB SDCA 1999 provides for this repayment scheme and detailed guidance on the scheme is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-83db-repayment-of-stamp-duty-in-respect-of-certain-residential-units.pdf

Tax Exemptions

Questions (150, 151, 152, 158)

Michael Lowry

Question:

150. Deputy Michael Lowry asked the Minister for Finance to provide an update on the consideration of the VAT proposal submitted by an organisation (details supplied) in March 2024, which calls for the extension of VAT exemption to counsellors and psychotherapists in Ireland; what steps are being taken to address the issues raised by the IACP, including the low VAT turnover threshold, high compliance costs, and the burden of VAT on clients seeking mental health support; and if he will make a statement on the matter. [17144/24]

Michael Lowry

Question:

151. Deputy Michael Lowry asked the Minister for Finance to explain and provide clarity on the current discrepancies in VAT treatment between different professions in the mental health sector; what measures are being considered to ensure fair treatment and regulatory coherence; and if he will make a statement on the matter. [17145/24]

Michael Lowry

Question:

152. Deputy Michael Lowry asked the Minister for Finance to clarify the Government’s stance on an organisation’s (details supplied) call for a pre-registration VAT-exempt status for its qualified and accredited members; and if he will make a statement on the matter. [17146/24]

Violet-Anne Wynne

Question:

158. Deputy Violet-Anne Wynne asked the Minister for Finance if he has considered a proposal by an organisation (details supplied) for a pre-registration VAT exemption status for qualified and accredited members; and if he will make a statement on the matter. [17227/24]

Written answers

Minister for Finance

I propose to take Questions Nos. 150 to 152, inclusive, and 158 together.

As the Deputies will be aware, the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation the provision of medical care services by recognised medical professionals are exempt from VAT.  This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011, and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration.  Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

Psychologists are listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.

On 27 February 2019, the then Minister for Health, Simon Harris TD, confirmed the establishment of and appointment of members to the Counsellors and Psychotherapists Registration Board, under the Health and Social Care Professionals Act 2005 (amended) to regulate the professions of Counsellors and Psychotherapists. The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019. 

Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for my colleague, the Minister for Health. 

I understand that officials in my Department have engaged with their counterparts in the Department of Health in relation to this matter and have advised them that the VAT exemption  in question will apply from the date of registration by the Counsellors and Psychotherapists Registration Board.

Question No. 151 answered with Question No. 150.

Question No. 152 answered with Question No. 150.

Illicit Trade

Questions (153, 154, 155)

John Paul Phelan

Question:

153. Deputy John Paul Phelan asked the Minister for Finance the number of X-ray scanners used to detect illicit trade and smuggling at ports and airports; the number of dates on which they were deployed and used at individual named ports and airports in the State in 2023 and to date in 2024; and if it is planned to increase the number of X-ray scanners in use at ports and airports. [17172/24]

John Paul Phelan

Question:

154. Deputy John Paul Phelan asked the Minister for Finance the number of sniffers dogs being used to detect illicit trade and smuggling at ports and airports; the number of dates on which they were deployed and used at individual named ports and airports in the State in 2023 and to date in 2024; and if it is planned to increase the number of sniffers dogs in use at ports and airports. [17173/24]

John Paul Phelan

Question:

155. Deputy John Paul Phelan asked the Minister for Finance the number of staff and other resources being deployed and used at ports and airports to detect non-compliance by individuals with duty-free travel allowances; the number of inspections carried out at individual named ports and airports in the State in 2023 and to date in 2024; and if it is planned to increase the resources in use at ports and airports for this purpose. [17174/24]

Written answers

Minister for Finance

I propose to take Questions Nos. 153 to 155, inclusive, together.

I am advised that Revenue is committed to targeting the illegal importation and exportation of prohibited and restricted goods and implements a range of measures to identify and target illegal smuggling, including duty free tobacco and alcohol in excess of duty-free allowances, and where possible, prosecuting those involved. Revenue’s approach involves the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. In that context, I understand that operational requirements and arrangements regarding the deployment and use of detection technology and resources, including x-ray scanners and detector dog teams, are kept under regular review by Revenue having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs.

