Written Answers Nos. 81-100
81. Deputy Pa Daly asked the Minister for Finance if he will report on the climate change risk matrix; if his Department has carried out any analysis of the financial impact of missing our 2030 targets on the Irish economy; and if he will make a statement on the matter. [16099/25]
View answerThe climate change risk matrix recently published on the Department of Finance website provides a framework or high level overview of how climate change physical and transitional risks are interlinked to the economy and financial system through a range of transmission channels. This framework is part of work that my Department is conducting to model and refine our understanding of climate-related economic, fiscal and financial related risks, and is in line with the requirement set out in the Programme for Government that all Departments should make climate action a core pillar of their new strategies.
To take into account the Government’s commitment to address the risks posed by climate change as published in successive national climate action plans, my Department is committed to developing fiscal and financial policies to support the Government’s policy on climate action and Climate Finance, participating in relevant domestic and international work streams to advance consideration of the economic, fiscal and financial aspects of climate action and to develop and enhance Ireland’s sustainable financial services policy.
With regard to the potential costs associated with Ireland’s EU climate and energy 2030 targets, the main objective of Government policy has been, and continues to be, achieving compliance with our targets through reducing emissions and increasing renewable energy generation. The agreed Programme for Government restates our determination that Ireland, together with our EU partners, will play its full part in tackling climate change. The Environmental Protection Agency has shown that emissions reductions are being made with Ireland’s greenhouse gas emissions decreasing for the last three years. However, we in Government also acknowledge that there is an imperative to go further – taking climate action faster and at scale, particularly over the next five years.
I note the recent report from the Irish Fiscal Advisory Council and the Climate Change Advisory Council highlighting the potential compliance cost implications of climate change and emissions reductions targets for Ireland. Similar analysis is being undertaken across Government in this area, and my officials are engaged with others on this work. It must be acknowledged however that there is considerable uncertainty around the emissions figures, and that specifying any cost figure is simply speculative at this stage.
Work is ongoing across Government to minimise any need to purchase compliance – by continuing to drive forward implementation of our Climate Action Plan, as we agree it is better to invest in climate action to improve people’s lives, build our energy independence and reduce our emissions, rather than transferring money elsewhere to purchase compliance. The Climate Action Plan sets out a range of actions to accelerate emissions reductions across all sectors and help avoid costs from purchasing compliance.
82. Deputy Rose Conway-Walsh asked the Minister for Finance the supports he will provide to those businesses which cannot secure insurance; the steps he is taking to reduce the cost of business insurance; and if he will make a statement on the matter. [6598/25]
View answerAt the outset, I wish to reassure the Deputy that I recognise the challenges faced by businesses in securing affordable insurance cover. Under the EU’s Solvency II Directive, neither the Minister for Finance nor the Central Bank of Ireland can intervene directly in insurance pricing or the provision of cover. As the Deputy is also aware, direct business supports fall under the remit of the Minister for Enterprise, Trade and Employment.
Notwithstanding this, the Government remains committed to ongoing insurance reform as set out in the Programme for Government. The publication of a new Action Plan for Insurance Reform is a key commitment, building on the progress of the 2020 Plan, which delivered significant changes such as the rebalancing of the Duty of Care, the reform of the Injuries Resolution Board, and the introduction of new Personal Injuries Guidelines. These reforms have contributed to a more stable insurance market, attracting new providers such as OUTsurance, Revolut, and Fastnet, while expanding cover to sectors like hospitality, SMEs, sports, and leisure activities. Work on developing the new Action Plan for Insurance Reform is underway.
Since 2020, the Office to Promote Competition in the Insurance Market (OPCIM) has played a key role in broadening insurer risk appetite, facilitating coverage for high-risk sectors such as equestrian activities, adventure tourism, and childcare. The Programme for Government-Securing Ireland’s Future commits to the expansion/support of the Office Insurance Market to ensure Ireland remains an attractive market for insurance. Minister of State Troy is the chair of the OPCIM and will continue to engage with the industry to ensure that reforms result in increased competition and availability of cover for businesses.
