Ged Nash
Question:204. Deputy Ged Nash asked the Minister for Finance if he has considered making individual savings accounts (details supplied) available to Irish savers; and if he will make a statement on the matter. [17661/24]
View answerFinancial Services
Questions (204)
Written answers
I note the Deputy's query in relation to the introduction of a scheme in Ireland similar to the UK ISA scheme. The introduction of a new financial services product on the lines of the UK ISA would need to be considered in the wider policy context. The introduction of a similar type scheme would need to comply with EU financial services legislative and regulatory requirements and the tax implications would be determined by the structure of such a scheme.
I would also highlight that the National Treasury Management Agency (NTMA), through State Savings products, offers a wide range of tax free savings products to the general public, including Prize Bonds and fixed rate savings bonds/certificates. Both short term and long term fixed rate products are offered, with maturities from 3 to 10 years. The interest rates on offer are competitive and provide good value for the holders of State Savings products. The return for the saver rewards those who hold products to maturity. However, early redemption is also possible. The currently available tax-free State Savings products therefore allow the saver to invest in a competitive, flexible product which is tax free and afforded full State protection. The NTMA keeps these products under review.
On 6 April 2023, I published the terms of reference for a review of Ireland’s funds sector and some related taxation issues. Among other issues, the review is examining three specific areas of taxation which were highlighted in the recommendations of the Commission on Taxation and Welfare. These issues are (1) the taxation regime for funds; life assurance policies and other related investment products; (2) the real estate investment trusts (REITs); and the Irish real estate funds (IREF) regimes and their role in the property sector; and (3) the use and scope of the section 110 regime. A public consultation was run in summer 2023. A progress update was subsequently published on 21 December 2023. The progress update highlighted the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030, as identified in the responses. The progress update also summarises proposals made in submissions in relation to the taxation of Exchange Traded Funds and for a tax-free/tax-advantaged retail savings and investment product. The review team will report to me in summer 2024 and I look forward to considering its findings at that point.
To assist taxpayers in determining the appropriate tax treatment for investments in ETFs, Revenue has published guidance which is available at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/27-01a-03.pdf.
Additional information on the taxation of ETFs
An ETF is an investment fund that is traded on a regulated stock exchange. A typical ETF can be compared to a tracker fund in that it will seek to replicate a particular index.
ETFs, being collective investment funds, generally come within the regimes set out in the Taxes Consolidation Act 1997 for such funds. The domicile of the ETF will generally determine the applicable fund regime, specifically whether the ETF falls within the domestic fund regime or the offshore fund regime.
Where the domestic fund regime applies, a ‘gross roll-up’ applies such that there is no annual tax on income or gains arising to a fund but the fund has responsibility to deduct an exit tax in respect of payments made to certain unit holders in that fund. To prevent indefinite or long-term deferral of this exit tax, a disposal is deemed to occur every 8 years. Where the offshore fund regime applies, the applicable tax treatment depends on the location and nature of the fund.
Income and gains arising from investments into Irish and EU domiciled ETFs are subject to income tax at a rate of 41% on a self-assessment basis. Such income and gains are not subject to Pay Related Social Insurance (PRSI) or Universal Social Charge (USC) liabilities. This charge to tax does not apply in the case of unit holders who are non-resident. In the case of non-resident investors, liability to tax on gains from the fund will be determined in their home jurisdiction.
Tax Reliefs
Questions (205, 206)
Jim O'Callaghan
Question:205. Deputy Jim O'Callaghan asked the Minister for Finance if he will set out in tabular form, on a county-by-county basis, the number of help-to-buy claims approved since 1 July 2020, along with the number of applicants associated with these claims; and if he will make a statement on the matter. [17671/24]
View answerJim O'Callaghan
Question:206. Deputy Jim O'Callaghan asked the Minister for Finance how many homebuyers in each county have availed of the help-to-buy scheme since July 2020, by county, in tabular form; and if he will make a statement on the matter. [17672/24]
View answerWritten answers
I propose to take Questions Nos. 205 and 206 together.
