Written Answers Nos. 125-146
125. Deputy Thomas Pringle asked the Minister for Transport if his attention has been drawn to the fact that a person (details supplied) is seeking the email address of an official; when his office will acknowledge or reply to the correspondence; and if he will make a statement on the matter. [34755/21]
Amharc ar fhreagraI note that the request referenced by the Deputy was initially submitted to a Departmental email account which is not monitored by my private office on the afternoon of Friday, 11 June. The correspondence was subsequently shared and registered with my private office on Monday, 14 June.
My office receives and continues to process a large volume of Covid-related correspondence that has resulted in some delays to target response times, but I can confirm that my private office issued a full reply to the individual in question on 28 June.
126. Deputy Darren O'Rourke asked the Minister for Transport if his attention has been drawn to the growing cost of cargo shipping to Ireland (details supplied); if his Department has conducted an assessment of this growing cost, the reasons behind it, the future trends and the implications for industry here; if he will provide details of this assessment and outline his plans to address this important issue; and if he will make a statement on the matter. [34764/21]
Amharc ar fhreagra130. Deputy Darren O'Rourke asked the Minister for Transport if he has an assessment of the practice of blank sailing in deep-sea shipping; his views on whether this practice is contributing to the increased cost of shipping; and if he will make a statement on the matter. [34769/21]
Amharc ar fhreagraI propose to take Questions Nos. 126 and 130 together.
I am keenly aware of the growing cost of cargo shipping to Ireland. As the Deputy may be aware, this recent rise of shipping costs is a global issue. In the first half of 2021, the volume of goods traded globally has increased significantly. Surging demand coupled with moderate supply growth is the cause of the current upward pressure on shipping charter rates. The surging demand is evident on all major containership routes, particularly on transpacific (North America – Asia) routes. Disruption to supply lines during initial waves of the pandemic has meant that capacity in the containership industry has not kept pace with demand, driving shipping charter rates upward.
Operators in Ireland are likely to have experienced these trends, as they have fed down to smaller vessels in the containership market. Many load-on/load-off (LoLo) twenty foot containers (TEUs) to/from Ireland are fed to/from very large port “hubs” such as Rotterdam, Antwerp and Liverpool. From here, many goods continue to North America and Asia among other destinations.
The Irish Maritime Development Office (IMDO) publishes the Irish Maritime Transport Economist (IMTE) each year. This publication is a statistical bulletin and a comprehensive source of national maritime traffic, trade and global shipping market data. The 2021 edition noted a sizeable fluctuation in shipping charter rates for containership vessels throughout 2020 – the suppressive impact of COVID-19 in the first half of that year, followed by a resurgence in demand for goods in the second half of that year. This highlights the impact that demand for containership vessels has on shipping charter rates.
The IMTE refers to Clarkson's Containership Time Charter Index, which measures the price of moving freight in the containership market, and how this index was at a record high by the end of 2020 and that gains were maintained in early 2021.The IMTE notes that the early resurgence in rates was driven by larger vessels, which was fed down to all vessel classes. I am informed by the IMDO that as of May 2021, the surge in global goods trade has continued, which has led to continued upward pressure on freight rates. The IMTE notes that the market is expected to return to more 'normal' levels as demand for services increases as more economies fully reopen.
Overall, the resurgence in demand has not been met by supply and prices have increased as a result. As economies open up again, and this demand is alleviated, it is anticipated that the market will return to more normal levels but any associated timeline for this remains uncertain.