Transparency remains a key focus of the Government’s reform agenda, and my officials are engaging with the Central Bank of Ireland to look at ways to enhance the timeliness of data releases from the National Claims Information Database. The latest data for 2023 shows that 56 percent of all business insurance policies had a premium of less than €1,000, while 90 percent had a premium of less than €5,000.
In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance remains a key priority for this Government. Government policy remains focused on ensuring that the benefits arising from the entire reform programme are realised, for businesses, consumers and community groups across Ireland.
83. Deputy Catherine Ardagh asked the Minister for Finance if he will facilitate the right of cancer survivors to be forgotten when it comes to accessing financial products; and if he will make a statement on the matter. [16058/25]
View answerI would like to assure the Deputy that the Government remains fully committed to implementing this important piece of insurance legislation. The Government’s approach will be guided by the need for a balanced and evidence-based framework that delivers meaningful protections for consumers while ensuring the stability of the insurance market.
The Insurance Ireland Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors, in effect since December 2023, already provides the right to be forgotten (RTBF) protections. It requires insurers to disregard a cancer diagnosis seven years after treatment (or five years for those diagnosed under 18) for mortgage protection insurance policies up to €500,000. Insurance Ireland is currently reviewing the implementation of its Code of Practice , with an external reviewer appointed to assess compliance. This review is expected to be completed in Q2 2025. The Deputy may also be aware, that under existing legislation, the Consumer Credit Act 1995, lenders are permitted to provide a mortgage in situations where a borrower may be unable to obtain life insurance, or where such insurance is unduly costly compared to that payable by borrowers generally.
Additionally, the Department of Finance is currently assessing the Central Bank (Amendment) Bill 2025, introduced in the Dáil on 18 February by you and Deputy Erin McGreehan, and considering developments at both national and EU levels, including the forthcoming implementation of the Consumer Credit Directive (by 2026) and the European Commission’s Beating Cancer Plan, which aims to establish an EU-wide RTBF Code of Conduct.
Furthermore, the Minister of State and officials from my Department are engaging extensively on this issue with key stakeholders. Minister of State Troy recently met Insurance Ireland and several major insurers, where this issue was a key discussion point. I also note that Minister of State Troy recently met with you and the Irish Cancer Society on the matter and that the discussion was constructive and raised a number of important issues for consideration. My officials are also engaging with the Central Bank of Ireland, the Society of Actuaries, Insurance Ireland, industry stakeholders and other Member States who have implemented a Right To Be Forgotten for cancer survivors to ensure a robust and comprehensive approach.
The Department of Finance will continue to closely monitor developments and work with key stakeholders at both national and EU levels to progress this key piece of legislation.
84. Deputy Catherine Ardagh asked the Minister for Finance if he plans to increase inheritance tax thresholds; and if he will make a statement on the matter. [16059/25]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise.
While the thresholds were reduced during the economic downturn, the Government has made changes to the CAT thresholds in recent years. In Budget 2025, the Group A threshold was increased from €335,000 to €400,000, Group B from €32,500 to €40,000 and Group C from €16,250 to €20,000.
Gifts and inheritances between spouses and civil partners are exempt from CAT. There are also a number of exemptions and reliefs from CAT that may apply depending on the circumstances of the case, including reliefs which apply to relationships within the Group A threshold.
One such exemption is the CAT dwelling house exemption. Where a person takes an inheritance of a dwelling house, that person may be able to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the disponer’s principal private residence at the date of death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in a nursing home. The beneficiary must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. In addition, the beneficiary must not have a beneficial interest in any other residential property. Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf.
There is provision in CAT legislation for a niece or nephew of the disponer to avail of the Group A threshold where the gift or inheritance consists of business assets and certain conditions are met. The niece or nephew must have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession, of the disponer.
My officials are reviewing Capital Acquisition Taxes as part of the annual Tax Strategy Group papers. These papers outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. They are published in advance of the Budget and are the best way to consider inheritance tax in an analytical and transparent way.