I am advised by Revenue that the number of help-to-buy claims approved since 1 July 2020, broken down by county, are as set out in the table below, along with the number of applicants associated with these claims. These figures include data in relation to both purchases and self-builds. Also included is the ‘Number of Claims by ‘Homebuyers’ (Excluding Self-Builds)’ broken down by county, which is the number of these claims relating to purchases, therefore it excludes claims in relation to self-builds.
|
Property County |
Number of Claims |
Number of Applicants (associated with claims in Column A) |
Number of Claims by ‘Homebuyers’ (Excluding Self-Builds) |
|
Column A |
Column B |
Column C |
|
|
Carlow |
304 |
527 |
188 |
|
Cavan |
278 |
506 |
111 |
|
Clare |
486 |
877 |
190 |
|
Cork |
3,962 |
7,286 |
3,010 |
|
Donegal |
586 |
1,040 |
235 |
|
Dublin |
3,852 |
7,082 |
3,786 |
|
Galway |
1,394 |
2,528 |
693 |
|
Kerry |
366 |
667 |
74 |
|
Kildare |
3,806 |
7,049 |
3,650 |
|
Kilkenny |
528 |
970 |
236 |
|
Laois |
788 |
1,436 |
595 |
|
Leitrim |
86 |
160 |
15 |
|
Limerick |
856 |
1,541 |
537 |
|
Longford |
87 |
162 |
10 |
|
Louth |
1,162 |
2,110 |
987 |
|
Mayo |
579 |
1,049 |
213 |
|
Meath |
2,882 |
5,320 |
2,484 |
|
Monaghan |
315 |
572 |
68 |
|
Offaly |
534 |
978 |
312 |
|
Roscommon |
249 |
456 |
76 |
|
Sligo |
239 |
408 |
138 |
|
Tipperary |
434 |
781 |
106 |
|
Waterford |
743 |
1,348 |
549 |
|
Westmeath |
442 |
805 |
274 |
|
Wexford |
1,073 |
1,924 |
654 |
|
Wicklow |
1,270 |
2,364 |
1,118 |
|
Totals |
27,301 |
49,946 |
20,309 |
Question No. 206 answered with Question No. 205.
Question No. 207 answered with Question No. 200.
Tax Reliefs
Questions (208)
Louise O'Reilly
Question:208. Deputy Louise O'Reilly asked the Minister for Finance if any consideration has been given to increasing the tax-free threshold for travel and subsistence payments known as country money within the construction sector; and if he will make a statement on the matter. [17691/24]
View answerWritten answers
The legislation governing the deductibility of expenses incurred in employment is contained in section 114 of the Taxes Consolidation Act 1997 (TCA). To qualify for tax relief under this section, any travelling expenses must be necessarily incurred in the performance of the duties of the relevant employment. For all other expenses, they must be wholly, exclusively and necessarily incurred in the performance of the duties of the relevant employment.
Under established case law, expenses incurred by a taxpayer in travelling to his or her normal place or places of work are generally not deductible under section 114 and therefore not allowed to be paid tax-free to the employee. The reason is that the expense is not incurred in the performance of the duties of the employment, rather it is incurred merely to put the individual in a position to perform those duties. This means that, where such payments are made that do not fall within the criteria of section 114, they are subject to tax through the PAYE system by the employer.
Revenue has operated an administrative practice known as ‘country money’ in relation to employees in the construction sector for over forty years. This allows for reimbursement by an employer, without deduction of tax, of expenses of travel, including subsistence, necessarily incurred by an employee in the course of their duties. While this may be operated on the basis of vouched expenses, Revenue allows the payment of certain set sums of money tax-free to employees in the construction industry while they are assigned to sites that are remote from their place of employment.
The employee must be employed and working at a site that is 32km or more from the employer’s base. The current rates for ‘country money’ are a maximum of €181.68 per week for more than four days or €36.34 per day for four days or less.
‘Country money’ may not be paid tax-free where the employee is provided with transport to and from the site by the employer, provided with board and lodgings by the employer or is recruited to work at one site only (also known as ‘jobbed on site’ employees).
The payment of ‘country money’ does not prevent an employee from making a claim for deduction from tax of actual expenses incurred, where the conditions of section 114 TCA are met. However, in these circumstances, any amount of ‘country money’ or other reimbursement of expenses paid is treated as additional emoluments and taxed accordingly through the PAYE system.
Having regard to how the modern day working environment has evolved since this administrative practice was first introduced, together with changes in work practices generally and case law considerations, Revenue advises that it would be necessary to carry out a full review of the 'country money' administrative practice, prior to making any changes, including any changes to the rates. As part of this review, consideration would need to be given to the viability of continuing it as an administrative practice, rather than providing for it specifically in tax legislation.
