Pearse Doherty
Ceist:363. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of measures implemented in sections 10 and 11 of the Financial Provisions (Covid-19) (No.2) Bill 2020. [20842/20]
Amharc ar fhreagraLegislative Measures
Ceisteanna (363, 364)
Pearse Doherty
Ceist:364. Deputy Pearse Doherty asked the Minister for Finance the estimated quantum of tax rebate due to sole traders or members of partnerships, disaggregated by intervals of €1,000, under the provisions of Section 10 of the Financial Provisions (Covid-19) (No.2) Bill 2020. [20843/20]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 363 and 364 together.
Section 10 of the Financial Provisions (Covid-19) (No.2) Bill 2020 makes a number of amendments to the Taxes Consolidation Act 1997 to provide for a new once-off income tax relief for self-employed individuals carrying on a trade or profession who were profitable in 2019 but, as a result of the Covid-19 pandemic, incur losses in 2020.
These provisions will allow such individuals to claim to have those losses (and certain unused capital allowances) up to a maximum amount of €25,000 carried back and deducted from their profits for the tax year 2019. This will reduce the amount of income tax payable in respect of those profits.
The provisions will also allow for claims for the relief to be made on an interim basis to give a cash flow boost to those taxpayers during 2020.
Finally, the provisions give an option to farmers who incur a loss in 2020 to step out of income averaging for the tax year 2020, notwithstanding that the farmer may already have stepped out of income averaging in one of the four preceding tax years.
The estimated cost of this measure is €150 million in 2020.
With regard to the Deputy’s question as to the estimated cost of the measure in Section 11 of the Bill, companies are already permitted to carry back losses against the taxable profits of the previous accounting period. Section 11 provides for a temporary acceleration of this existing relief, so there is no incremental cost to the Exchequer in the medium term. However, it will provide much needed cash flow cash flow support of up to €450 million in a relatively simple and straightforward manner, thereby helping viable and tax compliant companies to continue trading.
Insurance Coverage
Ceisteanna (365)
Brendan Smith
Ceist:365. Deputy Brendan Smith asked the Minister for Finance the outcome of the most recent discussions with insurance companies in relation to the need to honour claims for business interruption; and if he will make a statement on the matter. [20872/20]
Amharc ar fhreagraFreagraí scríofa
I am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, including in terms of honouring business interruption claims. I have considerable sympathy for such policyholders. However neither I, nor the Central Bank can direct or require that insurers cover claims, including those resulting from infectious diseases such as COVID-19. Furthermore, it is not a matter for the Government or Central Bank of Ireland to adjudicate on the validity of such claims.
Whether a business can make a claim in relation to loss of earnings because of closure due to COVID-19 will depend on the specifics of their policy. I have made it very clear as a general rule that insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage. I believe that insurers should engage with those businesses honestly, fairly and professionally to honour those elements of the policies covered, in line with the Central Bank’s Consumer Protection Code. I retierated these points when I and Minister of State Fleming met with Insurance Ireland earlier this week.
I understand, however, that many businesses do not routinely have infectious diseases covered as part of their standard policies. In the case where infectious diseases are covered, there may be other considerations which will influence the decision of an insurer to not pay a claim. It is important therefore for businesses to engage directly with their insurer or broker on this matter, and where they believe an insurer has incorrectly rejected their claim, they should either consider referring the matter to the Financial Services Ombudsman (FSPO) for adjudication or where their claim is in excess of the FSPO €3 million limit they may wish to consider legal action. I understand that this is already happening in a number of cases.
The above said however, my officials and I have been engaging with the sector in an effort to get some much-needed certainty for business policyholders. On business interruption claims, I wrote to Insurance Ireland on 27 March and indicated amongst other things that:
(i) insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage; and,
(ii) that where a claim can be made because a business has closed as a result of a Government direction due to contagious or infectious disease, that the recent Government advice to close a business in the context of COVID-19 should be treated as a direction.
