Written Answers Nos. 121-145
121. Deputy Anne Rabbitte asked the Minister for Transport if the feasibility study for the traffic management plan for Oranmore, County Galway includes consideration of a coastal cycling and walkway from a supermarket (details supplied) in the centre of Oranmore to the rear of Renville Park; if Galway County Council has made progress on the matter; and if he will make a statement on the matter. [28937/21]
Amharc ar fhreagraAs 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, including cycling and walking infrastructure, and work in conjunction with the relevant local authorities on individual projects.
In this instance the NTA are working with Galway County Council on the development of the Oranmore Local Transport Plan as part of the Active Travel Programme. Noting the NTA's responsibility in this matter, I have referred your question to them for a more detailed reply. Please contact my private office if you do not receive a reply within 10 working days.
122. Deputy Aengus Ó Snodaigh asked the Minister for Transport the action he has taken to ensure that CIÉ fully engages with the trustees of the 1951 pension scheme before changes are made in the scheme which many in Iarnród Éireann have paid into over their lifetime of work with the company. [28940/21]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport in Ireland.
The CIÉ Group has two pension schemes, namely the Regular Wages Scheme (“RWS”) and 1951 superannuation scheme (“1951 Scheme”) and issues in relation to CIÉ pension schemes are primarily a matter for the trustees of the schemes, the CIÉ Group and their employees.
Concerning the 1951 pension scheme, it is my understanding that members of the scheme were recently balloted regarding the Labour Court proposals which emerged on 23rd November 2020, with a majority of the members voting to accept the proposals.
I have therefore referred the Deputys question to CIÉ for direct reply. Please advise my private office if you do not receive a response within ten working days.
123. Deputy Alan Kelly asked the Minister for Transport if the MetroLink north capital project will be proceeding as planned; the current expected completion dates for each phase of the project; and when the service will be available. [28952/21]
Amharc ar fhreagraAs the Deputy is likely aware, the Public Spending Code sets out the requirements for the evaluation, planning and management of public investment projects in Ireland and the Code applies to all public bodies and to all bodies whose projects are supported by Exchequer capital funding.
The Code sets out a number of Decision Gates in the development of a project proposal; these are points where major decisions need to be made about the progress of a project and, for projects expected to cost over €100million, Government approval is required at these Decision Gates. For a project in this category, "Decision Gate 1: Approval in Principle" is the first stage where the Public Spending Code stipulates that formal Government approval is required.
In accordance with the Public Spending Code's requirements, the National Transport Authority has recently submitted MetroLink's Preliminary Business Case to my Department. The Code stipulates that it must be reviewed by both my Department and the Department for Public Expenditure and Reform. Following completion of these necessary steps I will then bring the matter to Government for its decision.
Approval under “Decision Gate 1: Approval in Principle” is required prior to any application to An Bord Pleanála for a Railway Order. It is anticipated that, subject to Government approval and completion of the necessary planning and environmental documentation, an application will be made to An Bord Pleanála this year.
I would note that this is the first of three Government Decision Gates and, if approved by Government at Decision Gate 1, then "Decision Gate 2: Pre-Tender Approval" requires submission of a Detailed Project Brief and Procurement Strategy which will be considered at that juncture, while finally "Decision Gate 3: Approval to Proceed" requires submission of a Final Business Case to allow substantive construction to commence.
124. Deputy Róisín Shortall asked the Minister for Transport his views on a plan by an organisation (details supplied); and his proposals for engaging with the organisation. [29025/21]
Amharc ar fhreagra125. Deputy Johnny Mythen asked the Minister for Transport his plans for the aviation sector; if a recovery strategy has been put in place for June, July and August 2021; and if he will make a statement on the matter. [29026/21]
Amharc ar fhreagraI propose to take Questions Nos. 124 and 125 together.
