Written Answers Nos. 446-462
446. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 by introducing a 40% rate of capital gains tax on the disposal of assets made by persons in cases in which the gains accrued are in excess of individual incomes of €200,000, €300,000, €400,000 and €500,000, in order that the 40% rate only applies to gains made above the aforementioned thresholds. [41355/21]
Amharc ar fhreagraIt is assumed that the Deputy is proposing a higher rate of Capital Gains Tax (CGT) for individuals with income in excess of the thresholds noted, who also have taxable gains in excess of the same thresholds.
I am advised by Revenue that the estimated revenue generated from the proposed rate of 40% is as outlined in the table below. The estimates are based on income and CGT returns for the tax year 2018, that latest year for which full income information is available. The estimates assume no change in behaviour by individuals resulting from the increase in the tax rate and do not include any yield in respect of companies.
|
Income and Taxable Gains Threshold |
Yield €m |
|
Above €200,000 |
69 |
|
Above €300,000 |
41 |
|
Above €400,000 |
35 |
|
Above €500,000 |
28 |
447. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 by increasing the rate of dividend withholding tax to 30 and 33 %, respectively; and if he will make a statement on the matter. [41356/21]
Amharc ar fhreagraI am advised by Revenue that the ‘Ready Reckoner’, which is available at link: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf , shows on page 13, the estimated yield from changes to the rate of Dividend Withholding Tax (DWT). The proposed increases can be derived on a pro rata basis from those indicated in the published table.
For the convenience of the Deputy, an increase in the rate of DWT from 25% to 30% would yield approximately €111m, and an increase in rate of DWT from 25% to 33% would yield approximately €178m.
As DWT is not a final liability tax, it should be noted that any increase in receipts from a higher withholding rate would represent a temporary cash-flow benefit to the Exchequer. The final liability would depend on the income tax position of the recipients of the dividends.
451. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 by restricting the amount an applicant can claim under the help to buy scheme from €30,000 to €20,000 and from 10% to 5% of the purchase price. [41360/21]
Amharc ar fhreagraThe Help to Buy (HTB) incentive was introduced in 2017. The measure is currently scheduled to expire on 31 December 2021. HTB gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. An increase in the supply of new housing remains a priority aim of Government policy. 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 new build homes will encourage the construction of an additional supply of such properties.
HTB was enhanced in July 2020 as part of the July Stimulus package last year and its duration was extended in Finance Act 2020. These developments were in line with the commitment in the Programme for Government regarding the measure. The following changes apply from the period from 23 July 2020 to the end of 2021:
Under the enhanced support, claimants may be eligible for increased relief under the HTB scheme to the lesser of:
- €30,000 (increased from €20,000),
- 10 per cent (increased from 5 per cent) of either the purchase price of the new home or, in the case of self builds, the completion value of the property, or,
- the amount of Income Tax and DIRT paid in the four years prior to making the application.
All other conditions of the original HTB scheme remain as before.
The following table sets out the estimated cost for each year of the scheme, including 2021 to 30 June:
|
Year |
Estimated Cost (€m) |
|
2021 (to 30 June) |
83.1 |
|
2020 |
126 |
|
2019 |
101.3 |
|
2018 |
73.2 |
|
2017 |
69.1 |
I am advised by Revenue that the estimated yield from the proposal outlined by the Deputy, based on data for 2020, is very roughly of the order of €50m. As the enhanced scheme only operated for a portion of 2020, the estimated yield provided to the Deputy is based on all claims in 2020, taking account of the property price, the tax paid and the cap on the maximum relief. Given the effects of COVID-19 on the property market, and the possibility of behavioural effects arising as a result of the proposed change, the figure should be viewed as tentative.
452. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 from reducing the standard fund threshold from €2 million to €1.5 and €1.2 million respectively.; and if he will make a statement on the matter. [41361/21]
Amharc ar fhreagraThe Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes, which was introduced in Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million. It was subsequently reduced to €2.3 million with effect from 7 December 2010 and further reduced to €2 million with effect from 1 January 2014.
Information on the numbers and values of individual pension funds or on individual accrued benefits are not generally required to be supplied to Revenue by the administrators of pension schemes and personal pension arrangements. There is, therefore, no underlying data available to Revenue on which to base reliable estimates of the savings that would arise specifically from the change to the SFT indicated in the question.