I am informed that the suite of X-Ray scanners available to officers at the main points of entry, range from handheld scanning devices to scan small packages, baggage scanners for the scanning of passenger luggage and parcels and mobile scanners to scan vehicles and containers. Revenue’s X-Ray container scanning capacity of three mobile container units and its backscatter van allows for the deployment to any port or other relevant location, such as warehouses, throughout the country, having regard to risk and operational needs.

The following table outlines the number of deployments and scans in respect of Revenue’s 3 mobile container scanners and backscatter van for 2023 and to date in 2024. Revenue does not record the dates of such scans.

-	2023	To date 2024
No. of deployments of X-Ray Scanners and Backscatter Van	1,971	424
Total No. of Scans Conducted	24,900	5,156

Revenue currently operates 26 detector dog teams including one team working on behalf of the Department of Agriculture, Food and the Marine. These teams, which are a national resource and can be deployed across the country depending on operational requirements, work in tandem with the broad suite of detection equipment and technologies deployed by Revenue. These teams are deployed on a daily basis.

Alongside the detection equipment and technologies deployed at the main points of entry, Revenue has a dedicated Maritime Unit and operates two cutters (patrol vessels). The Revenue Maritime Unit has a national remit to patrol and monitor internal waters, territorial seas and adjacent waters. These patrol and monitoring activities are aimed at the prevention, detection, interception and seizure of illegal importations and exportations of prohibited and restricted goods, including drugs.

Detection equipment and technologies deployed by Revenue are in addition to the application of the comprehensive legal framework in place as set out in relevant tax and customs legislation. Intelligence development and electronic risk analysis tools, including an advanced maritime risk assessment tool used by the Revenue Maritime Unit, form part of Revenue’s overall suite of measures and complement the deployment of detection technologies and equipment, including X-ray scanners and dog detection units.

As Revenue is a fully integrated tax and customs administration, it is not possible to disaggregate the resources deployed to specifically detect non-compliance with duty free allowances. I am informed that Revenue has over 500 staff assigned across our ports and airports, working on a 24/7 basis where relevant. Such staff are involved in a range of trade facilitation and enforcement duties, including enforcement of duty-free allowances.

This Government has been consistent in its strong support for ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration and I remain open to considering any proposals from Revenue for additional resources that will support its work.

Question No. 154 answered with Question No. 153.

Question No. 155 answered with Question No. 153.

Probate Applications

Questions (156)

Robert Troy

Question:

156. Deputy Robert Troy asked the Minister for Finance the reason a spouse can only access €27,000 of a deceased spouse’s credit union savings and any remainder must go to probate; his views on whether this rule is fair when the spouse is clearly the next-of-kin and automatic beneficiary; and if he plans to review such rules in the short term. [17177/24]

Written answers

Minister for Finance

I thank the Deputy for his question.

By way of background, "nomination" is a legally binding agreement under which a credit union member can nominate a third party to be the recipient of the member’s money after their death, up to a limit of €27,000. The effects of nomination are that any amounts up to €27,000 will pass outside the terms of any will.  Nomination is a unique provision available only for credit union members.

Any amount in excess of €27,000 are deemed assets of the deceased's estate and credit unions are obliged to administer any such funds in accordance with the rules of probate (if there is a will), or the law of succession (if there is no will). The probate office of the High Court deals with all matters relating to rules of probate. Its fairness, and any potential changes required are the responsibility of the Minister for Justice.

The recent Credit Union Amendment Act (2023) included an amendment to Section 21, which permits me, as Minister for Finance to approve increases in the nomination amount. On the 8th February, I signed a statutory instrument approving an increase from €23,000 to €27,000. Significant consultation was completed by my officials and Ministers of State with the credit union representative bodies, on nominations and all other provisions in the Amendment Act. The increase in the nomination amount to €27,000 was supported by all representative bodies and recommended by the Credit Union Advisory Committee.

In my view, it is in an appropriate level at this quantum. My officials will be completing post legislative scrutiny and the Credit Union Advisory Committee will be reporting back to me on the implementation progress of the new Amendment Act. If there is a shared view/recommendation, at that stage to increase the nomination amount, I will of course consider it.