I welcomed the recent Aviation Restart Plan produced by the aviation industry participants of the National Civil Aviation Development Forum last month. I want to acknowledge the collaborative and constructive approach of the aviation industry representatives in working through development of the proposals in the report.
Getting international travel back up and running is vital for the continued economic well-being of this country and remains a priority for the Government; however, this can only be done by taking public health considerations into account, and at a time that is safe to do so.
An announcement concerning aviation and international travel will be made after the Government meeting scheduled for 28 May.
126. Deputy Martin Browne asked the Minister for Finance if his attention has been drawn to the fact that some foresters and tree surgeons have seen their insurance premia increase by over 100% since 2020; his plans to address this issue; and if he will make a statement on the matter. [28795/21]
Amharc ar fhreagraAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses, including those referenced in the question. This position is reinforced by the EU framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct companies as to what terms and conditions apply in relation to cover.
Notwithstanding the above, I can assure the Deputy that the Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. The Action Plan for Insurance Reform sets out 66 actions in this regard across several policy areas, including my Department, with 95% due to be completed by the end of 2021. The Sub-Group of the Cabinet Committee on Economic Recovery and Investment, which is implementing this Action Plan, was established by Government to oversee insurance reform implementation. I strongly believe the cross-departmental approach in the Action Plan provides the best opportunity to address the cost and availability of insurance and will build and expand upon previous commendable work done by the Cost of Insurance Working Group.
At its most recent meeting in March, the Cabinet Sub-Group on Insurance Reform, which oversees the implementation of the Action Plan , reflected upon the considerable progress made in the first three months of this year. Achievements include:
- The creation of an Office to Promote Competition in the Insurance Market within the Department of Finance;
- The adoption of new Personal Injuries Guidelines, which came into force on 24 April;
- A recent public consultation on proposals to reform the Personal Injuries Assessment Board.
Upcoming priorities include: strengthening the laws on perjury, expanding the National Claims Information Database so that it publishes its first report on employer and public liability insurance, and examining the Central Bank’s final report on differential pricing so that the Government can respond accordingly.
I can assure the Deputy that we will continue to engage extensively on this matter and monitor developments in the sector as the Government drives forward the insurance reform agenda. Minister of State Fleming and I look forward to continue working with colleagues and stakeholders to implement further aspects of the Action Plan , with a view to improve both the cost and availability of insurance for all consumers, businesses and community groups.
127. Deputy Joe O'Brien asked the Minister for Finance if consideration will be given to permitting self-employed persons who have been out of work during the pandemic to warehouse their tax liability for 2020 for a period of time until their finances have recovered; and if he will make a statement on the matter. [28815/21]
Amharc ar fhreagra133. Deputy Louise O'Reilly asked the Minister for Finance if self-employed persons, such as taxi drivers, will be allowed to warehouse their tax liability for 2020 and repayment schedules arranged with the Revenue Commissioners; and if he will make a statement on the matter. [28919/21]
Amharc ar fhreagraI propose to take Questions Nos. 127 and 133 together.
The Finance Act 2020 legislated for warehousing of certain income tax liabilities of self-assessed income taxpayers, including the self-employed, whose income has been affected by the restrictions introduced to combat Covid-19. I am advised by Revenue that the debt warehousing scheme already provides for the warehousing of income tax liabilities for 2020 and, where appropriate, 2021, for taxpayers who meet the eligibility criteria.
The liabilities that may be warehoused under this scheme are the balance of self-assessed income tax, PRSI and USC for 2019 and preliminary tax, PRSI and USC for 2020, which were due to be paid on or before 31 October 2020, or 10 December 2020 where the individual filed electronically through ROS; and, in certain circumstances, the balance of self-assessed income tax, PRSI and USC for 2020 and preliminary tax, PRSI and USC for 2021, which are due to be paid on or before 31 October 2021 or 17 November2021, if filed electronically.
