Written Answers Nos. 193-207
193. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the reason a person (details supplied) was refused the employment wage subsidy scheme; and if he will make a statement on the matter. [34005/21]
Amharc ar fhreagraThe Employment Wage Subsidy Scheme (EWSS) is an economy-wide enterprise support that provides a flat rate subsidy to qualifying employers based on the numbers of eligible employees on their payrolls. The EWSS replaced the Temporary Wage Subsidy Scheme which ceased on 31 August 2020. To be eligible for EWSS, an employer must have tax clearance for the duration of the scheme and be able to demonstrate that turnover or customer orders have declined by at least 30% between 1 January and 30 June 2021, by reference to the corresponding period in 2019, and the reduction is due to the disruption caused by the COVID-19 pandemic.
I am advised by Revenue that the business in question registered for EWSS on 14 June 2021 and submitted its first claim on 21 June 2021 in respect of the period 1 June 2021 to 30 June 2021. The claim was approved on the same day (21 June) and is currently being processed. Revenue contacted the business to request that it provides details of its nominated bank account and this was received on 22 June. The payment will be forwarded to the nominated bank account of the business shortly.
Revenue has also confirmed that it will make direct contact with the business to clarify why it considers that it was refused access to the EWSS and to explain how the scheme operates.
194. Deputy Pearse Doherty asked the Minister for Finance the estimated full-year revenue in 2022 that would be raised by tapering out the personal, employee and earned income tax credits by 2.5 % per €1,000 on individual incomes between €100,000 and €140,000 per year resulting in no entitlement to these credits in cases in which individual income is in excess of €140,000 based on the latest available figures available to the Revenue Commissioners. [34020/21]
Amharc ar fhreagraI am advised by Revenue that the tapering out of tax credits on income above €100,000, at a rate of 2.5% per €1,000 of income, such that the taxpayer has no entitlement to credits at an income level above €140,000, would yield an estimated €236 million and €286 million on a first and full year basis respectively.
I am further advised by Revenue that these estimates are based on tax returns for 2018 (the latest available year) and that, in analysing the gross incomes of taxpayer units at individual level, a range of assumptions were necessarily made in relation to the distribution of credits in such units. Therefore, it is important to note that were such a change implemented, it may lead to outcomes different to the above estimates.
195. Deputy Marc MacSharry asked the Minister for Finance further to Parliamentary Question No. 219 of 8 June 2018, if the Financial Services and Pensions Ombudsman can now consider older cases under the Financial Services and Ombudsman Act 2017 from persons that were of the view that they were mis-sold payment protection insurance in cases in which the conduct being complained of occurred during or after 2002; and if he will make a statement on the matter. [34022/21]
Amharc ar fhreagraFirstly, I must point out that the Financial Services and Pensions Ombudsman (FSPO) is independent in the performance of his statutory functions. I have no role in the day to day workings of the office or in the decisions which he takes.
The Financial Services and Pensions Ombudsman Act 2017 prescribes certain time limits for the making of a complaint to the FSPO about the conduct of a financial service provider or a pension provider.
Any complaint made in relation to a “long-term financial service” within the meaning of the Act, must be made to the FSPO within whichever of the following periods is the last to expire:
(i) 6 years from the date of the conduct giving rise to the complaint;
(ii) 3 years from the earlier of the date on which the person making the complaint became aware, or ought reasonably to have become aware, of the conduct giving rise to the complaint;
(iii) such longer period as the Ombudsman may allow where it appears to him or her that there are reasonable grounds for requiring a longer period and that it would be just and equitable, in all the circumstances, to so extend the period.
The Financial Services and Pensions Ombudsman's Office has advised me that a policy of Payment Protection Insurance (PPI) may, in certain circumstances, be considered a “long-term financial service”, within the meaning of the Financial Services and Pensions Ombudsman Act 2017, if the policy is for a fixed period of five years and one month, or more, or if there is a life assurance element included within the policy benefits. Likewise, if the loan to which the payment protection policy is attached, is fixed in duration for at least at five years and one month, the PPI policy is likely to be considered a “long-term financial service”. In these circumstances the Ombudsman may investigate a complaint where the conduct complaint of occurred during or after 2002, if the complaint is made within the time limits specified by the Act.
The Ombudsman is aware that the time limits governing complaints to the FSPO can be complex. For that reason, every complaint is examined individually by the FSPO, to establish whether it meets the eligibility criteria for investigation, laid down by the governing legislation. This includes a consideration, if a complaint does not otherwise meet the prescribed time limits, as to whether the Ombudsman should use his discretion to extend the time for the making of the complaint, on the basis that there are reasonable grounds to do so and it would be just and equitable in all of the circumstances.