127. Deputy Darren O'Rourke asked the Minister for Transport if his attention has been drawn to the growing cost of cargo shipping to Ireland (details supplied); if his Department has conducted an assessment of this growing cost, the reasons behind it, the future trends and the implications for industry here; the details of this assessment; his plans to address this important issue; and if he will make a statement on the matter. [34765/21]
Amharc ar fhreagraI am keenly aware of the growing cost of cargo shipping to Ireland. As the Deputy may be aware, this recent rise of shipping costs is a global issue. In the first half of 2021, the volume of goods traded globally has increased significantly. Surging demand coupled with moderate supply growth is the cause of the current upward pressure on shipping charter rates. The surging demand is evident on all major containership routes, particularly on transpacific (North America – Asia) routes. Disruption to supply lines during initial waves of the pandemic has meant that capacity in the containership industry has not kept pace with demand, driving shipping charter rates upward.
Operators in Ireland are likely to have experienced these trends, as they have fed down to smaller vessels in the containership market. Many load-on/load-off (LoLo) twenty foot containers (TEUs) to/from Ireland are fed to/from very large port “hubs” such as Rotterdam, Antwerp and Liverpool. From here, many goods continue to North America and Asia among other destinations.
The Irish Maritime Development Office (IMDO) publishes the Irish Maritime Transport Economist (IMTE) each year. This publication is a statistical bulletin and a comprehensive source of national maritime traffic, trade and global shipping market data. The 2021 edition noted a sizeable fluctuation in shipping charter rates for containership vessels throughout 2020 – the suppressive impact of COVID-19 in the first half of that year, followed by a resurgence in demand for goods in the second half of that year. This highlights the impact that demand for containership vessels has on shipping charter rates.
The IMTE refers to Clarkson's Containership Time Charter Index, which measures the price of moving freight in the containership market, and how this index was at a record high by the end of 2020 and that gains were maintained in early 2021.The IMTE notes that the early resurgence in rates was driven by larger vessels, which was fed down to all vessel classes. I am informed by the IMDO that as of May 2021, the surge in global goods trade has continued, which has led to continued upward pressure on freight rates. The IMTE notes that the market is expected to return to more 'normal' levels as demand for services increases as more economies fully reopen.
Overall, the resurgence in demand has not been met by supply and prices have increased as a result. As economies open up again, and this demand is alleviated, it is anticipated that the market will return to more normal levels but any associated timeline for this remains uncertain.
128. Deputy Catherine Connolly asked the Minister for Transport further to Parliamentary Question No. 33 of 17 June 2021, if he will provide specific details in relation to the scheduled movements, including the planned frequency of the scheduled movements and the evidence to support this frequency in terms of ensuring the continuation of the current functionality of the bridge; and if he will make a statement on the matter. [34766/21]
Amharc ar fhreagra129. Deputy Catherine Connolly asked the Minister for Transport further to Parliamentary Question No. 33 of 17 June 2021, if he has sought and or received any independent advice or evaluation in relation Iarnród Éireann's decision, including from the Commission for Railway Regulation; and if he will make a statement on the matter. [34767/21]
Amharc ar fhreagraI propose to take Questions Nos. 128 and 129 together.
As the Deputy is aware, as Minister for Transport I have responsibility for policy and overall funding in relation to public transport. The maintenance of the rail network, including 'closed' lines such as the Wexford to Waterford line, is a matter for Iarnród Éireann in the first instance.
As is well-known there have been no scheduled passenger services on the Wexford to Waterford line in almost 11 years at this stage. Services ceased in accordance with the applicable legislative framework and subject to an agreement between Iarnród Éireann and the National Transport Authority. The maintenance of 'closed' lines is a matter for Iarnród Éireann as Infrastructure Manager and I am informed there is no role as such for the Commission for Rail Regulation in this matter.
As I have previously stated I am informed that the planned securing of the bridge in the open position in no way removes the future functionality of the bridge to carry rail traffic should services on this line resume. In view of Iarnród Éireann's responsibility in this matter, I have referred the Deputy's question to the company for a detailed direct reply in relation to the planned frequency of the scheduled movements and the evidence to support this frequency in terms of ensuring the continuation of the current functionality of the bridge. Please contact my private office if you do not receive a reply within 10 working days.
