Written Answers Nos. 44-63
44. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Business, Enterprise and Innovation if matters raised correspondence by a person (details supplied) in relation to supports for the tourism sector during the Covid-19 pandemic will be addressed.; and if he will make a statement on the matter. [16427/20]
Amharc ar fhreagraThe Government has introduced a €12bn package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment for the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs. Full details on all COVID19 supports for business are available at: https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
Any eligible business, including the self-employed, can apply for the following supports. The most appropriate support will depend on the characteristics of the business.
Micro Finance Ireland can provide loans of up to €50,000 as an immediate measure to specifically deal with exceptional circumstances that micro-enterprises – (any business -Sole Trader, Partnership or Limited Company with less than 10 full time employees and annual turnover of up to €2m)- are facing.
Local Enterprise Offices have moved training programmes, workshops and networking meet-ups online, covering areas such as cash management in a crisis, leading your business through COVID-19 and advice for employers impacted by the crisis. Training programmes are free of charge and places can be booked online, through your Local Enterprise Office.
My former colleague, the then Minister for Employment Affairs and Social Protection, Regina Doherty announced on 25 June that the Department’s Enterprise Support Grant will be made available to assist self-employed recipients who are exiting the Pandemic Unemployment Payment (PUP) scheme with a once-off grant of up to €1,000 to re-start their business. The grant will be payable to self-employed micro enterprises which employ fewer than 10 people, have an annual turnover of less than €1 million and are not eligible for support from the COVID 19 Business Restart Grant or other similar business reopening grants.
I am currently reviewing the full range of supports in place to help businesses, together with my Ministerial colleagues, as we prepare the forthcoming July Stimulus.
I can assure the Deputy that the Government will not be found wanting. Not only must we address the current challenges, but we must also look ahead.
There are some welcome signs of improvement in business activity and the economy. However, sectors that provided significant employment, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, remain in serious difficulty and their recovery prospects are highly uncertain.
The July Stimulus will seek to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. The July package will also seek to ensure we are best placed to exploit emerging opportunities and attract high value projects with significant economic benefits and to position our economy and firms to meet future challenges. In the near-term, this includes helping companies further in overcoming the challenges of Brexit, but we also need to include measures that build enterprise resilience and help them transition to a low carbon future.
My colleague, Minister Eamon Ryan T.D., Minister for Transport may be able to provide more specific guidance on supports suitable for the travel sector, including the consumer related measure in the COVID-19 Refund Credit Note which was introduced under consumer related legislation, the package travel and travel trade licensing legislation, for which he has lead responsibility.
45. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Business, Enterprise and Innovation the extent to which alternatives can be put in place to prevent or control the most negative aspects now emerging in terms of investment, foreign direct investment and small and medium-sized enterprises; and if he will make a statement on the matter. [16446/20]
Amharc ar fhreagraRecent global developments – both as a result of Brexit and of the COVID-19 pandemic – have undoubtedly complicated the market for international foreign direct investment (FDI).
The challenges presented by Brexit in that context are well-known. The UK’s withdrawal from the EU does create commercial uncertainty and may affect investor decisions until there is clarity on the nature of the future EU-UK relationship. The IDA has been working hard with its client base, over a number of years, to help address and mitigate Brexit-related risks that could impact FDI in Ireland.
The Agency has also, ever since the EU-UK referendum in June 2016, been seeking to realise opportunities to attract further Brexit-related FDI to Ireland. The significant efforts that the IDA has invested into these efforts have yielded impressive results. The Agency has won 92 Brexit-related investments with an associated jobs potential of 5,900, numbers which could yet increase further.
More generally, we need to continue working to ensure that Ireland remains attractive in the long-term to international investors. That means consolidating existing strengths, such as further developing the skills of our talented work-force, and working to improve the long-term competitiveness of our economy.
We are also doing everything we can to support SMEs so that they can withstand the pressures that have been caused by COVID-19. The measures we have taken since the pandemic began are well-documented and include measures to boost liquidity and ensure access to finance. An important longer-term goal is to increase the strength of commercial ties between SMEs and overseas firms so that Irish businesses benefit as much as possible from FDI here.
