Written Answers Nos. 310-329
310. Deputy Catherine Murphy asked the Minister for Transport the date on which driver theory tests will resume; and the number of applicants who are in the backlog for the theory test and the full driving test, respectively. [17575/21]
Amharc ar fhreagraWaiting list details are held by the Road Safety Authority. I have therefore referred this part of the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days
The Driver Theory Test has not been deemed to be an essential service under Level 5 restrictions. The service will remain closed while level 5 restrictions remain in place. I fully appreciate the difficulties thatthis poses and I can assure the Deputy that Theory Tests will resume as soon as it is safe to do so when level 5 restrictions are eased.
The RSA is engaging with its service provider to examine ways of increasing the number of tests within the current health constraints for when services resume. In this regard, the aim is to double capacity at test centres over a three-month period. Subject to decisions on future Covid 19 restrictions, this will mean that additional capacity would be made available in April, May and June 2021.
Normal capacity before the pandemic was approximately 15,000 tests per month. When the service reopened in June 2020, this was increased to 25,000 to deal with the backlog which had developed by that point. Based on the capacity of 25,000 tests per month, the aim is to provide an additional 25,000 tests per month on top of this for the first 3 months of reopening, or a total of 75,000 extra test appointments over the three-month period. This would make substantial inroads into numbers waiting over that time period.
An online driver theory test service called Pro Proctor was trialled in December on a pilot basis for those taking a theory test for trucks and buses. The pilot is now being evaluated and the RSA is committed to extending the service for all theory test types during 2021. There will be a limit on the number of customers that can avail of the service during the initial rollout phase, but the objective is that it should be an option for all theory test customers during later phases of the rollout.
It is important to recognise that there are no quick fixes and that the continuing build-up of applications as the pandemic goes on means that it will take time to return to a normal waiting time.
311. Deputy Catherine Murphy asked the Minister for Transport the rationale for not appointing a technical expert for the second review board regarding the Rescue 116 report in view of the fact that his predecessor had appointed a person with this level of expertise in the first instance (details supplied). [17589/21]
Amharc ar fhreagraThe Deputy will be aware that I established a new Review Board last October to re-examine certain findings of the draft Final Report of the investigation into the accident involving Rescue 116 at Black Sod, Co Mayo in 2017. The new Review Board was established following the recusal of the technical assessor from the previous Review Board and was constituted taking account of legal advice from the Office of the Attorney General.
The Review Board was established in line with Regulation 16 of Air Navigation (Notification and Investigation of Accidents, Serious Incidents and Incidents) Regulations 2009. The 2009 Regulations provide that the Review Board shall consist of a chairperson (who shall be either a barrister or solicitor of not less than 10 years’ standing, or a person who, in the Minister’s opinion, possesses aeronautical, engineering or other special knowledge or experience of air navigation or aviation). The regulations also provide that the Review Board may also include one or more persons who, in the Minister’s opinion, possesses aeronautical, engineering, legal or other special knowledge, to act as technical assessors to assist the chairperson in conducting the re-examination.
Following engagement with the Office of the Attorney General, I appointed Senior Counsel Patrick McCann as the Chairperson and sole member of the Review Board in line with the 2009 regulations. The Review Board is independent in its work in accordance with the 2009 Regulations.
312. Deputy Patrick Costello asked the Minister for Finance his plans for the extension of the current 0% benefit-in-kind rate for electric vehicles when the current scheme expires in 2023. [16372/21]
Amharc ar fhreagraIn the 2019 Finance Act I extended the 0% BIK rate for electric vehicles to the end of 2022. From January 2023, an emissions-based BIK structure (also provided for in the 2019 Finance Act) takes effect. For the year of assessment 2023 and subsequent years, electric vehicles will fall into the lowest emissions category, and therefore the BIK tax rate will range from 9% to 22.5%, depending on annual kilometres driven. The structure can be accessed at the following link: www.irishstatutebook.ie/eli/2019/act/45/section/6/enacted/en/html#sec6.
313. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy is withstanding the double impact of Brexit since the beginning of 2021; the degree to which specific or unforeseen issues have arisen which may need a response; and if he will make a statement on the matter. [1835/21]
Amharc ar fhreagra314. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which Ireland’s economy is withstanding the double impact of Covid-19 since the beginning of 2021; the degree to which specific or unforeseen issues have arisen which may need a response; and if he will make a statement on the matter. [1836/21]
Amharc ar fhreagraI propose to take Questions Nos. 313 and 314 together.
As the interplay between the Covid-19 and Brexit shocks has implications for the economic outlook, my Department, along with the ESRI, conducted an analysis of the sectoral overlap between the two shocks. The analysis found that the sectors most exposed to both the Covid-19 and ‘disorderly’ Brexit shocks appear to be distinct and relatively unconnected. While the analysis was based on the assumption of a ‘disorderly’ Brexit, this general conclusion is still applicable today.
Although the Trade and Cooperation Agreement between the EU and the UK provides for zero-tariffs and zero-quotas for qualifying goods, it will nevertheless introduce trade frictions in the form of non-tariff barriers. It is also a considerable ‘step-down’ in terms of services trade relative to the previous EU-UK relationship, which is significant as Ireland exports considerably more services than goods to the UK. Therefore, while the newly formed agreement protects Irish firms from the more significant impact of a ‘disorderly’ Brexit scenario, they will still be impacted by the change in trading arrangements. Thus, it represents a smaller Brexit shock for the same sectoral mix of Irish firms as under a no-deal scenario.
My Department will publish updated macroeconomic forecasts that account for both the Covid-19 and Brexit shocks as part of the Stability Programme Update in April. It is likely that the current restrictions will have a contractionary impact on the economy in the first half of the year. Indeed, their impact on the economy is already evident with many additional people relying on income support schemes as a result. The number of recipients of the PUP stood at 443,000 as of 29th March, an increase of 150,000 since the restrictions were introduced in December, though this remains well below the peak of 600,000 recorded in May last year.
Crucially, however, the vaccine programme is now underway and there is light at the end of the tunnel. While this process will undoubtedly take time and restrictions will be required in the near term, as the vaccine programme picks up speed, restrictions will gradually be eased, allowing an economic recovery will take hold.
316. Deputy Niall Collins asked the Minister for Finance his views on a matter in relation to NOx emissions charges that are being levied on older diesel vehicles (details supplied); and if he will make a statement on the matter. [16422/21]
Amharc ar fhreagraThe VRT NOx charge was introduced in the 2019 Finance Act and subsequently amended in the 2020 Finance Act. The current rates structure, including calculation examples, can be accessed on the Revenue website:
www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/calculating-vrt/calculating-the-nox-charge.aspx.
I introduced this measure in recognition of the harmful externalities associated with non-CO2 car exhaust emissions. Non-CO2 emissions have a detrimental effect on air quality and public health. The charge recognises non-CO2 emissions in vehicle registration tax, and acts as a dis-incentive for high emission vehicles.
317. Deputy Ged Nash asked the Minister for Finance the percentage at which loading above the premium norm for a prospective borrower with mitigating circumstance, for example illness, becomes exempt from the legal requirement for mortgage protection insurance; if he plans to define a specific percentage loading cap above the norm given that some persons with underlying illnesses such as diabetes can be expected to pay between 200% to 450% more for mortgage protection cover (details supplied); and if he will make a statement on the matter. [16472/21]
Amharc ar fhreagra318. Deputy Ged Nash asked the Minister for Finance the process by which a prospective mortgage borrower can seek a legal exemption from the requirement for mortgage protection insurance; and if he will make a statement on the matter. [16473/21]
Amharc ar fhreagra319. Deputy Ged Nash asked the Minister for Finance his plans to update the Consumer Credit Act 1995 with respect to mortgage protection insurance given the difficulties of those with underlying conditions including Covid-19 in obtaining mortgage protection insurance at a reasonable price (details supplied); and if he will make a statement on the matter. [16474/21]
Amharc ar fhreagra320. Deputy Ged Nash asked the Minister for Finance if a relevant authority under the auspices of his Department records the number and details of cases in which prospective borrowers are refused a mortgage due to their inability to obtain reasonably priced mortgage protection insurance; if not, if he will consider mandate banks, insurance companies and brokers to report such cases to relevant authorities; the number of cases in each year since 2016 that have been refused mortgage protection insurance cover; the number of cases in each year since 2016 in which an offer of mortgage protection insurance was made with a loading of 100% above the normal premium price in tabular form; and if he will make a statement on the matter. [16475/21]
Amharc ar fhreagraI propose to take Questions Nos. 317 to 320, inclusive, together.
