Written Answers Nos. 215-234
215. Deputy Holly Cairns asked the Minister for Transport, Tourism and Sport if applications for the renewal of driver licences for vulnerable or at-risk groups that require a letter from a doctor can be made available for online application. [19150/20]
Amharc ar fhreagraCurrently the online driving licence application service does not provide for the uploading of supporting documentation such as medical reports. The Road Safety Authority (RSA) is working to expand the online facility to accommodate all driving licence and learner permit application types, which would facilitate those requiring medical reports, in a manner that does not undermine the existing legal framework or the effective operations of the stakeholders involved.
216. Deputy Catherine Murphy asked the Minister for Finance if his attention has been drawn to instances of insurance companies refusing to issue travel insurance to persons who need to travel abroad for essential work purposes; and if he will make a statement on the matter. [18141/20]
Amharc ar fhreagraTo date, my Department has not been made aware of instances of insurance companies refusing to issue travel insurance to persons that need to travel abroad for essential work purposes. The Deputy will appreciate, however, that I cannot comment on individual cases, and that the decision of an insurer not to provide insurance is a commercial decision based on the level of risk that the insurer is willing to take. As the Deputy will also be aware, neither I, nor the Central Bank of Ireland, have any influence over the pricing of insurance products, and neither can we compel any insurer operating in the Irish market to provide cover to individual consumers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from adopting rules, which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
Government advice recommending that non-essential travel abroad is avoided remains, with all arrivals into Ireland (including those returning in relation to trips for essential work purposes) asked to restrict their movements on arrival, with the exception of those arriving from jurisdictions on the ‘green list’ (or ‘normal precautions’ list) prepared by the Department of Foreign Affairs. I understand that Insurance Ireland has said that the main providers of travel insurance will now operate subject to normal terms and conditions for policyholders travelling to ‘green list’ jurisdictions. However, it is important that consumers check with their insurance provider first before travelling to ensure they are comfortable with the level of cover they will have. In addition, it is important to note that the ‘green list’ is due to be reviewed every two weeks, so some jurisdictions may be added as well as removed in accordance with the current epidemiological situation and related public health information in each jurisdiction. As such consumers are advised to maintain regular contact with their insurers on travel insurance matters.
217. Deputy Patricia Ryan asked the Minister for Finance if the planned tax rebate on tourism spending will extend to spending to the entirety of the island of Ireland. [18745/20]
Amharc ar fhreagraThe Stay and Spend Incentive is intended to be a tax-based scheme in the State that will provide support during the off-season to the Accommodation and Food sector, a particularly vulnerable sector that will continue to be constrained by public health limitations.
In order to qualify for participation in the scheme as proposed in the Financial Provisions (Covid-19) (No. 2) Bill 2020:
1. the service provider must be VAT registered with Revenue; and
2. the service provider must hold a current tax clearance certificate from Revenue.
Accordingly, only expenditure with service providers located within the State and meeting the above requirements (amongst others) may be eligible expenditure for the purposes of the incentive.
218. Deputy Paul Donnelly asked the Minister for Finance the reason the temporary wage subsidy scheme for the hospitality industry is based on earnings in January and February of 2020 where that industry would traditionally either close or have a quiet period in those months (details supplied). [19043/20]
Amharc ar fhreagraSection 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Temporary Wage Subsidy Scheme (TWSS). The TWSS necessarily builds on data returned to Revenue through its real-time PAYE system. The core principles of the scheme are that:
- the business is suffering significant negative economic impact due to the pandemic,
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020, and
- the February 2020 payroll submissions were submitted by the employer to Revenue before, in general, 15 March 2020 but this was later extended by Revenue to 1 April 2020.
The latter two conditions were particularly designed to prevent abuse of the scheme.
Employers who did not have employees on their payroll on 29 February 2020 do not meet the eligibility criteria for the TWSS in relation to those employees and, cannot qualify for the scheme in respect of the employees concerned. For employees who were working with the employer on that date, the amount of the wage subsidy for each employee is calculated based on the average net weekly pay reported by the employer for January and February 2020.
