Cathal Crowe
Ceist:113. Deputy Cathal Crowe asked the Minister for Transport if an extension for driver licences that have expired since 1 September 2020 will be considered in view of the appointment backlog. [30762/20]
Amharc ar fhreagraDriver Licences
Ceisteanna (113)
Freagraí scríofa
There is no plan to further extend the validity of driving licences. Irish driving licence law is based on a framework of EU law, and the current extensions brings us into line with the EU legislation.
All driving licences that expired between 1 March and 31 August 2020 were extended for 7 months. The National Driver Licence Service (NDLS), provided by the Road Safety Authority, closed in March as per Government instruction and re-opened in June. The extension was granted to extend the validity of driving licences that would have expired at a time when it was not possible to renew such licences, and to assist the NDLS resumption while adhering to the return to work protocols. It is expected that the extension will ease the pressure on the NDLS and free up appointment slots.
Protecting public health is a priority for the Government and the RSA is working with their providers to see how they can increase capacity while ensuring public safety. In addition, work is continuing to expand the online facility to accommodate all driving licence and learner permit application types in a manner that does not undermine the existing legal framework.
Road Projects
Ceisteanna (114)
Michael Ring
Ceist:114. Deputy Michael Ring asked the Minister for Transport the national roads that have been selected to go ahead in the national plan; and the roads that have been deselected from the national plan. [30780/20]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme.
Under the Roads Acts 1993-2015, and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. TII seeks to deliver the National Roads Programme in line with Project Ireland 2040, the National Planning Framework and the NDP.
The Programme for Government includes a commitment to bring forward the planned review of the NDP from 2022 and use the review to set out an updated NDP for the period to 2031. The review of the NDP will be aligned with the National Planning Framework and Project Ireland 2040. Work is underway within my Department to contribute to this planned review. Questions in relation to the review of the NDP generally may be addressed to my colleague the Minister for Public Expenditure and Reform.
Covid-19 Pandemic Supports
Ceisteanna (115)
Éamon Ó Cuív
Ceist:115. Deputy Éamon Ó Cuív asked the Minister for Transport the supports he plans to put in place for the licensed limousine sector in view of the medium-term outlook for the sector due to Covid-19 and its effect on the limousine trade (details supplied); and if he will make a statement on the matter. [30823/20]
Amharc ar fhreagraFreagraí scríofa
I recognise that the transport sector has been acutely affected by COVID-19 as public health restrictions have discouraged people from travelling generally. Small public service vehicle (SPSV) operators have been badly affected due to their dependence on the hospitality and tourism sectors. Limousine operators, who are particularly dependent on overseas tourism and major events, have suffered a near total drop in demand for their services and many have been simply unable to work since the pandemic started in March.
The Government has introduced a wide-ranging programme of supports for affected businesses. These supports include wage subsidies, rates waivers, re-start grants, lending facilities, equity injection, and business advisory supports. Many SPSV operators, including limousine drivers, have been able to avail of the Pandemic Unemployment Payment which will remain open to new applicants for the remainder of the year. This is an important lifeline for SPSV operators. Many may have gone back to work as the economy began to reopen only to find that subsequent necessary public health measures have once again suppressed passenger demand for their services. The continued accessibility of the Pandemic Unemployment Payment will provide an important safety net to operators, recognising their dependency on other sectors of the economy, notably the hospitality industry
The National Transport Authority (NTA), the industry regulator, also took a number of actions to reduce the immediate financial burden on SPSV operators and to make it easier for them to return to the industry when circumstances change. These included licence extensions and late renewal fee waivers. It has also engaged with the insurance industry to facilitate a suspension of SPSV insurance for those operators who decide to temporarily stop working and suspend their licences. I remain committed to helping reduce the costs to limousine operators and that is why my Department is providing the necessary funding to the NTA to enable it to waive annual vehicle licence renewal fees for 2021.
The 2021 Budget has now put in place a number of substantial measures to support and strengthen the tourism sector. These are sector-specific measures, and are augmented and supplemented by the economy-wide business supports and social welfare measures which were already in place as well as those which were announced in the budget. The total funding for the tourism sector will increase in 2021 by over €59 million or 36% over the initial 2020 allocation in Budget 2020 to €220.9 million. Further details on these measures are available from my colleague, the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Catherine Martin T.D.
Finally, I should also mention that, in recognition of the nexus between limousine operators and the tourism industry, in July it was arranged to have the Chairman of the Advisory Committee on Small Public Service Vehicles appointed to the Fáilte Ireland Industry Advisory Group to ensure that the interests of these operators are appropriately represented as the Government plans the recovery of the tourism and hospitality sectors.