46. Deputy Richard Bruton asked the Tánaiste and Minister for Business, Enterprise and Innovation his plans as part of the recovery fund to create space for new initiatives within the regional enterprise strategies; and if he will make a statement on the matter. [16360/20]
Amharc ar fhreagraMy Department is currently engaged in final preparations on the July stimulus package and on preparations for the announcement of the National Recovery Plan on budget day in October. The purpose of the July package will be to save jobs and businesses, create new ones and to get people back to work. The National Recovery Plan will include the need for a major reskilling programme, as well as investment in education and policies to promote balanced regional development.
The individual Regional Enterprise Plans play a central role in supporting the delivery of balanced regional enterprise development and in ensuring that employment growth is spread across all regions.
At the end of June this year my predecessor as Minister, Heather Humphreys TD met with the Chairpersons of the nine Regional Enterprise Plan Committees on conference call and invited them to work with the Committees to identify proposals that would help to address economic impacts of the COVID-19 pandemic in their region. These groups are meeting in virtual format over the coming weeks to focus on this and will report back to my Department, with a view to contributing to the development of the National Recovery Plan in due course.
The Department’s Regional Enterprise Development Fund (REDF), administered by Enterprise Ireland and first introduced in 2017, complements the Regional Enterprise Plans by supporting collaborative projects that strengthen enterprise growth potential in the regions. To date, just over €100 million in funding for 68 projects has been approved over three competitive calls.
On 22 June 2020 Minister Humphreys announced the results of a targeted Border Enterprise Development Fund (BEDF) which sees a further €17.0 million in funding approved for 11 enterprise ecosystem strengthening projects across the Border Region that are aimed at mitigating the challenges for businesses in that region in the face of Brexit. This fund is part of a wider €28 million Border Stimulus Package.
The REDF and BEDF sit alongside and are complementary to the funding opportunities under Project Ireland 2040, the Rural and Urban Regeneration and Development Funds, Climate Action, and Disruptive Technologies, which collectively provide an opportunity to strengthen the regional enterprise ecosystem throughout the country.
When this funding is combined with the €2 billion Pandemic Stabilisation Recovery Fund, which provides capital through the Ireland Strategic Investment Fund to medium and large enterprises; the Sustaining Enterprise Fund, which provides funding of up to €180 million to enterprises including small enterprises; together with the other COVID-19 Grant and Support schemes provided; it is clear that enterprises currently have access to a wide range of measures. These measures will be further developed by the July Stimulus Package and the National Recovery Plan.
47. Deputy Richard Bruton asked the Tánaiste and Minister for Business, Enterprise and Innovation the options under consideration for viable businesses to achieve a work out of debts or rents that might overwhelm them during the slow restart phase. [16361/20]
Amharc ar fhreagraThe Government has already committed to a €12 billion package of supports for firms of all sizes, which includes the wage subsidy scheme, the pandemic unemployment payment - available to the self-employed, grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow amongst SMEs.
As businesses are reopening, what is now needed is a plan of sufficient speed and scale to restore confidence and growth in the SME sector. The July Stimulus Package, as promised in the Programme for Government, will do this. It is radical, far-reaching and will save jobs, create new ones, and get our people back to work.
I see five areas which we should focus on in helping our enterprises in the future:
1. Income support
2. Direct grants for businesses
3. Cheaper finance
4. New opportunities for future jobs
5. Support for the hardest hit sectors
The July Stimulus Package needs to help all firms meet the fixed, non-wage costs incurred during lockdown and in re-opening. Our current Restart Grant is a help but I recognise it has limitations which are preventing it from having a deeper and wider impact.
I look forward to announcing the details of the July Stimulus Package with the Taoiseach shortly.
Looking beyond the immediate response to COVID-19, I intend to form an SME Growth Taskforce shortly. This group will contribute to the delivery of a National SME Growth Plan, which will map out an ambitious long-term strategic blueprint beyond COVID-19. This Plan will be brought to Government for approval as part of the National Economic Plan in October.
My officials continue to give the matter of commercial rents consideration. Several interdepartmental discussions have taken place and there has been engagement with a range of stakeholders on this matter. My officials have reflected on the different responses in other countries to explore possible options to address the issues involved.
