Written Answers Nos. 55-77
57. Deputy Pádraig O'Sullivan asked the Minister for Finance if the reduced VAT rate for the hospitality and tourism sector, including hairdressers from 13.5% to 9% will be extended to include beauticians; and if he will make a statement on the matter. [31865/20]
Amharc ar fhreagraThe VAT rates applying in Ireland are subject to the requirements of EU VAT law with which Irish VAT law must comply. While hairdressing services will apply the 9% rate from 1 November, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate.
This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and are provided for under Article 118 of the EU VAT Directive. As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.
58. Deputy Eoghan Murphy asked the Minister for Finance if he will clarify certain details regarding the temporary wage subsidy scheme (details supplied). [31896/20]
Amharc ar fhreagraThe Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. The TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS), which was legislated for in the Financial Provisions (Covid-19) (No. 2) Act 2020. Therefore, it is the EWSS that is currently available as a support to businesses operating under reduced demand because of Covid-19 restrictions.
The eligibility criteria for EWSS state 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 an eligible employer makes a payment of wages, within prescribed limits, to a qualifying employee during the scheme, the employer may claim an EWSS subsidy in respect of that employee. There is no requirement for the employee’s consent to be given.
Regarding the Deputy's question about an employer placing an employee on reduced hours and thus reducing the employee's pay for the purpose of making a profit, the legislation for the EWSS has been specifically drafted to ensure that Revenue have sufficient powers to address any abusive practices that do not have a bona fide commercial basis and specifically targets the artificial manipulation of pay levels in such circumstances.
I have been advised by Revenue that the question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in light of the impact of the Covid-19 pandemic on the employer’s business, are matters that are outside the remit of the EWSS. The scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned, subject, of course, to the employer paying the requisite amount of gross wages to an employee, as outlined above, in order to qualify for a subsidy in relation to the employee.
Finally, as the Deputy will be aware, in tandem with the recent decision by Government that the country will move to Level 5 restrictions, changes are being made to enhance the rates of subsidy available under the EWSS.
63. Deputy John Lahart asked the Minister for Finance if he will work with a bank (details supplied) to prevent job losses and a loss of competition to the banking market here; and if he will make a statement on the matter. [31941/20]
Amharc ar fhreagra66. Deputy Brendan Smith asked the Minister for Finance further to Parliamentary Question No. 65 of 23 September 2020, the further contact that has been made with a financial institution (details supplied); the progress made to secure existing employment and retain the services provided by this financial institution nationally; and if he will make a statement on the matter. [32040/20]
Amharc ar fhreagraI propose to take Questions Nos. 63 and 66 together.
I am aware that NatWest is engaged in a strategic review of its operations, including those of its subsidiary, Ulster Bank, thanks to media reports published last month. The Government has no formal role in such a review or any commercial decisions that result, as these are a matter for the Board and Management of the Bank and its parent company, NatWest.
However, following these media reports, officials from my Department contacted Ulster Bank and NatWest. Both Ulster Bank and NatWest highlighted that work on the review is ongoing and no decisions have yet been made. Furthermore, NatWest confirmed that there is no set timetable for this review and that it is fully aware of the strategically important role that Ulster Bank plays in the provision of financial services to the Irish market.
With regard to further contact, I am meeting with representatives of Ulster Bank today.
64. Deputy Neasa Hourigan asked the Minister for Finance if employees of public bodies qualify as e-workers for payments of up to €3.20 per day; and if he will make a statement on the matter. [32033/20]
Amharc ar fhreagra65. Deputy Neasa Hourigan asked the Minister for Finance his plans to review the 10% threshold for heating, electricity and broadband bills on which employees can claim tax relief when working from home; and if he will make a statement on the matter. [32034/20]
Amharc ar fhreagraI propose to take Questions Nos. 64 and 65 together.
The administration of the tax code is exclusively a matter for Revenue. Section 101 of the Ministers and Secretaries (Amendment) Act 2011 has specifically provided that Revenue is independent in the performance of its functions under, or for the purposes of, the tax code. Consequently, I am precluded from giving any direction or instruction to Revenue in regard to the review of any threshold relating to e-working.
However, I am advised by Revenue that while working remotely does not entitle PAYE workers to a tax credit, there is a Revenue administrative practice in place relating to e-workers who incur certain expenditure in the performance of the duties of their employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-workers.
e-Workers will incur certain expenditure in the performance of their duties from home, such as additional heating, electricity and broadband costs. Revenue allows an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting PAYE, PRSI or USC. This payment is at the discretion of the employer. Public bodies or the public sector in general do not, as a matter of course, pay this daily allowance and this is a matter for the Department of Public Expenditure and Reform.