It is envisaged that a review of the 'country money' administrative practice by Revenue would be a significant piece of work. Revenue has confirmed to me that while there are no immediate plans to commence a review, or to make any changes to the current administrative practice (including the rates), it will keep this matter under active consideration.
Tax Exemptions
Questions (209)
Jackie Cahill
Question:209. Deputy Jackie Cahill asked the Minister for Finance given there is an RZT exemption on land with leases in place prior to January 2022, if consideration could be given to a similar exemption for someone who has availed of the favourite niece/nephew relief prior to January 2022 and are not in a position to sell as they are obliged to work the said land for a period of time; and if he will make a statement on the matter. [17736/24]
View answerWritten answers
Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.
RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2025 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
It is important to note that, to come within the scope of RZLT, land must be both zoned for residential use and serviced. Land that is zoned for residential use, but which is not currently serviced, is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future. Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed on the land and with sufficient service capacity available for such development.
Where land meets the criteria to fall within the scope of the tax as set out above, a number of exemptions and exclusions may apply, such as the exemption noted in the Deputy’s query that applies to land that is within the scope of the tax but is subject to a contract that precludes the landowner from developing it. In order for this exemption to apply, the contract must be a “relevant contract”. A relevant contract is a written lease which does not exceed 35 years, that was entered into prior to 1 January 2022 and that it is reasonable to consider prevents the owner from developing the site. The period of the relevant contract is deemed to be the period during which development is precluded under the terms of the contract.
Where land is subject to a relevant contract, the liable person can claim an exemption from RZLT for the duration of that contract. They must file an annual RZLT return for each year in which the exemption applies.
However, this exemption does not apply where the parties to the relevant contract include the owner of the relevant site and a person connected (within the meaning of section 10 of the Taxes Consolidation Act 1997) with the owner. Additionally, the exemption does not apply where it would be reasonable to consider that the relevant contract was not entered into for bona fide commercial reasons and forms part of an arrangement where one of the main purposes is the avoidance of tax.
Where only part of a site is subject to a relevant contract, the amount of RZLT that is due is calculated based on the area of the site that is not subject to the relevant contract expressed in terms of the overall area of the site.
For example, where a farmer leased land prior to 1 January 2022 and the requisite conditions are met, the farmer may claim an exemption from the tax for the period of the lease.
I am informed by Revenue that the relief from Capital Acquisitions Tax referenced by the Deputy in his query as “favourite niece/nephew relief” does not require the beneficiary, being the niece or nephew of the disponer, to continue to work in the disponer’s business for a specified period following their receipt, by way of gift or inheritance, of the business assets in respect of which this relief has been claimed in order to continue to benefit from the relief. As such, the amendment to RZLT legislation proposed by the Deputy does not appear necessary, given the fact that the sale of land in respect of which a beneficiary has claimed favourite nephew/niece relief for the purposes of Capital Acquisitions Tax will not result in the clawback of such relief.
State Claims Agency
Questions (210)
Rose Conway-Walsh
Question:210. Deputy Rose Conway-Walsh asked the Minister for Finance if he will provide the claims on, and settlements made by, the State Claims Agency in each year since 2011, broken down by category; the amount and percentage of total cost of settlements spent on legal fees, in tabular form; and if he will make a statement on the matter. [17748/24]
View answerWritten answers
In responding to the Deputy's question the NTMA have informed me that the information contained within the table at the link below was extracted from the National Incident Management System (NIMS).
The NTMA notes that claims numbers may differ slightly from previous reports due to claim reclassifications in the intervening period and that coverage does not include Property Damage Recovery Claims, which are claims to recover money back on property damage that was not the state’s fault.
Primary Medical Certificates
Questions (211)
Michael Healy-Rae
Question:211. Deputy Michael Healy-Rae asked the Minister for Finance if a scheme (details supplied) will be examined; and if he will make a statement on the matter. [17810/24]
View answerWritten answers
My Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme (DDS) is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
However this is very much a matter for Government as whilst my Department has oversight of the Disabled Drivers and Disabled Passengers Scheme, I do not have responsibility for disability policy.
You should note that the final report of the National Disability & Inclusion Strategy Transport Working Group's review of mobility and transport supports including the DDS, endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS.
The Working Group 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.
Department of Finance officials are proactively engaging with this Senior Officials Group's 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. Four meetings of the group have been held, in July, November, December 2023; and March 2024.