Tax Reliefs

Questions (157)

Brendan Griffin

Question:

157. Deputy Brendan Griffin asked the Minister for Finance if he has been approached by the Department of Transport to consider expanding the bike-to-school provision; if so, if an anticipated cost figure has been established; and if he will make a statement on the matter. [17194/24]

Written answers

Minister for Finance

I understand the Deputy’s office have confirmed that this Parliamentary Question relates the Cycle to Work Scheme and a proposal to expand the scheme to include a Bike-to-School provision.

Section 118(5G) of the Taxes Consolidation Act 1997 (TCA) provides for the Cycle to Work Scheme. This scheme offers an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.

One of three thresholds applies to the amount of exempted expenditure. The applicable threshold depends on the type of bicycle purchased and includes related safety equipment. Since 1 January 2023, the scheme applies to the first:

• €3,000 of expenditure in relation to a cargo or e-cargo bike;

• €1,500 of expenditure in relation to a pedelec or e-bike; or

• €1,250 of expenditure in relation to any other type of bike.

Under section 118B TCA, the employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary in exchange for a bicycle and/or related safety equipment.

While my Department's Budget 2024 Tax Expenditure Report has estimated the cost of the scheme at €5.5m for 2022, this figure is a tentative estimate as the Cycle to Work Scheme operates on a self-administration basis so there is no notification procedure for employers involved. Accordingly, Revenue do not have statistics available on the number of people availing of the scheme or the associated cost. 

I can confirm that I have not received a proposal from the Department of Transport either in 2023 or to date in 2024 which proposes the expansion of the Cycle to Work Scheme to include a Bike-to-School provision. Without the details of any proposal it is not possible for my Department to provide an estimate of the cost.

However, it should be noted that BIK is a charge to tax which applies where an employer provides an employee with a benefit, such as a bicycle, car or accommodation. Therefore, the Cycle to Work scheme is only applicable where the bicycle and/or related safety equipment is provided by an employer to either their director or someone in their employment. Where an employer-employee relationship does not exist, for example, in the case of school children or students, such individuals can’t qualify for the scheme.

I should add that including a Bike-to-School provision would likely add to the administrative burden for employers of participating in the scheme. Additionally, I would expect considerable deadweight and equity concerns in such a proposal.

Furthermore, as the Deputy will appreciate, the expansion of any tax expenditure measure creates a cost and that cost must be recovered elsewhere. For these reasons, while the scheme is kept under review by officials, I have no plans at present to change the scope of the scheme. 

Further information and guidance regarding the Cycle to Work Scheme can be found on Revenue’s website at the following link:

www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx

Question No. 158 answered with Question No. 150.

Public Sector Pensions

Questions (159)

Pa Daly

Question:

159. Deputy Pa Daly asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the additional current costs he anticipates will be involved in revising the Garda retirement age upward from 60 to 62 years. [17243/24]

Written answers

Minister for Public Expenditure, National Development Plan Delivery and Reform

Analysis on the cost of mandatory retirement age (MRA) increases for Gardaí was undertaken by my Department. This analysis used anonymised individual data records.

The extent to which an increased MRA represents a cost or a saving incorporates many factors including the individual's rank, current MRA, pension scheme membership and terms applicable (arising from their recruitment date), allowances typical to the grade and salary scale. There is no single element which determines the effect of the increased MRA in terms of cost.

A key driver of savings, where they arise, is that pensions are unpaid while the member remains in employment. This means that the pension of the retired member and the remuneration of his/ her replacement typically offsets the increased costs of retention.

It was established that there are certain members who generate a cost if they remains in employment after their current MRA, and others in respect of which savings arise.

However, on balance, the work undertaken by the Department concluded that increasing the mandatory retirement age for Gardaí from 60 to 62 is cost neutral.

