Wednesday, 7 Oct 2020

Written Answers Nos. 38-57

Travel Trade Sector

Ceisteanna (38)

Brendan Griffin

Ceist:

38. Deputy Brendan Griffin asked the Minister for Transport his views on a matter (details supplied) regarding travel agents; and if he will make a statement on the matter. [29194/20]

Freagraí scríofa

Minister for Transport

I am aware of the serious difficulties, which the Deputy has raised, arising for Irish licensed travel agents and tour operators in the face of the COVID-19 pandemic and the catastrophic collapse of overseas travel and tourism. This sector is among that category of businesses that have not been able to reclaim any meaningful level of lost business over the last 6 months.

It is the case that the sector is benefitting from a range of State supports made available for SMEs - including the wage subsidies - and the State is also providing a special financial guarantee under a Refund Credit Note scheme for the sector, which makes the credit notes that licensed travel agent and tour operators issue to their customers a very secure proposition. A large amount of credits notes have already been issued by the sector – which is guaranteed by the State - and this is money that the industry would otherwise have had to pay back in cash refunds.

I know that businesses in the sector are looking for more, and the Irish Travel Agents Association has made representations on behalf of its members for additional financial supports in the form of top-ups to small business support schemes announced in the July Stimulus. As I understand it, these additional provisions are being considered in the context of the upcoming Budget.

As you know, there are many competing and compelling calls on Government and on the Exchequer for support. All that we can do is to try to help as many people and businesses as we can.

State Bodies

Ceisteanna (39, 40, 41, 50)

Violet-Anne Wynne

Ceist:

39. Deputy Violet-Anne Wynne asked the Minister for Transport the way in which the details of the €2.6 million funding grant to a company (details supplied) was distributed; and if he will make a statement on the matter. [29234/20]

Violet-Anne Wynne

Ceist:

40. Deputy Violet-Anne Wynne asked the Minister for Transport if he has allocated the €2.6 million to a company (details supplied) as announced in August 2020; and if he will make a statement on the matter. [29235/20]

Violet-Anne Wynne

Ceist:

41. Deputy Violet-Anne Wynne asked the Minister for Transport if the funding allocated to a company (details supplied) was to ensure that no further staff would be laid off. [29236/20]

Violet-Anne Wynne

Ceist:

50. Deputy Violet-Anne Wynne asked the Minister for Transport if his review of a company (details supplied) is taking into account the happening in the three subdivisions of the company. [29237/20]

Freagraí scríofa

Minister for Transport

I propose to take Questions Nos. 39 to 41, inclusive, and 50 together.

I would like to thank the Deputy for her questions, some of which have been forwarded for my attention by the Minister for Public Expenditure and Reform, in relation to Shannon Group and Shannon Heritage, which is part of Shannon Group.

The Deputy will be aware that I have committed to undertake an examination of the future viability and sustainability of Shannon Group, and I will consider financial supports and any other measures that may be necessary and appropriate as part of this wider review of Shannon Group. I will be bringing recommendations to Government in this regard shortly.

With regard to Shannon Heritage, at the end of August, with the agreement of the Minister for Public Expenditure and Reform, Minister of State Naughton committed to provide funding to Shannon Group to ensure that both Bunratty Castle and Folkpark and King John’s Castle could remain open to the end of 2020. Minister Naughton made the decision to provide this funding when she was advised that Shannon Group had made a decision to close these two castles at the end of August.

It was originally envisaged that a sum of €2.6m was required to keep these two attractions open, however, following engagement between my Department and Shannon Group it has been established that the necessary funding required is in the region of €550,000.

There is no doubt on the importance of these two landmark tourist attractions to the local economy and region and both Minister Naughton and I are committed to ensuring that the appropriate supports are provided so that the sites can remain open until the end of the year, ensuring the continued employment for 52 employees at these sites who would otherwise have been laid off by Shannon Heritage at the end of August.

It is my intention that Shannon Group will be well positioned for the future particularly given the importance of Shannon Airport to the economy of the Midwest region.