The Department of Finance submitted a note to the group with my approval in mid-January 2024. This note outlines a proposal for a replacement scheme for the DDS which would be a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual. This proposal is in line with what the National Disability Inclusion Strategy Transport Working Group Report endorsed. Further consideration is being given to the principles and parameters for a new scheme in line with best international practice.
In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
It also important to note that I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
Question No. 212 answered with Question No. 200.
Departmental Bodies
Questions (213)
Mark Ward
Question:213. Deputy Mark Ward asked the Minister for Finance the current position in regard to the Disabled Drivers Medical Board of Appeal; if new members have been appointed; if so, from what date; their terms and conditions of engagement; if those terms include the freedom to make professional determinations based on the facts and the needs of individuals presenting; the number of appeals heard to date; the total number of appeals on hand waiting to be heard; and the legal basis for the secretary/secretariat of the board in the absence of a chair and board. [17896/24]
View answerWritten answers
The Deputy should note that I have now formally appointed all five members to the new Disabled Drivers Medical Board of Appeal (DDMBA) and appeal hearings recommenced in the first half of December 2023.
I appreciate that it took longer than anticipated to recruit a new Board. In this regard four Expression of Interest campaigns had to be run over 18 months to source the legislatively required five members. In addition, my officials also had to re-negotiate new hosting arrangements with the National Rehabilitation Hospital following their withdrawal of services in February 2023.
After the completion of preparatory work including developing working methods, determining clinical criteria for prioritising the waiting list and scheduling appeal hearings, the DDMBA recommenced the appeals process in December 2023. The Board members perform their assessments based on the medical criteria as set out in the Finance Act 2020, which are:
• be wholly or almost wholly without the use of both legs;
• be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
• be without both hands or without both arms;
• be without one or both legs;
• be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
• have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The functions of the Board are set out in legislative requirements. They are legislatively required to be independent in their functions. To qualify for a Board Medical Certificate the appellant must be determined by the Board to have met one of the six criteria above.
The Secretary to the Board is established through administrative arrangements with the National Rehabilitation Hospital and is full time resource to the Board. While the appeals process was suspended due to the resignation of former members in November 2021, the Secretary continued to carry out administrative functions in respect of maintaining the waiting list and dealing with customer queries.
As of 27 March 2024 there are 793 appellants on the waiting list. 283 appellants have been assessed since the appeals process recommenced. The Board has prioritised the waiting list using clinically-based criteria. The DDMBA are working to address the backlog as quickly as possible.
EU Directives
Questions (214)
Ged Nash
Question:214. Deputy Ged Nash asked the Minister for Finance the exact nature and current status with regard to the European Commission’s announcement of 24 January 2024 that it was sending Ireland a formal notice for failing to transpose Directive (EU) 2020/284 introducing certain requirements for payment service providers (INFR(2024)0070); and if he will make a statement on the matter. [17926/24]
View answerWritten answers
This issue arose after amendments were agreed to the VAT Directive in February 2020 to create a new record keeping obligation for payment service providers established in the EU. The purpose of the new requirements is to allow Member States to collect payment data from payment service providers to assist tax administrations in tackling cross-border VAT fraud associated with eCommerce. Two separate Council Regulations (Council Regulation (EU) 2020/283 and Council Regulation (EU) 2020/284) set out the requirements for the retention and transmission of these records.
The deadline for the transposition of this amendment to the VAT Directive was 31 December 2023. Work on the transposition was completed by Revenue in December 2023 with the transposition being finalised on 20 December 2023 when the Minister signed two statutory instruments, “European Union (Value-Added Tax) Regulations 2023” and “European Union (Value-Added Tax) (No. 2) Regulations 2023.”
The infringement arose from an error in the notification that was sent to the Commission via the THEMIS system which did not include a correlation table and which included the word ‘draft’ in the uploaded documents. The corrected regulations and the correlation table were uploaded on 19 February. Following a clarification from the Commission that the explanatory letter provided by the Department should also be uploaded to the THEMIS system this upload was completed on 29 February.
State Bodies
Questions (215)
Catherine Murphy
Question:215. Deputy Catherine Murphy asked the Minister for Finance if he will clarify whether the ISIF holds Israeli government bonds; if so, if he will provide details of same, including their value; and if the ISIF no longer holds such bonds, whether he will provide the date on which they were divested from and the rationale for same.; and if he will make a statement on the matter. [18093/24]
View answerWritten answers
The NTMA have informed me that ISIF publishes a detailed list of individual investments in its portfolio each year in the NTMA annual report.