As part of the ‘July Stimulus’ announced on 23 July, which has been published in the Financial Provisions (Covid-19) (No.2) Bill 2020, the Government is introducing the Employment Wage Subsidy Scheme (EWSS). The EWSS will deliver an enterprise support to employers based on business eligibility and will deliver a per-head subsidy on a flat rate basis. It will not be linked to the average revenue net weekly pay which is currently the case for TWSS.
The EWSS will replace the TWSS from 1 September. Both the TWSS and EWSS will run in parallel from 31 July until the TWSS expires at the end of August. This is in order to provide additional flexibility to employers with new hires and seasonal workers who were not previously eligible to be paid via TWSS and who may now qualify for EWSS.
The EWSS will be an economy-wide support, open to all sectors. The primary criterion for qualification is that the employer must demonstrate that they are operating at no more than 70% turnover from the period July to December 2020 compared to the same period last year.
The Pandemic Unemployment Payment (PUP) is a matter for the Minister for Employment Affairs and Social Protection.
219. Deputy Mattie McGrath asked the Minister for Finance the planned contribution by Ireland to the EU Budget over the next seven years; the justification for Ireland being the second highest contributor per capita to the EU Budget, second only to Luxembourg; the efforts that were made to seek a write down and reduction of the contribution in view of the write down received by Germany, Holland, Sweden and others; if efforts will be made to seek a reduction in the contribution by Ireland in view of the financial difficulties facing Ireland; and if he will make a statement on the matter. [19028/20]
Amharc ar fhreagraAs the Deputy will be aware, on 21st July 2020, Heads of State and Government reached agreement on the Post-2020 MFF and Next Generation EU, totalling €1.82 trillion. Difficult discussions took place over four days but the Government welcomes this agreement. It is a fair and balanced outcome and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. Council conclusions set out the leaders’ agreement for the European Commission to borrow €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans. Agreement was also reached on a new Multiannual Financial Framework from 2021 – 2027, totalling €1.074 trillion, which will support rural and regional development, and the transformation of our economies in line with the climate transition, research and development, and digital agendas.
Ireland has been a net contributor to the EU Budget since 2014, and this position is set to grow further over the course of the next MFF. Ireland’s contributions to the EU Budget are projected to increase considerably over the coming period in all scenarios as a result of economic growth in recent years.
In May 2020, the European Commission produced a needs assessment underpinning the proposed “Next Generation EU”. In this needs assessment the European Commission estimate that Ireland’s contributions to the Next Generation EU package would be in the region of approximately €18.7 billion over the next thirty years and estimated that Ireland would potentially receive a total of up to €2 billion in grants, with a further €1 billion in loans available up to 2024 should Ireland decide to borrow same. The needs assessment indicated that Ireland’s contributions to the “Next Generation EU” package would be the second highest in Net % GDP terms in the EU. The amounts in this needs assessment have been overtaken by European Council conclusions, as agreed by leaders on 21st July although Ireland remains a significant net contributor to the recovery fund.
Irish contributions to the EU budget are expected to rise over the coming MFF period from approximately €3 billion in 2021, to over €4 billion in 2027, an average of €3.5 billion. Exact contributions to the repayment of NGEU borrowing are yet to be determined (and will depend on whether new Own Resources are agreed) but are expected to be significant.
At this time of crisis the Covid recovery funds are needed now, but will be paid back over 30+ years. It is important to remember that Ireland has benefitted greatly from EU membership in economic (single market access), social, environmental, and financial terms (net €40+ billion receipts). We stand ready to demonstrate solidarity with those most in need now.
For the period 2021-2027 and consistent with the current MFF, lump-sum corrections will reduce the annual GNI-based contribution of Denmark, Germany, the Netherlands, Austria and Sweden. Ireland did not seek such a lump sum contribution as it would not have been appropriate to do so.
In respect of the final agreement by EU leaders, Ireland has:
- Protected the CAP Budget for Ireland and successfully reversed the damaging cuts proposed – including a special allocation of €300 million in recognition of the challenges our agricultural sector is facing.
- Secured a significant €5 billion Brexit Adjustment Reserve to address the impact on Member States and sectors most affected. The exact criteria for disbursements under the Reserve remain to be worked out but we will be working to ensure a significant share for Ireland and affected sectors.
