Written Answers Nos. 72-91
72. Deputy Ruairí Ó Murchú asked the Minister for Transport if there are plans to include provisions for cycling and walking along the new realignment of the N53 Hackballscross to Rassan, County Louth; and if he will make a statement on the matter. [32299/21]
Amharc ar fhreagraAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you on the N53 project from Hackballscross to Rassan.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
73. Deputy Sean Sherlock asked the Minister for Transport if an essential worker (details supplied) will be offered an online theory test appointment or a physical theory test appointment in their own county. [32309/21]
Amharc ar fhreagraUnder legislation, the Road Safety Authority (RSA) is the body responsible for the operation of the Theory Test. All enquires relating to the service are handled by the Authority. My Department does not have access to individual applications.
This question is therefore being referred 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.
74. Deputy Paul Murphy asked the Minister for Transport if he will contact airlines specifically an airline (details supplied) to require it to provide free of charge rescheduling of flights scheduled prior to 19 July 2021 to dates after 19 July 2021 when international travel restrictions have been lifted. [32314/21]
Amharc ar fhreagraAir passenger rights are protected by Regulation (EC) No. 261/2004, which covers the rights of airline passengers in instances of flight cancellations, among other matters. It provides that where a flight is cancelled then a consumer must receive a refund within seven days. However, there is no legal onus on airlines to refund where a flight goes ahead. Mindful of the position that Government has taken in relation to international travel in the interests of public health, the matter of consumer protection, consumer refunds and particularly fair treatment of air passengers who choose not to travel on Government advice, has been high on my agenda since assuming Office. I have taken many opportunities to impress on the main Irish airlines that their treatment of passengers who choose not to travel, for example in following Government advice, needs to be fair and reasonable.I have sought clarification from the two main Irish airlines on their current rebooking policies. Ryanair has clarified that the expiry dates for vouchers that were issued for flight cancellations last year are being extended so as to enable passengers to make bookings when travel is open again. I understand from their response also that a rebooking can be made with no flight change fee for travel before 31 October 2021. Finally, Ryanair has also informed me that that vouchers that were offered to customers whose flights were cancelled can be converted to cash at any time or can be redeemed for future bookings.
In continuing dialogue with the airlines, I will seek to ensure that passenger considerations are kept in focus.
75. Deputy Pearse Doherty asked the Minister for Transport the process involved in advance of applying for a limousine licence for new unregistered vehicles not listed on the considered qualifying list on the RSA website; the way it is determined how a new vehicle meets the criteria; and if he will make a statement on the matter. [32320/21]
Amharc ar fhreagraThe regulation of the small public service vehicle (SPSV) sector, including vehicle standards and licensing of limousines, is a matter for the National Transport Authority (NTA) under the provisions of the Taxi Regulation Act 2013.
I have, therefore, forwarded your correspondence to the Authority for consideration and direct reply. Please advise this office if you do not receive a response within 10 working days.
76. Deputy Pearse Doherty asked the Minister for Transport if a driver licence can be extended for a person (details supplied) in County Donegal; and if he will make a statement on the matter. [32321/21]
Amharc ar fhreagraA further extension to the validity of driving licences is currently being considered. However, it is not possible to extend an individual licence.
All enquires relating to individual applications for driving licences are handled by the National Driver Licence Service (NDLS), provided by the Road Safety Authority (RSA). My Department does not have access to such applications.