The 2022 annual report is the most recent list of individual investments that has been published, detailing the position at end 2022. Please see the relevant link:
www.ntma.ie/annualreport2022/documents/NTMA-Annual-Report-2022-English.pdf
The relevant information is summarised in the table below.
|
Security Description |
Value €m |
|
Israeli Government 0.500% 05/31/2029 |
0.42 |
|
Israeli Government 0.500% 11/30/2051 |
0.14 |
|
Israeli Government 0.750% 05/31/2027 |
0.38 |
|
Israeli Government 0.750% 10/31/2025 |
0.45 |
|
Israeli Government 1.000% 05/31/2045 |
0.29 |
|
Israeli Government 2.750% 08/30/2041 |
0.34 |
|
Israeli Government 4.000% 05/30/2036 |
0.43 |
|
Israeli Government 4.000% 07/31/2024 |
0.25 |
|
Total |
2.69 |
The 2023 annual report will detail the position at end 2023 and will be published in the coming months.
State Bodies
Questions (216)
Catherine Murphy
Question:216. Deputy Catherine Murphy asked the Minister for Finance if the Central Bank, as part of its investment strategies, has any interests directly in or with Israel; and if so, the details of same. [18094/24]
View answerWritten answers
I am informed by the Central Bank of Ireland, that they held approximately €17bn of Investment Assets at the end of 2023, mostly invested in government bonds and other high-quality fixed income (bond) instruments issued by multilateral development banks, supranational organisations and government-linked agencies.
The Central Bank also holds equity investments, on a ‘passive basis’ i.e. using an external Asset Manager contracted to capture global equity market returns, on a fund which accounts for approximately three per cent of the Central Bank’s Investment Assets. This means that the external asset manager tracks the composition and performance of global equity indices as closely as possible.
The global developed market equity indices that the Bank’s asset manager tracks include two indices – the MSCI World Index and the MSCI World EU Paris-aligned Benchmark (PAB) Index – that have constituents companies listed on the Tel Aviv stock exchanges. As at end December, these Israel-listed equities accounted for approx. €500,000 or 0.003% of the Central Bank’s total Investment Assets of approx. €17bn.
The Central Bank of Ireland does not directly invest in Israel government bonds.
Since 2021, the Central Bank has participated in the US dollar-and euro-denominated green bond investment fund for central banks established by the Bank for International Settlements (BIS). The Central Bank owns a share of some USD 95m equivalent in a specialised investment fund for central banks of currently about USD 2.8 billion that invests in green bonds from qualifying issuers. The fund is designed such that investors (such as the Central Bank of Ireland) hold claims on the fund issuer (i.e. the BIS) according to the fund units that they own. Exposure to individual bonds at the investor level, therefore, is indirect and tends to be small.
While individual bond-level allocations are not publicly available, regional allocations at the latest reporting date (28 March 2024) suggest that most issuers reside in Europe, Asia-Pacific and the Americas or are supranational entities. Exposures to Israel were part of an allocation of around 1% to Other regions. All of these investments are financing or re-financing eligible projects with clear environmental or climate-related benefits.
Insurance Coverage
Questions (217)
Ivana Bacik
Question:217. Deputy Ivana Bacik asked the Minister for Finance his plans to reform flood insurance in Ireland; his views on insurance cover for persons living in areas with demountable flood defences; his views on legislating for compulsory insurance cover for those living in areas which are prone to flooding; and if he will make a statement on the matter. [18121/24]
View answerWritten answers
As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. In terms of the challenges associated with obtaining flood cover, please be aware that the provision of such cover is a commercial matter for insurance companies, based on an actuarial assessment of the risks they are willing to accept. As such, Government cannot interfere in the provision or pricing of insurance, or direct as to what cover is provided, as is reinforced by the EU framework for insurance (Solvency II Directive).
Current Government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.
In terms of the outcome of the current approach to flood insurance, it should be noted that according to EU level data, Ireland has an above average rate of flood cover relative to the EU. However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences which require varying degrees of human intervention in their installation. Where Government has invested in flood defences the Government’s reasonable expectation is that the industry should improve the level of cover in areas where demountable defences exist.