- Secured an increase in the share of customs collection costs retained by Ireland (now 25%), will help address infrastructure and other Brexit costs.
- Secured significant EU funding for Ireland under the recovery plan to target the immediate response to the Covid crisis (ca. €1.28 billion) in 2021/2022, with further funding in 2023 to be targeted at those most impacted economically by the crisis.
- Secured structural funds worth over a billion euro for our regions.
- Secured a special allocation of €120 million for a new PEACE PLUS programme, to which Ireland and the UK will also contribute, to build and continue the work of the current PEACE and INTERREG programmes in a post-Brexit context.
- Also welcomed the strong climate target for EU funds (30% of total budget) in support of the Paris Agreement; the Just Transition Fund will benefit areas including the midlands.
- Secured very substantial budgets for other priority programmes: Horizon Europe, Erasmus+ and the EU’s neighbourhood and development cooperation programme. Government will ensure that Departments and agencies work to make sure we maximise Irish draw-down from relevant programmes.
220. Deputy Paul McAuliffe asked the Minister for Finance if the State is responsible for the costs associated with the management of the funds of a company (details supplied) while they were in an escrow account; and if he will make a statement on the matter. [17992/20]
Amharc ar fhreagraAs the Deputy will be aware, the State recovered the alleged State aid from Apple in full by September 2018. The total amount recovered was circa €14.3 billion (which is the principal and relevant EU interest). These sums are held in an Escrow Fund with the proceeds to be released only when there has been a final determination of the case by the European Courts.
All income, expenses, gains, and losses accrue to the Fund, including those associated with the management of the Fund.
221. Deputy John Lahart asked the Minister for Finance his plans to make changes to the inheritance tax thresholds in Budget 2021. [18179/20]
Amharc ar fhreagraAs the Deputy will be aware, consideration of possible changes to CAT rates and thresholds generally takes place as part of the annual Tax Strategy Group, Budget and Finance Bill process. Together, these processes consider options for changes across the wider tax system. As is normal, the Deputy will appreciate that I cannot comment on any possible changes in advance of the 2021 Budget and 2020 Finance Bill.
222. Deputy John Lahart asked the Minister for Finance his plans to carry out a review of credit union legislation; and if he will make a statement on the matter. [18221/20]
Amharc ar fhreagraThe Government recognises the key role that credit unions play in the delivery of financial services in local communities across Ireland, the need for which is heightened at this time. Credit unions account for approximately one third of the consumer credit market and are well positioned to provide credit to support the recovery.
The economic outlook arising by virtue of COVID-19, including reduced demand for new lending, has increased the challenges the sector is already facing. As a result it was agreed that the Credit Union Advisory Committee (CUAC) would report to me on challenges and opportunities for the sector, incorporating implications of COVID-19, and any relevant recommendations. CUAC has now submitted it's report to me, including recommendations, which I will consider carefully.
There are several commitments in Programme for Government which relate to credit unions, which will be expanded upon in the coming weeks and months by the new Government, taking into account work already completed such as the CUAC report noted earlier and a separate CUAC report on directors, which was finalised in February 2020. I will also take into consideration the views of key stakeholders in the sector. I cannot pre-commit to an undefined review of credit union legislation in advance of this work being undertaken.
However, there are several discrete pieces of legislation relating to credit unions which may progress including, inter-alia, legislation to amend the interest rate cap and dissolve the Credit Union Restructuring Board.
223. Deputy Marian Harkin asked the Minister for Finance his plans to include counsellors and psychotherapists on the list of health professionals who are VAT exempt; and if he will make a statement on the matter. [18244/20]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. Under domestic legislation, professional medical care services recognised as such by the Department of Health and Children are exempt from VAT. Professional medical care services recognised by the Department of Health and Children are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses Act 1985 and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration.
As the Deputy may be aware, the then Minister for Health, Simon Harris TD, appointed the thirteen members of the Counsellors and Psychotherapists Registration Board with effect from 25 February 2019.
The Board has begun the substantial body of work which must be undertaken before it is in a position to open its registers. It is envisaged that this process will take a minimum of two years to complete.
Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for the Minister for Health.
