The Finance (No. 2) Act 2008 provided for the introduction of an exemption from income tax in respect of a benefit-in-kind arising from a bicycle or associated safety equipment being supplied by an employer to an employee for the purposes of commuting to work. The implementation of this scheme for the Civil Service is being dealt with by the Department of Finance.
It is understood that implementing the scheme in the Civil Service has given rise to a number of issues, particularly in relation to procurement, warranty and insurance. The Department of Finance has, I understand, raised these issues with the State Claims Agency, the Chief State Solicitors Office and the Office of the Attorney General. Once these issues have been clarified, the Department of Finance will issue a circular providing for a scheme in the Civil Service. This will provide a framework in which the issue can be progressed within my Department. There are no State agencies under the remit of the Department of Foreign Affairs.