Road Projects

Ceisteanna (42)

Joe Carey

Ceist:

42. Deputy Joe Carey asked the Minister for Transport if he will make the necessary arrangement to include the Limerick northern distributor road project in the forthcoming capital investment plan; and if he will make a statement on the matter. [29018/20]

Freagraí scríofa

Minister for Transport

As the Deputy is aware, the improvement and maintenance of regional and local roads in its area is a statutory function of each road authority in accordance with the provisions of section 13 of the Roads Act, 1993. Works on such roads are a matter for the relevant local authority to be funded from its own resources supplemented by State road grants.

As previously indicated to the Deputy, the National Development Plan does not make provision for the construction of the Limerick Northern Distributor Road. The review of the National Development Plan is in the process of being initiated. My focus in the review will be on the need to have particular regard to aligning a revised Plan with the priorities identified in the Programme for Government.

National Transport Authority

Ceisteanna (43)

Violet-Anne Wynne

Ceist:

43. Deputy Violet-Anne Wynne asked the Minister for Transport the status of the mediation process that was taking place between two companies (details supplied). [29044/20]

Freagraí scríofa

Minister for Transport

As Minister for Transport I have responsibility for policy and overall funding in relation to public transport.

It is the National Transport Authority (NTA) which has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including management of the Rural Transport Programme which now operates under the “Local Link” brand.

The issue which the Deputy refers to is a matter for the NTA and the other organisation.

In light of the NTA's responsibilities in this matter, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Road Projects

Ceisteanna (44)

Eoghan Murphy

Ceist:

44. Deputy Eoghan Murphy asked the Minister for Transport if it is still the intention to complete a new pedestrian bridge across the River Liffey east of the Samuel Beckett Bridge. [29086/20]

Freagraí scríofa

Minister for Transport

As Minister for Transport I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure in the Greater Dublin Area (GDA), including active travel infrastructure.

Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

Driver Test

Ceisteanna (45)

Brendan Griffin

Ceist:

45. Deputy Brendan Griffin asked the Minister for Transport further to Parliamentary Question No. 78 of 10 September 2020, when a reply will issue; and if he will make a statement on the matter. [29099/20]

Freagraí scríofa

Minister for Transport

As I indicated in my response to the Question referred to by the Deputy, this is a matter which is the responsibility of the RSA. I shall contact the RSA to see that a response is expedited.

My Department is remaining in close contact with the RSA as they deal with the increased demand for their driver testing service since operations resumed following its temporary closure due to the COVID emergency. In addition to this, due to the social distancing requirements, normal daily capacity is considerably reduced. This means that customers will experience longer waiting times than was the case before the service was suspended. The public’s patience and understanding in this regard is requested.

It is my understanding that those who had appointments cancelled due to Covid 19 are being prioritised in the first instance. Priority then will be given in order of application date. While there is some capacity for urgent test slots, the Road Safety Authority (RSA)'s capacity to make these available in all cases will be limited. Therefore, initially those who are front-line healthcare workers will be deemed eligible for an urgent test slot. This approach for prioritising customers will be kept under review as the RSA moves through the service resumption.

Traffic Management

Ceisteanna (46)

Steven Matthews

Ceist:

46. Deputy Steven Matthews asked the Minister for Transport his plans to carry out a study on the relationship between road speed limits and the impact on fuel consumption, journey times, air quality and emissions. [29145/20]

Freagraí scríofa

Minister for Transport

In line with our Programme for Government commitment, work is now beginning on new Climate Action Plan. We need to ensure that the new Plan will be ambitious in reach, grounded in evidence, and backed with a determination to achieve Ireland’s emissions commitments in fair and effective ways.

As part of this work, my Department will examine the issue of decreasing speed limits as a potential emission-saving measure, building on previous consideration of the relationship between speed limits and fuel consumption, journey times, air quality and greenhouse gas emissions. The Deputy may recall that the Department explored the impact of reducing maximum speed limits on motorways from 120km/h to 110km/h for cars and vans and from 90km/h to 80km/h for heavy goods vehicles as a potential mitigation measure in the National Mitigation Plan. Further analysis carried out to develop the Climate Action Plan 2019 suggested that such speed limit reductions could abate approximately 1,700kt CO2 of transport emissions between 2020 and 2030.