When a person applies for a mortgage loan to buy a home, the person will generally be required to take out mortgage protection insurance. In most cases, a lender is legally required under section 126 of the Consumer Credit Act 1995 to make sure that a mortgage applicant has mortgage protection insurance in place before granting a mortgage loan. This is an important statutory provision which is designed to protect the borrower's dependants and their home should the borrower die before the mortgage has been repaid. However, the Act also recognises that in certain cases such protection is not necessary or would be inappropriate and it provides for a number of limited exemptions to this statutory obligation where:
a. the house in respect of which the loan is made is, in the mortgage lender's opinion, not intended for use as the principal residence of the borrower or of his or her dependants;
b. loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally;
c. loans to persons who are over 50 years of age at the time the loan is approved;
d. loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, of not less than the amount of the estimated outstanding principal amount.
It is not necessary for a prospective mortgage borrower to seek or apply for an exemption from this statutory requirement as the Act makes clear that the legal requirement on mortgage lenders to arrange for mortgage protection insurance does not apply in such cases; also I do not think it would be desirable to be more proscriptive in legislation in regard to these statutory exemptions. If a prospective borrower is of the view that a particular lender is taking an unduly restrictive approach to these statutory exemptions then it will be possible for the borrower to utilise the complaints process as provided for in Chapter 10 of the Consumer Protection Code and if that process does not resolve the matter then a complaint can be made to the statutory and independent Financial Services and Pensions Ombudsman.
However, it may also be the case that, in circumstances where there is no specific statutory obligation on a mortgage lender to arrange for mortgage protection insurance in association with a housing loan, an individual mortgage lender may, as a matter of its own commercial policy, require a mortgage borrower to put in place such an insurance policy as a condition for obtaining mortgage credit. That would be a commercial decision as opposed to a statutory requirement for an individual mortgage lender and it is not possible for me to instruct lenders on their commercial lending policies or their commercial decisions on any individual mortgage application, including the insurance and other security they require either in respect of the borrower or the secured property in relation to a mortgage loan.
In the same way it is not possible for me interfere with the decisions insurance companies may make on applications for life insurance cover or direct such companies to provide cover to specific individuals. That is also a commercial matter and decision for individual insurers to make in line with their own risk policies and analysis. However, if a mortgage lender requires a consumer to hold a policy of insurance related to a housing loan, the lender is obliged to accept a policy selected by the consumer provided that such a policy has a level of guarantee equivalent to the amount that would be required to repay the outstanding credit or to insure the value of the security. Also in relation to the impact of COVID-19 on insurance, the Central Bank expects that the insurance industry will play its part in protecting its customers during this difficult time and it expects that firms will consider the customer impact when making decisions and to engage with customers in an open, fair and transparent manner.
If a person is not satisfied with the way a regulated mortgage provider or insurance provider has dealt with them in relation to an application for a mortgage or for life insurance, or they believe that the regulated entity is not following the requirements of the Central Bank’s codes and regulations or other financial services law, including the requirement for the regulated entity to act with due skill, care and diligence in the best interest of its customers, the consumer can also complain directly to the regulated entity and, if not satisfied with the response from the regulated entity, the consumer can refer the complaint to the independent Financial Services and Pensions Ombudsman.