78. Deputy Johnny Guirke asked the Minister for Transport the number of electric or hybrid vehicles purchased by his Department in 2020 and to date in 2021, respectively in tabular form; and if he will make a statement on the matter. [32418/21]
Amharc ar fhreagraAn overview of the vehicles owned by the Department is set out in the following table:
|
DEPARTMENT |
Total Number Of Vehicles |
Diesel |
Petrol |
Electric |
Plug In Hybrid |
|
Department - Air Accident Investigation Unit |
3 |
3 |
0 |
0 |
0 |
|
Department - Rail Accident Investigation Unit |
2 |
2 |
0 |
0 |
0 |
|
Department - Irish Coast Guard |
222 |
221 |
1 |
0 |
0 |
Providing a sustainable, low-carbon transport system is a key priority of my Department. The Programme for Government commits to 7% average annual emissions reduction to 2030; ultimately, the goal is for a zero-emission mobility system by 2050. The national car and van (LGV) fleet accounts for almost 60% of all land transport emissions, and so a transition to low emissions vehicles, including EVs, is a necessary step-change to effect a substantial reduction in transport emissions. My Department is currently considering options for increasing the proportion of EVs across the public sector fleet.
79. Deputy Johnny Guirke asked the Minister for Transport his plans to make provision for designated storage space for bicycles on public transport; and if he will make a statement on the matter. [32419/21]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. As the Deputy is aware, the National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport and associated infrastructure. This includes the procurement of the PSO bus fleet and, in consultation with Iarnód Éireann, the procurement and requirements of additional rail fleet.
Noting the NTA's responsibility in this matter, I have referred the Deputy's question to the NTA for a direct reply regarding the specific issue raised. Please contact my private office if you do not receive a reply within 10 days.
80. Deputy Rose Conway-Walsh asked the Minister for Transport if online pre-booking requiring internet access and payment of a €2 fee is now a requirement for persons aged 66 and over availing of the free travel scheme on State public transport; and if he will make a statement on the matter. [32517/21]
Amharc ar fhreagraAs Minister for Transport, I am responsible for policy and overall funding in relation to public transport. However, I am not involved in day-to-day operational matters. The Free Travel Scheme is a non-statutory scheme administered by the Department of Social Protection.
The query raised appears to relate to Bus Éireann's commercial service, Expressway, and I have therefore forwarded the Deputy's question to the company for direct reply.
Please advise my private office if you do not receive a response within ten working days.
81. Deputy Jennifer Whitmore asked the Minister for Finance if the employment wage subsidy scheme will remain in place for childcare workers that would typically be in receipt of social welfare payments over the summer months or if it is expected that employers will maintain the scheme for this time period; and if he will make a statement on the matter. [32169/21]
Amharc ar fhreagraSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the operation of the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll and charges a reduced rate of Employers' PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
While the criteria for eligibility for business in general is based on a reduction in turnover, as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in, or to take up, position of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with Section 58C of the Childcare Act 1991 are eligible for the EWSS.
The objective of the scheme is to support all employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the continued Covid-19 crisis to support viable firms and to encourage employment in the midst of these very challenging times. To date, payments of over €3.4 billion and PRSI credit of over €565 million have been granted to 49,800 employers in respect of 579,400 workers.
I have been clear that there will be no cliff-edge to the EWSS and, as the Deputy will be aware from announcements made on Tuesday 1 June, it has been decided that the scheme is now to be extended until the end of December 2021.
For Q3 2021, the Government has decided to broadly maintain the status quo for EWSS, including the enhanced rates of support, with a modification to widen eligibility, and maintaining the reduced rate of Employers’ PRSI of 0.5%. The are no changes in respect of the qualification criteria for EWSS eligibility for the childcare sector.
The Government has approved the extension of the EWSS for Q4 2021, however, it is considered too early as yet to prescribe the precise operational parameters of the scheme that should apply for that quarter. Decisions in that regard will be taken closer to the time, possibly around the end of August / early September, with the benefit of more up-to-date information on a number of variables, including the overall epidemiological situation, progress made in reopening all sectors of the economy, the vaccine efficacy, as well as the operation of the EWSS during the early parts of Q3.
To answer the Deputy’s specific question regarding the position as to whether the EWSS will remain in place for childcare workers that would typically be in receipt of social welfare payments over the summer months, I would note that this is a matter for the each individual employer to determine as appropriate to their business needs.