It is worth noting that the actual reduction in fuel consumption that can be realised through the setting and enforcement of lower speed limits for motorway driving depends not just on the limit, but also on a number of external factors including vehicle types, driving patterns, the frequency of speeding, road load patterns, and congestion levels. I also understand that carbon savings from lower speed can vary markedly for individual vehicles depending on engine characteristics, vehicle weight, distances travelled, and supplementary equipment such as trailers, rear-mounted storage racks or even taxi signs. Over time, the emissions standards for vehicles and the fuels that power them are becoming more stringent, and the use of renewable biofuels as a share of road transport energy has increased significantly over recent years with estimates that, in 2018, biofuel use saved over 500 tkCO2 , over 4% of transport emissions. Such welcome developments will, however, erode the potential emissions reduction benefits of reducing speed limits.

Variable and reduced speed limits have been introduced in other jurisdictions in Europe where, in many cases, the primary focus of such interventions is air quality. For example, in Austria when air quality levels along motorways are poor, speed limits are automatically reduced to 100kph from 130kph.

Transport Infrastructure Ireland (TII) will soon be conducting the enhancing Motorway Operations Services (eMOS) project which will see the introduction of variable speed limits along the M50. The primary aim of this will be to improve the operational efficiency of the motorway by smoothing traffic flow, improving journey time reliability and reducing the number of traffic collisions. It is expected that there will also be environmental benefits arising from the variable speed limiting project.

Parking Regulations

Ceisteanna (47)

Róisín Shortall

Ceist:

47. Deputy Róisín Shortall asked the Minister for Transport if he is considering using his powers under S.I. 135/2006 to increase the fixed charge penalty notice fines for illegal parking; if he is considering granting more powers to local authorities and gardaí to issue fines based on photo evidence, including parking on public footpaths which blocks the way for pedestrians and wheelchair users; and if he will make a statement on the matter. [29151/20]

Freagraí scríofa

Minister for Transport

Section 41 of the Road Traffic Act 2010 grants powers to the Minister for Transport to make regulations prescribing amounts for fixed charge notice offences. The Department keeps these charges under constant review and can intervene to impose increases where it appropriate.

Most recently, for example, in March 2018 my predecessor, Mr. Shane Ross T.D., increased the fixed charge for the offence of parking in a disabled bay from €80 to €150 in response to evidence presented by An Garda Síochána and by disability representative groups of a sharp rise in non-compliance.

While my Department is open to the possibility of introducing similar increases for other parking offences, such changes will require engagement both with An Garda Síochána and with the local authorities so as to ensure fairness and proportionality.

While An Garda Síochána may use photographic or video evidence as the basis for enforcing a range of road traffic offences, including that of illegal parking, section 81 (4) of the Road Traffic Act 2010 specifically requires that any electronic apparatus used to capture such evidence must have been approved in advance either by An Garda Síochána itself or by Transport Infrastructure Ireland (TII).

Airport Passenger Data

Ceisteanna (48, 49)

Róisín Shortall

Ceist:

48. Deputy Róisín Shortall asked the Minister for Transport the number of passengers arriving here on a weekly basis from 7 September 2020 by country of departure, including seaports and airports in tabular form. [29154/20]

Róisín Shortall

Ceist:

49. Deputy Róisín Shortall asked the Minister for Transport the number of persons travelling to and from the green list countries on a daily basis since 7 September 2020, including seaports and airports in tabular form. [29155/20]

Freagraí scríofa

Minister for Transport

I propose to take Questions Nos. 48 and 49 together.

Statistics on passengers arriving into Ireland through State Airports by country of departure are compiled on a weekly basis.