Insurance Ireland, on behalf of its membership, responded on 3 April and stated that it accepted both of my points. It did however indicate that each insurance policy is different and there may well be other factors which lead to the adjudication of whether a business interruption claim is valid or not, other than Government advice to close. Following on from this correspondence, I held a teleconference with Insurance Ireland, on 17 April, where I reiterated that some insurers, by adopting a “blanket” rejection of all business interruption claims, were doing the industry significant reputational damage and were not treating customers fairly.
The Deputy should also note that the Central Bank of Ireland wrote to the CEOs of major insurers outlining its expectations of them in this crisis from a consumer protection perspective. This included the Bank’s belief that while most insurance policies are clear, if there is a doubt about the meaning of a term, the interpretation most favourable to the consumer should prevail. The Central Bank of Ireland is continuing to engage with the non-life insurance industry on these matters and will continue to closely monitor the situation to ensure that firms are meeting the expectations as previously set out.
The Deputy should be assured that Minister of State Fleming and I will continue to be appraised on developments and will engage appropriately with the Central Bank of Ireland on the matter. This issue is recognised in the Programme for Government’s extensive cross-Departmental insurance reform agenda, which amongst other things seeks to address consumer and business concerns on the cost and availability of insurance by building on the work of the Cost of Insurance Working Group.
Finally, as noted earlier Minister of State Fleming and I met Insurance Ireland yesterday to talk about the Programme for Government insurance reform agenda matters and the need for an appropriate response from insurers including on the issue of business interruption.
Illicit Trade
Ceisteanna (366)
Brendan Smith
Ceist:366. Deputy Brendan Smith asked the Minister for Finance his plans to implement additional measures to counteract cross-Border smuggling and illegal trade in products such as fuel, tobacco and alcohol; and if he will make a statement on the matter. [20873/20]
Amharc ar fhreagraFreagraí scríofa
The serious threat that illicit trade in tobacco, alcohol and fuel products poses to legitimate business, to consumers and the Exchequer is clear and I am assured that combating such criminality continues to be a Revenue priority. Revenue and An Garda Síochána collaborate closely in acting against cross-Border fuel, alcohol and tobacco crime, and also cooperate with their counterparts in Northern Ireland under the framework of the North-South Joint Agency Task Force. This cooperation plays a key role in targeting the organised crime groups who operate across jurisdictions and are responsible for much of this criminality.
I am satisfied that Revenue’s work in this area has achieved a considerable level of success. For my part, I will fully consider any additional proposals for legislative change that may be brought forward by Revenue which would enhance its capacity to deal effectively with fraud and criminality in these areas.
Departmental Advertising
Ceisteanna (367)
Alan Kelly
Ceist:367. Deputy Alan Kelly asked the Minister for Finance if his Department has carried out advertising campaigns to promote policies or programmes being implemented by same; if so, if he will provide the details of the campaign or relevant programme; the cost of advertising in publications, broadcast advertising, outdoor advertising; the cost of consultancy or production costs in each of the past two years; and if he will make a statement on the matter. [21028/20]
Amharc ar fhreagraFreagraí scríofa
My Department facilitates the “Switch Your Bank” campaign as part of its remit to ensure that consumers are protected within the financial sector in Ireland and to ensure a healthy level of competition. This is a public awareness campaign as part of a range of competition measures agreed with the European Commission to raise awareness and promote customer switching of financial products. The campaign is funded by AIB and Permanent TSB, and the Department manages it on their behalf as part of the restructuring of the banks. The costs are fully recoupable from AIB and Permanent TSB in the context of their restructuring plans.
The costs for this campaign were €405,900.00 in 2018, €2,066.40 in 2019, and €2,066.40 to date in 2020 (all VAT inclusive).