In general terms, where a childcare facility would normally close for the summer months but due to current Covid-19 circumstances, the employer wishes to keep the employees on the payroll to open the facility, or to retain the employees on payroll for training or curriculum development purposes, etc., then an eligible employer can remain in the EWSS. This was the also the case last year when the Temporary Wage Subsidy Scheme (TWSS) was in place.
Furthermore, I would add that there is no distinction made regarding eligibility of the scheme or the subsidy amounts payable based on whether the business has closed or is operating with curtailed services due to the public health restrictions. All qualifying employers are entitled to claim the EWSS in respect of the eligible employees on their payroll.
82. Deputy Sorca Clarke asked the Minister for Finance the number of forward purchase agreements that had been made prior to the passing of the financial resolution on 19 May 2021 providing for a 10% stamp duty measure on the bulk purchase of homes such that the residential units under such agreements will not be subject to the measure when they are completed; the number of such units; and the number of such forward purchase agreements that have been made since the passage of the financial resolution; and if he will make a statement on the matter. [32503/21]
Amharc ar fhreagraThe Financial Resolution passed by the Dáil on 19 May last provides for a new higher stamp duty rate of 10% where at least 10 residential units (excluding apartments) are acquired by an individual or a corporate entity such as a company in any 12-month period. This new measure is ‘triggered’ when a residential unit is acquired on or after 20 May 2021, with the ‘look-back’ 12-month period commencing at this time on a rolling basis. The units acquired during that period are aggregated. When the 10th unit is acquired, it is chargeable at the 10% rate and this rate also then applies to the other 9 units and to any other units acquired at the same time as the 10th unit. However, while any units acquired before 20 May 2021 are taken into account in establishing whether the threshold of 10 units has been reached, the 10% rate of stamp duty is not applied to these units but only to those units acquired on or after this date.
The Deputy will be aware that multiple purchases by Local Authorities, approved housing bodies, and the Housing Agency are outside the scope of this higher stamp duty. In this regard, you should also note that when putting this Financial Resolution on a permanent statutory footing, I propose providing an exemption from the 10% rate for the provision of the mortgage to rent scheme by private sector participants.
Finally, I am advised that the information sought by the Deputy in connection with forward purchase agreements is not collected by any Government Department. However, I will explore with the Minister for Housing, Local Government & Heritage and Revenue whether it is possible to put in place a reporting regime for agreements of this nature.
83. Deputy Louise O'Reilly asked the Minister for Finance the volume of money warehoused under the tax debt warehousing scheme by sector. [32262/21]
Amharc ar fhreagraThe Debt Warehousing Scheme remains available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic. The scheme applies to VAT debts, PAYE (Employer) debts, self-assessed income tax debts (balance of 2019 income tax liability and 2020 preliminary tax) and Temporary Wage Subsidy Scheme (TWSS) overpayments.
The Government recently agreed to the extension of the tax debt warehousing scheme to allow the period where liabilities arising can be “warehoused” to be extended to the end of 2021 for all eligible taxpayers, with an interest free period during 2022, and to include overpayments of EWSS in the scheme. I hope to bring legislative proposals into the Dáil before the summer recess to give effect to these changes.
Approximately 86,000 businesses are currently availing of the Debt Warehousing Scheme in respect of over €2.4 billion in tax debt. The table below provides a sectoral breakdown of the debt currently ‘parked’ under the scheme.
|
Sector |
€m |
% |
|
Wholesale and retail trade |
658 |
27% |
|
Accommodation and food service activities |
302 |
12% |
|
Professional, scientific and technical activities |
287 |
12% |
|
Construction |
250 |
10% |
|
Administrative and support service activities |
171 |
7% |
|
Manufacturing |
159 |
6% |
|
Information and Communication |
154 |
6% |
|
Transportation and Storage |
124 |
5% |
|
Financial and Insurance Activities |
63 |
3% |
|
Real estate activities |
61 |
2% |
|
Health and Social Work activities |
58 |
2% |
|
Arts, entertainment and recreation |
54 |
2% |
|
Other services activities |
43 |
2% |
|
Education |
20 |
1% |
|
Agriculture, forestry and fishing |
19 |
1% |
|
Other Sectors |
24 |
1% |
|
Grand Total |
2,449 |
100% |
84. Deputy Louise O'Reilly asked the Minister for Finance the estimated cost of extending the 9% VAT rate until 1 September 2022. [32276/21]
Amharc ar fhreagraWhile it is difficult to estimate the cost of the extension, as it is difficult at this time to predict the level of activity in 2022, it is estimated that the extension will cost the Exchequer approximately €350m.