224. Deputy Gary Gannon asked the Minister for Finance the way in which the commitment to the sustainable development goals will be reflected in the Strategy and Work Plan 2020-2025 of his Department; and the way in which progress towards achieving the goals will be monitored and reported annually. [18273/20]
Amharc ar fhreagraAs the Deputy may be aware, in September 2015, 193 UN Member Countries including Ireland adopted the Sustainable Development Goals (SDGs) which consist of 169 targets around the 17 high level goals. The SDGs are a global blueprint for collective progress to a more prosperous and sustainable world by 2030. The SDGs are applicable to all countries, developed and developing, and action is required for their implementation both domestically and internationally.
Ireland is committed to implementing the SDGs, and published its first SDG National Implementation Plan 2018-2020 in July 2018. While the Department of Communications, Climate Action and Environment has lead responsibility for promoting and overseeing the coherent implementation of the Sustainable Development Goals (SDGs), the whole-of-Government approach to implementation of the SDGs means all Ministers are responsible for implementing the SDGs related to their functions. The Department of Finance has been assigned responsibility for a number of goals and sub-targets, spanning from promoting inclusive economic growth to building partnerships for sustainable development. These responsibilities include targets under the following Goals where a lead or stakeholder role has been assigned
- Goal End poverty in all its forms everywhere
- Goal 3 Ensure healthy lives and promote well-being for all at all ages (stakeholder role)
- Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
- Goal 10 Reduce inequality within and among countries
- Goal 12 Ensure sustainable consumption and production patterns (stakeholder role)
- Goal 13 Take urgent action to combat climate change and its impacts (stakeholder role)
- Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss (stakeholder role)
- Goal 17 Strengthen the means of implementation and revitalise the global partnership for sustainable development
A comprehensive list of these responsibilities is published in an Annex to the National Implementation Plan available at https://www.dccae.gov.ie/documents/DCCAE-National-Implementation-Plan-Annex-1.pdf. I can assure the Deputy that my Department will continue existing work in these areas, with a view to increasingly mainstreaming the SDGs into relevant policies.
Currently there are a number of channels through which my Department reports SDG progress. The Department of Finance complies with the National Implementation Plan requirement to provide information in its Annual Report on the implementation of relevant SDG targets. As the Deputy may be aware, delivery on the SDGs is underpinned by an implementation and reporting process. Given the broad scope and cross-cutting nature of the SDGs, the Government has put in place strong and effective governance arrangements which are essential to ensure high-level engagement with the 2030 Agenda and effective interdepartmental cooperation on the implementation of the Goals. A Senior Officials Group (SOG) has been established to co-ordinate and monitor SDG implementation and to report, as required, to Government. The SOG is chaired by the Department of the Taoiseach. To further support the work of the SOG, an Interdepartmental SDG Working Group was established, comprised of representatives from all Departments with responsibilities for the SDGs. To accentuate the all-of-government approach and ensure policy coherence, my Department is supportive and fully engages with this SDG governance architecture.
My Department also continues to participate in SDG Stakeholders Forums. These events provides a opportunity to engage with stakeholders and civil society groups on an ongoing basis in relation to SDG implementation. These are all important channels of reporting and monitoring SDG progress.
Internationally, the UN High-level Political Forum (HLPF) is responsible for the follow-up and review of the 2030 Agenda at the global level. The HLPF meets annually and features inputs from national governments, intergovernmental bodies, relevant UN agencies, civil society and other stakeholders.
Countries are encouraged to review implementation of the Sustainable Development Goals (SDGs) regularly and present Voluntary National Reviews (VNR) at the HLPF. Ireland presented its first VNR at the HLPF in July 2018. Having input into the first VNR, I expect my Department to be an active contributor in the next National Review in 2022.
The Deputy may also be aware that, as of 2020, the EU Semester process of Economic governance and coordination has a new focus on Green and Sustainable issues. This new focus takes account of the European Green Deal as Europe’s new growth strategy, and incorporates the UN’s Sustainable Development Goals into all stages of the process. Progress towards achieving the UN SDG are monitored within this process using:
- The Country Report for each Member State which contains data setting out the progress in each Member State across the 17 SDGs towards achieving these Goals by 2030, and
- Each Member State’s National Reform Programme assesses performance in implementing the UN Sustainable Development Goals.