My Department has not carried out any other advertising campaigns to promote policies or programmes being implemented in 2018, 2019 or to date in 2020
Banking Sector
Ceisteanna (368)
Bernard Durkan
Ceist:368. Deputy Bernard J. Durkan asked the Minister for Finance if he is satisfied that all customers of lending institutions that availed of a Covid-19 related break in their payments are subsequently being treated in accordance with best practice in view of the existence of numerous incidences in which serious penalties have been imposed costing the borrower up to 20% extra; if doubt has been expressed by the lenders as to whether they can facilitate the borrower that is willing to forgo the repayment holiday on foot of upfront cash payment with the response from the lenders that it may not be possible; and if he will make a statement on the matter. [21056/20]
Amharc ar fhreagraFreagraí scríofa
The swift introduction, and subsequent extension to 6 months, of the payment breaks by the Banking and Payments Federation of Ireland was critical for borrowers impacted by Covid-19. The payment breaks on mortgages allow households to absorb the shock of the crisis, so that as many as possible can recover once the virus is under control.
As at the end of June, the Central Bank reported that of the almost 160,000 payment breaks approved for Irish borrowers, just over 70,000 were for mortgage holders in respect of loans worth c.€9.6 billion. Mortgages on primary dwelling houses accounted for nearly 62,500 of these.
The Central Bank of Ireland set out its supervisory expectations for Covid-19 payment breaks in a Dear cEO letter on 8 June 2020. These expectations, which apply to both banks and non-banks, state that it is essential that lenders fully explain the implications, including any associated cost or other significant impacts, of the particular payment break measures being put in place. For instance, lenders should outline if the repayment term of the mortgage will be extended due to the payment break, if monthly payments will increase following the resumption of the mortgage repayments, if interest will continue to accrue during the payment break and the implications this will have for the total cost of the credit, and any other significant matter for the customer when availing of a Covid-19 payment break, or indeed for any other reason.
The Central Bank has required that regulated firms have plans and the operational capability to deliver an assessment of all borrowers on payment breaks to ensure that appropriate and sustainable solutions are identified in a timely manner for those borrowers who are not able to return to paying full capital and interest at the expiry of the payment break.
With regard to the matters raised by the Deputy in relation to penalties or lenders being unable accept upfront cash payment to forgo the repayment break, I am unable to comment in the absence of specific details.
Flood Prevention Measures
Ceisteanna (369)
Pat Buckley
Ceist:369. Deputy Pat Buckley asked the Minister for Public Expenditure and Reform the status of the development of flood defences on the coastline of County Cork; and if he will make a statement on the matter. [20752/20]
Amharc ar fhreagraFreagraí scríofa
Please see below in tabular form locations on the coastline of County Cork where flood
defences are being developed and their current status.
|
Location |
Status |
|
Bantry |
Tender documents for engineering consultant being finalised for issue. |
|
Carrigaline |
Study being carried out to assess if a feasible cost beneficial scheme can be identified |
|
Castletownbere |
Scheme to be developed as part of 10-year NDP 2018-2027) |
|
Clonakilty |
Construction ongoing |
|
Schull |
Scheme to be developed as part of 10-year NDP 2018-2027) |
|
Skibbereen |
Practically complete |
|
Youghal |
Scheme to be developed as part of 10-year NDP 2018-2027) |
One application has also been approved under the Minor Flood Mitigation Works and Coastal Protection Scheme in 2019 for a coastal project at Rochestown, Co. Cork.
Flood Risk Assessments
Ceisteanna (370)
Duncan Smith
Ceist:370. Deputy Duncan Smith asked the Minister for Public Expenditure and Reform when the Fingal east County Meath flood risk assessment study will be implemented on the drainage network in Fingal and east County Meath and in particular on the Donabate peninsula which is identified as prone to flooding; the details of the capital investment on drainage infrastructure in the Fingal and east County Meath areas in the past five years; and if he will make a statement on the matter. [20968/20]
Amharc ar fhreagraFreagraí scríofa
Following the adoption by Government in 2004 of the Report of the Flood Policy Review Group, the OPW commenced a series of pilot CFRAM Projects to test and develop the approach before rolling-out the Programme nationally. The area within the Nanny-Delvin River Basin (UoM08) was included as the main component of the Fingal / East-Meath FRAM ('FEM-FRAM') pilot Study, with smaller adjoining parts of the Boyne and Liffey-Dublin Bay River Basin Districts. Details of the FEM-FRAM pilot Study can be found on the OPW website; www.floodinfo.ie. This study was completed in 2014.