453. Deputy Pearse Doherty asked the Minister for Finance if at EU Council level, that is, including at preparatory levels, Ireland proposed the additions of words by the use of secondary markets and the replacement of the word encouraging with the words where necessary, using, in the third Country Specific Recommendation for Ireland for 2018; and if he will make a statement on the matter. [41363/21]
Amharc ar fhreagraAs the Deputy is aware, Country Specific Recommendations (CSRs) provide individual tailored guidance to Member States on macro-economic, budgetary and structural policies in accordance with Articles 121 and 148 of the Treaty on the Functioning of the European Union.
Following the initial publication of draft Country Specific Recommendations by the European Commission, Member States have the opportunity to discuss the draft recommendations, address inaccuracies and seek factual clarifications as part of the preparation for the Ecofin discussions. It is not uncommon for the text of Country Specific Recommendations to be amended taking account of these discussions, and indeed, the documents may go through a number of iterations before final adoption by Ministers at ECOFIN.
As discussion on the Country Specific Recommendations proceeds through ECOFIN's preparatory committees, Member States and the Commission work collaboratively in the first instance, as regard any proposed changes to the text in advance of Ecofin discussion. In such cases where consensus on wording is not reached, a vote on proposed draft language may take place.
In relation to the proposed wording amendments to which the Deputy refers, I can confirm that these were included in an early draft of Ireland's third Country Specific Recommendation. I can also confirm to the Deputy that no vote took place as to their inclusion at that time, and that my officials and I were satisfied with the final wording, agreed as part of a collaborative process with inputs from both parties.
The drafting process for Country Specific Recommendations is an iterative process with input from member states themselves, the Commission and other member states. The process behind our 2018 Country Specific Recommendations was no different.
455. Deputy Cormac Devlin asked the Minister for Public Expenditure and Reform if the use of Covid-19 antibody tests can be considered to confirm a positive Covid-19 result for the purposes of the EU Digital COVID Certificate; and if he will make a statement on the matter. [39064/21]
Amharc ar fhreagraCurrently, my Department through the OGCIO are producing Digital COVID certificates for Vaccination and Recovery, through a process of data transfer established with the HSE/Department of Health; and for PCR and Antigen testing, through a process of data transfer established with those laboratories that are able to comply with the Statement of Operating Procedures produced by the Department of Health.
In all instances, OGCIO act on the instruction of the Department of Health. If new health policy is developed with regard to antibody tests and the Department issues us new instructions, we will seek to implement these as soon as possible.
456. Deputy John Lahart asked the Minister for Public Expenditure and Reform his plans to introduce a mobility scheme and opportunities in specialist roles such as ICT at clerical officer or executive officer level; and if he will make a statement on the matter. [39179/21]
Amharc ar fhreagraThe establishment of the Civil Service Mobility scheme fulfils one of the requirements of both Action 15 of the Civil Service Renewal Plan which aims to ‘Expand career and mobility opportunities for staff across geographic, organisational and sectoral boundaries’, and Action 14 of the People Strategy for the Civil Service which calls for the further expansion of a coherent mobility policy to facilitate staff development.
Mobility facilitates the movement of diverse skills and experience across organisations while also providing development opportunities for those who move through the scheme.
Following the recent launch of Phase 2A - List-based Mobility for HEOs and AOs, Phase 2B which facilities advertisement-based Mobility for positions which require qualifications or more specialist expertise in the following areas for HEOs and AOs will go live on July 16 2021,
1. ICT
2. HR/IR
3. Auditor/Investigator
4. Legal/Policy/Research
5. IGEES
6. Business/Finance
7. Finance (Payroll/Pensions)
These specialist categories were agreed with the Unions, and recognised the requirement and demand across the Civil Service for specialist skill sets in the middle management grades of HEO & AO. Initially, HEO and AO grades were due to be generalist only for Mobility.
Mobility initiatives are regularly reviewed for their effectiveness with a view to continually improving meeting business needs. We have built in a 2 year review for the HEO/AO specialist mobility scheme. For the CO and EO Scheme, we will be engaging with departments by the end of 2021 as part of review of that scheme.
However , it is also important to note that a new Secondment Policy for the Civil Service is being implemented. This policy will be used to support the Civil Service Mobility scheme, and fill time-bound positions concurrent with a strategic project or placement at all levels that require specialist knowledge and skill sets, including ICT. This policy has been developed in collaboration with Local HR departments and Unions.
457. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 203 of 24 June 2021, the plans of the OPW regarding the installation of additional outdoor seating in Castletown House, Celbridge, County Kildare. [39217/21]
Amharc ar fhreagraThere are currently no plans to install extra outdoor seating at Castletown, though the matter is under active review.
458. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform if he will give consideration to providing an additional payment or additional leave for frontline staff working in hospitals and other healthcare settings during the Covid-19 pandemic; and if he will make a statement on the matter. [39223/21]
Amharc ar fhreagraWorkers across the economy, including of course our public servants, have made an extraordinary contribution during the COVID pandemic and I would like to pay tribute to them.
Notwithstanding the sacrifices and efforts of the last year or more and the progress we have made in recent months to roll out vaccines, this pandemic remains an ongoing challenge for us all and it continues, for now, to require our full focus and attention.
Accordingly, while this is not yet, I believe, the most appropriate time to deal with this matter, the Government will consider in due course how best to recognise the efforts made by workers during this pandemic.
459. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if he will disaggregate the envelope defined as budgetary decisions in table 4 of the Summer Economic Statement 2021 by ELS, demographics, NDP and public pay for each of the years 2022 to 2025. [39502/21]
Amharc ar fhreagraAs set out in the Summer Economic Statement, the medium term fiscal strategy provides for an average 5% annual growth-rate increase in Voted expenditure out to 2025, equating to increases in spending of between €4.0 billion to €4.4 billion from 2022 to 2025.
As set out in Box 2.1 of the Mid-Year Expenditure Report, published last week, a key part of the Estimates process involves agreement on the overall level of expenditure required to maintain existing level of service. This process involves detailed analysis requiring validation at programme level and consideration of a range of factors including actual demand in the current year compared to that underpinning the budgetary allocation, the potential impacts of new and existing initiatives on demand and utilisation patterns, impact of demographics on demand, specific price pressures, as well as any capacity constraints that may exist.
The approach adopted in the Summer Economic Statement in relation to “pre-committed” current expenditure differs from previous years with a provision of 3% of the core current expenditure base being made for existing level of service costs. Previously an amount was set aside for: demographics in Health, Education, and Social Protection; the cost of pay deals; and the carryover of prior year Budget measures only.
Conversely, the provision of 3% is based on budgets in previous years, and an assessment of the position in advance of Budget 2022. In total, a provision of €2.1 billion is reflected as being earmarked for ELS costs next year. This is a higher amount than would have been set out as “pre-committed” expenditure in previous years, with €1.1 billion earmarked in advance of Budget 2021, and offers a better overall reflection of the additional costs required to deliver existing services next year.
Detailed work is ongoing by the Department of Public Expenditure and Reform regarding the finalisation of existing level of service costs at a departmental level in advance of Budget 2022. To the extent that the additional cost associated with maintain existing levels of service is less than €2.1 billion, this would increase the amount available to fund new measures.
460. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if he will disaggregate the difference in core capital as outlined in table 4 and capital spending per SES in table 5 in the Summer Economic Statement; and if he will make a statement on the matter. [39503/21]
Amharc ar fhreagraTable 5 of the Summer Economic Statement sets out the overall Government spending projections from 2020 to 2025. These include both core capital spending as well as one-off temporary spending related to much needed supports to manage challenges related to the COVID-19 pandemic and the impacts of Brexit. Other one-off temporary measures also include EU funding supports such as the National Recovery and Resilience Plan and the Brexit Adjustment Reserve, which will be rolling out from this year.
In relation to the year 2021, table 5 reflects the combination of core capital and one-off support measures relating to Brexit and COVID-19. These one-off supports for capital total c.€0.4 billion in 2021.
In relation to the years 2022 to 2025, the difference between the capital figures in table 4 and table 5 reflect the once-off funding being received from the EU in relation to the National Recovery and Resilience Plan (NRRP). The impact of these figures can be seen in table 8 of the Summer Economic Statement (rounding may affect totals).
461. Deputy Claire Kerrane asked the Minister for Public Expenditure and Reform the status of the publication of the new National Development Plan Review to Renew; the position with regard to the recent classification of the northern and western region as a moderate innovator on the recent EU Commission Regional Innovation Scoreboard; the specific policy measures that will be included in the document to support and harnesses the potential of research, enterprise and innovation in the region; and if he will make a statement on the matter. [39549/21]
Amharc ar fhreagraThe review of the National Development Plan is currently ongoing.