Driver Test
Ceisteanna (116)
Michael Healy-Rae
Ceist:116. Deputy Michael Healy-Rae asked the Minister for Transport if a driver test will be expedited for a person (details supplied); and if he will make a statement on the matter. [30868/20]
Amharc ar fhreagraFreagraí scríofa
I fully appreciate the difficulty that many learner drivers are experiencing since the driving test for cars, vans and minibuses resumed on a gradual basis from 16 July last. As you are aware, tests were temporarily suspended due to the Covid 19 emergency and since resuming operations, there has been an increased level of demand. Unfortunately, due to social distancing requirements, normal capacity is considerably reduced and this means that some customers will experience longer waiting times for a test than was the case before the service was suspended.
Those who had appointments cancelled due to Covid 19 are being prioritised in the first instance. Initially, those who are frontline healthcare workers will be deemed eligible for an urgent test slot but the Road Safety Authority is examining ways of increasing the number of tests within the current health constraints and is working in close consultation with my Department on this matter. This includes increasing the number of testing staff to help reduce and, over time, eliminate the backlog.
While I regret the inconvenience caused, public safety is of paramount importance. My officials and I are working hard to ensure that the system returns to normal as soon as possible to allow learner drivers complete their training and, hopefully, pass their test.
Regional Aid
Ceisteanna (117)
Louise O'Reilly
Ceist:117. Deputy Louise O'Reilly asked the Minister for Transport the value of regional aid granted under the regional aid guidelines granted by his Department or agencies under the remit of his Department in each of the past seven years; the value by county or lowest possible NUTS level over the period; and if he will make a statement on the matter. [30908/20]
Amharc ar fhreagraFreagraí scríofa
I wish to advise the Deputy that no regional aid was provided under NUTS by my Department or agencies under the remit of my Department.
Value Added Tax
Ceisteanna (118)
Peadar Tóibín
Ceist:118. Deputy Peadar Tóibín asked the Minister for Finance if he plans a reduction in the VAT rate to 9% for the restaurant, café and pub sectors. [29970/20]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, the VAT rate applied to Tourism and Hospitality related goods and services has been temporarily reduced from 13.5% to 9%, from 1 November 2020 to 31 December 2021, in recognition of the unprecedented challenges facing the sector.
Primary Medical Certificates
Ceisteanna (119, 121, 122)
Niall Collins
Ceist:119. Deputy Niall Collins asked the Minister for Finance if applications are being assessed for primary medical certificates; and if he will make a statement on the matter. [30795/20]
Amharc ar fhreagra
Chris Andrews
Ceist:121. Deputy Chris Andrews asked the Minister for Finance when applications for primary medical certificates will recommence; the reason same ceased; and if he will make a statement on the matter. [30857/20]
Amharc ar fhreagra
Dara Calleary
Ceist:122. Deputy Dara Calleary asked the Minister for Finance the reason the disabled drivers' scheme has been suspended for new applicants; and if he will make a statement on the matter. [30867/20]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 119, 121 and 122, inclusive, 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 18th 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.
Finally, I would like to clarify that the Scheme itself is still operating. All persons or charitable organisations that can currently access the Scheme will continue to be able to do so and make claims for tax reliefs and the fuel grant in the normal manner.
Remote Working
Ceisteanna (120)
Claire Kerrane
Ceist:120. Deputy Claire Kerrane asked the Minister for Finance if his attention has been drawn to a request made by an association (details supplied) that employers would provide the €3.20 per day to cover the additional costs of working from home such as heat, light and electricity, which is the same level of payment as the tax-free allowance the Revenue Commissioners provide; if he will consider same in view of the huge number of persons working from home; and if he will make a statement on the matter. [30802/20]
Amharc ar fhreagraFreagraí scríofa
The 2020 Programme for Government: Our Shared Future contains several commitments related to working from home, including an examination of the “feasibility and merits of changing tax arrangements to encourage more people to work remotely”, the responsibility for which falls to my Department. There is also a commitment to the development of a ”national remote working strategy” and to that end, a Remote Working Strategy Inter-Departmental Group has been established. Officials from my Department are included in this group which is chaired by the Department of Business, Enterprise and Innovation. A number of issues are being considered as relevant to these commitments, the results of which will be made public in due course.
In terms of the current tax treatment of the costs associated with working from home, I would note that any such costs incurred wholly and exclusively for the purposes of the business by an employer (for example, the provision of equipment) may be deducted by the employer in the normal course of calculating the tax liability of their business.
From the perspective of the individual employee, there is no specific tax credit available to employees where they work from home. The consideration of the introduction of any such credit would need to balance a number of factors including issues of equity, noting that not every worker is able to work remotely or from home for a variety of reasons including the nature of their work and also the nature of their home environment.
However, I am advised by Revenue that where e-workers incur certain extra expenditure in the performance of their duties of employment remotely or from home, such as additional heating and electricity costs, there is a Revenue administrative practice in place that allows an employer to make payments up to €3.20 per day to such employees, subject to certain conditions, without deducting PAYE, PRSI, or USC. Where employers avail of this facility, they are not required to advise Revenue and therefore the number of employees reimbursed in this manner is not available. Where employers choose to pay more than €3.20, the excess is subject to deduction of PAYE, PRSI and USC.
Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers for the purposes of this practice.
Revenue also advise that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.
Where an employer does not pay €3.20 per day to an e-worker, I am advised that employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act (TCA) 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use.
As I announced on Budget day, in addition to these existing measures, Revenue have agreed to allow broadband to qualify for this relief. This apportionment is based on the number of days the person spent working from home in year with 30% of the apportioned value accepted by Revenue as related to work in the home.
PAYE workers can claim e-working expenses by completing an Income Tax return at year end. Revenue advise that the simplest way for taxpayers to claim their e-working expenses and any other tax credit entitlements is by logging into the myAccount facility on the Revenue website. I am advised by Revenue that where a deduction in respect of expenses in relation to working from home is claimed in a tax return, the amounts are included in the general ‘Expenses’ field.
Finally, I am advised that Revenue have published detailed guidance on e-working arrangements in their Tax and Duty manual TDM 05-02-13 e-Working and Tax.
Questions Nos. 121 and 122 answered with Question No. 119.
Tax Treaties
Ceisteanna (123)
Bernard Durkan
Ceist:123. Deputy Bernard J. Durkan asked the Minister for Finance if, in the context of discussions on taxation at European level, due regard has been given for the peripheral geographic locations here in respect of the rest of Europe in the context of international trade and costs for industry here; and if he will make a statement on the matter. [30880/20]
Amharc ar fhreagraFreagraí scríofa
Decisions on tax issues at the EU require the unanimous approval of all Member States. This important principle, which is enshrined in the EU Treaties, ensures that all countries have an equal role in agreeing tax proposals regardless of size or geographical location.
Nonetheless, it has proven possible to reach significant agreements on tax at European level in recent years. Important Directives have been agreed by all Member States to clamp down on tax avoidance and to exchange information among tax authorities. I also believe that important further Directives and changes will be agreed in the future as international standards continue to evolve.
While Ireland engages cooperatively and enthusiastically with our fellow Member States, we remain fully committed to the principle of unanimity which ensures tax sovereignty is appropriately respected.
It is clear that further change at international level is coming on international tax. Ireland is an active participant in this work and this enables us to raise issues of particular relevant of smaller countries. The OECD BEPS Inclusive Framework, which is leading this work, involves nearly 140 countries working together to find a consensus solution to address the tax challenges of digitalisation.
Covid-19 Pandemic
Ceisteanna (124)
Pádraig MacLochlainn
Ceist:124. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if his attention has been drawn to the fact that persons with type 1 diabetes are being turned down for life insurance and mortgages due to the Covid-19 crisis; and the steps he will take to assist these affected persons. [30760/20]
Amharc ar fhreagraFreagraí scríofa
At the outset, while I have an appreciation of the difficulties individuals may find themselves in as a result of the COVID-19 pandemic, neither I, as the Minister for Finance, nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies as to how they price their policies or what terms and conditions they apply in those policies.
It is my understanding that insurers use a combination of rating factors in making their individual decisions on whether to offer life insurance, such as mortgage protection cover and what terms to apply. These factors can include age; health; family medical history; occupation; and lifestyle. In addition, these may be determined or linked to the policy duration. In the case of mortgage protection policies, these tend to be over the lifetime of the mortgage repayment schedule. In addition, my understanding is that different insurers do not use the same combination of rating factors. Accordingly, prices and availability of cover varies across the market, and will be priced in accordance with firms prior claims experience.
In order to assist with the Deputy's specific query, my officials contacted Insurance Ireland, the representative body for such providers in Ireland. It stated that while most customers are still be able to get life; critical illness; or mortgage protection insurance at this challenging time it is aware of a small number of individual cases where a final decision on some life insurance applications is being postponed for a period of time where applicants have an underlying health condition. However, it stated that while unaware of any cases where life cover has been denied, such policies are assessed on a case-by-case basis and that underlying health conditions, such as Type 1 diabetes, will be taken into account by the underwriters, as was the case pre-Covid. Insurance Ireland further noted that it understands that mortgage protection is not a universal requirement for mortgage approval by banks who in practice apply the following exceptions to holding life cover when an applicant applies for a mortgage:
- The applicant already has sufficient life cover.
- The applicant is over age 50.
- The mortgage is not on the applicant’s principal private residence.
- The applicant cannot get insurance, or only at a much higher rate than normal.