In relation to mortgage refusals, the Central Bank has indicated that it does not receive or hold data regarding the number of mortgage applications declined by regulated mortgage lenders or the reasons why applications are refused. However, the Consumer Protection Code provides that where a personal consumer's formal application for credit is turned down by a regulated entity, the entity must clearly outline to the personal consumer why the credit was not approved. Also the regulated entity must offer to provide the reasons, on paper or another durable medium, to the personal consumer.
321. Deputy Peadar Tóibín asked the Minister for Finance the effect that the reduction in Ireland's share of the EU recovery fund will have on the public finances. [16543/21]
Amharc ar fhreagra330. Deputy Mairéad Farrell asked the Minister for Finance if Ireland’s allocation of the EU recovery and resilience fund is to be reduced in view of better than expected GDP figures; if so, the total reduction in funding; and if he will make a statement on the matter. [16736/21]
Amharc ar fhreagraI propose to take Questions Nos. 321 and 330 together.
The Recovery and Resilience Facility is a €672.5bn instrument, made up of €360bn loans and €312.5bn in grants and is the key element of the Next Generation EU / Recovery Plan Package of €750bn (€360bn in loans and €390bn in grants) agreed by the European Council in July 2020.
70% of the total €312.5 billion grants from the Recovery and Resilience Facility are to be committed in the years 2021 and 2022. The 70% amounts are pre-allocated under a statistical methodology taking into account GDP per capita, population and unemployment. (Article 11(1) (a) and Annex II). Ireland’s allocation under the 70% tranche is €853million (2018 prices). This has not changed.
The remaining 30% of grants will be fully committed by the end of 2023, based on a similar formula but replacing the unemployment criterion with GDP loss in 2020-2021 (Article 11(1) (b) and Annex III).
As set out in the final regulation, all Member States’ allocations under the 30% pot are indicative only at this time. The amounts allocated will be based on actual cumulative GDP output from 2020 and 2021, as published in 2023 (Article 11(2)).
There has been no reduction in Ireland’s share of the Recovery and Resilience Facility grant funding. The Irish allocation under the 30% tranche will not be determined until 2023. It may ultimately increase or decrease compared to the current indicative amount. Initial indicative allocations from the 30% pot (€420m – 2018 prices) were based on the Commission’s Summer Economic Forecast. More recent figures (in the region of €68m) are linked to the Commission’s latest (Winter) economic forecast which incorporate a large upward revision to the level of Irish GDP due to the much stronger than anticipated performance in 2020. The final allocation will be determined in 2023, based on actual cumulative GDP output from 2020 and 2021.
322. Deputy Peadar Tóibín asked the Minister for Finance the contribution to the EU in each of the years 2000 to 2020; and the projected contribution for the next five years. [16544/21]
Amharc ar fhreagraIreland’s contributions to the EU Budget for the years 2000 to 2020 are as follows:
|
Year |
Contributions € m |
|
2000 |
1,075 |
|
2001 |
1,220 |
|
2002 |
1,011 |
|
2003 |
1,190 |
|
2004 |
1,186 |
|
2005 |
1,497 |
|
2006 |
1,530 |
|
2007 |
1,570 |
|
2008 |
1,587 |
|
2009 |
1,486 |
|
2010 |
1,352 |
|
2011 |
1,350 |
|
2012 |
1,393 |
|
2013 |
1,726 |
|
2014 |
1,685 |
|
2015 |
1,952 |
|
2016 |
2,023 |
|
2017 |
2,016 |
|
2018 |
2,519 |
|
2019 |
2,432 |
|
2020 |
2,569 |
Ireland’s contributions to the 2021-2027 Multiannual Financial Framework are expected to rise over the coming period from approximately €3 billion in 2021, to approximately €4 billion in 2027, an average of €3.5 billion per annum. However, these estimates are due to be revised in the coming weeks as part of the Stability Pact Update.