In order to address the issue of flood coverage levels in areas with demountable defences, continued engagement with all relevant stakeholders is key. This is facilitated as part of the Memorandum of Understanding (MoU) between the OPW and Insurance Ireland. This sets out principles of how the two organisations work together to ensure that appropriate and relevant information on these completed schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of flood insurance. Under this arrangement, the OPW provide information on all completed flood defence schemes (including on demountable ones) to Insurance Ireland, the representative body of the insurance industry. In turn, its members take into account all of this information when assessing exposure to flood risk within these areas. Officials from the Departments of Finance; Housing and Local Government, along with other stakeholders engage constructively with this process on how the levels of insurance cover might be improved in areas where flood defence works have been completed.
Legislating for compulsory cover was previously considered by my Department in its review of flood insurance policy in 2016, and the ‘Public Consultation on Climate Change and Insurance’. It was found that such an approach would have limited impact on the availability of flood cover, as it would result, amongst other things, in insurers pricing prohibitively for high-risk properties, an increase in the pricing of low-to-medium risk properties and the risk that insurers decide to withdraw from the market.
Recognising that the long-term risk of climate change on insurers and insurability, the Department of Finance continues to monitor international developments, engage with the Central Bank of Ireland, the insurance industry and actively participate in cross-departmental working groups on insurance. It is important to note in this regard that the European Commission, IMF, EIOPA and the OECD are separately examining climate risk impacts for insurance and the concept of insurance protection gaps, with recommendations for policymakers to emerge in time. It is important that developments here align with those across the EU so the Irish market is not ‘out of step’ with others.
Finally, I and Minister of State Richmond, along with our officials, will continue to engage on all aspects of insurance reform, including flood cover issues. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
Public Sector Pensions
Questions (218)
Peadar Tóibín
Question:218. Deputy Peadar Tóibín asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if she plans to review the rules of the supplementary pension whereby, if a person takes up any paid employment of any duration, they would lose the entire supplementary element of their pension; and if he will make a statement on the matter. [17687/24]
View answerWritten answers
As the Deputy may be aware, I have overall policy responsibility in relation to public service occupational pension schemes payable to retired public servants.
Since 6 April 1995, all newly-appointed public servants became fully insured under the Social Insurance System (pay Class A PRSI). A public servant paying Class A PRSI will receive both an occupational pension and, it is assumed, they will also be entitled to the maximum rate of the State Pension Contributory (SPC). This is known as ‘integration’, and is also sometimes referred to as 'coordination', it is not unique to the public service.
In respect of public servants, their pension payment comprises of three components:
1. Public Service Occupational Pension payable by the public service employer;
2. Social Insurance Benefit(s) (State Pension Contributory (SPC), Jobseeker’s Benefit etc.), payable, subject to eligibility, by the Department of Social Protection; and
3. Where the full rate of SPC is not payable, a supplementary pension equivalent to a non-integrated pension, which is payable, subject to eligibility, by the public service employer.
Where a public servant does not qualify for the SPC or qualifies for a Social Insurance benefit at less than the value of the SPC they may be entitled to an occupational supplementary pension, subject to eligibility criteria, including the retired public servant shall not be in paid employment and:
• fails to qualify for Social Insurance Benefit or
• qualifies for Social Insurance Benefit at a reduced rate and
• has reached minimum pension age or is in receipt of an ill-health pension.
It is worth noting that if an individual, in receipt of an occupational supplementary pension, takes up employment, for example, for one day, the occupational supplementary pension would cease for that one day and be payable for the other 4 working days in the week (on a pro-rata basis), similar to how an entitlement to Jobseeker’s Benefit is treated. A pro-rated occupational supplementary pension is based on number of days during which the pensioner is not employed, rather than monetary amount earned, e.g. if an individual in receipt of an occupational supplementary pension takes up employment for 1 day a week, the occupational supplementary pension would be payable at 80% (i.e. 4/5th), rather than ceasing in its entirety. The onus is on the individual to notify their pension paying authority should there be any change in their employment status.
Public Sector Staff
Questions (219)
Jennifer Murnane O'Connor
Question:219. Deputy Jennifer Murnane O'Connor asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the steps being taken to ensure those suffering from long-Covid are not penalised in the public sector (details supplied); and if he will make a statement on the matter. [17918/24]
View answerWritten answers
As the Deputy will be aware, I am not in a position to comment on the circumstances of individual cases, this would be a matter for the relevant employer.