85. Deputy Pádraig O'Sullivan asked the Minister for Finance if insurance companies are providing refunds (details supplied); and if he will make a statement on the matter. [32279/21]
Amharc ar fhreagraI note that the details supplied relate to a query about the provision of motor insurance rebates in the context of the COVID-19 pandemic. As the Deputy will be aware, in line with the EU Solvency II Directive insurance framework, I cannot compel any insurer operating in the Irish market to provide refunds to their customers, as this is a commercial matter. As the Minister for Finance, I am also not in a position to comment on individual cases.
Nevertheless, working to protect insurance policyholders during and after the COVID-19 crisis is a priority issue for Government, and is therefore included within the Action Plan for Insurance Reform. Throughout the pandemic, Minister of State Fleming and I have consistently called on insurers to treat their customers honestly, fairly and professionally, in line with the Central Bank’s Consumer Protection Code. We have emphasised the importance of insurers supporting their customers during these difficult times by continuing to provide necessary reliefs, and responding to both the Government’s insurance reforms and the pandemic by lowering premiums.
Minister of State Fleming has had extensive engagement with insurers on these points, including a series of meetings in April at which he pressed the need for premium reductions in light of the new Personal Injuries Guidelines. He outlined that upon renewal, the Government expects premiums to reduce for all classes of insurance, including motor insurance, and that insurers should consider increasing their risk appetite to provide increased cover in new areas.
This engagement was positive, with insurers indicating that they will lower premiums in response to the Guidelines. The issue of COVID-19 forbearance measures was included on the agenda for these meetings, and I understand that a number of firms indicated that they will also take account of COVID-19 restrictions when setting premiums. It is Minister of State Fleming’s intention to meet with insurers again later in the year to review progress in this regard.
I am pleased to note that most of the main insurers operating in Ireland have twice renewed their commitment to forbearance measures announced by several members of Insurance Ireland last year. I believe it is important that insurers now take a long term view towards supporting their customers, as we work to rebuild the economy and recover from the impact of the pandemic. Both Minister of State Fleming and I will remain proactive in engaging with industry on this matter, as well as working with colleagues to implement further key reforms, which I hope will go some way to improving the cost of insurance for all groups, including motorists.
Finally, where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.
86. Deputy Brendan Griffin asked the Minister for Finance if the help-to-buy scheme will be extended beyond 2021 for first-time buyers; and if he will make a statement on the matter. [32296/21]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with obtaining the deposit they need to buy or build a new house or apartment. The scheme gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
An increase in the supply of new housing is fundamental to resolving the current housing crisis. One of the main aims of the policy underpinning the design of HTB was to help encourage the building of additional new properties. By restricting the scheme solely to new dwellings and new self-builds, it is anticipated that the resulting increase in demand for affordable new build homes will encourage the construction of an additional supply of such properties. In accordance with a commitment in the Programme for Government, HTB was enhanced in July 2020.
The future of the HTB scheme, beyond its current sunset date of 31 December 2021, is a matter that will fall to be considered in the context of Budget 2022 and the subsequent Finance Bill.