131. Deputy Jennifer Whitmore asked the Minister for Transport if the age of private buses is a determining factor in the allocation of LocalLink tender services; the rationale for this criterion; the way in which he expects smaller operators to compete; his views on whether it is conducive to just transition principles given the need for more local smaller routes in towns and villages; and if he will make a statement on the matter. [34801/21]
Amharc ar fhreagraAs Minister for Transport I have responsibility for policy and overall funding in relation to public transport.
It is the National Transport Authority (NTA) which has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including management of the Rural Transport Programme which operates under the Local Link brand.
In light of the NTA's responsibilities in this matter, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
132. Deputy Mick Barry asked the Minister for Transport further to Parliamentary Question No. 154 of 15 June 2021, if investigations have ensued on foot of referrals (details supplied); if so, the outcomes; and if he will make a statement on the matter. [34847/21]
Amharc ar fhreagraThe eight contraventions of the working time regulations referred to my Department by the Workplace Relations Commission (WRC) related to two fishing vessels. The Marine Survey Office (MSO) of my Department carried out follow up investigations in respect of both vessels. The operators of both fishing vessels subsequently demonstrated compliance with the statutory requirements to the satisfaction of the MSO.
The contravention of the safety training regulations referred to my Department by the WRC concerned a third fishing vessel and the MSO subsequently carried out an inspection onboard this vessel. The result of this inspection was satisfactory.
133. Deputy Holly Cairns asked the Minister for Transport the way his Department and public bodies and agencies under his remit fulfil their obligations under section 42 of the Irish Human Rights and Equality Commission Act 2014; and if he will make a statement on the matter. [34864/21]
Amharc ar fhreagra134. Deputy Holly Cairns asked the Minister for Transport the way his Department and public bodies and agencies under his remit undertake disability impact assessments and the process by which these assessments are monitored; and if he will make a statement on the matter. [34881/21]
Amharc ar fhreagraI propose to take Questions Nos. 133 and 134 together.
My Department and I are committed to ensuring that there is a culture of respect for human rights and equality among our staff and for the people to whom we provide services. This commitment is evident in my Department's recently published Statement of Strategy 2021-2023, which can be accessed on my Department's website at the following link: www.gov.ie/en/publication/70e6d-statement-of-strategy-2021-2023/.
As the Deputy may be aware, the Public Sector Duty, as provided for in Section 42 of the Irish Human Rights and Equality Commission Act 2014, places a legal obligation on all public bodies, including all central government departments, to promote equality, prevent discrimination and protect the human rights of their employees and everyone affected by their functions and services. My Department has worked closely with the Irish Human Rights and Equality Commission (IHREC) in the development of our Public Sector Duty Assessment and Action Plan, which was published in October 2020. A copy of the Assessment and Action Plan is available on my Department's website at the following link: www.gov.ie/en/organisation-information/59bac-public-sector-equality-and-human-rights-duty/.
I am mindful of the fact that this is an ongoing duty that must be continuously monitored, reviewed, and developed and my Department will continue to work with IHREC in this regard, and progress on its implementation will be reported in my Department's Annual Reports
With regard to disability impact assessments, the Government's focus is on the development of an integrated equality proofing process that covers all nine equality grounds plus poverty rather than on separate impact assessments.
In this regard, the Department of Children, Equality, Disability, Integration and Youth is co-lead, with the Department of Public Expenditure and Reform, on the Equality Budgeting Expert Advisory Group (EBEAG). In March 2021, the Government agreed to establish an inter-departmental group for Equality Budgeting, of which my Department is a member, to facilitate the embedding of the initiative across all Government departments.
Equality Budgeting aims to provide greater information on how proposed or ongoing budgetary decisions impact on particular groups in society, thereby integrating equality concerns into the budgetary process. Providing greater information on the likely impacts of budgetary measures facilitates the integration of equality concerns into the budgetary process, helping to avoid unintended adverse outcomes and enhancing the Government's decision-making framework. Disability is a specific strand in this process.