To qualify for warehousing, an individual must declare that s/he estimates her/his total income for 2020 or 2021, as appropriate, will be at least 25% lower than her/his total income for 2019, due to the impact of Covid-19 restrictions. If the individual was not a self-assessed taxpayer in 2019, s/he will be eligible for warehousing if, as a result of the effect on her/his income of Covid-19 restrictions, s/he is unable to pay her/his income tax liabilities in 2020 or 2021. Where the relevant condition is satisfied, any self-assessed taxpayer is eligible for income tax warehousing, regardless of what sector s/he operates in.
The “Covid-19 income tax” will be subject to 0% interest for a period of twelve months and 3% interest per annum thereafter until the liability is paid in full. Where an individual is eligible for warehousing of the balance of 2020 income tax, PRSI and USC and preliminary income tax, PRSI and USC for 2021, s/he can avail of 0% interest on the warehoused amounts for an additional twelve months.
To avail of the 0% and reduced 3% interest rates, the individual must comply with her/his other tax obligations and, prior to the expiration of the zero-interest period, must enter into a payment plan with Revenue to pay the warehoused debt. The benefit of the warehouse scheme is conditional on the individual quantifying her/his tax debt through submission of all outstanding returns. If an individual fails to meet the conditions for debt warehousing – for example, if s/he fails to file a return or defaults on other taxes - the benefit of the 0% and 3 % interest rates will no longer apply and interest at a rate of 8% per annum will be re-imposed.
An information booklet giving full details of this scheme is available on the Revenue website.
Finally, Revenue adopts a pragmatic approach to businesses with genuine payment difficulties and has advised me that any business or tax agent who is struggling to meet their obligations should contact the relevant Revenue Branch Manager (via myEnquiries) to discuss the matter.
128. Deputy Michael Ring asked the Minister for Finance the changes that have been brought in in relation to a matter (details supplied); and if he will make a statement on the matter. [28821/21]
Amharc ar fhreagraThe 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 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 Scheme 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.
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, PMC assessments were discontinued until a revised basis for such assessments could be 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.
In order to allow for the PMC assessments and appeals to recommence I brought forward an amendment to the Finance Bill to provide for the existing medical criteria in primary legislation which, following the approval of the Finance Act 2020, allowed assessments to recommence.
Following approval of the Finance Act 2020, a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities and the criteria for qualification for the Scheme, will be conducted this year. On foot of that review new proposals will be brought forward for consideration.
129. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the policy or legislative changes he plans to make to the Disabled Drivers Passengers (Tax Concessions) Regulations 1994 and the related primary medical certificates following the Supreme Court ruling of 18 June 2020. [28835/21]
Amharc ar fhreagraThe 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 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 Scheme 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.
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, PMC assessments were discontinued until a revised basis for such assessments could be 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.
In order to allow for the PMC assessments and appeals to recommence I brought forward an amendment to the Finance Bill to provide for the existing medical criteria in primary legislation which, following the approval of the Finance Act 2020, allowed assessments to recommence.
Following approval of the Finance Act 2020, a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities and the criteria for qualification for the Scheme, will be conducted this year. On foot of that review new proposals will be brought forward for consideration.
130. Deputy Pa Daly asked the Minister for Finance the number of automatic renewals of licence renewals for the sale of alcohol in each of the years 2015 to 2020 and to date in 2021, in tabular form. [28863/21]
Amharc ar fhreagra131. Deputy Pa Daly asked the Minister for Finance the number of automatic renewals of off-licence renewals for the sale of alcohol in each of the years 2015 to 2020 and to date in 2021, in tabular form. [28864/21]
Amharc ar fhreagraI propose to take Questions Nos. 130 and 131 together.
I am advised by Revenue that the licensing year for Intoxicating Liquor Licences runs from 1 October to 30 September in respect of Liquor Retailer On Licences, Liquor Retailer Off Licences and Liquor Manufacturers Licences. The licensing year for Liquor Wholesale Dealer Licences runs from 1 July to 30 June. Where both a Wholesale Dealer Licence and a Retailer Off Licence are held together, the licensing year for both runs from 1 July to 30 June.