These documents are publicly available as soon as they are published.
Looking forward, I wish to confirm to the Deputy that my Department’s Statement of Strategy is currently under review. In preparing the revised Strategy I wish to assure that Deputy that this review will take cognisance my Department’s SDG responsibilities, seeking to enhance policy coherence and alignment and mainstream SDGs into policy areas. Increasing this integration will ensure that aside from the modalities of communicating progress I have already outlined, the reporting of my Department’s performance towards its strategic objectives will be synchronous with progress toward SDG delivery.
225. Deputy Robert Troy asked the Minister for Finance if a person can retrospectively apply for the help to buy initiative if they satisfy all of the conditions in cases in which they were not aware of the scheme's existence and where the home was constructed in 2018. [18284/20]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser and that he or she has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. Also, the new property must be occupied as the sole or main residence of a first time purchaser. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling.
The definition of “first-time purchaser” for the purposes of the scheme is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling.
The HTB scheme operates by way of a payment being made at deposit stage (following the signing of a contract to purchase) or, in the case of a self-build, following the drawdown of the first tranche of the relevant mortgage. Therefore, the intention of the scheme is that the house would not have been completed when applying for the HTB scheme.
The HTB scheme has been widely publicised since its announcement in 2016, particularly by financial institutions providing mortgages. Revenue does not have discretion to vary the conditions for qualification for relief under the HTB scheme. However, if there are unique circumstances which has prevented an individual from claiming the HTB scheme, the taxpayer should contact Revenue with the relevant circumstances and each case will be considered on a case by case basis.
226. Deputy Neasa Hourigan asked the Minister for Finance his plans to expand the living city initiative to include all inner-city areas of Dublin city rather than just those designated special regeneration areas; and if he will make a statement on the matter. [18327/20]
Amharc ar fhreagraIn order to qualify for tax relief under the Living City Initiative, a property must be located wholly within a “special regeneration area”. This condition is provided for by s. 372AAB (1) of the Taxes Consolidation Act 1997 which provides as follows:
"qualifying premises' means a relevant house -
(a) the site of which is wholly within a special regeneration area,"
The special regeneration areas for the Living City Initiative were designated following consultation with the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas which should be included within the remit of the Living City Initiative which were required to be taken into account by the relevant city councils when putting forward the proposed Special Regeneration Areas for each city. In particular, it was stated that the Special Regeneration Areas should be inner city areas which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use. It was specified that areas which are generally regarded as affluent, have high occupancy rates and which do not require regeneration should not be included in the Special Regeneration Areas.
I have no plans at present to amend the special regeneration zones.
227. Deputy Michael Fitzmaurice asked the Minister for Finance if the net contribution made by Ireland to the EU recovery fund is €15.7 billion in accordance with a document in circulation at the European Council; and if he will make a statement on the matter. [18372/20]
Amharc ar fhreagraAs the Deputy will be aware, on 21st July 2020, Heads of State and Government reached agreement on the Post-2020 MFF and recovery plan “Next Generation EU”, totalling €1.82 trillion. Difficult discussions took place over four days. The Government has welcomed this agreement. It is a fair and balanced outcome and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. Council conclusions set out the leaders’ agreement for the European Commission to borrow €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans. Agreement was also reached on a new Multiannual Financial Framework from 2021 to 2027, totalling €1.074 trillion, which will support rural and regional development, and the transformation of our economies in line with the climate transition, research and development, and digital agendas.
Ireland has been a net contributor to the EU Budget since 2014, and this position is set to grow further over the course of the next MFF. In May 2020, the European Commission produced a needs assessment underpinning the proposed “Next Generation EU”. In this needs assessment the European Commission estimated that Ireland’s contributions to the Next Generation EU package would in the region of approximately €18.7 billion over the next thirty years and estimated that Ireland may potentially receive a total of up to €2 billion in grants, with a further €1 billion in loans available up to 2024 should Ireland decide to borrow same. However, these amounts were overtaken by the European Council agreement of 21 July 2020.