In addition, as required under the National Disability Inclusion Strategy (NDIS), my Department has in place a disability consultative committee, known as the Accessibility Consultative Committee (ACC). The ACC's role is to monitor and review progress in relation to the implementation of actions under the NDIS where my Department and/or its agencies have the lead role. Membership of the ACC is drawn from:
- organisations representing people with disabilities;
- members of the Disability Stakeholders Group;
- key agencies under the aegis of my Department; and
- other relevant State Agencies.
Further information on public transport accessibility, including Work Programme Progress Reports, the minutes of ACC meetings, and presentations to the ACC by key State Agencies can be accessed on my Department's website at the following link: www.gov.ie/en/policy-information/705a02-accessibility-in-transport/.
Question No. 134 answered with Question No. 133.
135. Deputy Jackie Cahill asked the Minister for Transport if he will examine the management by the RSA of the driving test booking system for essential workers given that verification codes are reported to be taking anywhere between 30 and 45 minutes to be sent out to essential workers trying to book their tests, while the permitted time period to get the code into the booking system and confirm the booking is 10 minutes after requesting it, meaning it is impossible to book a driving test via this link; and if he will make a statement on the matter. [34891/21]
Amharc ar fhreagraUnder legislation, the Road Safety Authority (RSA) is the body responsible for the operation of the Driver Test.
This is an operational matter for the RSA. 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.
136. Deputy Holly Cairns asked the Minister for Transport his views on and response to a report from an organisation (details supplied) outlining the actions required to support the private bus and coach sector; and if he will make a statement on the matter. [34903/21]
Amharc ar fhreagraFirstly, I would like to reassure the Deputy that both the National Transport Authority (NTA) and my Department have been engaging directly with commercial bus operators throughout the crisis to help inform policy decisions in relation to the public transport sector as we continue to deal with the impact of Covid-19.
In this context, both the Department of Tourism, Culture, Arts, Gaeltacht, Sport & Media and my Department have been liaising with the Coach Tourism &Transport Council of Ireland (CTTC) since May 2020 - to date 16 meetings have taken place, and a further meeting is scheduled in the coming weeks. While the specific report referred to by the Deputy has not been shared with my Department, I would like to assure the Deputy that the CTTC has kept my Department fully appraised of the issues facing the sector throughout the crisis. I am aware of the very difficult business environment that the commercial operators have been facing. Indeed, across Government we are acutely aware that the Covid-19 situation presents huge challenges for many business sectors.
Public transport is a key facilitator of interaction in the economy and society. It is an efficient and sustainable way of getting people to work, education, shopping and other social engagements. The essential nature of these services has been acknowledged a number of times by the Government in recent months, most notably in the decision to provide additional funding for public service obligation (PSO) services and the introduction of temporary funding measures for the licensed bus sector.
In June 2020 the Government decided to introduce new, temporary financial support for certain licensed services provided by commercial bus operators to ensure the continued operation of these essential services. The temporary support was initially introduced for a period of 6-months. However, as it remains the case that commercial bus operators are still under severe financial distress due to the fall in passenger numbers and associated drop in fare revenue as a result of Covid-19, on 26 January 2021, Government decided to extend the temporary funding supports for the licensed bus sector for a further period of 3 months, with an option to extend contracts on a monthly basis thereafter.
In relation to coach tourism - a fund of €10m was made available under the 2020 July Stimulus package to assist the Coach Tourism sector. The Coach Tourism Business Continuity Scheme is administered by Fáilte Ireland and is under the remit of my colleague the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin.