The renewal process for Intoxicating Liquor Licences is not an automatic process and requires licence holders to reapply to Revenue and pay the licence fee at the start of each new licensing year. Revenue will only renew the licence where the applicant holds a tax clearance certificate and can provide any other supporting documentation requested, for example a certificate of incorporation or a certificate of registration of the business name. For first time applications or where a licence has lapsed, the applicant must produce a Court certificate before Revenue can issue a new licence.
Table 1 below sets out the number of liquor licences issued in the years 2015 to 2021 (YTD) for all liquor licence categories. Table 2 sets out the different types of Retailer Off Licences issued during those years, including Retailer Off Licences held with Wholesale Dealer Licences .
Table 1 – Liquor Licences issued in calendar years 2015 – 2021 YTD
Table 2 – Retailer Off Licences by licence type issued in calendar years 2015 – 2021 YTD
132. Deputy Niall Collins asked the Minister for Finance if a query by a person (details supplied) in relation to the 10% rate of stamp duty will be clarified; and if he will make a statement on the matter. [28882/21]
Amharc ar fhreagraIn response to the query of the Deputy, I can confirm that if the person/entity buying the houses accumulates 10 or more houses in any 12 month period, whether they comprise new or existing housing stock, and irrespective of whether they are in the same location or not, the new higher stamp duty rate of 10% will apply.
Where a person/entity is buying on a unit by unit basis the payment of the higher stamp will be triggered on the 10th purchase. Once triggered, the 10% rate will also apply to any other residential properties acquired in that 12 month period i.e. the other 9 in this example.
This 10% rate is intended to provide a significant disincentive to the multiple purchase of residential units in the Irish property market and I believe when combined with longer term planning permission changes should result in a greater availability of houses for those wishing to purchase a family home for owner occupier purposes.
You should note that acquisitions by Local Authorities and approved housing bodies are already exempt from stamp duty, and this exemption will continue to apply as regards this new higher rate.
I have also provided a specific exemption from this higher stamp duty rate for the multiple purchase of apartments. The rationale for this is that a key objective of this proposal is to achieve a balance between addressing the issue of multiple purchases by institutional investors, whilst at the same time ensuring the supply of financing is not undermined, particularly for the construction of new apartment developments.
Without this exemption, it is felt that there would be a significant risk that developers would exit from the apartment building market as such projects would no longer be viable, and, if that were to happen, an important element of our housing strategy would be lost.
It is intended that the changes provided for in the Financial Resolution will be provided for in formal legislation in the next couple of months.
134. Deputy Michael Fitzmaurice asked the Minister for Finance the way in which the national resolution fund will be financed in accordance with EU Regulation 713/2020; and if he will make a statement on the matter. [28923/21]
Amharc ar fhreagraI assume the Deputy is referring to Statutory Instrument 713/2020: "European Union (Bank Recovery and Resolution) (Amendment) Regulations 2020" which amends SI 289/2015: "European Union (Bank Recovery and Resolution) Regulations 2015".
The Bank and Investment Fund Resolution Fund (BIFR) was set up under the 2015 Regulations and is administered by the Central Bank of Ireland.
There were no amendments to the financing arrangements for the BIFR contained within SI 713/2020, accordingly, there is no change to the manner in which the BIFR is financed.
The BIFR was established in November 2015 in accordance with Regulation 163 of the 2015 Regulations. In resolution actions the BIFR may, subject to conditionality, be used to:
- Guarantee the assets or the liabilities of an institution under resolution
- Make loans to or to purchase assets of an institution under resolution
- Make contributions to a bridge institution and an asset management vehicle
- Make a contribution to an institution under resolution in lieu of the write-down or conversion of liabilities of certain creditors under specific conditions
- Pay compensation to shareholders or creditors who incurred greater losses in resolution than under normal insolvency proceedings.