In May 2018, the Government formally published 29 formal Flood Risk Management Plans - the key output on the culmination of the national CFRAM Programme. The Plan for the Nanny-Delvin River Basin (referred to as ‘Unit of Management 08’) specifically notes the measures set out through the FEM-FRAMS, including an update on their current status.
To support the implementation of the Plans and, specifically, the proposed new flood relief schemes, the Government has committed almost €1 billion in funding for flood risk management in the National Development Plan 2018 - 2027.
The status of the current schemes recommended as part of the FEM-FRAM / Nanny-Delvin FRMPs is set out below:
|
Scheme |
Current Status |
|
Malahide |
Design Scoping Underway |
|
Portmarnock (Strand Road) |
Design Scoping Underway |
|
Skerries Mill Stream |
At Scheme Development and Design Stage (OPW inhouse design) |
|
Ashbourne |
At Construction / scheduled for completion End 2020 / Early 2021 – Project budget: EUR2,5m |
|
Mornington |
Design Scoping Underway |
|
Northlands, Bettystown |
Substantially complete – Project Budget: EUR2.6m |
|
Balgriffin |
It is understood that housing development in the area has likely altered the hydraulic conditions on site and/or resolved the flooding issue identified in FEM FRAMS. To be reviewed. The OPW has put in place a process for undertaking such reviews as recommended in the FRMPs nationally, and it is envisaged that these reviews will be complete within the next 12 months. |
|
Rush |
The CFRAM Process did not identify an economically viable scheme for this community, and so a review of the risk in this community and the likely costs and benefits is to be undertaken to determine if a viable scheme may be available. The OPW has put in place a process for undertaking such reviews as recommended in the FRMPs nationally, and it is envisaged that these reviews will be complete within the next 12 months. Elements also being assessed as part of the Rogerstown Coastal Flood and Erosion Risk Management Study. |
|
Bettystown (Laytown) |
The CFRAM Process did not identify an economically viable scheme for this community, and so a review of the risk in this community and the likely costs and benefits is to be undertaken to determine if a viable scheme may be available. The OPW has put in place a process for undertaking such reviews as recommended in the FRMPs nationally, and it is envisaged that these reviews will be complete within the next 12 months. |
As well as the flood relief schemes described above, the following works have been approved for Fingal County and east County Meath under the OPW Minor Flood Mitigation and Coastal Protection Works:
|
County |
Area |
Description of Works |
Approved Funding |
Year Approved |
|
East Meath |
Swan River |
Construct flood embankments |
EUR270,000 |
2009 |
|
East Meath |
Swan River |
Construct flood embankments |
EUR45,000 |
2010 |
|
East Meath |
Eastham Stream |
Remove and relocate existing pipes and ancillary works |
EUR22,500 |
2011 |
|
East Meath |
Northlands, Bettystown |
Study to identify catchment area flowing into estate & detailed analysis of possible potential solutions |
EUR36,000 |
2012 |
|
Fingal |
Aspen, Swords |
Increase the channel capacity by widening the Gaybrook stream along a 200m length at Aspen |
EUR54,000 |
2011 |
|
Fingal |
Rowlestown |
Construction of a flood defence embankment along the left bank of the Broadmeadow Tributary in Rowelstown |
EUR153,000 |
2011 |
|
Fingal |
Portrane / Rush(coastal) |
Coastal Erosion Risk Management Study |
EUR57,800 |
2013 |
|
Fingal |
The Grange, Malahide |
Construction of bund/berm & associated works |
EUR93,600 |
2013 |
|
Fingal |
R127,Skerries Balbriggan Regional Road |
Emergency sea defence works- stonework pointing, replacement of existing wall, additional rock armour & re-instatement of damaged rock armour |
EUR197,480 |
2014 |
|
Fingal |
Malahide Town Centre |
Study |
EUR45,000 |
2014 |
|
Fingal |
The Burrow, Portrane (Coastal) |
Installation of 380 no. concrete ‘SeaBee’ units to reduce the wave energy reaching the dune face (Temporary interim emergency measures) |
EUR456,464 |
2018 |
The OPW also maintains over 170km of river channel in the Fingal / East-Meath area, including both the Broadmeadow & Ward Arterial Drainage Scheme, and the Matt Arterial Drainage Scheme. This work forms part of the OPW’s ongoing arterial drainage maintenance programme, which is carried out under a budget allocation of EUR18m annually.