The Deputy should note that there would be a significant cost in making any further substantial changes to CAT.? The options available for setting CAT thresholds must be balanced against competing demands, and as part of the annual Budget and Finance Bill process.
87. Deputy James O'Connor asked the Minister for Finance the way in which he is fostering a competitive, transparent, and consumer-friendly insurance landscape; and if he will make a statement on the matter. [16286/25]
View answerThe Government is committed to fostering a competitive, transparent, and consumer-friendly insurance landscape through ongoing reform efforts. The Programme for Government- Securing Ireland’s Future commits to a range of actions to encourage further competition in the market and to work with key stakeholders to enhance transparency and affordability across all types of insurance.
A key initiative is the publication of a new Action Plan for Insurance Reform, which builds on the 2020 Plan that introduced major changes, including the rebalancing of the Duty of Care, reforms to the Injuries Resolution Board, and the implementation of new Personal Injuries Guidelines. These measures have contributed to market stability and attracted new providers such as OUTsurance, Revolut, and Fastnet, while also expanding coverage to sectors like hospitality, SMEs, sports, and leisure activities. Work is underway to develop the new Action Plan for Insurance Reform which will focus on encouraging further competition in the market and working with stakeholders to enhance transparency and affordability across all types of insurance.
The Programme for Government also commits to the expansion/support of the Office to Promote Competition in the Insurance Market (OPCIM) to ensure Ireland remains an attractive market for insurance. The Office chaired by Minister of State Troy, has played a crucial role in encouraging insurers to broaden their risk appetite. This has facilitated coverage for high-risk sectors such as equestrian activities, adventure tourism, and childcare. The Government remains committed to ongoing engagement with the industry through the OPCIM to ensure that reforms translate into increased competition and availability of cover. Transparency is also a key focus, with ongoing efforts to enhance the timeliness of data releases from the National Claims Information Database in collaboration with the Central Bank of Ireland.
In conclusion, a key priority for this Government is to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland. Government policy remains focused on ensuring that the benefits arising from the entire reform programme in terms of transparency, competitiveness and consumer protection are realised, for consumers, businesses and community groups.
88. Deputy John Lahart asked the Minister for Finance if he will be reviewing the qualifying conditions for tax relief on oxygen tanks for those who suffer from lung fibrosis; and if he will make a statement on the matter. [16276/25]
View answerAs the Deputy may be aware, the tax code provides for income tax relief for oxygen tanks and oxygen subject to certain conditions being met, which have been set out below.
Section 469 of the Taxes Consolidation Act 1997 (TCA 1997) provides for tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses. Only “health expenses” incurred in the provision of “health care”, which has been carried out or advised by (in certain circumstances) a “practitioner”, will qualify for tax relief.
Section 469 TCA 1997 provides definitions for the terms above. Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”. Health expenses are defined as “expenses in respect of the provision of health care” and include “supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner" and “drugs or medicines supplied on the prescription of a practitioner”.
The definition of practitioner includes a number of medical professionals, including a person registered in the register established under section 43 of the Medical Practitioners Act 2007.
In relation to surgical, dental or nursing appliances, Revenue guidance sets out that relief is allowed on the costs incurred on the:
• supply;
• maintenance; or
• repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner.
In order to qualify for relief:
• the appliance used to deliver the oxygen must be a medical, surgical, dental or nursing appliance used on the advice of a practitioner, and
• the oxygen purchased must be a drug or medicine supplied on the prescription of a medical practitioner.
Further guidance on tax relief for qualifying health expenses can be found in Revenue’s Tax and Duty Manual Part 15-01-12, which can be accessed at the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf
Finally, I would note that the health expenses relief is a longstanding and broadly availed of relief. In 2022, the cost of tax relief for health expenses (excluding nursing home expenses) was €201.1 million and it was availed of by 662,900 claimants. I currently have no plans to review this relief.
99. Deputy Aindrias Moynihan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for the up-to-date position on advancing flood defence works in the Upper River Lee area of County Cork; and if he will make a statement on the matter. [16160/25]
View answerTo date, six communities across Cork County are protected from significant flood risk by completed flood relief schemes in Bandon, Clonakilty, Douglas, Dunmanway, Fermoy and Mallow.