Statistics on the countries of departure for passengers arriving into Ireland’s State Airports from overseas destinations from the 7th September – 4th October 2020 inclusive are set out in the following tables. Transfer passengers are not included in the arrivals statistics for airports as Ireland is not the final destination for these passengers who do not leave the airport before travelling onwards. All statistics set out below are provisional figures provided by the airport and are subject to change:

Table 1: Table showing arrival passengers per country of Departure for Dublin Airport.

Country of Departure	7 Sep - 13 Sep 2020	14 Sep - 20 Sep 2020	21 Sep - 27 Sep 2020	28 Sep - 4 Oct 2020
Austria	277	212	177	124
Belgium	417	442	370	355
Bulgaria	609	308	300	295
Canada	389	304	168	195
Croatia	550	513	421	352
Cyprus	117	126	166	303
Czech Republic	231	224	222	190
Denmark	311	270	253	203
Finland	117	118	86	64
France	2,409	2,182	2,017	1,803
Germany	2,545	2,784	3,252	2,196
Greece	3,420	3,543	2,543	1,875
Hungary	447	433	374	431
Italy	5,869	6,389	3,965	2,717
Latvia	703	525	496	514
Lithuania	962	637	602	426
Luxembourg	0	0	0	46
Malta	214	196	198	191
Moldova	589	543	549	511
Netherlands	2,543	2,563	2,357	2,059
Norway	77	0	0	0
Poland	3,691	3,652	4,714	3,903
Portugal	2,844	2,210	2,068	1,866
Qatar	331	239	232	280
Republic of Ireland	321	334	222	187
Romania	1,605	1,302	1,472	1,295
Slovakia	361	368	319	372
Spain	3,682	3,818	3,823	3,479
Sweden	171	155	176	157
Switzerland	364	356	298	238
Turkey	1,193	1,235	1,303	1,511
Ukraine	191	0	0	146
UAE	697	592	471	509
United Kingdom	9,239	9,296	8,231	7,430
USA	1,364	1,038	886	831
Total	48,850	46,907	42,731	37,054

Table 2: Table showing arrival passengers per country of departure for Cork Airport.

Country of Departure	7 Sep - 13 Sep 2020	14 Sep - 20 Sep 2020	21 Sep - 27 Sep 2020	28 Sep - 4 Oct
France	42	106	0	0
Hungary	137	76	60	0
Malta	52	36	59	32
Netherlands	431	426	419	375
Poland	413	340	466	359
Portugal	69	51	83	61
Spain	293	293	363	323
United Kingdom	1,299	1,363	1,431	1,156
Total	2,736	2,691	2,881	2,306

Table 3: Table showing arrival passengers per country of departure for Shannon Aiport.

Country of Departure	7 Sep - 13 Sep 2020	14 Sep - 20 Sep 2020	21 Sep - 27 Sep 2020	28 Sep - 4 Oct
Italy	0	1	0	0
Republic of Ireland	0	2	0	0
Lithuania	123	117	82	44
Poland	224	206	275	272
Portugal	125	42	64	59
Qatar	0	4	0	0
Russia	0	0	0	0
Spain	161	138	161	179
Switzerland	3	0	0	0
United Kingdom	645	750	778	664
USA	2	0	0	0
Total	1,283	1,260	1,360	1,219

Statistics on the destination countries for passengers departing from Dublin and Cork Airports from the 7th September – 4th October 2020 inclusive are set out in the following tables. Again, figures do not include transfer passengers:

Table 4: Table showing passengers per country of destination for Dublin Airport.