87. Deputy Sorca Clarke asked the Minister for Finance the number of developments in which all or a portion of units in that development are subject to forward purchase PRS sales that have been funded through Home Building Finance Ireland since it came into operation; the value of the funding; the number of units in each development that are subject to forward purchase PRS sales; the rental price of each or any of those units that will or have been subsequently made available to rent; the average rental price; and his views on whether these issues were not addressed in the recent Home Building Finance Ireland review published by his Department on 10 May 2021. [32446/21]
Amharc ar fhreagraSince inception, HBFI has provided funding to house builders for over 2,400 homes across 17 counties, comprising of approximately 56% houses and 44% apartments. To be clear, HBFI funds the construction of new homes and does not lend to the end buyers of these homes, whether they be institutional funds, Approved Housing Bodies (AHBs), local authorities or other categories of buyer.
Based on the information available to HBFI, these homes are broken down as follows:
1,359 houses, of which:
- 815 intended for sale to individual buyers
- 479 intended for sale to AHBs and local authorities for social housing
- 65 intended for private rental
1053 apartments, of which:
- 202 intended for sale to AHBs and local authorities for social housing
- 851 intended for private rental
The figures above are based on information currently available. There may be some final variations on the figures at the conclusion of the construction process.
To date HBFI has approved funding for 5 developments as set out in the table below where part or all of the development is either sold (contract in place) or it is intended to be sold by the builder/developer (where no agreed sales or contract in place) to the private rental market.
|
Development No. |
Funding Approved by HBFI for Private Rental element of Project |
No. of Units in Each Development for Private Rental |
|
1 |
€84.36m |
307 |
|
2 |
€11.23m |
48 |
|
3 |
€94.00m |
287 |
|
4 |
€53.18m |
211 |
|
5 |
€21.27m |
63 |
In respect of the 916 units identified for private rental, 851 of these are apartments and 65 are houses, with institutions the likely primary category of buyer - although in a number of cases HBFI will have no visibility at this stage of the end buyer. The delivery of apartments through such advance purchases is in line with how apartment developments are funded more generally in the market and is designed to increase supply in this part of the market.
HBFI provides funding for the construction phase of a development on a commercial basis and has no role in the letting or renting of completed units in the same way as any other financial institution providing similar development funding.
HBFI has €730m of funding available for residential development, with an ability to raise a further €750m if required. The funding of large-scale developments has not and will not impact on its ability to fund small and medium sized developments. These smaller developments are the core of HBFI’s business and will continue to remain so.
88. Deputy Sorca Clarke asked the Minister for Finance his views on the a recent paper published by the ESRI on 3 June 2021 which argues for an increase in State borrowing to increase Irish housing supply; his views on its findings; and if he will alter the fiscal policy in order to double the level of capital investment in public housing in Budget 2022. [32447/21]
Amharc ar fhreagraThe paper to which the Deputy refers calls for higher levels of borrowing to increase public spending on housing, but it is important that we place this discussion in full context.
Last year, a general government deficit of €18½ billion was recorded – the equivalent of nearly 9 per cent of modified gross national income (GNI*). For this year, the Stability Programme Update projected a deficit of another €18 billion. This was before the announcement of a range of support measures in our National Economic Recovery Plan, which will add approximately €2¼ billion to the deficit this year.
In terms of housing, the Government has already made extensive commitments in this area, including a record Exchequer funding allocation of €3.1 billion in Budget 2021. Total housing expenditure has more than doubled since 2016 and as of 2021, it will be more than 40 per cent above the peak level in 2008. It is therefore a gross simplification to suggest that providing additional housing is purely a matter of increasing Exchequer funding.
While public investment has an obvious role in alleviating housing market pressures, there are also significant non-fiscal constraints. In particular, the public health measures needed to suppress Covid-19 have placed a direct restriction on the construction of new housing. The industry is now facing increased costs and difficulty sourcing building materials as a result of the pandemic, high international demand, and Brexit. There are also skills shortages within the construction sector, which is why the Government is providing significant investment in skills and trades. As acknowledged in the report, simply increasing expenditure will not negate these capacity constraints.