Notwithstanding this, the Deputy will be aware that both I and Minister of State Fleming have consistently and publicly stated that in the context of COVID-19 that we expect insurance firms to treat their customers fairly, honestly, and in accordance with the Central Bank’s Consumer Protection Code. Where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
Covid-19 Pandemic
Ceisteanna (125)
Neale Richmond
Ceist:125. Deputy Neale Richmond asked the Minister for Finance if in his engagement with the banks regarding payment breaks, the issue of borrows repaying interest only was raised; his views on the merit to the proposition; and if he will make a statement on the matter. [30787/20]
Amharc ar fhreagraFreagraí scríofa
On 18 March last, the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the Covid-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months. This was a welcome initiative and it allowed important and necessary cash flow relief to be quickly and efficiently provided to borrowers. However, the other aspects of a loan agreement, including the issue of interest accrual during the period of the payment break, remained a commercial matter for the parties to a loan agreement.
Banks have now provided for flexible options for borrowers who can recommence payments following a Covid-19 payment break, and the BPFI has produced a useful guide on this - https://www.bpfi.ie/wp-content/uploads/2020/09/Final-BPFI-Coming-off-the-COVID-19-Payment-Break.pdf. The Central Bank has also updated its Covid-19 FAQ in relation to mortgage payment breaks on 18 September.
However, I am very conscious that many other borrowers continue to be impacted by the economic consequences of Covid-19, and that they may not be in a position to resume their loan repayment commitments when their payment break ends. I am fully aware of the stress and uncertainty that these borrowers are still facing, and they will continue need assistance and support from their lenders.
At our meeting on 28 September, this point was made very clear to the CEOs of the country’s retail banks, and to the BPFI, by the Tánaiste, the Minister for Public Expenditure and Reform and myself. It was also indicated that it is particularly vital that lenders work with their customers to ensure that suitable arrangements are put in place to assist their customers who are still experiencing difficulty. Borrowers have a suite of regulatory protections and lenders have specific obligations to support and work with borrowers still experiencing mortgage or other loan difficulty because of Covid-19. These options could include additional flexibility, and this could be short term such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements. Each individual’s position is different and that’s why a case-by-case approach is now the best approach as some sectors of the economy are more impacted than others.
I will also continue to work with the Central Bank, as regulator, to ensure that the Central Bank consumer protection framework will be fully available to mortgage and other borrowers that will still need support following a Covid-19 payment break.
Covid-19 Pandemic Supports
Ceisteanna (126)
Joan Collins
Ceist:126. Deputy Joan Collins asked the Minister for Finance if a new company is eligible for the employment wage subsidy scheme, EWSS, if the previous company was availing of the scheme in cases in which the trading operations of a company change from one company to another. [30791/20]
Amharc ar fhreagraFreagraí scríofa
The Employment Wage Subsidy Scheme (EWSS) was legislated for under the recently enacted Financial Provisions (Covid-19) (No. 2) Act 2020. The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll.
The eligibility period to be reviewed for comparative purposes relates to the trade or business, rather than the operating entity. The eligibility criteria for EWSS states that an employer must be able to demonstrate that his or her business will experience a 30% reduction in turnover or orders between 1 July and 31 December 2020, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Where a business commenced after 1 November 2019, an employer must be able to demonstrate that his or her business will experience a 30% reduction in the projected turnover or orders between 1 July 2020 to 31 December 2020.
I have been advised by Revenue that where a company moves its trading operations from one company to a another on or after 1 January 2020, the comparative review period will be the 2019 turnover of the first company which traded during 2019.
Eligible employers, or their payroll or financial agents, can register for EWSS through ROS. However, an employer should ensure there is a reasonable and durable basis to the eligibility review carried out as regards the potential drop in turnover or orders.
Furthermore, employers must undertake a review of the six month period on the last day of every month to be satisfied whether they continue to meet the above eligibility criteria and to take the necessary action of withdrawing from the scheme where they do not. This review must be undertaken on a rolling basis measuring the actual and projected business performance over the specified period of July to December 2020.
Generally, where the trading operations of a company change from one company to another, the new company may be eligible for the employment wage subsidy scheme provided the eligibility criteria is met. However, without knowing the full details of the company referred to in the question, it would be appropriate for the company that has concerns or requires any specific advice regarding the EWSS eligibility requirements, to contact Revenue’s National Employer Helpline at telephone 01-7383638.
Registration of Title
Ceisteanna (127)
John McGuinness
Ceist:127. Deputy John McGuinness asked the Minister for Finance if the issues relative to the land title in the name of a person (detail supplied) have been resolved; if the documents submitted in June 2020 to the stamps office will be processed without delay; and if he will make a statement on the matter. [30797/20]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that while the land in question was initially transferred in 1986, the relevant deed was not presented for stamping at that time.
The documentation referred to by the Deputy was received by Revenue in June 2020. However, to finalise the Stamp Duty return and issue the appropriate stamp certificate, further information was recently requested from the solicitor acting in the case.
Revenue has confirmed that once the required information is supplied, it will review the case as a priority and provided all is in order will issue the stamp certificate.