Since the onset of the COVID-19 pandemic, Special Leave with Pay has been used in lieu of sick leave in the public service for self-isolation or a diagnosis of COVID-19 for public service employees. It has been clear over this period, through the “Guidance and FAQs for Public Service Employers during COVID-19” document, that Special Leave with Pay is a temporary measure that is kept under regular review. Changes have been made to the arrangements over the course of the last number of years in line with changes to public health, Government guidance and the general return to the workplace.
Special Leave with Pay for COVID-19 is not intended to replace sick leave in the Public Service, nor was it designed to address long COVID.
Special leave with pay currently applies for the duration of the HSE recommended ‘stay at home period’ following a positive COVID-19 test result. This applies for the duration in place at the time of the absence, which is currently 5 calendar days.
Following this, if a Public Service employee remains unwell, they may avail of the provisions of the Public Service sick leave scheme, which is a form of paid leave for the Public Service. The Public Service Sick Leave scheme provides for the payment of the following to staff during periods of absence from work due to illness or injury:
• A maximum of 92 days on full pay in a rolling one-year period
• Followed by a maximum of 91 days on half pay in a rolling one-year period
• This is subject to an overall maximum of 183 days’ paid sick leave in a rolling four-year period.
There is potential for access to additional sick leave payment in certain circumstances, either in the form of Temporary Rehabilitation Remuneration or under the Critical Illness Protocol, both of which are subject to defined limits. In all cases, access to these additional supports will be determined by local management, taking into consideration individual circumstances and a medical assessment by the relevant Occupational Health physician.
Critical Illness Protocol (CIP) can provide for extended sick leave available up to a maximum of double of that available under normal sick leave conditions before Temporary Rehabilitation Remuneration (TRR) might be available. TRR may also be approved for an extended period of up 2 additional years reviewed at 6 monthly intervals.
All illnesses are treated equally under the Public Service Sick Leave Regulations and equity is a fundamental part of the Public Service Sick Leave Scheme.
Public Sector Pensions
Questions (220)
Michael Fitzmaurice
Question:220. Deputy Michael Fitzmaurice asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if, in light of the announcement of the proposed changes to mandatory retirement age in An Garda Síochána, the Defence Forces and the Irish Prison Service, he can confirm when these changes will come into effect; if the new legislation will include changes to post-1995 pensions in the public sector which may allow retired staff to work in another job without losing their entitlement to a supplementary pension; and if he will make a statement on the matter. [18006/24]
View answerWritten answers
The changes proposed by the respective Ministers that are being facilitated by my Department will enhance the options available to members of the uniformed services, and allow them to remain in service for longer if they choose to do so, and will assist in recruiting and retaining valuable expertise.
My officials are now at an advanced stage of drafting the legislation to enact these changes and are working with colleagues in other relevant departments to progress this through all stages of the legislative process as quickly as possible.
A change to the eligibility criteria for the supplementary pension is not being considered as part of the changes to the mandatory retirement age.
It is worth noting however, that entitlement to supplementary pensions to persons in paid employment is on a pro-rata basis. If, for instance, an individual in receipt of an occupational supplementary pension takes up part-time employment one day a week, the occupational supplementary pension would cease for that one day and be payable for the other 4 working days in the week, similar to how an entitlement to Jobseeker’s Benefit is treated. A pro-rated occupational supplementary pension is based on number of days during which the pensioner is not employed, rather than monetary amount earned, e.g. if an individual in receipt of an occupational supplementary pension takes up employment for 1 day a week, the occupational supplementary pension would be payable at 80% (i.e. 4/5th), rather than ceasing in its entirety. The onus is on the individual to notify their pension paying authority should there be any change in their employment status.
Commemorative Plaques
Questions (221)
Patrick Costello
Question:221. Deputy Patrick Costello asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will erect an additional plaque in Kilmainham Gaol regarding the Civil War executions that took place there in order to acknowledge Leo Dowling and Terrance Brady, who, it has been recently established, were executed there but are not recognised on the existing memorial (details supplied); and if he will make a statement on the matter. [17304/24]
View answerWritten answers
Kilmainham Gaol, National Monument 675 is in the care of the Office of Public Works.
In 1960 the Kilmainham Gaol Restoration Society was formed with the aim of restoring the Gaol as a memorial. Over the next 26 years many volunteers worked on this uniquely significant restoration project. During this time a number of plaques were placed in Kilmainham Gaol by the Restoration Society and the plaque the Deputy refers to is one such plaque.