State Properties

Questions (160)

Jackie Cahill

Question:

160. Deputy Jackie Cahill asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to consider and support the recommencement of children’s swimming lessons in Templemore Garda College’s swimming pool on Friday evenings, organised and managed by the community for the community, on a not-for-profit basis, following results of a survey conducted locally of parents in Templemore (details supplied); and if he will make a statement on the matter. [17102/24]

Written answers

Minister of State at the Department of Public Expenditure, National Development Plan Delivery and Reform

The swimming pool in the Garda Training College is part of the facilities of the College. The principal use of these facilities are for the College, but they can be made available to other community groups or schools, where appropriate. 

Any decisions relating to the use of the facilities at the College are a matter for the College authorities.  The OPW is consulted in relation to any potential impact on the property, or to sign the legal licensing documentation on foot of a recommendation from the College authorities to proceed with a licence agreement.

Therefore, the decision on any such applications are for the College authorities and, if they determine that a licence may be awarded, will request the OPW to formally grant the licence.  The guidelines on the use of the facilities are also issued by the College authorities. 

While the OPW is consulted as the property owner, the Garda authorities must take account of issues relating to the efficient use of the property and related administration/running costs, in their decisions around the use of the facilities.  The OPW has no difficulty in supporting a licensing process, but this must be cognisant of the above and the views of the Garda authorities as occupiers of the Garda College complex.

Coastal Erosion

Questions (161)

Brendan Howlin

Question:

161. Deputy Brendan Howlin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if funding will be allocated in 2024 to address the ongoing serious coast erosion in Rosslare, County Wexford, and other coastal areas of the county; his plans to protect the coastline in these areas and the total funding allocated to this task; and if he will make a statement on the matter. [17154/24]

Written answers

Minister of State at the Department of Public Expenditure, National Development Plan Delivery and Reform

Local coastal erosion issues are a matter, in the first instance, for each local authority to investigate and address. The Minor Flood Mitigation Works and Coastal Protection Scheme was introduced by OPW in 2009. The purpose of the scheme is to provide funding to local authorities to undertake minor flood mitigation works or studies to address localised flooding and coastal protection problems within their administrative areas. The scheme generally applies where a solution can be readily identified and achieved in a short time frame.

Under the scheme, applications are considered for projects that are estimated to cost not more than €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects. Applications are assessed by the OPW having regard to the specific economic, technical social and environmental criteria of the scheme, including a cost benefit ratio.

Since 2009, OPW has approved funding under the Minor Flood Mitigation Works and Coastal Protection Scheme of circa €3.3 million to Co. Wexford for some 19 projects of which approx. €2.3m relates to coastal projects and studies in Co. Wexford.

Rosslare Coastal Erosion and Flood Relief Scheme

Wexford County Council carried out the Rosslare Coastal Flood and Erosion Risk Management Study 2019 and the Rosslare Flood Risk Management Study 2019. These studies outline potential erosion and flood mitigation measures to address the identified risks and set out how to manage and mitigate the overall risks to the community.

In December 2021, Wexford County Council appointed a consultant to develop, design, and construct a Coastal Erosion and Flood Relief Scheme (“the Scheme”), that is technically, socially, environmentally, and economically acceptable, for the community of Rosslare. 

The Scheme is currently at Stage 1 (Scheme Development & Preliminary Design).  To date various environmental surveys have been undertaken (e.g. Habitats Survey, Breeding Birds Survey, Invasive Species Survey), and the hydraulic report for the Scheme is in progress. 

Following the completion of the hydraulics report, the Scheme will progress towards the development of an Options Report, which will identify design options for the Scheme.  To facilitate the development of options, a site investigation will be completed.  The final Options Report is expected in Q4 2025 with the final Environmental Impact Assessment Report due in Q3 2026. 

The Scheme currently has an approved project budget of circa €7.6m – the total project budget will depend on the final option selected to manage the erosion and flooding risk. As this scheme is flood related, it is encompassed within the Flood Risk Management programme funding of €1.3bn, provided under the NDP.   

The Government recognises the clear challenge posed by coastal erosion and established an Inter-Departmental Group on Managing Coastal Change Strategy to scope out an approach for the development of a national co-ordinated and integrated strategy to manage the projected impact of coastal change to our coastal communities. The Report of the Group, which was published in October 2023, sets out 15 recommendations centred on developing responses to coastal change and developing a comprehensive whole of Government approach to the development of policy response to the challenge of coastal change.  