196. Deputy Claire Kerrane asked the Minister for Finance the details of the charges including VRT and VAT placed on a bus hire company purchasing buses from England post-Brexit. [34070/21]
Amharc ar fhreagra197. Deputy Claire Kerrane asked the Minister for Finance if, given the huge losses experienced by bus operators due to Covid-19, consideration will be given to an exemption on VAT charged to those purchasing buses from England especially for bus drivers who are sole traders and are not registered for VAT and therefore cannot claim VAT back. [34071/21]
Amharc ar fhreagraI propose to take Questions Nos. 196 and 197 together.
Following the withdrawal of the UK from the European Union, an import of a vehicle from Great Britain is treated as an import from a third country, i.e. a non-EU country. I am advised by Revenue that, if a vehicle is imported from Great Britain into Ireland, the importer is required to complete a customs declaration and pay customs duty, if applicable, and VAT at 23% prior to presenting the vehicle for registration. Under customs law, VAT at import is chargeable on the customs value of the goods. Usually this will be the purchase price, plus the cost of transport and insurance, plus any customs duties payable.
The EU-UK Trade and Cooperation Agreement (TCA), has eliminated tariff duties for trade between the EU and Great Britain where the relevant rules of origin are met. This means that, if an imported vehicle is of UK origin, then there is no customs duty payable as a 0% tariff rate applies. The following vehicles would not qualify as UK origin under the rules of origin, so a 10% tariff would apply if they were imported:
- vehicles of EU origin used in the UK; and
- vehicles of other third country origin used in the UK. This applies even if the EU has a Free Trade Agreement with the relevant third country.
In cases where it is applicable, the preferential tariff treatment must be claimed on import on the Customs declaration.
Vehicles originally exported from the EU to the UK which meet certain criteria may be eligible for Returned Goods Relief under the EU customs rules (the Union Customs Code). Under Union Customs Code, goods can be exported from the EU to a third country and re-imported into the EU without payment of Customs Duty provided all the required conditions for Returned Goods Relief are met. The goods must have been originally exported from the EU, must not have been altered and must be re-imported within three years of export from the EU. In very specific circumstances, relief from VAT may also apply where the goods are re-imported into the EU by the same economic entity that originally exported the goods out of the EU.
Further information on Returned Goods Relief and Movement of Motor Vehicles including proofs required for claiming the relief is available on Revenue’s website.
On the matter of Vehicle Registration Tax, the UK exit from the EU has no impact on VRT liability. Buses generally fall within EU Categories M2 or M3 and, when registered in the State, these vehicles are liable to a VRT flat rate of €200.
The Deputy is asking also about the potential for VAT recovery by businesses whose activities are exempt from VAT. The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exemption from VAT. In addition, the Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of VAT exemption to the transport of passengers and their accompanying baggage. This means that under Ireland’s VAT rules, the supplier of passenger transport services does not register for VAT, does not charge VAT on the supply of their services and, consequently, has no VAT recovery entitlement on their input costs.
In accordance with the EU rules, Ireland may continue to apply this existing, historic VAT exemption on the supply of domestic passenger transport but, for as long as the exemption remains, the conditions under which the exemption was granted cannot be changed; for example, Ireland could not adopt the Deputy’s suggestion to introduce a new entitlement to VAT recovery on purchases of buses from Great Britain. In fact, the introduction of a new entitlement to VAT recovery for the passenger transport sector could only be done if Ireland were to decide to end its historic exemption for the sector, and bring passenger transport services into the VAT net; this would then require suppliers to register for VAT and require them to charge VAT on their passenger fares.
Finally, the Deputy may be interested to know that under the existing arrangements, certain reliefs from VAT are already available to passenger transport operators, whose businesses are established in this State, as follows:
- the Value Added Tax (Refund of Tax) (Touring Coaches) Order of 2012 provides for a refund of VAT on the cost of acquiring “qualifying vehicles” used for the carriage of tourists under contracts for group transport; and
- provisions within Section 59 of the VAT Consolidation Act 2010, which allow a person established in this State to claim deductibility in respect of input costs incurred in relation to the transport of passengers outside this State.
198. Deputy Paul Kehoe asked the Minister for Public Expenditure and Reform the length of time the works currently underway at a location (details supplied) were meant to take originally; when he now expects same to be finished; if the cost of the job has increased or is within budget; if his attention has been drawn to the fact that the site has been inaccessible to the public for over seven months; if he will visit the site and meet with local persons who are very frustrated with this situation; and if he will make a statement on the matter. [34103/21]
Amharc ar fhreagraI am advised that this information is currently being coordinated and I will respond Directly to the Deputy on this matter.
199. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform his plans to review the Freedom of Information Act 2014 in 2021; and the status of the progress made on drafting a new freedom of information Act and or amendments to the existing legislation. [33965/21]
Amharc ar fhreagraFrom the outset, I wish to welcome the Deputy's ongoing interest in the Freedom of Information Act and related issues. Since the last questions she asked on this topic, having considered the issues, I have directed my Officials to commence work on a comprehensive review of the FOI legislation.
My view remains that the FOI system as it stands is robust and functioning well. This puts us on a strong footing from which to move forward. However, I also have noted issues that have arisen with the operation some provisions of the Act, as well as calls for a review from various stakeholders, including the Information Commissioner.
The fact that no urgent interventions are required to ensure the effective operation of the FOI system allows the scope for a careful and thorough review. I am firmly of the view that the review should involve a close collaboration between my Department and the full range of interested stakeholders, from public bodies and FOI Officers to journalists, academics, activists, TDs, and perhaps most importantly the general public.
Given that I have only recently directed that a review should be commenced, work is at a very early stage. My Department will shortly publish a road-map setting out the review process and anticipated time-frames.
I can also confirm for the avoidance of doubt that no drafting work has been undertaken by my Department on a replacement or amendment of the Freedom of Information Act. Once the review has been completed, consideration will be given to what changes, if any, might be made so as to improve the legislation and ensure that it continues to deliver on its goals of openness, transparency and accountability in public administration.
I look forward to considering the Deputy's input as the review process moves forward.
200. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he and or his officials have undertaken and or completed work on a project and or research regarding the cost related to freedom of information for public bodies; if he will provide the report or research undertaken regarding this work; and his plans to broaden the scope of bodies that the Act applies to in view of the fact that some public bodies fall outside its reach. [33966/21]
Amharc ar fhreagraFrom the outset, I wish to welcome the Deputy's ongoing interest in the Freedom of Information Act and related issues. Since the last questions she asked on this topic, having considered the issues, I have directed my Officials to commence work on a comprehensive review of the FOI legislation.
In relation to the costing of FOI, the position remains as stated in my previous response to a similar question from the Deputy. While preparatory work was undertaken by my Officials on such a project, and a methodology was developed, the project was put on hold due to the onset of the pandemic. However, I anticipate that costing FOI will form part of the review process that my Department is undertaking.
My Department will shortly publish a road-map setting out the review process and anticipated time-frames.
Similarly, issues around the bodies that are covered by the legislation may form part of the review. However, I would highlight that in fact the material scope of the legislation as it stands is very extensive, with approximately 600 bodies covered. Moreover, the legislation provides that FOI applies where a public body engages a contractor, even where the contractor rather than the body may have physical custody of the records concerned.
With that said, while in my view the FOI system as it stands is robust and provides a solid footing from which to move forward, I welcome the opportunity to consider any proposals as to how the legislation might be improved. I look forward to considering the Deputy's input as the review process moves forward.
201. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform the estimated cost of introducing the living wage across the public sector. [33977/21]
Amharc ar fhreagraIt is important that Ireland’s statutory National Minimum Wage and the Living Wage concept are not confused. The Living Wage has no legislative basis and is therefore not a statutory entitlement. It currently stands at €12.30 per hour according to the Living Wage Technical Group document 2020.
The National Minimum Wage is a statutory entitlement and has a legislative basis. The Low Pay Commission annually assesses the appropriate level of the National Minimum Wage. The current national minimum hourly rate of pay, since 1 January 2021, is €10.20 per hour, as set out in the National Minimum WageOrder (No. 2) 2020.
The suggested Living Wage at €12.30 per hour based on the Civil Service 37 hour standard net working week equates to an annual salary of €23,747.
Detailed data on civil service staff indicates that only some 0.2% of staff (FTE) in the civil service are on salary points less than €23,747. Further to this, all civil servants are paid at rates above the minimum wage of €10.20 per hour.
Those currently on an annual salary of less than €23,747 may be receiving remuneration in excess of the suggested living wage through additional premium payments in respect of shift or atypical working hours or are on salary scales that progress to the suggested living wage and above through incremental progression.