The financing sources for the BIFR are established under Regulations 166-168 of the 2015 Regulations. Credit Institutions, Irish-authorised branches of credit institutions authorised in a non-European Economic Area territory and investment firms which are in the scope of the BRRD must contribute to the BIFR.
Credit institutions and investment firms which are covered by the European Single Resolution Mechanism do not contribute to the BIFR, and instead contribute to the European Single Resolution Fund.
135. Deputy Peadar Tóibín asked the Minister for Finance the mechanisms in place to allow persons who are mortgage approved to draw down finances in circumstances in which they are being prohibited from doing so in cases in which their employer is availing of the employment wage subsidy scheme. [28935/21]
Amharc ar fhreagraSince the COVID-19 situation first arose, I have maintained contact with the BPFI and lenders on the measures they have put in place to assist their customers who are economically impacted by the pandemic. In relation to the particular issue of new mortgage lending, the main retail banks previously confirmed that they are considering mortgage applications and mortgage drawdowns in relation to their customers who were on the Employment Wage Subsidy Scheme on a case by case basis and that they are taking a fair and balanced approach. Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. Therefore, if mortgage applicants have any queries or concerns about the impact of COVID-19 on their mortgage application, they should in the first instance contact their lender directly on the matter.
However, there are certain consumer protection requirements which govern the provision of mortgage credit. For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which are necessary, sufficient and proportionate.
In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation. Furthermore, where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.
Within this regulatory framework, the decision to grant or refuse an application for mortgage credit remains a commercial matter for the individual lender. Also a loan offer may contain a condition that would allow the lender to withdraw or vary the offer if in the lender’s opinion there is any material change in circumstances prior to drawdown. In such cases, the decision to withdraw or vary the offer is also a commercial and contractual decision for the lender.
Nevertheless, the Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic. If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for credit or the drawn down of credit, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If the mortgage applicant is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman.
136. Deputy Cian O'Callaghan asked the Minister for Finance if he will consider prohibiting the use of funds allocated through the Irish Strategic Investment Fund and Home Building Finance Ireland for the construction of homes that are then sold onto investment funds; and if he will make a statement on the matter. [29002/21]
Amharc ar fhreagraThe Irish Strategic Investment Fund and Home Building Finance Ireland continue to make significant contributions to support increasing housing supply. It is important that they continue to do so given the current housing crisis.
ISIF’s investment in the residential development sector is aimed at unlocking the supply of new homes across all tenures. ISIF’s single largest investment to date has been in Activate Capital, which lends to Irish homebuilders undertaking new construction projects aimed, overwhelmingly, at the owner occupier market. ISIF has also supported new construction that is adding to the stock of rental accommodation in our major urban centres in line with market demand. To date, ISIF has directly committed €937 million which is supporting the supply of 15,000 new homes across 100 construction sites nationwide, which includes 2,500 new rental properties.
ISIF, as part of a wider suite of Government measures, is therefore making an important contribution to increased housing supply which is vital to addressing many of the challenges in Ireland’s residential property market.
HBFI was established in late 2018 as a Government initiative to address a shortfall of finance available for the construction of residential housing. HBFI was designed to increase access to residential development finance generally and in particular to projects that had not been the current focus of traditional or alternative lenders at that time. It was also designed to be able to adapt to changing conditions in the financing market.
Accordingly following the outbreak of Covid-19, HBFI widened its remit on a temporary basis to allow it to provide finance for larger prime residential projects that were experiencing difficulties in accessing financing. In May 2020, HBFI established a €300 million temporary step-in fund which is known as their “Momentum Fund”. This was to help ensure that supply was not interrupted due to a tightening of financing markets.
Again reacting to changing market conditions, HBFI brought other additional products to the market including a small development product specifically for smaller projects of between 5 and 10 units and an apartment product.