Commercial leases are a matter for the parties involved. Many landlords are engaging positively with their tenants and showing forbearance but, at the same time, I have heard reports of some landlords being less accommodating. It is clear landlords and tenants need to talk to each other and come to some arrangement, as it is in everybody’s interest that terms are amicably agreed. To help with this, there is a commitment in the new Programme for Government to “Create a code of conduct between landlords and tenants for commercial rents” as one of the immediate actions. My officials will in the coming weeks be consulting with a range of stakeholders to draw up this Code of Conduct which I hope will be welcomed by the various representative groups and bodies as well as individual firms.
48. Deputy Martin Browne asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of IDA-organised visits involving those from the industrial sector that have been made to an unused IDA site in Tipperary town since it was vacated by a company (details supplied); the way in which it is being marketed by the IDA; and the amount in nominal rent that has been paid for the site to date. [16411/20]
Amharc ar fhreagra49. Deputy Martin Browne asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of vacant properties on IDA lands nationwide and in County Tipperary; his views on turning over unused lands or premises to local authorities to allow community organisations to use them as a premises in view of the contribution such groups make to communities such as those across County Tipperary; the cost of maintaining such empty premises in County Tipperary each year; and if he will make a statement on the matter. [16412/20]
Amharc ar fhreagraI propose to take Questions Nos. 48 and 49 together.
There have been 31 site visits to County Tipperary since Continental Promotion International Limited dissolved in 2016. Specific information is not, however, available on IDA client site visits to the site in question or to other individual locations. The Agency compiles such data on a county-by-county basis only in the interests of client confidentiality and commercial sensitivity.
The IDA retains the underlying residual freehold title of this site which attracts a nominal annual ground rent of €25.39 per year. The site is currently being marketed to potential investors through the Agency’s offices both in Ireland and abroad. I have been informed by the IDA that two sites on the Business Park in Knockanrawley have been sold in recent years to businesses in order to facilitate their expansion and create employment opportunities. Two hectares of land remain available and work is continuing to encourage other firms to invest there.
More generally, the availability of marketable serviced land and buildings in advance of demand remains an essential element in the IDA's ability to compete for mobile foreign direct investment. Not only does such a supply of properties help the Agency to secure high quality jobs but it also allows projects to begin at an earlier date by diminishing difficulties associated with land acquisition, planning and construction. It therefore represents an important means by which the IDA can encourage and attract new investors to regional areas of Ireland.
The IDA does consider opportunities to utilise its property portfolio to attract other non-traditional type investments into a region, including those which do not fall under its remit or that of Enterprise Ireland. Any such interest in an Agency property – whether from a local authority or otherwise – would be considered on a case-by-case basis and would be subject to IDA Board Approval. IDA currently has no unoccupied buildings in its ownership in Tipperary.
50. Deputy Violet-Anne Wynne asked the Minister for Communications, Climate Action and Environment his plans to include Moneypoint power station in the just transition fund in the event the plant may be scaled back in the coming years; and if he will engage effectively with the ESB to ensure that Moneypoint will be kept as a key player in the grid. [16391/20]
Amharc ar fhreagraThe progressive reduction in the use of fossil fuels for power generation will be essential component to meeting the Programme for Government commitment to an average 7% per annum reduction in overall greenhouse gas emissions from 2021 to 2030. The 2019 Climate Action Plan has already committed to ending the burning of coal at Moneypoint by 2025 at the latest and to the replacement of coal-fired generation with low-carbon and renewable technologies. In addition, as stated in the Programme for Government, the government will support a just transition for the workers and regions impacted as peat and coal-fired power generation is phased out.
As part of the EU Green Deal package, the European Commission published a proposal for an EU Just Transition Fund, funded under the EU Multiannual Financing Framework (MFF), in January 2020. The Fund is intended to provide support to the economies, people and the environment of territories facing serious socio-economic challenges deriving from the transition process towards the EU’s 2030 climate targets and a climate-neutral economy by 2050.
Under the European Commission’s Next Generation EU package, it is proposed that the budget for the EU Just Transition Fund would increase from €7.5 billion to €40 billion over the period 2021 to 2027. The proposed allocations to all Member States would increase as a result, with that for Ireland increasing from €29.9 million to €176 million, subject to the outcome of negotiations on the MFF. Investments in Member States under the EU Just Transition Fund must be underpinned by a Territorial Just Transition Plan, covering the period 2021 to 2027, which must be approved by the European Commission and implemented within the framework of the EU’s cohesion policy programmes. Work on this plan has commenced in my Department, and this work will also be supported by technical assistance under the European Commission’s Structural Reform Support Programme.