Destination Country	7 Sep - 13 Sep 2020	14 Sep - 20 Sep 2020	21 Sep - 27 Sep 2020	28 Sep - 4 Oct 2020
Austria	180	141	171	68
Belgium	432	391	349	367
Bulgaria	357	283	286	323
Canada	151	143	161	168
Croatia	340	352	300	336
Cyprus	104	151	320	304
Czech Republic	210	245	191	170
Denmark	222	245	227	174
Finland	60	55	36	44
France	1,625	1,543	1,655	1,491
Germany	2,085	2,533	2,829	2,197
Greece	3,338	2590	1585	1,172
Hungary	195	188	214	246
Italy	5,374	4,896	2,842	1,917
Latvia	359	396	414	489
Lithuania	483	447	440	341
Luxembourg	0	0	0	65
Malta	212	215	226	178
Moldova	390	391	453	267
Netherlands	2,049	2,108	2,100	1,871
Norway	50	0	0	0
Poland	3,092	3,767	4,451	3,550
Portugal	2,073	1,784	1,721	1,556
Qatar	119	167	121	144
Ireland	315	324	182	128
Romania	1,079	1,026	1,044	895
Slovakia	370	293	254	218
Spain	3,360	3,686	3,556	3,143
Sweden	116	204	160	159
Switzerland	321	305	344	169
Turkey	1,235	1,227	1,318	1,298
Ukraine	84	0	0	158
UAE	368	282	331	389
United Kingdom	11,168	10,707	9,780	8,459
USA	1,035	870	908	1,030
Total	42,951	41,955	38,969	33,484

Table 5: Table showing passengers per country of destination for Cork Airport.

Destination Country	7 Sep - 13 Sep 2020	14 Sep - 20 Sep 2020	21 Sep - 27 Sep 2020	28 Sep - 4 Oct
France	31	56	0	0
Hungary	46	21	46	0
Malta	37	44	40	36
Netherlands	266	263	310	308
Poland	257	383	429	360
Portugal	60	86	69	110
Spain	280	291	344	272
United Kingdom	1,374	1,491	1,464	1,297
Total	2,351	2,635	2,702	2,383

A breakdown of passengers departing to destinations overseas from Shannon Airport is not available. The below table shows the total passengers departing through Shannon Airport each week from the 7th September – 4th October 2020 inclusive, they do not include transfer passengers:

7 Sep – 13 Sep 2020	1,303
14 Sep – 20 Sep 2020	1,209
21 Sep – 27 Sep 2020	1,380
28 Sep – 4 Oct 2020	1,330
Total	3,892

In relation to ports, passenger numbers by specific country of departure through Ireland’s ports are not currently available. None of the ferries that travel to and from Ireland go to any of the locations on the Green List. The Department does not have the level of detail requested by the Deputy with regard to passengers departing and arriving by Sea. The Irish Maritime Development Office has been providing statistics since the start of the COVID crisis in April on the number of Passengers arriving and Departing on a weekly basis by Corridor. The latest figures available for passengers from 7 September through to 27 September are detailed in the following table. Please note that these figures account for passengers both arriving into and departing from Ireland’s ports:

	7-13 Sept	14-20 Sept	21-27 Sept
Central	11,609	12,207	10,516
Southern	3,210	2,942	2,524
Continental	1,412	1,185	1,152
Total Weekly Pax	16,231	16,334	14,192

The Central corridor accounts for services to/from the port of Dublin to Great Britain. This includes sailings to Holyhead by Irish Ferries and Stena Line; to Liverpool by P&O Ferries and Seatruck Ferries; and to Heysham by Seatruck. The Southern corridor includes routes to/from Rosslare- to Fishguard by Stena Line and Rosslare to Pembroke by Irish Ferries. The Continental corridor covers all direct services to/from Belgium, France, the Netherlands and Spain from Dublin, Rosslare and Cork. Passenger services go to/from Rosslare to France and Spain and from Cork to France.

Question No. 50 answered with Question No. 39.

State Bodies

Ceisteanna (51)

Violet-Anne Wynne

Ceist:

51. Deputy Violet-Anne Wynne asked the Minister for Transport the number of visitors in attendance across the Shannon Heritage portfolio over the past five years by year and by site in each of the years 2016 to 2019 and to date in 2020, in tabular form. [29238/20]

Freagraí scríofa

Minister for Transport

As the Deputy will be aware, Shannon Heritage is part of Shannon Group which is a commercial State body. Accordingly, issues, such as the numbers in attendance across the Shannon Heritage portfolio over the past five years, are operational matters for the Company.

I have therefore forwarded your question to Shannon Group for a direct response. If a reply is not received within 10 working days, please contact my private office.