HBFI does not fund institutional investment, HBFI provides development finance to builders and developers to enable construction of residential property. HBFI has provided funding across a range of development sizes including for the construction of homes for private rental. HBFI funding has enabled construction to proceed on these projects to deliver much needed supply and not to displace the construction of residential homes for sale.
Since inception, HBFI has approved funding to house builders to support the delivery of up to 2,400 homes across 17 counties. Of these, 5 developments (out of 52 approved) are subject to forward purchase PRS sales and represents 916 units approved of which 851 (93%) are apartments and 65 are houses.
HBFI has €730m of funding available for residential development, with an ability to raise a further €750m if required. It is important to recognise that the temporary funding of large-scale developments has not, and will not, impact on HBFI's ability to fund small and medium sized developments. These smaller developments are the core of HBFI’s business and will continue to remain so.
137. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of engagements he and or his predecessor has had with the Central Bank and the Revenue Commissioners in respect of the Immigrant Investor Programme; if he plans to review or perform an impact assessment of the programme historically taking into consideration its impact on the provision of social housing. [29010/21]
Amharc ar fhreagraI would like to advise the Deputy that the Immigrant Investor Programme (IIP) is not under the remit of the Minister for Finance and is a matter for the Department of Justice. In common with my predecessors as Minister for Finance, I have regular engagement with the bodies referenced, in particular with the Central Bank, on a wide range of issues. My officials are currently reviewing the records of these regular meetings to identify if the IIP was discussed in any of these meetings. However as the request covers a significant time period and the tenure of two Ministers, this exercise is expected to take a some time. In light of this, I regret to advise that it was not possible to provide the information sought in the time available to respond to this Parliamentary Question and therefore I will make arrangements to provide the information to the Deputy in line with Standing Order 42A.
However with regard to the subject matter of the Deputy’s query, I can advise that in late 2013 the former Minister for Finance, in conjunction with the then Minister for Justice and Equality, announced the addition of REIT investments to the 5 investment options already in place under the Immigrant Investor Programme. This was subject to conditions placed on the minimum level of the investment and withdrawal of funds, to ensure alignment with the overall purpose of the programme.
As stated, the Immigrant Investor Programme is a matter for the Department of Justice, therefore any reviews or impact assessments of the programme will be undertaken by that Department. An examination of matters relevant to social housing policy would also be a matter for the Department of Housing and Local Government.
138. Deputy Willie O'Dea asked the Minister for Finance when the issuing of primary medical certificates will be resumed (details supplied); the situation regarding persons who applied prior to 18 June 2020; and if he will make a statement on the matter. [29017/21]
Amharc ar fhreagraThe 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 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 Scheme 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.
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, PMC assessments were discontinued until a revised basis for such assessments could be 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.
In order to allow for the PMC assessments and appeals to recommence I brought forward an amendment to the Finance Bill to provide for the existing medical criteria in primary legislation which, following the approval of the Finance Act 2020, allowed assessments to recommence. Separately, however, the ability to hold assessments may be impacted on by, among other things, the public health restrictions in place and the role of the HSE Medical Officers in the roll out of the COVID vaccination programme.
Following approval of the Finance Act 2020, a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities and the criteria for qualification for the Scheme, will be conducted this year. On foot of that review new proposals will be brought forward for consideration.
139. Deputy Neale Richmond asked the Minister for Finance the steps that have been taken to ensure that homeowners of properties with defects requiring remediation can access home insurance; and if he will make a statement on the matter. [29023/21]
Amharc ar fhreagraAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses, including those referenced in the question. This position is reinforced by the EU framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct companies as to what terms and conditions apply in relation to cover.
That being said, the Deputy will be aware of the Government’s commitment to insurance reform. The Action Plan for Insurance Reform sets out 66 actions across several policy areas, which will work to improving the cost and availability of insurance for consumers, businesses and community groups.