Amongst the key recommendations is the assignment of the lead coordination role to the Department of Housing, Local Government and Heritage to promote a joined-up, whole of government response to coastal change by all relevant Departments / Agencies having regard to their existing policy remits. The OPW has been designated as the national lead coordinating body for the assessment of coastal change hazards and risks and the assessment of technical options and constraints.

These assessments will build upon indicative assessment work previously undertaken by the Office of Public Works (OPW) under the Irish Coastal Protection Strategy Study, and comprise a substantial, multi-annual programme of work to assess coastal risk nationally, and then in detail at higher risk locations as a basis for then determining potential viable works to manage this risk. This work will contribute to the work of the Inter-Departmental Steering Group on Coastal Change.

Flood Risk Management

Questions (162)

Brendan Griffin

Question:

162. Deputy Brendan Griffin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on a river flooding risk (details supplied); what solutions the local authority has proposed; if his Department will provide funding for the solutions; and if he will make a statement on the matter. [17235/24]

Written answers

Minister of State at the Department of Public Expenditure, National Development Plan Delivery and Reform

The Office of Public Works (OPW) has a statutory remit for the maintenance of the Maine Arterial Drainage Scheme under the Arterial Drainage Act, 1945.  The area in question does not form part of this Arterial Drainage Scheme.

Local flooding, is in the first instance, a matter for each local authority to investigate and address. The Minor Flood Mitigation Works and Coastal Protection Scheme was introduced by the OPW on an administrative, non-statutory basis in 2009.  Applications for funding from local authorities are considered for flood relief and erosion protection measures costing up to €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects.  Applications are assessed by the OPW having regard to the specific economic, social and environmental criteria of the scheme, including a cost benefit ratio and having regard to the availability of funding for flood risk management.  Full details of this scheme are available on: www.floodinfo.ie/  

The OPW welcome applications for funding under this scheme and is happy to engage with Local Authorities in this regard.

Trade Agreements

Questions (163)

Pauline Tully

Question:

163. Deputy Pauline Tully asked the Minister for Enterprise, Trade and Employment for an update on reported recent talks between the EU and the Mercosur group on a trade deal; and if he will make a statement on the matter. [8380/24]

Written answers

Minister for Enterprise, Trade and Employment

The EU-Mercosur Agreement is designed to cement the close political and economic relations between the EU and Mercosur countries and represents a commitment to rules-based international trade. Since formal negotiations concluded in 2019, the global trade policy landscape has changed considerably. The rise in trade nationalism, the economic impacts of COVID-19, the war in Ukraine and the accompanying impacts on global supply chains have demonstrated the importance of diversifying our import and export markets by securing robust and comprehensive trade deals with global partners. The Mercosur Agreement, if ratified, will support that objective.

Ireland and other EU Member States have raised concerns regarding the strength of the trade and sustainability commitments in the Agreement. As a response to those concerns, the European Commission commenced a process with the Mercosur region on a draft interpretative legal instrument addressing sustainability commitments. This interpretative text will have the same legal status as the existing text within the Agreement itself.

Commission negotiators are currently engaging with their Mercosur counterparts on the text of the new instrument. I wish to assure the Deputy that my officials and I continue to closely monitor developments regarding the instrument, and discuss it at EU level at both the Foreign Affairs Council (Trade) with other EU Ministers, as well at meetings of officials in the Trade Policy Committee. It is in our collective interests that commitments relating to the environment, biodiversity and sustainability remain central to the overall trade agreement reached with Mercosur.

Work Permits

Questions (164)

Michael Healy-Rae

Question:

164. Deputy Michael Healy-Rae asked the Minister for Enterprise, Trade and Employment when two work permits will be granted (details supplied); and if he will make a statement on the matter. [17091/24]

Written answers

Minister of State at the Department of Enterprise, Trade and Employment

The Employment Permits Section of my Department informs me that the General Employment Permit applications for the persons concerned in the details supplied were received on 5th April 2024. On 10th April 2024 the applications were formally accepted and placed in the processing queue.