137. Deputy Mairéad Farrell asked the Minister for Transport the controls and oversight his Department has of the way active travel funds are or are not being spent; the oversight and monitoring being undertaken to ensure that funds allocated are spent and not rolled over into other projects with future dates; the controls in place to make sure that protected cycle infrastructure is being developed for County Galway, particularly Oranmore; and if he will make a statement on the matter. [34906/21]
Amharc ar fhreagraAs Minister for Transport I have responsibility for policy and overall funding in relation to public transport infrastructure. The National Transport Authority (NTA) has responsibility for the development, implementation and oversight of public and sustainable transport infrastructure, allocating the funding provided by my Department at project level and working in conjunction with the relevant local authorities to ensure that projects are delivered as intended.
The individual projects and programmes are subject to compliance with the Public Spending Code, including its requirements in relation to appraisal and Sanctioning Authority approval points. The Department is in regular contact with the relevant staff in the NTA in relation to all aspects of the administration of the Active Travel programme, including expenditure and project progress.
Noting the NTA's responsibilities in the matter, I have referred your question, particularly your query in relation to cycling infrastructure in Oranmore, to the NTA for a more detailed reply. Please advise my private office if you do not receive a reply within 10 working days.
138. Deputy Mairéad Farrell asked the Minister for Transport the body that has control of the €100,000 that has been allocated for Oranmore under the additional outdoor infrastructure scheme; if an association (details supplied) has ultimate responsibility for implementing the works and spending the funds; the start date and finish date for the works at the Castle Road; and if he will make a statement on the matter. [34907/21]
Amharc ar fhreagraI was delighted to announce an allocation of €15m in April for the Additional Outdoor Infrastructure Fund. As the Deputy is likely aware the funding will support local authorities in enhancing outdoor urban space and improving walking and cycling infrastructure. This will assist the safe outdoor re-opening of society as Ireland emerges from current COVID-19 public health restrictions.
The Additional Outdoor Infrastructure Fund will be administered by the National Transport Authority (NTA) on behalf of the Department of Transport, and on 26th May 2021 the NTA issued allocations to 30 local authorities, including Galway County Council which received just over €500,000 under the Fund.
Noting the NTA's responsibility in this matter, I have forwarded your correspondence to them for a more detailed reply. Please advise my private office if you do not receive a reply within 10 working days.
139. Deputy Claire Kerrane asked the Minister for Transport if his attention has been drawn to issues concerning Irish citizens abroad who, in cases in which their driver's licence is lost or stolen and they do not have a public services card, can replace their licences only by physically presenting themselves at an NDLS centre in Ireland; if his attention has been drawn to the difficulty this poses for persons having to travel or being unable to travel due to Covid-19; and if he will make a statement on the matter. [34936/21]
Amharc ar fhreagraAn Irish driving licence, including a replacement licence, can only be issued to a person resident in Ireland.
All enquires relating to driver licensing are handled by the National Driver Licence Service (NDLS), the provision of which I have delegated to the Road Safety Authority (RSA) under the relevant legislation. I have forwarded the Deputy's query to the RSA for direct reply. If she has not heard from them in 10 working days I would ask that she contact my office directly.
140. Deputy Michael Healy-Rae asked the Minister for Transport if a financial update will be provided on the Limerick-Adare-Foynes bypass; the funding that has been allocated to the project to date; the amount that will be allocated in the coming months; and if he will make a statement on the matter. [34973/21]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Once funding arrangements have been put in place with Transport Infrastructure Ireland (TII), 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 TII, in conjunction with the local authorities concerned. This is also subject to the requirements of the Public Spending Code Guidelines and necessary statutory approvals. In this context, TII is best placed to advise on the current status and funding of this proposed project, pending also the Government's review of the NDP.
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.
141. Deputy Jennifer Whitmore asked the Minister for Transport the additional efforts he will make to examine the reopening of the Avoca train station, County Wicklow; and if he will make a statement on the matter. [35007/21]
Amharc ar fhreagraAs the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport. The issue raised is an matter for National Transport Authority (NTA) in conjunction with Iarnród Éireann, and I have forwarded the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
142. Deputy Cian O'Callaghan asked the Minister for Finance if a company (details supplied) was in receipt of the Covid restrictions support scheme payment; and if he will make a statement on the matter. [34575/21]
Amharc ar fhreagraThe Covid Restrictions Support Scheme (CRSS) is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.