In 1986, a decision was made by the Restoration Society to transfer the running of the Gaol back to the State under the care of the Office of Public Works (OPW).
Since the Gaol transferred to the State in 1986, the OPW has not made any changes to or replaced any of the plaques installed by the Restoration Society. The new information confirming the executions of Mr. Leo Dowling and Mr. Terrance Brady at Kilmainham Gaol has come to light and is now in the public forum. My officials will need to examine this request as part of the ongoing management of the Gaol work processes. I have requested that the matter is examined at the earliest time possible and that a further response will issue to you following those deliberations.
Flood Risk Management
Questions (222)
Michael Lowry
Question:222. Deputy Michael Lowry asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if the OPW will provide new stacked timbers, known as stoplogs, or wooden panels known as flashboards, to a person (details supplied); and if he will make a statement on the matter. [17525/24]
View answerWritten answers
The 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 property in question is adjacent to the Mulkear Ballymackeogh Certified Drainage Scheme. In line with the access lane into the property a gap has been formed in the flood defence embankment, which enables the resident to access the banks of the river. Placed within the gap in the embankment are two pillars and a demountable barrier in the form of removable timber stoplogs. This arrangement enables the resident to install and remove the demountable barrier depending on the time of year and flood levels in the Newport River.
While the OPW has no responsibility for the operation or maintenance of the stoplogs, it previously replaced the stoplog for the resident as a once off measure. In 2023, the OPW undertook refurbishment works to the flood defences adjacent to the relevant property. While planning these works, the OPW proposed the construction of a continuous embankment adjacent to the relevant property, with "up-and-over" access to be made available to the resident. The OPW did not proceed with this proposal, as the resident’s preference is to maintain the demountable arrangement.
While it is not typical for the OPW to fund, provide, maintain or operate demountable barriers when they do not form part of a Certified Drainage Scheme or on the request of private landowners, the OPW subsequently proposed to replace the existing timber stoplogs with new timber stoplogs. An agreement was not reached with the resident, who requested the installation of aluminium stoplogs, which was not considered feasible by the OPW.
As a goodwill gesture, the OPW's South West Drainage Maintenance Section (SWDMS) will engage once more with the resident. However, the OPW notes that it has no responsibility for the efficacy, operation or maintenance of the current arrangement. The OPW recommends that the resident undertake their own full Health & Safety risk assessment and ensures that appropriate measures are in place to provide for their own safety and that of other residents when operating the current and any future demountable barrier system.
Flood Risk Management
Questions (223, 224)
Catherine Murphy
Question:223. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the plans, if any, that the OPW has to de-risk pluvial flooding in the Celbridge area of Kildare. [17557/24]
View answerCatherine Murphy
Question:224. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the plans, if any, that the OPW has to de-risk natural flooding events in the Celbridge area of Kildare. [17558/24]
View answerWritten answers
I propose to take Questions Nos. 223 and 224 together.
Pluvial flooding is a matter for the Local Authority to investigate and address. The query should be directed to the Department of Housing, Local Government and Heritage.
The Shinkeen Stream (Hazelhatch) Flood Relief Scheme which comprised of channel widening and deepening along the Shinkeen stream was completed in 2001 and provides protection against a 100-Year fluvial flood (1% Annual Exceedance Probability) for 26 properties.
In 2018, to establish those communities that are at risk from significant flood events, the Office of Public Works (OPW) completed the largest study of flood risk ever undertaken by the State: the Catchment Flood Risk Assessment and Management (CFRAM) Programme. The CFRAM Programme studied 80% of Ireland’s primary flood risk and identified solutions that can protect over 95% of that risk. Some 150 flood relief schemes were identified through this Programme.
The Government has committed €1.3 billion to the delivery of these flood relief schemes over the lifetime of the National Development Plan to 2030 to protect approximately 23,000 properties in communities that are under threat from river and coastal flood risk.
Arising from the CFRAM study, Celbridge was identified as an area subject to further assessment, and I can confirm that a Scheme Viability Review (SVR) for Celbridge is nearing completion and the results of this review will be discussed and progressed with Kildare County Council. The purpose of a SVR is to determine whether or not potential schemes should be taken forward to full flood relief scheme project status and stages (i.e. design, planning and construction).