Applications for employment permits are dealt with in date order. As of 12th April 2024, the Employment Permits Section are processing new applications in respect of standard employers which were received on 29th February 2024.

An application to have an employment permit expedited can be considered in exceptional circumstances. Each request is considered on a case-by-case basis. The Department can only consider a request to expedite an employment permit application where a detailed business case is provided.

Details of the exceptional case must be submitted to the Department on the official expedite request form (available on our website), which is a prerequisite for DETE to consider any such request. A separate expedite request form is required for each application.

Once the business case is completed it should be submitted to [e-mail] for consideration. It is important to point out that the completion of a business case does not guarantee that an expedite will be facilitated.

The Employment Permits processing times are updated on a weekly basis at the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Current-Application-Processing-Dates/

There is also an Online Status Update Enquiry - where details on a particular application can be found on the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Employment-Permit-Status-Form/

Business Supports

Questions (165)

Bernard Durkan

Question:

165. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he is aware of difficulties experienced by various sectors in the economy to obtain the necessary levels of staff; whether he has in mind specific action to address this issue, sector by sector; and if he will make a statement on the matter. [17283/24]

Written answers

Minister for Enterprise, Trade and Employment

It is essential that Irish enterprise has access to an adequate pool of high quality, adaptable and flexible talent – particularly in the context of a tightened labour market and the challenges this poses for businesses in many sectors of the economy.

In order to meet the demand for skills, there is close collaboration across Government, in particular between the Department of Further and Higher Education, Research, Innovation and Science, its agencies and my own Department, as well as between Government, industry, and the education and training system, which together constitute a highly responsive National Skills Architecture. This architecture is overseen by the National Skills Council and aims to develop and retain a highly skilled workforce to serve the needs of the economy.

This architecture draws on the labour market intelligence of the Skills and Labour Market Research Unit of SOLAS and the enterprise skills demand forecast studies of the Expert Group on Future Skills Needs (EGFSN), the Secretariat for which is based in my Department. The EGFSN is currently undarkening sectoral analyses of the current and future skills needs of Ireland’s Biopharma and International Financial Services sectors, and a study to determine the skills required to transform Ireland's construction sector through the widespread adoption of Modern Methods of Construction (MMC). Publication of the studies on Biopharma and International Financial Services is expected in the coming weeks and the MMC report is expected to be published later in Q2 2024.

Ireland’s skills architecture also includes a network of nine Regional Skills Fora, which work to address the skills needs of enterprise to enhance linkages and engagement between local education and training providers and employers, and by helping employers across all sectors better understand and access the full range of services available across the education and training system. Agencies under the auspices of my Department, including the Local Enterprise Offices, Enterprise Ireland and IDA Ireland, work closely with both indigenous and multinational enterprises of all sizes and sectors and with the wider skills architecture to ensure that skills challenges are addressed.

My Department works closely too with the Department of Social Protection in implementing Pathways to Work, the national employment strategy, and with it the labour market activation of the unemployed, groups underrepresented in the workforce, and workers transitioning to more viable roles or sectors across the economy.

To ensure that the policy objectives of Pathways to Work remain relevant in the current labour market context, a formal mid-term review of the strategy took place in 2023. The Minister for Social Protection will shortly submit the mid-term review and an updated strategy of commitments for consideration by Government. This review is key to ensuring that Government responds effectively to current and upcoming labour market challenges.

My Department also operates an employment permits system which is highly responsive to areas of identified skills needs and labour shortages across the economy. The system is, by design, vacancy led and driven by the changing needs of the labour market. In December 2023, following extensive engagement with industry representatives and stakeholders on the nature and extent of skills shortages, my Department announced a major expansion to the employment permits system, with 43 changes to the jobs eligible for an employment permit. This included 11 roles added to the Critical Skills Occupations List and 32 roles made eligible for a General Employment Permit. A roadmap for increasing salary thresholds was also announced.