Building Momentum - A New Public Service Agreement 2021-2022 provides for a general round increase in annualised basic salary for all public servants of 1% or €500 (whichever is greater) on both 1 October 2021 and 2022, as well as the equivalent of a 1% increase in annualised basic salaries to be used as a Sectoral Bargaining Fund (in accordance with Chapter 2 of the Agreement) on 1 February 2022. The Agreement is heavily weighted towards those at lower incomes with headline increases of approximately 5% for the lowest paid public servants. These groups will also benefit more from other measures in the Agreement including the overtime rates and premia payment adjustments. By the end of the Agreement, the annualised pay increases will almost eliminate the cohort of civil servants earning less than the suggested living wage.
More broadly, the Low Pay Commission has, on request of the Government, formally begun work on examining how Ireland could move towards a Living Wage. The study will examine the design of a living wage in an Irish context and consider the policy, social and economic implications. It is expected that the report will be completed in the second half of 2021.
202. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform the process that a whistleblower should follow in order to protect themselves in relation to making a disclosure; and if he will make a statement on the matter. [33997/21]
Amharc ar fhreagraIreland has comprehensive whistleblower protection legislation in place in the form of the Protected Disclosures Act 2014. The protections for whistleblowers are to be further strengthened by the transposition of EU Directive 2019/1937, the Whistleblowing Directive, which is due to be transposed this year.
Protected disclosures can be made by workers in the public and private sectors. This includes not only employees but also contractors and agency staff engaged by an organisation.
A protected disclosure, as defined in Section 5 of the Act, is a disclosure of information, which, in the reasonable belief of a worker, tends to show one or more relevant wrongdoings that came to the worker's attention in connection with their employment and is disclosed in the manner prescribed in the 2014 Act. Relevant wrongdoings that can be reported include: criminal offences; failure to comply with a legal obligation; miscarriage of justice; endangerment of health and safety; damage to the environment; unlawful or improper use of public funds; oppressive; and discriminatory or negligent behaviour by a public body as well as any attempt to conceal or destroy evidence of any of the above wrongdoings.
Workers can make a protected disclosure to their employer in accordance with section 6 of the Act. The vast majority of protected disclosures are made in this manner in the first instance. If a worker does not want to report to their employer or they have reported to their employer but no action or insufficient action was taken, they can report to a prescribed person under section 7 of the Act, provided they have a reasonable belief the information is substantially true. A full list of prescribed persons is available at: www.gov.ie/en/collection/41798-protected-disclosures-whistleblowing-list-of-prescribed-persons/. A worker in a public body can make a protected disclosure to a relevant Government Minister in accordance with section 8 of the Act. A worker can also make a protected disclosure to another third party in accordance with section 10 of the Act. This section is subject to a more stringent set of conditions in order for the worker to be entitled to protection.
There are also special rules in place under section 17 for reporting on matters relating to law enforcement and section 18 for reporting on matters relating to security, defence, international relations and intelligence.
Workers who make protected disclosures are protected from dismissal and any other form of penalisation for having made a protected disclosure. They are also protected from civil and criminal liability for any breach of confidentiality if to so was necessary in order to make a disclosure. Protection is provided through the Workplace Relations Commission and the courts.
As the Deputy can see from the above, entitlement to protection under the Act depends on who has made the report, the matter that has been reported and to whom the report has been made. If a worker is uncertain as to whether they qualify for protection under the Act, they should seek legal advice. In this regard, my Department provides Exchequer funding to Transparency International Ireland to operate a free Speak Up Helpline and Legal Advice Centre to assist persons who have made or are considering making a protected disclosure. Further information can be found at: www.transparency.ie/helpline.
203. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the status of plans by the OPW to enhance the user and visitor experience at Castletown House, Celbridge, County Kildare (details supplied). [34033/21]
Amharc ar fhreagraThe OPW keeps visitor facilities and experience at Castletown under continuous review. In 2018 the Commissioners of Public Works, having restored the pleasure gardens at Castletown, installed a visitor experience there which catered exclusively for parents and young children. This children's garden features a play area with play equipment, picnic benches and seats, a fairy trail and specially commissioned animal sculptures. The OPW is currently working to expand the offering with dedicated children's trails on the subjects of ecology and biodiversity. It is planned to further enhance the facilities for parents and children in this part of the site.
Castletown is a very significant site for biodiversity and is the recipient of a Green Flag Award for good management of the estate and has also won the All-Ireland Pollinator award. The great majority of the parkland surrounding the great house is managed to maximise the benefit to wild flowers, meadowland plants, insects, animals and birds. The meadow grass and associated wild plants are encouraged to grow naturally and local management does not encourage people to stray off the paths as this has a disastrous effect, particularly on ground nesting birds. Walking pathways have been cut through the meadowland to allow visitors to appreciate them and management encourage people to confine themselves to using these paths and to the extensive network on hard paths throughout the estate.