We will need to see the European Commission’s official allocation for Member States, but at this point Ireland’s estimated grant allocation amounts to €1.278 billion made up of:
- €177m EAFRD allocation
- €204m React EU
- €44m Just Transition Fund
- €853m Recovery and Resilience Facility (This is only 70% of the total amount available under this Facility, with potential additional grant allocation from the remaining 30% of the Facility to be allocated in 2023 – this could potentially be in the region of a further €300m)
In terms of loans under the NGEU, we estimate that Ireland could potentially avail of approximately €1.4 billion.
Ireland’s contributions to the EU Budget are projected to increase considerably over the coming period in all scenarios as a result of economic growth in recent years. Irish contributions to the EU budget are expected to rise over the coming MFF period from approximately €3 billion in 2021, to over €4 billion in 2027, an average of €3.5 billion.
Exact contributions to the repayment of NGEU borrowing are yet to be determined (and will depend on whether new Own Resources are agreed) but are expected to be significant. At this time of crisis the Covid recovery funds are needed now, but will be paid back over 30+ years.
It is important to remember that Ireland has benefitted greatly from EU membership in economic (single market access), social, environmental, and financial terms (net €40+ billion receipts). We stand ready to demonstrate solidarity with those most in need now.
228. Deputy Michael Fitzmaurice asked the Minister for Finance the net contribution of Ireland to the EU budget in 2019 and 2020; and if he will make a statement on the matter. [18373/20]
Amharc ar fhreagraAs the Deputy will be aware, Ireland became a net contributor to the EU Budget in 2014, and since then, this position has grown further. However, at this point in time information on Ireland’s actual net contribution to the EU Budget in 2019 and 2020 is not available.
Ireland’s gross contribution to the EU Budget in 2019 was €2.4 billion. Ireland’s gross contribution to the EU Budget for 2020 is estimated to be €2.7 billion.
Over the coming weeks, my Department will be liaising with all Government Departments in seeking data on EU Budget receipts for 2019, which will be subsequently published in the Budgetary Statistics 2020 report in Autumn 2020. It will be only then that my Department will be in a position to give Ireland’s actual net contribution to the EU Budget in 2019. Receipt data for 2020 will be available in Autumn 2021.
229. Deputy Michael Fitzmaurice asked the Minister for Finance his views on whether entering deeper into the EU debt is good for the financial health and sovereignty of Ireland; and if he will make a statement on the matter. [18374/20]
Amharc ar fhreagraAs the Deputy may be aware, on 25 March 2020, in response to the Covid-19 crisis, Ireland and eight other countries (Belgium, France, Greece, Italy, Luxembourg, Portugal, Slovenia, and Spain) signed a public letter to the President of the European Council (PEC) Charles Michel, calling for “a common debt instrument issued by a European institution to raise funds on the market on the same basis and to the benefits of all Member States, thus ensuring stable long term financing for the policies required to counter the damages caused by this pandemic”.
The letter continued, stating that the case for such a common instrument is strong, since all Member States are facing a symmetric external shock from the Covid-19 crisis, for which no country bears responsibility, but whose negative consequences are endured by all.
On 21st July, Heads of State and Government reached agreement on the Post-2020 Multiannual Financial Framework (MFF) and the recovery plan “Next Generation EU” (NGEU), totalling €1.82 trillion. Difficult discussions took place over four days. Council conclusions set out leaders’ agreement on the Post 2020 MFF from 2021 to 2027, totalling €1.074 trillion, and a further €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans under NGEU.
NGEU financing will be raised by “temporarily” increasing the Own Resources ceiling to 2.00% of EU Gross National Income (GNI) allowing the Commission to borrow €750 billion on the financial markets to fund measures over the period 2021 – 2023 (commitments).
€390 billion of Next Generation EU financing will be in the form of grants to Member States, with the remaining €360 billion as loans.
This additional funding, to be channelled through EU Budget programmes, will be repaid between 2026 and 2058 drawing on future EU Budget contributions from Member States or the Own Resources of the Union.