Demand for employment permits in Ireland is currently high, with just over 30,000 permits issued in 2023 to employers across all sectors, providing another valuable stream of skilled labour for the Irish economy. The largest numbers of permits issued by sector in 2023 were to employers engaged in health and social work activities (10,037), information and communication activities (5,009), accommodation and food services activities (2,606), and financial and insurance activities (2,373).

All these efforts have been delivering real results as reflected in the growing numbers of people finding work in our economy. According to the latest employment figures from the CSO’s Labour Force Survey, published on 22nd February 2024, total employment stood at 2.71 million. There are now more people employed in Ireland than ever before. As per the CSO Statistical Release on Monthly Unemployment from early April, the seasonally adjusted national unemployment rate was 4.3% in March 2024. My Department will continue ensure that Government is responsive to the skills needs of all sectors of the economy to ensure that this momentum is maintained into the future.

Work Permits

Questions (166)

Bernard Durkan

Question:

166. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the degree to which he has received communications from employers throughout the country who are experiencing difficulty in recruiting staff; if he is aware of the need for the expeditious process of work permit applications or the use of other methods in order to address the situation; and if he will make a statement on the matter. [17284/24]

Written answers

Minister of State at the Department of Enterprise, Trade and Employment

The Employment Permits Section of my Department informs me that all applications for employment permits are dealt with in date order. Details of the current processing dates are available on the Departments website and are also outlined in the reply to the TD’s other PQ 17286/24.

In order to maintain the relevance of the employment permits occupational lists and to ensure that the system is aligned with current labour market intelligence, the lists undergo periodic evidence-based review involving a public/stakeholder consultation. The most recent consultation on the lists took place in the third quarter of 2023 and resulted in and a significant expansion to both the critical skills and eligible occupations list and the introduction of new quotas. Employers who are experiencing difficulty in recruiting staff are advised to partake in the next public consultation for the next Review of the Occupations List (date to be decided) which provides stakeholders with the opportunity to make evidence-based submissions to help inform the decision-making process of the Interdepartmental Group on Economic Migration Policy.

An Employer can also request to have an application for an Employment Permit expedited. This will be considered only in exceptional circumstances and each request is considered on a case-by-case basis. The Department can only consider a request to expedite an employment permit application where a detailed business case is provided.

Details of the exceptional case must be submitted to the Department on the official expedite request form, (available on our website), which is a prerequisite for DETE to consider any such request. A separate expedite request form is required for each application.

Once the business case is completed it should be submitted to [e-mail] for consideration. It is important to point out that the completion of a business case does not guarantee that an expedite will be facilitated.

The Employment Permits processing times are updated on a weekly basis at the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Current-Application-Processing-Dates/

There is also an Online Status Update Enquiry - where details on a particular application can be found on the following link: enterprise.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/Employment-Permit-Status-Form/

Construction Industry

Questions (167)

Bernard Durkan

Question:

167. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he expects to meet any staff shortages in the construction sector, with particular reference to the need to meet such deficiencies in full in early date; and if he will make a statement on the matter. [17285/24]

Written answers

Minister for Enterprise, Trade and Employment

Through the Housing for All strategy, and specifically the strategy’s Industry Capability Working Group, my Department is working with a range of partners across Government to ensure that the skills needs across all construction activities – housing new builds, infrastructural development, and retrofit – are fully addressed and we deliver on the targets set out in Housing for All, Project Ireland 2040 and the National Retrofitting Programme.

The Working Group is chaired by the Department of Further and Higher Education, Research, Innovation and Science, which is responsible for construction related training, including apprenticeships, across the Further Education and Training and Higher Education sectors. The Working Group’s focus is on leading initiatives associated with innovation and productivity, skills and labour, enterprise support, standards and compliance, and sectoral engagement.

Its skills planning is framed by the Report on the Analysis of Skills for Residential Construction and Retrofitting 2023-2030, which was commissioned and published by the Department of Further and Higher Education, Research, Innovation and Science in late 2022.