Cork County Council with funding from the Office of Public Works (OPW), for nine staff is leading the delivery of six flood relief schemes in the initial tranche of schemes, nationally, with nine additional schemes planned.
Cork County Council, is proactively progressing a preferred option for a viable flood relief scheme for Baile Mhuirne & Baile Mhic Íre that will protect 90 properties from significant risk of flooding. Cork County Council, the lead authority has developed the scope of works, that it aims to tender shortly, for an engineering and environmental consultant. This is currently under review by the OPW. Once appointed, the consultant will produce a scheme programme, timeline and budget for the delivery of the Baile Mhuirne & Baile Mhic Íre flood relief scheme.
In the interim, Cork County Council commissioned consultants to complete the design of interim flood relief measures for Baile Mhuirne & Baile Mhic Íre. The OPW has approved funding of some €500,000 to Cork County Council under the OPW Minor Flood Mitigation Works and Coastal Protection Scheme for the provision of temporary flood defence measures in this area. The works, due to be completed in April 2025, include a sand bag defence structure, increasing the ground level with ramps and the installation of two non-return valves.
The commitment by the Government since 2018 of €1.3bn under the National Development Plan for flood relief measures has allowed the OPW, nationally, to treble the number of flood relief schemes at design and construction to some 100. Due to the constraints in specialised engineering resources to design flood relief schemes, it was not possible, in 2018, to start work on all flood relief schemes identified by the Flood Risk Management Plans. The proposed flood relief schemes at Ballingeary and Inchigeelagh are two such schemes where funding is committed when specialised resources become available to commence design works. Given the time it takes to deliver flood relief schemes, the OPW is trialling a new delivery model that may inform the approach to delivery of these schemes.
The OPW has approved funding of €107,500 to Cork County Council for river cleaning and maintenance works in Ballingeary and Inchigeelagh and it is open to Cork County to introduce further interim measures to mitigate against flood risk in these communities through the OPW’s Minor Flood Mitigation Works and Coastal Protection Scheme in advance of a flood relief scheme for these areas.
100. Deputy Thomas Gould asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he is aware of an unfair regional balancing in Capital spending under the NDP given Cork’s potential to counterbalance Dublin. [15234/25]
View answerAs Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitisation I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at Departmental level.
The responsibility for the management and delivery of individual investment projects or sectoral policy strategies, within the allocations agreed under the National Development Plan (NDP), rests with the individual sponsoring Department in each case. Each Minister is responsible for deciding on the priority programmes and projects that will be delivered under their remit within the NDP and for setting out the timelines for delivery. Expenditure is therefore allocated and monitored on a Departmental basis and not a geographical basis.
Balanced regional development is a key priority of this Government and is at the heart of Project Ireland 2040. The Government has committed €165 billion of funding for capital investment under the NDP 2021-30. An additional €2.25 billion was allocated in 2024 as part of an update to the NDP which set out revised capital ceilings from 2024 to 2026. In Budget 2025, almost €15 billion was made available from the Exchequer for investment in public capital projects along with €3 billion of funds from the sale of the State’s shareholding in AIB in June 2024. This level of expenditure is pivotal in consolidating the progress already made and in supporting balanced regional development to address key infrastructural bottlenecks more rapidly, and lead to further improvements in living standards and competitiveness.
Since Project Ireland 2040 was first launched in 2018, the Government has overseen the delivery of many impactful NDP projects across the country, including in Cork. Major projects such as upgrading the Dunkettle interchange to a fully free flow junction, enhancing water quality through the Cork lower harbour main drainage project, the remediation of Haulbowline island have all been delivered, along with numerous other projects in the housing, education and health sectors.
Additionally, the recently agreed Programme for Government sets out that Government will prioritise an early review of the National Development Plan, which will be completed in July 2025. The review of the National Development Plan will encompass all public capital investment and will utilise State funds to support increased capital investment levels in all regions.