Details of CRSS were published in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. For the purposes of CRSS, a qualifying “business premises” is a building or other similar fixed physical structure in which a business activity is ordinarily carried on. The scheme is designed to help traders meet their costs at a time when they cannot provide goods or services to their customers from their business premises, or can only do so to a limited extent, due to COVID-19 related restrictions.
Revenue have advised me that an application to register for the CRSS has not been received to date from the business in question. Consequently, the business has not been in receipt of the CRSS. If the business carries on a trading activity which might be eligible for the CRSS, they should submit a registration application to Revenue. Information on how to apply is given in the guidelines available on the Revenue website.
However, businesses operating coaches do not generally qualify for CRSS because they do not provide their services from premises that their customers must access but, instead, provide their services on their coaches. If the business is operating coaches for tourism purposes, they may be eligible for support under schemes such as the Fáilte Ireland Business Continuity Scheme designed to assist tourism businesses.
On 1 June, I announced that an additional business support scheme, the Business Resumption Support Scheme (BRSS), would be available for businesses whose turnover in the period from 1 September 2020 to 31 August 2021 is reduced by 75% compared with their 2019 turnover. To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The BRSS will come into operation from early September. Under the scheme, a qualifying business will be able to claim a cash payment calculated as three times the sum of 10% of their average weekly turnover up to €20,000 and 5% on any excess of average weekly turnover above €20,000, subject to a maximum payment under the scheme of €15,000.
Companies and self-employed individuals may be entitled to support under other measures put in place by Government, including the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.
143. Deputy Sean Sherlock asked the Minister for Finance if clarity will be provided in relation to an issue (details supplied). [34278/21]
Amharc ar fhreagraIn relation to the question raised in the details supplied with the Deputy's question, the position is that, as part of the normal course of events, 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.
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive 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. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
In summary, the process to claim HTB involves two stages, application stage and claim stage. At the application stage, the claimant notifies Revenue of his/her intention to make a HTB claim and checks are carried out to ensure the applicant satisfies certain conditions of the scheme. Once confirmed, Revenue notifies the applicant about the potential HTB refund available.
Section 477C (8) provides:
"An application made in any tax year shall cease to be valid on the earlier of the following events:
(a) (i) failure by the applicant to satisfy the conditions specified in subsection (6)(b);
(ii) on the rescission of the applicant's tax clearance certificate in accordance with subsection (3A) of section 1095; or
(iii) on the falling of 31 December in the tax year in which the application is made.
(b) Notwithstanding paragraph (a) and subsection (25), where an application is made under this section in the period commencing on 1 October and ending on 31 December in any of the tax years [2017 to 2021] (hereafter in this paragraph referred to as the “first-mentioned period”), and the corresponding claim is made under subsection (3) in the period commencing on 1 January and ending on 31 March of the following year, the applicant shall be deemed to have made his or her claim in the first-mentioned period.
(c) No claim may be made on foot of an application which ceases to be valid in accordance with paragraph (a)."
In respect to point (a)(iii) above, for example where an application is made during the period 1 October to 31 December 2021, and a claim is made on foot of such an application in the period 1 January to 31 March 2022, the claim will be deemed to have been made in 2021. In such cases, where the corresponding claim is made between 1 January and 31 March of the following year, the claim will be deemed to be made in the prior year. However, the timeframe for entering into a contract to purchase or, in the case of a self-build, to have drawn down the first tranche of a qualifying loan does not change, the end date of 31 December 2021 for so doing still applies.
Revenue Tax and Duty Manual Part 15-01-46 outlines further guidance on the conditions and operation of the HTB scheme.