In relation to specific measures for homeowners of properties with defects, this is a matter for my colleague, the Minister for Housing, Local Government and Heritage. I have been advised by the Department of Housing, Local Government and Heritage that the Independent Working Group on Defective Housing has been established. With regard to the working group’s deliberations, the group will seek to engage with a range of interested parties, including homeowners, public representatives, local authorities, product manufacturers, building professionals and industry stakeholders, among others to examine the issue of defects in housing and report to the Minister for Housing on the matter.
140. Deputy Neale Richmond asked the Minister for Finance if he has considered implementing a scheme by which owners of properties that require remediation could offset the costs involved against their tax liability; and if he will make a statement on the matter. [29024/21]
Amharc ar fhreagraAs the Deputy may be aware, there have been a small number of tax-based measures in recent years concerned with the remediation of private dwellings.
The Living City Initiative is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas'.
The Home Renovation Incentive (HRI) provided tax relief by way of an income tax credit on repair, renovation or improvement works on principal private residences or rental properties carried out by tax compliant contractors. It was introduced in 2014 at a time when there was considerable loss of employment within the construction sector, with the aim of addressing this market failure by stimulating increased activity in the sector. The incentive expired on 31 December 2018 following a review of the scheme. The review found that in the context of the current housing supply shortage, and the need at that time to deliver 25,000 additional housing units per annum over the period 2017-2021, there was a risk that the scheme could lead to increased competition for scarce resources within the construction sector, leading to upward pressure on construction costs and house prices. The review concluded that the continuation of the scheme could give rise to displacement of labour from work on new builds to work on home renovations and would create a high opportunity cost of labour which was not present at the inception of the scheme.
Also, in 2019, in the context of the Tax Strategy Group (TSG) deliberations, my department examined the concept of a tax incentive along the lines of the HRI for domestic retrofit projects. The relevant TSG paper was published with the Budget 2020 documentation. It indicated that there could be a duplication of supports with the direct Sustainable Energy Authority of Ireland (SEAI) grant system already in place and that a scheme such as this could conflict with the need to increase overall housing supply.
The paper observed that:
- in terms of current direct expenditure measures in the energy efficiency sector, the Government continues to make grants available to householders who wish to improve the energy efficiency of their home through the SEAI’s Better Energy Homes (BEH) and Deep retrofit Grant programme;
- research undertaken by the ESRI into householder preferences regarding retrofit subsidy schemes found that households strongly prefer cash payment subsidies (i.e. up-front discounts or cash back post works) versus other indirect methods of financial support such as tax credits); and
- from an equity perspective, tax expenditure measures can be regressive by nature, given that only those who pay taxes qualify, and those with greatest income benefit the most. As such, a tax incentive measure as proposed may be of little benefit to certain groups who are most likely to suffer from energy poverty, for example the elderly or those on limited incomes.
More generally, proposals for tax expenditure measures are assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
141. Deputy Louise O'Reilly asked the Minister for Finance if craft cider producers will be allowed access to the same excise relief currently enjoyed by microbrewers; the estimated cost of same; and if he will make a statement on the matter. [29047/21]
Amharc ar fhreagraCouncil Directive 2020/1151 amends the Alcohol Products Tax Directive. The revision provides for mandatory changes and optional changes. Among the optional changes is a provision to allow Member States to apply reduced rates of excise to small cider producers. Options around relief for small cider producers will be included in the Tax Strategy Group Papers. Any decision on the provision of the relief will be taken in the context of the annual budgetary process. As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment on any tax matters that might be the subject of Budget decisions.
142. Deputy Patricia Ryan asked the Minister for Finance the action he has taken to ensure financial institutions contribute to the mica redress scheme; and if he will make a statement on the matter. [29058/21]
Amharc ar fhreagraMy colleague the Minister for Housing, Local Government and Heritage is responsible for the defective concrete blocks remediation financial assistance scheme and his Department will be best place to advise on the requirements and operation of the scheme.