Ireland’s contributions to the EU Budget are published annually as part of my Departments Budgetary Statistics. Contributions from 1973 – 2019 can be found at the following link: www.gov.ie/en/publication/cde43-budgetary-statistics-2019/.
323. Deputy Peadar Tóibín asked the Minister for Finance if austerity measures are being considered by his Department in response to the economic impact of Covid-19. [16545/21]
Amharc ar fhreagraIn responding to the impacts of Covid-19, the Government has made available fiscal support totalling €12.6 billion this year. This incorporates an additional direct expenditure allocation of €6.5 billion and taxation measures to the value of €700 million.
The Government also provided for €5.4 billion to be set aside in two contingency funds in 2021 – the Covid Contingency Fund and the Recovery Fund. This is to ensure that any additional costs arising from the pandemic can be met within the existing budgetary arithmetic. And while a high degree of certainty remains, it is the Government expectation that additional costs of the current restrictions can be met from this.
We are undoubtedly still in a period of unprecedented uncertainty. The impact of the current restrictions will have an obvious negative impact on the public finances. However, once the public health situation allows, supports will only be unwound in an appropriate and incremental way. When we are in a position to reopen the economy safely, it is expected that economic growth will do much of the ‘heavy lifting’ in restoring the public finances to a sustainable setting.
324. Deputy Peadar Tóibín asked the Minister for Finance when the banking levy is set to expire in 2021; and when will the last payment be made under the levy. [16578/21]
Amharc ar fhreagraThe Financial Institutions ("Bank") Levy was introduced for the three-year period 2014 to 2016 in Finance (No.2) Act 2013 with the purpose of enabling the banking sector to contribute to economic recovery. The annual yield of this levy is approximately €150 million.
In Finance Act 2016 my predecessor, Minister Michael Noonan, extended the bank levy to 2021. The due date for the last payment of the bank levy under the current legislation is no later than 20 October 2021.
325. Deputy Peadar Tóibín asked the Minister for Finance his plans to extend the banking levy beyond 2021 and to replace the levy with a permanent charge on banks to repay bailout funds. [16579/21]
Amharc ar fhreagraAs the Deputy is aware, the Bank Levy was introduced for the three-year period 2014 to 2016 with the purpose of enabling the banking sector to contribute to economic recovery. The annual yield of the Bank Levy is €150 million.
In the Finance Act 2016 the Levy was extended until 2021. That extension had been subject to a review being undertaken of the methodology used to calculate the levy, which included a public consultation with stakeholders in June 2016. That stakeholder exercise was inconclusive in terms of getting external agreement on a possible replacement to the DIRT based methodology.
Ultimately the DIRT-based formula was retained but the then Minister for Finance took into account the suggestion that arose from the Public Consultation that the base year for calculating Levy liability should not be static, and announced in Budget 2017 the introduction of a rolling two-year series of base years.
In order to protect the annual 150 million yield based on the financial institutions DIRT liability, the rate payable has increased from 35% in 2014 to 308% for 2021.
The Bank Levy is due to cease in 2021 and as yet, I have made not made my decision as to whether the levy will cease or continue beyond 2021 or the format, if any, it may take.
326. Deputy Peadar Tóibín asked the Minister for Finance the daily cost of the lockdown measures to the economy; and the cost of lockdown measures to the economy in 2020. [16581/21]
Amharc ar fhreagraA general government deficit of around €19 billion is estimated in 2020— a €21 billion swing from 2019. The year-on-year deterioration was primarily due to increases in voted expenditure with total net voted expenditure in 2020 amounting to €67,849 million. This was €13,703 million, or 25.3%, ahead of the same period in 2019. This rise in expenditure reflects increased departmental drawdown in response to the Covid-19 pandemic, particularly in the areas of health and social protection.