In addition to the structural measures (i.e. flood relief schemes, Minor Works and drainage maintenance), the Plans also contain important non-structural measures to address flood risk and the overall implementation of the Plans is being overseen by an Interdepartmental Flood Policy Co-ordination Group.
A key role of the Interdepartmental Group is to carefully consider the extent of non-structural solutions that can inform the ten-year implementation strategy of the Flood Risk Management Plans. The 2009 Planning System and Flood Risk Management guidelines are informing planning decisions to prevent new properties being built in areas at risk from flooding. In 2016, the Government agreed to the establishment of a National Flood Forecasting and Warning Service to enable members of the public and local authorities take more preventative action to reduce the impact of flooding. An Implementation Plan for this service is being delivered by Met Eireann and is overseen by a Steering Group chaired by the Office of Public Works. It is a vital resource to inform future response to flood risk including how local authorities plan for and respond to flood events.
Covid-19 Pandemic
Ceisteanna (371)
Michael Healy-Rae
Ceist:371. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform his plans to reopen tours going to Skellig Michael (details supplied); and if he will make a statement on the matter. [19568/20]
Amharc ar fhreagraFreagraí scríofa
As announced publicly by the Commissioners of Public Works today, a review of the closure of Skellig Michael has been undertaken within the Office of Public Works in recent weeks to assess whether it could be feasible to reopen the site to visitors before the end of the season, normally scheduled at the end of September. This review has concluded, after consulting with various parties locally, including the Skellig Boatmen's Association, that it is not yet safe to open the island and that it must remain closed for the remainder of the 2020 season.
I appreciate that this will cause a lot of disappointment locally. However I can assure the Deputy that the review has been a particularly rigorous exercise which led to the inescapable conclusion that there are just too many risks that cannot be managed in a way that satisfies the requirements of the public health guidelines. As the Deputy will appreciate, Skellig Michael is a particularly unique site with a set of challenges attached that go way beyond what is experienced at an “ordinary” landside location.
The Deputy will of course be aware that other OPW sites locally in Co Kerry such as Derrynane House & Gardens and National Monuments such as Ballinskelligs Abbey, Cahergall Stone Fort etc remain available and I trust will prove a continuing draw for visitors, as will the Skellig Experience Centre which I know is also open for business. I know too that there is a thriving trade in Portmagee taking people on sightseeing boat trips around the Skellig islands and I am aware that demand for this is good, so hopefully there will still be enough people around in the area to ensure that the closure of Skellig Michael does not ultimately prove to have too detrimental an impact locally.
Ministerial Correspondence
Ceisteanna (372)
Alan Kelly
Ceist:372. Deputy Alan Kelly asked the Minister for Public Expenditure and Reform if he, his Ministers of State and or advisers have ever used private email for any form of official Government use since the formation of the Government; and if so, if he publish all such emails and corresponding documents immediately. [19642/20]
Amharc ar fhreagraFreagraí scríofa
I can confirm to the Deputy that no private email accounts have been used by me as Minister for the Department of Public Expenditure and Reform for official Government business, or by my adviser since the formation of the Government. I can also confirm that no private email accounts have been used for official Government business by Minister of State Smyth or Minister of State O’Donovan, or their advisers.