Where an employer does not pay €3.20 per day to an e-worker, employees retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act 1997 in respect of actual vouched expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment. The existing e-working guidelines provide a tax deduction for e-workers for vouched expenditure incurred for electricity and heat at 10%, apportioned according to the number of days worked from home in the year. Additionally, Revenue is willing to accept that 30% of the cost of broadband, apportioned according to the number of days worked from home over the year, can also be claimed. This concession, commencing in tax year 2020, will apply for the duration of the pandemic.
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.
Finally, I am advised that Revenue has published detailed guidance on this subject and on the question of how claims for e-working expenses should be calculated and submitted – see Tax and Duty manual TDM 05-02-13 e-Working and Tax, which is available on the Revenue website.
67. Deputy Neale Richmond asked the Minister for Finance the status of the European Commission’s decision to appeal the ruling of the EU General Court of the European Union on Ireland and tax paid by an organisation (details supplied) to the European Court of Justice; and if he will make a statement on the matter. [32046/20]
Amharc ar fhreagraThe European Commission has lodged an appeal to the Court of Justice of the European Union (CJEU) in the Apple State aid case. An appeal to the CJEU must be on a point, or points, of law. The party appealing may challenge the General Court of the European Union’s (GCEU) interpretation of the State aid rules and the application of them to the case, but not the facts of the case, as established by the GCEU.
The facts of the case, as established by the GCEU, demonstrate that no State aid was given and that the Irish branches of the relevant Apple companies paid the full amount of tax due in accordance with the law. The Government believes that the decision of the GCEU is the correct one.
Ireland has received the Commission’s appeal and the Government is now consulting with its legal advisors on how to respond to this appeal. Ireland has 2 months and 10 days to respond; therefore, the deadline for responding is mid-December. The appeal could take up to 2 years.
In relation to the tax paid by the company, I assume the Deputy is referring to the alleged State aid that has been recovered as part of the ongoing Apple State aid case and I will respond to the Deputy’s question on that basis. The total amount of alleged State aid recovered was circa €14.3 billion (which is the principal and relevant EU interest). These sums have been placed into an Escrow Fund with the proceeds to be released only when there has been a final determination of the case by the European Courts.
The financial statements set out that the net assets of the Escrow Fund as at 31st December 2019 totalled €14,020 million. All income, expenses, gains, and losses accrue to the Fund. The decline in value is primarily due to a third country adjustment (i.e. where the company is required to pay more tax in another jurisdiction in respect of the same profits for this period) and a reflection of the current negative interest rate environment and negative yields on highly rated euro-sovereign / quasi-sovereign bonds together with fund operating expenses.
68. Deputy Neale Richmond asked the Minister for Finance his engagement with the Central Bank in relation to Brexit preparedness based on the likelihood of a no-deal scenario; and if he will make a statement on the matter. [32047/20]
Amharc ar fhreagraMy Department has been working closely with the Central Bank and NTMA through the Financial Stability Group, and through the Brexit Contact Group, to limit the impact of key identified risks in the Irish financial system and review progress on readiness planning.
The Central Bank of Ireland has been focused on the impact of Brexit on financial stability, for which it has statutory responsibility, since before the UK referendum. It is working closely with financial services firms and market participants to ensure that they have contingency plans in place for the end of the transition period on 31 December, and that they are adequately prepared to cope with the possible effects of Brexit, with as little disruption for consumers, investors and markets as possible. On the basis of its work and engagement across the sector, the Central Bank has been able to assure me that, while some level of market disruption is inevitable, the financial system as a whole should be resilient enough to withstand a hard Brexit and that the most material ‘cliff edge’ financial stability risks arising from Brexit have been largely mitigated.
Furthermore, my Department recently worked with the ESRI on an examination of the sectoral overlap of COVID-19 and Brexit shocks, which found that there is limited overlap in the sectors exposed to the different shocks, and limited connection between the sectors exposed to each shock. In this regard, exposures to Brexit in the area of financial services should not be magnified by additional exposure to Covid-19.
It is proposed to include in the 2020 Brexit Omnibus Bill a number of measures which will minimise disruption. This includes measures in relation to settlement finality, and to enable UK and Gibraltar insurance undertakings and intermediaries to continue to fulfil contractual obligations to their Irish customers following the end of the transition period.
There are fewer than 3 months left until the end of the transition period. Regardless of the outcome of the negotiations between the EU and the UK on the future relationship, the UK will not have the same access to the EU’s Single Market for financial services that it enjoys today. This will mean change. The Brexit Readiness Action Plan, published by the Government on 9 September, clearly sets out that firms in the financial services sector should finalise their readiness and contingency plans in line with the relevant European Commission guidance. In addition, the Central Bank website contains Frequently Asked Questions (FAQs) on Brexit which are targeted at both financial services firms and consumers. My Department will continue to work closely with the Central Bank of Ireland and the NTMA to monitor the situation as we get closer to the end of transition, and to identify any emerging risks.
70. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the situation in respect of civil and public servants who must work from home due to Covid-19 restrictions and their ability to accumulate and use flexi hours worked (details supplied); and if he will make a statement on the matter. [31887/20]
Amharc ar fhreagraGovernment Departments and Offices have responded to the COVID-19 pandemic and the associated public health requirements by introducing new measures of flexibility in working arrangements.
Civil Service Departments and Offices have been advised by my Department, as standard practice across the public service during COVID-19, to consider all forms of flexible working including:
- working from home where possible
- working adjusted hours and providing for alternative arrangements where possible, including flexible shifts, staggered hours, wider opening hours including weekend work, both for those working from home and when workplace attendance is required
Due to the unprecedented impact of COVID-19 on normal working arrangements, the operation of traditional flexi-time and attendance management rules do not support the flexible arrangements and agility required during this extraordinary situation. These arrangements were temporarily suspended in April 2020 to facilitate the required new ways of working across the public service. Many public servants are still working remotely as part of these temporary measures and in order to support public health measures rather than under a formal remote working strategy.
As more public servants have returned to their workplaces over recent months, flexi-time arrangements were re-introduced, with effect from 24 August 2020, for those employees who are attending the work premises on their pre-COVID arrangements.
Any further changes to the suspension of flexi for other civil and public servants will be considered in the wider context of the overall response to the COVID-19 pandemic. All guidance issued by my Department in relation to COVID-19 is reviewed on a weekly basis and officials in my department consult with both civil and public service employers and union representatives in this regard.
71. Deputy Neale Richmond asked the Minister for Public Expenditure and Reform if he will ring-fence seized funds and the proceeds of seized goods for investment in drug treatment or youth diversion programmes; and if he will make a statement on the matter. [32060/20]
Amharc ar fhreagraThe Criminal Assets Bureau is a multi-agency statutory body established under the Criminal Assets Bureau Act 1996. The Criminal Assets Bureau’s remit is to target a person's assets, wherever situated, which derive, or are suspected to derive, directly or indirectly, from criminal conduct.
In accordance with the Proceeds of Crime Acts 1996-2016, all funds collected by the Criminal Assets Bureau are forwarded to the Central Exchequer Fund. It is this Central Fund from which the Government draws for expenditure on all necessary public services and investment, including the provision of drug treatment and youth diversion programmes. The Constitution requires, and Government accounting principles provide, that public moneys be spent only as voted or approved by Dáil Éireann, unless otherwise provided by statute.
While there have been calls from time to time for moneys confiscated by the Criminal Assets Bureau to be ring fenced, a policy of ring-fencing moneys obtained by the Exchequer, and the reallocation of same for a specific purpose, runs contrary to the normal Estimates process. While allowing for a small number of very specific targeted exceptions, it is a general principle of public financial management that earmarking revenues for a specific expenditure programme would tend to constrain the Government in the implementation of its overall expenditure policy.
I understand that there are would also be practical difficulties owing to the variable and uncertain nature of the value of the assets seized by the Criminal Assets Bureau in any given year. In addition, the potential delays caused by legal challenges to court disposal orders would also be problematic in terms of continuity of provision of funding to specific programmes or projects, whether drug related, youth related or otherwise. Therefore, because of the variable value and nature of assets seized by the Criminal Assets Bureau in any given year, such a revenue source would not be reliable for facilitating the proper planning of drug treatment or youth diversion programmes and the delivery of such services. Accordingly, there are no proposals to change the existing arrangements.
72. Deputy Michael McNamara asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if a group of musicians can continue to do an online session from home in circumstances in which it is their sole income in view of the fact it has been indicated that tradesmen can continue to work in private homes; and if she will make a statement on the matter. [31798/20]
Amharc ar fhreagraThe 'Resilience and Recovery Plan for Living with COVID-19' is a cross-government approach to managing the pandemic for the coming months. It sets out a framework on managing and living with COVID-19 and includes restrictive measures to help us to go about our daily lives as much as possible, while managing the virus. The framework sets out five levels of response, each with a number of measures designed to help us all lower COVID-19 transmission and setting out what is permitted at that moment in time.
From midnight on Wednesday, 21st October, Ireland is moving to Level 5, where the public health risk means that people will be asked to stay at home, with certain exceptions. People should only travel to and from work, where work involves providing an essential service. A full list of essential services can be accessed on the gov.ie website at this link https://www.gov.ie/en/publication/c9158-essential-services/.
In addition, the Deputy can advise any musicians in the circumstances he describes to contact my Department at artsunit@tcagsm.gov.ie and I will ask my officials to respond promptly with guidance and advice.