51. Deputy Carol Nolan asked the Minister for Communications, Climate Action and Environment if, under the just transition plan, compensation will be provided to peat harvesting contractors that made significant investments in peat harvesting machinery prior to the sudden and unexpected announcement of the suspension of all peat harvesting for the 2020 season by Bord na Móna and if he will make a statement on the matter. [16395/20]
Amharc ar fhreagraThe Government is committed to supporting Bord na Móna to deliver an extensive multi-annual programme of rehabilitation of the company’s land bank. My Department and Bord na Móna are progressing the necessary measures, including funding, to facilitate the advanced rehabilitation of 33,000 hectares of Bord na Móna bog previously harvested for peat used in electricity generation, commencing this year. I expect this work to be completed shortly.
The position of any contractors used by Bord na Mona as part of its peat harvesting business is a matter for the company.
52. Deputy Violet-Anne Wynne asked the Minister for Transport, Tourism and Sport if his attention has been drawn to the decision made by Shannon Heritage to keep some of its sites in the west of Ireland in particular closed and others that have reopened are due to close at the end of August 2020; if he has engaged with Shannon Heritage to review this decision; and if he will make supports available to ensure the decision can be reviewed immediately. [16392/20]
Amharc ar fhreagraI can confirm to the Deputy that management at Shannon Group, the parent Company for Shannon Heritage have been in contact with my Department in relation to the opening arrangements of its various sites, arising from the impacts of Covid-19. However, as the Deputy may be aware the management of Shannon heritage sites, including their opening arrangements, is an operational matter for Shannon Heritage and Shannon Group plc which is a commercial State Body.
I am of course aware of the devastating impact of Covid 19 on the tourism sector right across the country and Shannon Group, which operates in both the tourism and aviation sectors, has been particularly severely impacted. For this reason, my Department is working closely with the Company and is considering the requests made by the Company with regard to supports that may be necessary. Once I have considered the options available, I intend to revert to Government in this regard.
53. Deputy Joan Collins asked the Minister for Transport, Tourism and Sport if he will initiate a public transport recovery task force if he has not already done so with an independent chair and budget (details supplied). [16319/20]
Amharc ar fhreagraI understand that the focus of the Deputy's question is about the approach for supporting both public and private operators in the public transport sector in relation to the challenges raised by the Covid-19 health emergency.
Over the course of the COVID-19 crisis, my Department has been working closely with the National Transport Authority (NTA) to ensure public transport services continue safety and to plan for capacity as demand for public transport services changes along the course of the Government's Roadmap for Reopening Society and Business. In this context, the NTA has been engaging directly with both public service obligation (PSO) and commercial transport operators. My Department has also been also engaging directly with commercial bus operators to help inform policy decisions in relation to the public transport sector as we progress through the various phases of the Roadmap. In relation to taxis and hackneys, there has also been direct engagement with the Taxi Advisory Committee who have since been reviewing the situation in relation to the small public service vehicles (SPSV) sector and I expect to consider the output of their work shortly. In connection with all this, my Department has engaged intensively across Government in relation to progressing a wide range of relevant issues in relation to public transport, particularly focused on safety, capacity, and financial challenges.
It should be noted that the sharp decline in passenger numbers since mid-March this year as a result of the Covid-19 health emergency has caused an unprecedented fall in fare revenues, thus creating a wide gap between the operators' costs and actual revenues. This is putting acute pressure on the existing Public Service Obligation (PSO) budget. However, it is clear that public transport is an essential service and that it is an important facilitator of the Government's Roadmap for Reopening Society and Business. We will ensure that this year's PSO is appropriately funded and my Department is working closely with the NTA to quantify the additional funding requirements for the coming months.
From my Department's engagement with their representatives, and indeed from the NTA's regular engagement with them throughout the crisis, I understand the very difficult business environment that the commercial operators have been facing. Indeed, across Government we are acutely aware that the Covid-19 situation presents huge challenges for many business sectors.