From a broader fiscal perspective, as we move beyond the extraordinary events of the pandemic, it is important to remember that it is neither sustainable nor prudent to run perpetual deficits. This fact is underlined by the European Commission’s recent announcement that the General Escape Clause of the EU fiscal rules should not extend beyond 2022.
Pre-pandemic, Ireland’s level of public debt per capita was one of the highest in the developed world – this level of debt has of course increased as a result of our response to the crisis. We must build up fiscal buffers to deal with the clear fiscal challenges ahead, so we can address future shocks by providing support at the right time – as we have done during the pandemic – and steadily reduce our public debt to lower and safer levels. Ireland cannot afford to become a fiscal outlier, as we saw during the crisis of only a decade ago.
89. Deputy Sorca Clarke asked the Minister for Finance his views on the policy statement published by the Financial Conduct Authority on 28 May 2021 to end the practice of dual pricing in the insurance market; if his Department has consulted with the Financial Conduct Authority, the Central Bank or the insurance industry on the details of this policy statement and its impact on insurers operating in both the Irish and British markets; and if he will make a statement on the matter. [32448/21]
Amharc ar fhreagraThe Deputy will be aware that the Programme for Government includes a commitment to work to remove dual pricing, a form of differential pricing, from the insurance market. In this regard, the Action Plan for Insurance Reform also commits to examine the forthcoming final report and recommendations of the Central Bank Review of Differential Pricing in the Motor and Home Insurance Markets and take any appropriate actions as deemed necessary, in light of the final report. The Central Bank’s Interim Report, published in December, marks an important milestone in its review of the issue and summarises the initial observations from its ongoing market analysis and consumer research. I look forward to the final report being published shortly.
I note that the Central Bank has stated that differential pricing can be associated with both benefits and costs for consumers. Accordingly, completion of the analysis will be essential in order to ensure a full market perspective, evidence-based conclusions and in turn appropriately calibrated regulatory interventions as are needed to apply to the specificities of the Irish market. In addition, the associated consumer research will also provide insights which will be essential to the Central Banks’s overall analysis.
Both Minister of State Fleming and I have repeatedly called on the industry to treat its customers fairly and in line with the Central Bank’s Consumer Protection Code. Minister of State Fleming has raised his concerns with the main insurers that dual pricing in particular may be unfair for some customers and that they be proactive in responding to the Central Bank’s interim findings. However, the Government also believes that prior to proposing solutions, it is essential that the Bank’s Review be completed, to ensure remedies are evidence-based and do not impact consumers negatively, including impacting the ability of consumers to shop around for better deals. This position is consistent with the Action Plan for Insurance Reform.
In advance of the publication of that report, my Department is proactively considering issues raised in the general debate on this, including the Private Member’s Bill proposed by Deputy Doherty in February. As part of this work, it is examining recent developments in the UK, where the Financial Conduct Authority (FCA) has announced a ban on the practice of ‘price walking’ for motor and home insurers, to come into effect next year. This is the practice where providers initially offer a lower premium to new customers, which is then increased in subsequent years on renewal. While my Department is not directly consulting the FCA on its policy statement at this time, my officials are engaging, both through our Embassy in London and directly, with the UK Treasury on this and other financial services issues of relevance. I would expect that during the course of its work, in particular following the publication of the Central Bank’s final report, it will consult all relevant stakeholders as necessary to ensure any policy solution proposed is fully considered and evidence-based.
90. Deputy Johnny Guirke asked the Minister for Finance the number of electric or hybrid vehicles purchased by his Department in 2020 and to date in 2021, respectively in tabular form; and if he will make a statement on the matter. [32843/21]
Amharc ar fhreagraI can inform the Deputy that the Department of Finance has no record of purchasing any vehicles in 2020 or to date in 2021.
91. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the cost of the new premises acting as an administrative centre for NAMA and the NTMA. [32150/21]
Amharc ar fhreagraThe NTMA and NAMA are responsible for the provision of their own office accommodation and the Commissioners of Public Works have no involvement in the matter.