The centrepiece of the package, the “Recovery and Resilience Facility” (RRF), is the largest single instrument within the Commission’s Next Generation EU proposal, with a budget of €672.5 billion (€312.5 billion grants and €360 billion loans), and is targeted at investment and reform in Member States. The Recovery and Resilience Facility will be embedded in the European Semester of economic governance. The Facility aims to mitigate the economic and social impact of the crisis and support the recovery, while fostering green and digital transitions.
The Government welcomes this agreement. It is a fair and balanced outcome and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. It is a good deal for Europe – an unprecedented response by the EU, including Ireland, to the impact of the Covid crisis. The agreement to borrow €750 billion is a strong signal that the EU is determined to chart the pathway to recovery together, showing Europe works for its citizens.
230. Deputy Niamh Smyth asked the Minister for Finance if he will review the case of a person (details supplied); if he will provide advice on the matter; if he will address the issues; and if he will make a statement on the matter. [18411/20]
Amharc ar fhreagraI fully appreciate the concerns you raise at this difficult time about people who are experiencing uncertainty about mortgage applications and drawdowns. My Department is maintaining close contact with the Central Bank of Ireland and Banking and Payments Federation Ireland – the BPFI - as the lending industry works to address the difficulties the Covid-19 situation is causing for both borrowers and lenders. In this context, the Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customer's best interests at all times, including during the Covid-19 pandemic. The Central Bank has also advised that it continues to monitor this situation and the impact of COVID-19 very closely to ensure that lenders are continuing to take a consumer-focused approach and are acting in their customers’ best interests at all times.
Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. Indeed, the three main retail banks assured the Tánaiste, Leo Varadkar T.D., Minister McGrath and me at meetings the week before last that they are considering applications and mortgage drawdowns from customers on the Temporary Wage Subsidy Scheme on a case by case basis. The BPFI has published a Covid-19 support information document which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application.
However, within the parameters of the regulatory framework governing the provision of mortgages, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity and it is not appropriate or possible for me to instruct lenders in that regard. Also it may be the case that a loan offer from a lender may contain a condition that would allow the lender to withdraw or vary the offer if, in the lender’s opinion, there is any material change in circumstances prior to drawdown. In such cases, the decision to withdraw or vary the offer is also a commercial and contractual decision for the lender.
Regarding the regulations governing mortgage credit, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016, which transposed the Mortgage Credit Directive into Irish law, require lenders to make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement and must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. The Regulations further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower and in this regard I welcome the recent statement from the pillar banks that they will assess mortgage applications from people in receipt of the temporary wage subsidy scheme on a case by case basis.
However, if a consumer if not satisfied with the way a regulated entity is dealing with his/her mortgage application or drawdown then, under the provisions of the Central Bank Consumer Protection Code, s/he can make a complaint to the lender. If the consumer is still unhappy with the position following the outcome of the internal complaints process, then s/he can make a complaint to the Financial Services and Pensions Ombudsman (FSPO). Clear information on how to make a complaint to the FSPO may be found at this link:
https://www.fspo.ie/make-a-complaint/#:~:text=Contacting%20the%20FSPO%20about%20your%20complaint&text=Phone%20us%20on%20%2B353%201,a%20complaint%20form%20by%20post.
231. Deputy Niamh Smyth asked the Minister for Finance if he will review a matter (details supplied); the steps he is taking to resolve these issues for local businesses; and if he will make a statement on the matter. [18414/20]
Amharc ar fhreagraLet me say at the outset that I am very much aware of the problems faced by many businesses in the leisure industry, in relation to the availability and affordability of public liability insurance. However, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, and neither can we compel any insurer operating in the Irish market to provide cover to businesses, or community groups, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. In addition, the Government has no direct influence over award levels, as awards are a matter for the Judiciary.
As the Deputy will appreciate, there is no single policy or legislative fix to remedy the cost and availability of insurance issue. What is needed is for the ongoing reform measures to be implemented and to quickly bear fruit. In this regard, the new Programme for Government identifies a range of issues that the Government will prioritise so as to benefit consumers including small businesses such as those in the leisure sector throughout the country. This cross-Departmental insurance reform agenda, which I believe builds and expands upon previous work done by the Cost of Insurance Working Group, is a priority for this Government and in particular for my Department.