It is critical for the public transport sector to be functioning so that it can carry the passengers that we need to return to work and to other activities as they re-open. Many of these operators provide essential transport services for people who need to get to work and are vital to ensure economic recovery.
For that reason, the Deputy will be pleased to know that on 25 June the Government approved temporary funding supports, in accordance with EU and national legislation, for the licensed bus sector. These supports are aimed at ensuring the continued operation of essential licensed bus services for a period of up to six months. The package will be restricted to operators where a clear public interest justification supports such intervention and will be targeted at compensating the gap between specified costs and the revenues generated on the services. The NTA, as the public transport licensing agency, is responsible for administering funding support through the establishment of contracts between the NTA and the relevant operators.
This is, of course, additional to the wider programme of Government supports for impacted businesses were introduced, including new schemes of wage subsidies, rates waivers, re-start grants, lending facilities, equity injection, and business advisory supports for example. In relation to SPSVs specifically, the NTA has also introduced a range of measures to facilitate their operation, and engaged with the insurance industry also on their behalf.
With the commencement of Phase 3 of the Roadmap for Reopening Society and Business on 29 June 2020, changes to the existing public transport social distancing restrictions were agreed, allowing a move from 2 metres social distancing to utilising 50% of the passenger-carrying capacity of bus and rail fleet. This will help to underpin public transport services provided by both public and commercial licensed operators during these unprecedented times, with a view to safeguarding public transport for the Roadmap for Reopening Society and Business.
In relation to active travel the NTA has offered financial and technical support to all local authorities in order to deliver improved walking and cycling infrastructure across the country. The NTA’s technical and financial support will be funded by my Department’s sustainable mobility investment programme and will support delivery of measures such as:
- widening of footpaths to facilitate queuing outside shops and enable social distancing
- potential pedestrianisation of some streets where necessary and feasible to accommodate social distancing, particularly where this supports business activities
- potential one-way systems to create space for footpath widening
- altering traffic signal times to reduce pedestrian waiting/crowding plus the automatic activation of some pedestrian phases in order to aid pedestrian movement and to minimise contact with signal push buttons
- providing additional temporary facilities for cyclists
- provision of some external space where appropriate to support business activities
In view of all the existing necessary engagements to address the Covid challenges I have no plans, at this time, to establish an additional administrative structure in relation to Covid matters.
54. Deputy Niamh Smyth asked the Minister for Transport, Tourism and Sport if a person (details supplied) can have their licence issued sooner; and if he will make a statement on the matter. [16344/20]
Amharc ar fhreagraThe National Driver Licence Service has resumed its counter service for people applying for driving licences from 8 June, with revised working practices to keep its customers and staff as safe as possible.
There is an inevitable backlog of people wishing to have a driving licence/learner permit issued, and walk-in applicants are not admitted at the moment; appointments are required for everyone.
The safety of the public is of paramount importance at this time, whether from infection or from deaths and injuries on the road, and in this as in all aspects of the Covid-19 crisis, my Department will be guided by NPHET and national experts.
It is important to clarify that a learner permit is not a licence, but a permit to allow a person to drive while learning. The purpose of the driving test is to set out the minimum level of knowledge, skill and competency that a learner must demonstrate in order to become a fully licensed driver. Until a learner can meet this standard and pass this test, they are not safe to take to our roads without appropriate supervision. An unaccompanied learner driver who is stopped by the Garda Síochána may face penalty points, a fixed charge, seizure of the vehicle and possible prosecution.
The RSA continue to work on expanding the online facility to accommodate all driving licence and learner permit application types. When this facility becomes available the RSA will update its website.
I understand the person has an appointment to apply for the permit next week, 22 July 2020.
55. Deputy Michael Healy-Rae asked the Minister for Transport, Tourism and Sport if he will address a matter regarding a driver theory test for a person (details supplied); and if he will make a statement on the matter. [16379/20]
Amharc ar fhreagraThe Driver Theory Test service resumed full operations on 8th June 2020, with some operational changes due to Covid-19 measures to minimize the risk to both candidates and staff.
Inevitably, there is a backlog of candidates waiting to take the test.
A candidate who believes they have a valid case for being allowed to sit the Driver Theory Test before others in the queue can email the National Driver Licence Service explaining why, and they may be allocated an earlier time slot.