A referred reply was forwarded to the Deputy under Standing Order 51

Rail Network

Ceisteanna (52)

Eoghan Murphy

Ceist:

52. Deputy Eoghan Murphy asked the Minister for Transport the status of plans to increase the frequency of southbound DART services; and if these plans are being reviewed as a result of the Covid-19 pandemic. [29243/20]

Freagraí scríofa

Minister for Transport

As the Minister for Transport, 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 a 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.

A referred reply was forwarded to the Deputy under Standing Order 51

Driver Licences

Ceisteanna (53)

Gary Gannon

Ceist:

53. Deputy Gary Gannon asked the Minister for Transport if his attention has been drawn to significant delays in appointments in National Driver Licence Service Dublin offices causing difficulties in renewing licences in part due to NDLS medical report form, D501, valid one month from signing by a doctor; and if he will make a statement on the matter. [29246/20]

Freagraí scríofa

Minister for Transport

I am very much aware of the delays people are experiencing in obtaining appointments to attend at National Driver Licence Service (NDLS) centres. The NDLS has now resumed services however they are unable to facilitate any walk-ins due to the social distancing requirements and in the interest of protecting the staff and customers. Therefore, all appointments must be booked in advance. This, of course, has led to an increase in the demand for appointments.

The Road Safety Authority (RSA) is working with their providers to see how they can create the additional capacity needed as quickly as possible, while adhering to the return to work protocol. Options being introduced include a combination of additional staff, extended and additional operating hours (i.e. Sundays where needed), and the provision of overtime.

The NDLS booking system is undergoing software changes to cater for the expanded booking window associated with the additional NDLS appointment slots, with testing commencing this week.

The introduction of these steps may help ease some of the pressure on the NDLS, free up appointment slots and make it easier to find those slots at local centres. The RSA is continuing work with my Department to expand the current online facility to accommodate all driving licence and learner permit application types.

Some applicants for driving licences, such as those for truck or bus categories or persons with certain medical conditions, are required to provide a medical report with their applications. The medical report must not be dated more than one month prior to the date of application to ensure that the most up-to-date assessment of the applicant is provided.

Covid-19 Pandemic Supports

Ceisteanna (54)

Cian O'Callaghan

Ceist:

54. Deputy Cian O'Callaghan asked the Minister for Finance if his attention has been drawn to reports that the full value of the employment wage subsidy scheme supports are not being provided to staff of an airline (details supplied); if he has engaged with the airline regarding such reports; if he will provide clarity regarding staff entitlements to back pay; and if he will make a statement on the matter. [28988/20]

Freagraí scríofa

Minister for Finance

The Deputy will be aware that under Section 851A of the Taxes Consolidation Act 1997, Revenue is precluded by reason of its taxpayer confidentiality obligations, from providing any details in relation to the company in question.

The Employment Wage Subsidy Scheme (EWSS) replaced the Temporary Wage Subsidy Scheme (TWSS) from 1 September. To qualify for the EWSS, an employer must have tax clearance. An employer will also be required to demonstrate to the satisfaction of Revenue that its business will experience a 30% reduction in turnover or in customer orders in the period between 1 July and 31 December 2020 and that Covid-19 is the cause of this disruption. An employer will have a monthly ongoing obligation to review its eligibility for the scheme.

To ensure that the EWSS scheme is operated as intended by employers, Revenue will undertake an assurance check programme at a later date.

Questions relating to an individual’s entitlements and rights in an employment context, what wages an employer may be legally obliged to pay employees in respect of hours worked and an employer’s capacity to pay wages to employees in light of the impact of the Covid-19 pandemic on the employer’s business are all matters that are outside the remit of the EWSS.

I wish to emphasise that the information outlined above relates to the general operation of the EWSS and does not relate to any one employer or a small group of employers within any one industry.