In terms of revenue, tax receipts of €57,165 million collected in 2020 were down by 3.6% or €2,149 million on the previous year, with corporation tax growth as well as resilient income tax receipts combining to compensate for steep declines in the other tax heads, in particular in VAT and excise duties.
The cost of the three main income and business support schemes in 2021 is over €1 billion per month. The ultimate cost of the current phase of restrictions will depend on the speed at which restrictions can be lifted and the economy opens up. However, a deficit of at least as large as in 2020 is expected again in 2021.
Costs to the Economy
Although Ireland entered the Covid-19 induced crisis from a position of strength, with robust growth, balanced public finances and a labour market close to full employment, the outbreak of the pandemic turned the economy on its head in the space of a few weeks. Restrictions were introduced which resulted in a sharp contraction in economic activity. However, the strong performance of the multinational sector last year, of pharmaceuticals and ICT in particular, meant that the Irish economy grew last year, with GDP growth of almost 3 ½ per cent recorded for 2020 as a whole.
GDP figures however mask a severe hit to the domestic economy. Modified domestic demand, which provides a better measure of domestic activity, declined by 5.4 per cent in 2020, with domestic-facing sectors, such as hospitality, leisure and education, bearing the brunt of the economic impact. These are labour-intensive sectors and so it follows that the pandemic had a significant impact on the labour market, with an unemployment rate of about 19 per cent recorded in 2020.
Covid-19 restrictions continue to weigh on the domestic economy. Indeed, the impact of the current restrictions is already evident, with many additional people relying on state income supports as a result. The number of recipients of the Pandemic Unemployment Payment stood at approximately 450,000 as of 22nd March, an increase of around 172,000 from the beginning of Level 5 restrictions in December, but remaining well below the peak of 600,000 recorded in May last year. Crucially, however, the vaccine programme is now underway and there is light at the end of the tunnel. While this process will undoubtedly take time and restrictions will be required in the near term, as the vaccine programme picks up speed and the public health situation improves these restrictions will gradually be eased and an economic recovery will take hold.
327. Deputy Mairéad Farrell asked the Minister for Finance if his attention has been drawn to instances of litigation or the threat of litigation arising from the inclusion of social clauses in public procurement contracts in each of the years 2017 to 2020. [16592/21]
Amharc ar fhreagraMy Department is involved in a large amount of litigation. There are large volumes of litigation in which the Minister for Finance is named as a party but in respect of which my Department is not consulted because another Minister is the lead Defendant. However, my attention has not been drawn to any instances of litigation or the threat of litigation arising from the inclusion of social clauses in public procurement contracts in each of the years 2017 to 2020.
328. Deputy Sorca Clarke asked the Minister for Finance the estimated cost if the VAT rate on older persons' personal alarms was reduced to 13.5% based upon the number in use in 2019, 2020 and to date in 2021. [16659/21]
Amharc ar fhreagra329. Deputy Sorca Clarke asked the Minister for Finance the estimated cost if the VAT rate on older persons' personal alarms was reduced to 0% based upon the number in use in 2019, 2020 and to date in 2021. [16660/21]
Amharc ar fhreagra403. Deputy Peter Burke asked the Minister for Finance if he will consider an exemption of VAT on panic alarm systems through the seniors' alert scheme run by Pobal. [17627/21]
Amharc ar fhreagraI propose to take Questions Nos. 328, 329 and 403 together.
The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the VAT Directive, the supply of a personal alarm is liable to VAT at the standard rate, currently 23%. The supply of parts and accessories and monitoring fees are also liable to VAT at the standard rate.
In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within certain specified categories, in respect of which Member States may apply a lower rate or exemption from VAT. The supply of personal alarms is not included in any such category and therefore there is no discretion for Ireland to adjust the VAT rate applicable on this good.
I am advised by Revenue that VAT returns do not require traders to separately identify the VAT yield from the supply of specific products or services. Therefore, the information required for an estimate of the cost incurred should the VAT on personal alarms be reduced to a lower rate is not available.