144. Deputy Alan Dillon asked the Minister for Finance the reason a person (details supplied) qualified for the employment wage subsidy scheme in September 2020 and is now ineligible; and if he will make a statement on the matter. [34287/21]
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% due to the disruption caused by COVID-19.
I am advised by Revenue that the business in question registered for EWSS on 15/09/2020 and has been in receipt of EWSS from September 2020.
A business must conduct ongoing reviews on a monthly basis to demonstrate their basis for an expected 30% reduction in turnover or customer orders between 1 July and 31 December 2020 for 2020 pay dates and between 1 January and 30 June 2021 for 2021 pay dates. Employers must undertake a review of the relevant six-month period on the last day of every month to be satisfied that they continue to meet the eligibility criteria and to take the necessary action of withdrawing from the scheme where they do not.
If circumstances change the following month and the employer is again eligible, they can reregister and claim from the date of reregistration. Revenue expects there is a reasonable and durable basis to the review carried out as regards the potential drop in turnover or customer orders.
As the business concerned commenced trading on 19 April 2019, it is required to compare its turnover or customer orders for the period 1 January 2021 to 30 June 2021 to its turnover or customer orders relative to the period 19 April 2019 to 30 June 2019.
I am advised that Revenue would not consider the sale of food and drinks in a restaurant or bar as being separate trades. If a business changes its business model, such as to include the service of food as in this case, and the change results in increased turnover then the business must review if it continues to be eligible for EWSS. All turnover from the business must be included in the ongoing monthly reviews and it would not be permissible to treat the sale of food and drink separately.
145. Deputy Jackie Cahill asked the Minister for Finance if he will consider extending the 9% VAT rate to the hospitality sector to the end of October 2022 (details supplied); and if he will make a statement on the matter. [34346/21]
Amharc ar fhreagraBudget 2021 provided for a reduction in the rate of VAT from 13.5% to 9% for Hospitality and Tourism related services and goods. This was a temporary measure to provide support for 14 months from 1 November 2020 to the end 2021. The measure is being extended to 31 August 2022 in recognition of the continuing challenges facing the Hospitality and Tourism sector.
While temporary, this measure will still provide support for a further 8 months to 1 September 2022, the end of the 2022 summer season, allowing for a longer period of recovery for the sector. It exists alongside other measures and will directly support businesses and jobs.
Given the scarcity of resources available to the government when looking at potential support measures, and in the context of future uncertainty, this remains a temporary measure. My Department and Revenue will continue to monitor the impact and need of this reduction on an on-going basis along with the other support measures put in place.
146. Deputy Jackie Cahill asked the Minister for Finance the conditions of the revised capital gains tax entrepreneur relief; and if he will make a statement on the matter. [34347/21]
Amharc ar fhreagraI am advised by Revenue that the revised capital gains tax (CGT) entrepreneur relief applies to an individual who disposes of qualifying assets, including shares in a qualifying company. Gains on such disposals are charged to CGT at the rate of 10%, subject to a lifetime limit of €1m. Gains in excess of this lifetime limit are subject to the standard rate of CGT, which is currently 33%.
For the relief to apply, the assets must be used for the purposes of a qualifying business carried on by the individual or the individual must own a shareholding of at least 5% in a company carrying on a qualifying business. A qualifying business is a business other than the holding of securities or other assets as investments, the holding of development land or the development or letting of land. Business assets must have been owned by the individual for a continuous period of at least 3 years in the 5-year period immediately prior to the disposal. Where the individual disposes of shares in a qualifying company, the individual must have held the shares for a continuous period of 3 years at any time prior to the disposal. In addition, the individual must have been a director or employee of the qualifying company (or companies in a qualifying group) and have spent not less than 50% of his or her time in the service of the company or companies in a managerial or technical capacity for a continuous period of 3 years in the 5 years immediately prior to the disposal of the shares.
Further guidance on the operation of the CGT revised entrepreneur relief can be found in Tax and Duty Manual Part 19-06-02b, which may be accessed on Revenue's website.