There are currently no plans to introduce a treetop or canopy walk at Castletown as it considered that this would not be appropriate to the estate.
204. Deputy John McGuinness asked the Minister for Public Expenditure and Reform if his Department has sought and or received a specific business case for the proposed new national maternity hospital to be located on the St. Vincent’s University Hospital campus in County Dublin at any stage since 2013. [34041/21]
Amharc ar fhreagra205. Deputy John McGuinness asked the Minister for Public Expenditure and Reform if his Department has formally approved the campus of St. Vincent’s hospital in County Dublin as the site for the new national maternity hospital. [34042/21]
Amharc ar fhreagraI propose to take Questions Nos. 204 and 205 together.
The Department of Public Expenditure and Reform has engaged with the Department of Health regarding all requirements which need to be undertaken in relation to a capital project of this magnitude, having regard to the provisions of the Public Spending Code. No specific business case has yet been submitted for the proposed development of a new national maternity hospital on the St. Vincent’s campus in south County Dublin. It is my understanding that work is underway within the Department of Health in this regard. It is the responsibility of each Department to bring forward business cases for projects of this scale and to seek approvals in line with the Public Spending Code.
206. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform his plans to amend public procurement processes to ensure that small and medium enterprises are not disadvantaged in tendering for the provision of services to the State such as provisions for schools and other public services in view of the fact that in recent years small enterprises have lost valuable business at local level due to more purchasing being centralised and resulting in some instances in products being sourced from outside this jurisdiction and a loss in revenue to the State; and if he will make a statement on the matter. [34162/21]
Amharc ar fhreagra207. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the level of engagement the Office of Government Procurement has with small and medium enterprises to ensure that more products are sourced locally and that such businesses will not continue to be disadvantaged through centralised purchasing; and if he will make a statement on the matter. [34163/21]
Amharc ar fhreagraI propose to take Questions Nos. 206 and 207 together.
Public Procurement is governed by EU legislation and National rules and guidelines. The aim of these rules is to ensure compliance with the principles of transparency, non-discrimination and equal treatment which are key to demonstrating the State’s attainment of maximum value for money through competitive procedures. To create a level playing field for all businesses across the Single European Market, EU law sets out minimum harmonised procurement rules for all Member States.
The Government recognises the importance of the SME sector and continues to enhance the already substantial measures to support SMEs in accessing the public procurement market. Significant work has been undertaken by the Office of Government Procurement (OGP), an office within my Department, to ensure that the opportunity to compete in public procurement is accessible by all businesses, including SMEs. Specifically, the OGP has developed a suite of policy measures aimed at assisting SMEs to access public procurement opportunities (implemented through Circular 10/14). These include:
- Proportionate financial capacity criterion (turnover requirements limited to twice the contract value);
- Contracting authorities are encouraged to divide public contracts into lots;
- Provision for “consortia bidding” to assist SMEs to participate in procurement procedures where they would not have the relevant capability or scale;
- Proportionate insurance levels; and
- Public bodies are required to advertise contracts for goods and services valued above €25,000 on the national eTenders portal.
This ensures that as many businesses and SMEs are aware of tendering opportunities as possible. Indeed, the latest analysis carried out by the OGP indicates that 92% of the €4.8 billion procurement addressable expenditure analysed is with firms with an Irish base and that the majority of spend (53%) is with the SME sector.
The OGP also collaborates with Inter Trade Ireland in the delivery of a series of ‘Go-2-Tender’ events. This programme has been developed to give SMEs the confidence, knowledge and practical skills to tender successfully for public sector contracts on a cross-border basis. The programme is geared towards SME’s which want to improve their basis tendering skills to increase their success rates in public sector tenders.
The Programme for Government sets out a number of commitments in relation to public procurement including a commitment to continue to support and train Irish indigenous SMEs so that they can compete for public procurement contracts in Ireland and abroad. The OGP will support the work of the Department of Enterprise, Trade and Employment in this regard.
My colleague, Minister of State, Ossian Smyth TD, who has responsibility for public procurement, chairs quarterly meetings of the SME Advisory Group with industry representative bodies ISME, IBEC, SFA, Chambers Ireland, and CIF. The Tender Advisory Service, which was re-launched in 2018, was set-up to assist SMEs with public procurement issues. This initiative was developed following consultation with the SME Advisory Group.
My Department will continue to proactively engage with business to enhance the significant measures and strategies already in place to support SME access to public procurement opportunities building on the progress to date.