73. Deputy Jennifer Whitmore asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she will provide clarity regarding yoga studies and the current guidelines for this sector under level 3 Covid-19 restrictions and the way in which they can operate in the course of the current pandemic; and if she will make a statement on the matter. [31808/20]
Amharc ar fhreagraUnder Level 3 of the Government’s Resilience and Recovery 2020-2021: Plan for Living with Covid-19, sports training is permitted, in non-contact groups of up to 15 outdoors. Only individual sports and fitness training is permitted indoors. No exercise or dance classes are permitted indoors, a position which I understand applies to yoga classes.
Guidance material concerning the sports sector is available on Sport Ireland's website, which may be of interest and relevance to those wishing to undertake individual yoga and other forms of exercise indoors or in group format outdoors.
74. Deputy Duncan Smith asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media when the special Covid-19 grants will be paid by Sport Ireland; the amount and value of the grants; and if she will make a statement on the matter. [31824/20]
Amharc ar fhreagraA funding package of up to €70 million has been put in place to support the sector. The funding package, which will be administered by Sport Ireland,includes;
- Funding of up to €40m for the three main field sports organisations – the FAI, the GAA and the IRFU.
- a Resilience Fund of up to €10m to support the National Governing Bodies of Sport,
- a Sports Club Resilience Fund of up to €15m to support clubs, and
- a Sports Restart and Renewal Fund of up to €5m.
The funding will be invested through new grant schemes with Sport Ireland’s recognised funding partners, including the National Governing Bodies of Sport, Local Sports Partnerships and other funded sporting organisations.
The closing date for applications to Sport Ireland under the COVID 19 grant schemes was September 14. I understand that a large number of applications was received. 39 National Governing Bodies applied on their own behalf or on behalf of their member clubs. Sport Ireland is currently processing and validating the applications. There is significant interest in each of the 4 strands of funding. The process will be complete by the end of October and an announcement on allocations is expected in November.
75. Deputy Duncan Smith asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the position regarding sports capital grants; when she expects to be able to announce a new round of same; and the amount that will be available to clubs under such an announcement. [31825/20]
Amharc ar fhreagra80. Deputy Paul Kehoe asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media when the next round of the sports capital fund will be announced; the expected duration of the process; and if she will make a statement on the matter. [31935/20]
Amharc ar fhreagraI propose to take Questions Nos. 75 and 80 together.
The Sports Capital Programme (SCP) is the primary vehicle for Government support for the development of sports and recreation facilities and the purchase of non-personal sports equipment throughout the country. The Programme for Government commits to continuing the SCP and to prioritise the investment in disadvantaged areas.
The most recent (2018) round of the SCP attracted a record 2,337 applications. Allocations were announced in January, May and November of last year with a total of over €56 million awarded to 1,648 different projects. All unsuccessful applicants were given the opportunity to appeal the Department’s decision. In relation to the capital grants announced in November, a total of 122 appeals were submitted by the December deadline. The review of these appeals was completed in April with 6 new allocations approved.
With regard to future rounds of the programme, a full Review of the 2018 round of the SCP has now been completed and the terms and conditions of the next round of the programme will be based on the recommendations in the Review. Work on these terms and conditions is now being finalised and an announcement in relation to the timing of the next round and the funding available will be made after this is completed.
76. Deputy Peadar Tóibín asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the reason sexually explicit, graphic and inappropriate content such as (details supplied) is part of the programme for children at the National Youth Theatre. [31841/20]
Amharc ar fhreagra77. Deputy Peadar Tóibín asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the oversight and procedures in place to monitor the content being utilised in youth programmes such as the National Youth Theatre, and ensuring children are not exposed to sexually graphic and inappropriate content. [31842/20]
Amharc ar fhreagraI propose to take Questions Nos. 76 and 77 together.
There are a range of legislative measures in place to protect the welfare of children and it is my view, and the view of my Department, that all arts organisations should ensure that appropriate child protection and welfare policies and procedures are in place. If any person has a concern in relation to such matters, these should be brought to the attention of the relevant authorities and it would not be appropriate for me to comment.
Primary support for the arts in Ireland is delivered by the Arts Council and all individuals and organisations applying for funding to the Arts Council must demonstrate that they have the appropriate child protection and welfare policies and procedures in place. The full programme including details of Child protection and welfare measures in place can be viewed on the Arts Council’s website at the following link http://www.artscouncil.ie/Arts-in-Ireland/Young-people,-children-and-education/.
The Council’s overarching ten-year strategy Making Great Art Work (2016-2025) places specific emphasis on the need to plan and provide for children and young people. The Arts Council supports and promotes children and young people’s engagement with the arts through its programme Young people, children and education (YPCE). This Council is independent in its funding decisions under the Arts Act 2003.