Value Added Tax

Ceisteanna (55, 56)

Colm Burke

Ceist:

55. Deputy Colm Burke asked the Minister for Finance if consideration will be given to the exemption of VAT, within the European Union VAT directive, on all farm safety equipment which will act as a vector to improve uptake of farm safety equipment by farmers and in turn may reduce the high fatality rate within the agricultural sector; and if he will make a statement on the matter. [29039/20]

Colm Burke

Ceist:

56. Deputy Colm Burke asked the Minister for Finance if consideration will be given to a review of a VAT exemption on sexed semen for all farmers; and if he will make a statement on the matter. [29040/20]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 55 and 56 together.

I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. Supplies of capital goods in the agriculture sector, including farm machinery and equipment, is liable to VAT at the standard rate, currently 21%, and there is no scope under the Directive to apply a reduced rate or to exempt such supplies. The Directive specifies categories of goods and services in respect of which Member States may apply a reduced rate of VAT, which include the supply of livestock semen and animal insemination services; Ireland applies the reduced rate of VAT, currently 13.5%, to these supplies. The Directive does not permit the exemption of such supplies from VAT.

Farmers may register for VAT or be treated as flat-rate farmers for VAT purposes. Farmers who elect to register for VAT have an entitlement to reclaim VAT on costs, including farm machinery and equipment and semen costs, incurred in relation to their farm business; if they remain unregistered they are entitled to apply a flat-rate addition to their supplies to VAT registered businesses. The flat rate addition compensates farmers at the aggregate level for the VAT borne on input costs, including farm machinery and equipment and semen costs.

Disabled Drivers and Passengers Scheme

Ceisteanna (57, 58)

Brendan Howlin

Ceist:

57. Deputy Brendan Howlin asked the Minister for Finance the timeline for the recommencement of processing of applications under the disabled drivers tax concessions scheme following the Supreme Court decision on 18 June 2020; the number of applications under consideration; and if he will make a statement on the matter. [29090/20]

Michael Healy-Rae

Ceist:

58. Deputy Michael Healy-Rae asked the Minister for Finance if he will provide information on primary medical certificates (details supplied); and if he will make a statement on the matter. [29215/20]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 57 and 58 together.

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.

The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations. In order to qualify for relief an organisation must be entered in the register of charitable organisations under Part 3 of the Charities Act 2009, be engaged in the transport of disabled persons and whose purpose is to provide services to persons with disabilities.

In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.

The terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 set out the following medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC:

be wholly or almost wholly without the use of both legs;

be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

be without both hands or without both arms;

be without one or both legs;

be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

A Supreme Court decision of 18 June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal's refusal to grant them a PMC. The judgement found that the medical criteria set out in the Regulations did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.

The Deputies will appreciate that the complex legal and policy issues raised by the Supreme Court decision will require careful consideration. In parallel to that consideration there is a need to examine how best the Scheme can target resources to those persons who most need them. My officials are currently examining the judgement, in conjunction with the Attorney General’s Office, and will bring forward any policy and/or legislative proposals, as necessary, for my consideration in due course.

In the interim, on foot of the legal advice received, it became clear that it was appropriate to revisit the six medical criteria set out in Regulation 3 of Statutory Instrument 353 of 1994 for these assessments. In such circumstances, it is not proposed to continue with PMC assessments until a revised basis for such assessments is established. The medical officers who are responsible for conducting PMC assessments need to have assurance that the decisions they make are based on clear criteria set out in legislation. While Regulation 3 of Statutory Instrument No. 353 of 1994 was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989.

My officials were in contact with the Medical Board of Appeal and with officials in the Department of Health and will continue to liaise with them, as required, going forward. I have also written to the Minister for Health to request that there are no further PMC assessments until a sound legal basis for such assessments is re-established.

While it is regrettable that PMC assessments are currently not taking place and I acknowledge that this will result in a growing waiting list, I anticipate that the work that is currently ongoing in relation to this matter will provide a proper basis for me to make a decision on the best pathway forward and to address the current legal uncertainty surrounding the Scheme. I can give a commitment that I will seek to bring clarity to this situation as soon as possible such that PMC assessments can re-continue based on a firm legal basis.