In relation to any contributions which financial institutions may contribute to the mica redress scheme, that is a matter for each individual institution and I cannot become involved in the business decisions of banks, insurance companies or other financial institutions.
143. Deputy Patricia Ryan asked the Minister for Finance if he will consider introducing a vacant homes tax; and if he will make a statement on the matter. [29072/21]
Amharc ar fhreagraI consider that the primary objective of a vacant residential property tax would be to increase the supply of homes for rent or purchase to meet demand rather than increasing tax revenues. However, before introducing such a tax it is of course important to have a sound understanding of the quantity, locations and characteristics of long term vacant dwellings, and the reasons why they are vacant.
Accordingly, in 2018 I commissioned a study on the potential of a vacant residential property tax to meet the objective of increasing the supply of homes. The resulting report presented a detailedevidence-based assessment of vacancy rates in areas in which the demand for housing is most acute. The report did not recommend the introduction of a residential vacant property tax as it considered it would not be an effective response to deal with the housing challenges. The very low vacancy rates in the areas of greatest demand for housing, particularly in terms of medium term vacancy, indicated that the potential for a vacant property tax to increase housing supply was very limited and could represent a distraction from the need to significantly accelerate the building of new social housing, affordable housing and the facilitation of private sector supply. In their report Indecon stated that while such a tax would be likely to generate significant media and public attention and may be seen as part of an effective response to our housing problems, they did not believe that this would be supported by the evidence in their report.
The report recommended that the matter be kept under review and this remains the position.
144. Deputy Colm Burke asked the Minister for Public Expenditure and Reform if he will confirm that the commitment in the Programme for Government Our Shared Vision that €1.5 billion raised from carbon taxes up to 2030 will be returned to agriculture by means of environmental schemes in which all farmers can partake and that the funding of any such scheme will be in addition to funding provided under the CAP programme; and if he will make a statement on the matter. [28833/21]
Amharc ar fhreagraThe Programme for Government recognises the special economic and social role that agriculture plays in Ireland, but also commits to the creation of schemes that will encourage and incentivise farmers to farm in a greener and more sustainable way. This is with the aim of developing a sustainable Irish agricultural sector that protects the environment and aligns with emerging consumer sentiment, while benefiting farmers and rural communities.
The Programme for Government commits to the allocation of €1.5bn in projected carbon tax receipts over the next ten years for this purpose. The first step in meeting this commitment was in Budget 2021 through the allocation of €20m in anticipated additional carbon tax receipts for the creation of pilot environmental programmes. This was supplemented with the continuation of the €3m in funding that was provided for agricultural programmes from carbon tax receipts in 2020, bringing the total funding for carbon tax supported measures in the agricultural sector to €23m in 2021.
These funds are being used to create an innovative, results-based pilot scheme for farmers who improve the bio-diversity and carbon management of their land, by undertaking specific actions which they report directly based on the results generated from their actions.
The use of carbon funds in 2021 was detailed in the Budget Day publication "The Use of Carbon Tax Funds 2021" which continues to be available on the budget.gov.ie website. Carbon tax funding in the Department of Agriculture, Food and Marine is allocated to a specific sub-head, B.13, against which progress on spending the allocated funds can be tracked.
Questions regarding the operational details of the pilot programmes should be directed to the Minister for Agriculture, Food and Marine. Regarding the Common Agricultural Programme, it is my understanding that the CAP Strategic Plan is in still in development by the Minister for Agriculture, Food Marine and it is envisaged that a draft plan will be published for a full and thorough public consultation in the coming weeks.
145. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 546 of 21 March 2021, the names of the trustees of a community centre (details supplied); and if he will make a statement on the matter. [28816/21]
Amharc ar fhreagraI have been advised by officials at my department that the former National School at Kilgarvan, Co Kerry is owned by the Minister for Finance and was leased to the Trustees of Kilgarvan Community Development Committee in 1982 for a period of 99 years.
The names of the Trustees at the date of signing of the lease will be forwarded to the Deputy.