In terms of addressing insurance premiums for small businesses, particularly those in the leisure sector, a necessary step is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council in December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Judicial Council by 28 October. The guidelines could play a role in the lowering of award levels and also could lead to a more consistent application of awards by the courts. Insurance Ireland has commented that if award levels come down so will premiums charged by its members. I believe that this is a very important statement and the Government intends holding the insurance industry to account on this matter.
In conclusion, I wish to emphasise that insurance reform remains a priority for the Government and as noted above this is reflected in the Program for Government. This is an issue that I, as Minister for Finance, along with Minister of State Fleming in my Department, will focus on. In doing so we will be working closely with An Tanaiste and a number of other of our Ministerial colleagues given the cross-Departmental nature of prioritising the Programme for Government commitments on insurance reform.
232. Deputy Carol Nolan asked the Minister for Finance the net contributions Ireland will have to make to the EU Multi-Annual Financial Framework in each year until 2024; and if he will make a statement on the matter. [18420/20]
Amharc ar fhreagraAs the Deputy will be aware, Ireland became a net contributor to the EU Budget in 2014, and since then, this position has grown further. However, at this point my Department does not have information regarding Ireland’s actual net contribution to the Post-2020 Multiannual Financial Framework (MFF) in each year until 2024.
Irish contributions to the EU budget are expected to rise over the coming MFF period from approximately €3 billion in 2021, to over €4 billion in 2027, an average of €3.5 billion. We estimate that our receipts from the Post-2020 MFF will be in the region of approximately €2 billion each year. Data on EU Budget receipts are published annually in my Department’s Budgetary Statistics each Autumn for the previous year – 2021 receipt data will be published in Autumn 2022.
233. Deputy James Browne asked the Minister for Finance the position regarding homecare providers seeking VAT exemption from the Revenue Commissioners using HSE verification; the way in which a private homecare provider can secure such HSE verification for the purposes of VAT exemption; if VAT exemption provides coverage for all homecare services; and if he will make a statement on the matter. [18525/20]
Amharc ar fhreagraI am advised by Revenue that in order for home care services to qualify for exemption, the provider must act as principal and must be recognised by the HSE as a home care provider. The home care provider is required to give notice in writing to the HSE of their own details as well as details of the persons to whom they provide home care services and the nature of such services so provided. A “home care service” is defined as a service made available in a private dwelling for a person who, by reason of illness, frailty or disability, is unable to provide the service for himself or herself without assistance.
If the HSE is satisfied that the appropriate information has been provided it will issue a “Certificate of Notification” to the provider. However, the holding of a “Certificate of Notification” from the HSE does not serve as evidence that a provider is providing home care services that qualify for exemption from VAT. To establish if a supply is taxable or exempt, each supply must be looked at on its own merits. Detailed information is available on the Revenue website in relation to VAT and the Provision of Home Care Services. If a provider has any doubts about whether their supply is taxable or exempt, they should contact Revenue.
234. Deputy Emer Higgins asked the Minister for Finance the amount of nitrous oxide seized by customs each year since 2015 to 2019 and to date in 2020; and if he will make a statement on the matter. [18610/20]
Amharc ar fhreagraI am advised by Revenue that it is aware of the emerging trend in the misuse of nitrous oxide. Revenue is closely monitoring importations of the product into the State.
Nitrous oxide containers are not prohibited goods as they have a number of legitimate uses, for example in the food industry. However, where Revenue has reasonable grounds for believing that the goods being imported will not be used for legitimate purposes and that the psychoactive substance is being used for human consumption, then Revenue has the power to detain and seize psychoactive substances in accordance with the Criminal Justice (Psychoactive Substances) Act 2010.
Revenue had no seizures of nitrous oxide in the period from 2015 to 2019. It has had three seizures of the product to date in 2020 consisting of 14,400 canisters. In addition, two commercial consignments, which were routed through Dublin Port from another EU member state, were seized by the UK Border Force following information provided by Revenue.
Revenue works closely with other agencies in the State including An Garda Síochána, the Department of Justice and Equality and the Health Products Regulatory Authority, in acting against the illegal drugs trade. I am assured by Revenue that combating the importation of any prohibited or restricted goods into this jurisdiction is, and will continue to be, a priority.