Supplementing this, the Expert Group on Future Skills Needs (EGFSN) currently undertaking a study to determine the skills required to transform Ireland’s construction sector through widespread adoption of Modern Methods of Construction (MMC), including offsite manufacturing. The study will seek to identify the nature and quantify the scale of the skills needs of enterprises supporting the transition to MMC in the coming decade; and develop a suite of recommendations that can be drawn up to ensure that the forecasted MMC skills needs are fully addressed through our education and training system and any other relevant source of skills supply. The final results of the study will be presented to the Expert Group on Future Skills Needs and publication of the report is expected in Q2 2024.

More immediately, my Department’s chief contribution towards addressing our construction sector skills needs is through the facilitation of international recruitment, which is being progressed by the Housing for All International Recruitment subgroup, and specifically the recruitment of non-EEA construction workers through the employment permits system.

In 2022, the Department of Enterprise, Trade and Employment issued 1,474 employment permits for roles within the construction sector, an increase of 142 per cent on 2021 levels. In 2023, 1,349 employment permits were issued for roles in the sector. These increases have come as a result of comprehensive changes to eligibility criteria for employment permits made by the Department since April 2019.

The result is that most construction occupations, including those key to the delivery of the National Retrofitting Programme, are now eligible for an employment permit. Those roles eligible for a critical skills employment permit include: Architect, Architectural Technologist, Civil Engineer, Construction Project Manager, Electrical Engineer, Façade Designer, Mechanical Engineer, Mechanical and Electrical Engineers with BIM expertise, Quantity Surveyor, Setting out Engineer, Site Manager, and Structural/Site Engineer.

Those roles eligible for a General Employment Permit include: Architectural Technician, Bricklayer, Carpenter and Joiner, Civil and Structural Engineering Technician, Construction and Building Trades Supervisor, Construction Safety Manager, Construction Safety Officer, Crane Driver, Draughtsperson, Electrician, Floorer and Wall Tiler, Foreman, Furniture Makers and other Craft Woodworkers, Glazier, Window Fabricator and Fitter, Mason, Painter and Decorator, Plasterer, Plumber and Heating and Ventilating Engineer, Roofer, Roof Tiler and Slater, Scaffolder, Stager and Rigger, Sheet Metal Worker, Shuttering Carpenter, and Welding Trade.

My Department will continue to be responsive to demonstrated skills needs across construction activities, through the timely and efficient operation of our employment permits system.

All of these efforts have been delivering real results and there are growing numbers of people employed in the construction sector. The CSO labour force survey of Q4 2023 shows when compared with pre-covid levels of Q4 2019, the total employment in the sector has grown by 14,300.

Work Permits

Questions (168)

Bernard Durkan

Question:

168. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the number of work permit-related visa applications currently awaiting process, with particular reference to various aspects of the economy particularly affected by staff shortages; the means by which he expects to address this issue in the short to medium term; and if he will make a statement on the matter. [17286/24]

Written answers

Minister of State at the Department of Enterprise, Trade and Employment

The Employment Permits Section of my Department informs me that as of 15th of April 2024, the number of new employment permit applications awaiting processing is 2,779. The number of applications being processed is 465 and the number of applications awaiting payment of the fee is 194. Therefore the total number of applications in the processing queue as of 15th April 2024 is 3,244. 

All applications for employment permits are dealt with in date order. 

The current processing dates as of 15th April 2024 in respect of each permit type are as follows:

• Standard New Applications – 6th March 2024

•  Trusted Partner Applications – 2nd April 2024

•  Standard Renewal Applications – 30th January 2024

•  Trusted Partner Renewals – 8th  February 2024

•  Standard Critical Skills Employment Permits – 6th March 2024

•  Trusted Partner Critical Skills Employment Permits – 6th April 2024

This information is published on the Department's website at: enterprise.gov.ie/en/what-we-do/workplace-and-skills/employment-permits/current-application-processing-dates/

2024 has been a particularly busy period for Employment Permits applications. This is due to a range of factors, including the changes to the employment permit system that were announced in December 2023 which delivered comprehensive changes to the employment permit system by adding an additional 11 roles to the Critical skills occupations list and the removal of 32 roles from the ineligible occupations list. 

A roadmap up to January 2026 for increasing salary threshold for employment permits was also introduced which commenced the first adjustments to the Minimum Annual Remuneration thresholds from 17th January 2024.