56. Deputy Fergus O'Dowd asked the Minister for Transport, Tourism and Sport if he will address correspondence from a person (details supplied) in relation to commuter travel post Covid-19; and if he will make a statement on the matter. [16385/20]
Amharc ar fhreagraAs the Minister for Transport, Tourism and Sport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport.
The issue raised is an operational matter for the National Transport Authority (NTA) in conjunction with Iarnród Éireann and I have forwarded the Deputy's question to the NTA for direct reply.
Please advise my private office if you do not receive a response within ten working days.
57. Deputy Violet-Anne Wynne asked the Minister for Transport, Tourism and Sport if he has been in contact with the management of Shannon Group in view of the recent announcement by the group to seek voluntary redundancies and pay cuts among staff; and if he will ensure the survival of Shannon Airport. [16390/20]
Amharc ar fhreagraI can confirm to the Deputy that management in Shannon Group have been in contact with officials in my Department in relation to recent announcements by the Group to seek a small number of voluntary redundancies and pay cuts among staff.
The Deputy will be aware that Shannon Group is a commercial State Body and such matters are operational matters for the Group and Shannon Airport Authority which has statutory responsibility to operate, manage and develop the Airport.
I am aware of the devastating impact of Covid 19 on the aviation industry and on Shannon Group in particular. I propose to undertake a thorough examination of the future viability and sustainability of the Group, and I will consider restructuring measures, financial supports and any other measures that may be necessary and appropriate as part of a wider review of Shannon Group. I will bring recommendations to Government in this regard in due course.
It is my intention that the Company, including Shannon Airport, will be well positioned operationally to contribute to the post pandemic recovery, particularly given the importance of Shannon Airport to the economy of the Midwest region and indeed nationally.
58. Deputy Catherine Murphy asked the Minister for Transport, Tourism and Sport the terms and conditions of the funds released to an association (details supplied) in advance of the emergency general meeting of the association in September 2020; the meetings, online and or telephone meetings he has had with the association since becoming Minister; the instructions issued to Sport Ireland in respect of releasing funding to the association since becoming Minister; and if he will make a statement on the matter. [16402/20]
Amharc ar fhreagraI am informed by Sport Ireland that it has not released any funds to the association mentioned by the Deputy to date in 2020 and that no funds are scheduled to be paid out by Sport Ireland to the association in advance of an Emergency General Meeting which I understand the association will convene in the near future.
I understand that the association has indicated that its Annual General Meeting will take place in September.
Sport Ireland remains in communication with the association on matters relating to its governance and financial management. Certain firm commitments were provided by the association in a Memorandum of Understanding agreed with the then Minister for Transport, Tourism and Sport on 30 January 2020. Sport Ireland has established a process to oversee and review adherence by the organisation to the commitments given in the MOU.
The association has committed to implementing certain priority recommendations on governance reform and Sport Ireland expects to be in a position to restore funding to the association when these commitments are verifiably honoured.
Neither I nor my colleague, the Chief Whip and Minister of State with responsibility for Sport and the Gaeltacht Jack Chambers TD, have held any meetings with the association since becoming Minister nor have we issued any direction to Sport Ireland in respect of releasing funding to the association.
59. Deputy Joe Flaherty asked the Minister for Transport, Tourism and Sport his plans to put in place a compensation package for persons who booked flights prior to 16 March 2020 for summer 2020 in cases in which airlines are insisting on flying thus forcing families to either risk Covid-19 and bring back a second wave of the virus here or lose significant sums of money (details supplied). [16408/20]
Amharc ar fhreagraThe Deputy has identified a difficulty with the legal requirements on airlines under EU law. Under EU Regulation 261, air passengers are entitled to a full cash refund within 7 days in instances where a flight is cancelled by an airline. However, if a flight goes ahead and a customer does not use their ticket, they are not entitled to a refund. I understand that the main Irish airlines have been offering the option to rebook in circumstances where a flight occurs but people are not able to present because of Government advices.
Clearly the existing consumer protections and legal obligations on airlines and the broader travel sector did not envisage the current circumstances of mass cancellations and stringent travel restrictions. That has, not surprisingly, put the entire system under immense pressure and it is causing real difficulties for people and businesses. I have had good early engagement with the airlines and the aviation sector generally, including around consumer rights issues. As the Government crystalises its thinking around the measures needed for aviation, I can assure the Deputy that the issue he has raised will be part of those deliberations.
60. Deputy David Cullinane asked the Minister for Transport, Tourism and Sport if advice will be provided in relation to matters raised in correspondence regarding the circumstances of a person (details supplied). [16456/20]
Amharc ar fhreagraIn a case such as this, because of the length of time since the learner permit expired, the person must start at the beginning of the process once more, and successful undergo the Driver Theory Test before applying for a learner permit.
If a candidate for the driver theory test is unable to read or write, he/she can apply for special arrangements to take the test. A letter of evidence from a professional who can verify their literacy difficulties and need for assistance during the test must be provided. The arrangements available include extra time, and in certain cases a specialist reader can be provided. The specialist reader must read the test items out verbatim. However, if an item of vocabulary is unknown, a direct synonym may be provided to enable the Candidate to access the question. There is also a video voiceover option.
Once the driver theory test has been passed, the learner can then proceed to apply for a learner's permit, and commence to fulfil the driving lesson and practice requirements in order to successfully pass the driving test and be able to drive unaccompanied.
61. Deputy Martin Browne asked the Minister for Finance the consequences for banks found to be making additional profits from the Covid-19 crisis; if those banks have been informed of the sanctions they will be subject to; and the sanctions that have been implemented to date. [16413/20]
Amharc ar fhreagraIn order that the banking system can support the overall economy by providing credit to businesses and households on a prudent and sustainable basis, it is necessary for banks to be appropriately capitalised, profitable, well run and operate in a way that complies will all relevant prudential, macro prudential and consumer protection requirements. Within that framework, it is the responsibility of the boards and management of individual banks to operate and manage their business in a way that meets and appropriately balances the requirements of the various stakeholders of banks and other financial entities.
As independent regulator of the banking and wider regulated financial services sector, the Central Bank is working with financial service providers to ensure that households and firms are protected throughout this Covid-19 period. This is an active and ongoing engagement. For example, for existing borrowers who are impacted by Covid-19 payment breaks on mortgages and SME loans, and other similar temporary relief measures, allow households and businesses to absorb the shock of the crisis, so that as many as possible can recover once the virus is under control. They will help households and businesses to preserve their liquid reserves today, to the extent possible, at the cost of higher repayments (or longer repayment periods) in the future. However, these measures do not come without cost to the banking sector and these costs will also have to be managed in a way that protects their business and will be as fair as possible to the various stakeholders. However, as I have indicated to the banks, it will not be acceptable for banks to make excess profits from borrowers on payment breaks and it will be a matter for banks to demonstrate that situation will not arise.
Lenders, including banks, voluntarily put in place payment breaks in March 2020 to support those borrowers that were financially affected by the COVID-19 pandemic, and they are available for all those that need them and are a suitable solution for. Payment breaks are a widespread support being offered by lenders across the European Union and have been implemented on both a legislative and voluntary basis. The European Banking Authority (EBA) issued guidelines on their operation on 2 April 2020, with the aim of clarifying the regulatory treatment of payment moratoria across the EU prescribe the criteria which both voluntary and legislative moratoria must meet in order for relevant loans not to be classified as defaulted or otherwise forborne. Both interest accruing and interest not accruing are permissible under the guidelines and as a result the approach taken by Irish banks, whereby interest continues to accrue on exposures subject to the COVID-19 moratoria, is compliant with the EBA Guidelines. All lenders also have been required to develop strategies and operational capability to continue to support borrowers who cannot return to full capital and interest after the end of the payment break and this may include offering forbearance as required and restructuring of loans in the event of long-term affordability issues. In such a situation it should be noted that the provisions of the applicable Central Bank consumer protection codes and regulations will be available to borrowers in such a situation.
63. Deputy Brendan Smith asked the Minister for Finance if he is considering a reduction in VAT on the hospitality and tourism sector in view of the adverse impact of Covid-19 on the sector; and if he will make a statement on the matter. [16278/20]
Amharc ar fhreagraThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes our people can get back to work as quickly and seamlessly as possible.
This Government is currently preparing a the July stimulus package which will set out supportive measures for a wide range of sectors including the hospitality and tourism sectors to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base. Details of the July stimulus package will be announced by Government shortly.