As part of the Programme for Government the review was brought forward to 2021 in order to assess the resourcing requirements for the most important challenges facing us as a nation including climate action, infrastructural challenges, housing, balanced regional development (as set out in the National Planning Framework and including of the northern and western region), healthcare, social welfare policy, transport, and education.
The first phase commenced in October 2020, which included the public consultation, Review to Renew, as well as further evidence-gathering by way of sectoral submissions for Departments and a series of technical papers. As part of the public consultation a submission was received from the Northern and Western Regional Assembly.
The results of Phase 1 were published in a report on April 4 2021 on my Department's website.
In addition, David Minton, the CEO of the Northern and Western Regional Assembly, was invited to take part as a panellist at this year's annual conference for the National Investment Office entitled "Nation Building: Ireland's Infrastructure Priorities" which was held online on 14th May 2021.
The technical and consultative work carried out as part of Phase 1 forms the evidence base to underpin the decisions to be taken in Phase 2 of the NDP.
The objective of Phase 2 of the NDP is to set out revised sectoral capital allocations for the upcoming 10-year period, including non-Exchequer investment, as well as providing a renewed focus on delivery of efficient and cost-effective public infrastructure. The range of indicated sectoral priorities will be identified as part of the final revised NDP.
Engagement is ongoing with Departments in this regard with a view to progressing this work over the coming period. The overall timetable in this regard, and as regards publication of the revised NDP, will naturally be coordinated with other Government policy initiatives which have a bearing upon our overall capital and infrastructure priorities.
It should be noted that DPER, in carrying out its role in coordinating the NDP review, does not consider the merit of individual projects or sectoral policy strategies (e.g. on enterprise, research and innovation) as this is primarily a matter for the relevant individual Departments and Agencies (e.g. the Department of Enterprise, Trade and Employment, and the Department of Further and Higher Education, Research, Innovation and Science).
462. Deputy Richard O'Donoghue asked the Minister for Public Expenditure and Reform the position regarding flood risk works in County Limerick; if he is satisfied that works in the county scheduled for 2021 are on track for completion; and if he will make a statement on the matter. [39532/21]
Amharc ar fhreagraWorks on four flood relief schemes are taking place in or near County Limerick in 2021 and works to design and commence works on seven flood relief schemes are being significantly advanced during 2021.
Three of the works taking place this year by Limerick City and County Council are being funded by the OPW Minor Flood Mitigation and Coastal Protection Scheme. This scheme provides funding to Local Authorities to undertake minor flood mitigation works or studies, costing less than €0.75 million each, to address localised flooding and coastal protection problems within their administrative areas.
Under this scheme the OPW has approved three applications for Limerick in 2021 with target commencement dates as follows:-
Ballinatona, Galbally - €22,848 approved on the 11 March, 2021, for drainage channel clearance works on watercourse which discharges to the OPW maintained River Aherlow and drainage improvement works. Works are planned for September / October 2021.
Bosnetstown, Kilfinnane - €48,915 approved on the 11 March, 2021, for drainage channel clearance works including minor construction of a small flood bund/embankment at two locations. Works are planned for September 2021.
Gotoon, Kilmallock - €15,705 approved on the 11 March, 2021, for drainage clearance works, surface water drainage improvements and resurfacing of damaged road surface due to previous overland flow/flood event. Works are ongoing with an estimated completed date end of September 2021.
On the fourth scheme construction of the Springfield Flood Relief Scheme, bordering Limerick is expected to commence in early August. This scheme involves the construction of flood protection works at the townlands of Springfield, Cappavilla North, Cottage and Illaunyregan, Clonlara and are expected to be substantially complete in 2022.
The OPW’s Catchment-based Flood Risk Assessment and Management (CFRAM) programme, the largest ever flood risk study carried out in the State, culminated with the launch of 29 Flood Risk Management Plans on 3 May 2018. These Plans proposed 118 new outline flood relief projects. They included a recommendation to progress the project-level development and planning of Flood Relief Schemes for Limerick through the following five stages involved in the development and construction of a flood relief scheme:
Stage I: Scheme Development and Preliminary Design
Stage II: Planning process
Stage III: Detailed Design, Confirmation and Tender
Stage IV: Implementation/Construction
Stage V: Handover of Works
While there are currently no major flood relief schemes at construction (Stage IV) in County Limerick, there is significant work underway designing a number of viable schemes, as part of the Government's €1bn capital investment in flood relief works as part of the National Development Plan 2018 - 2027. This work is being led by Limerick City and County Council, as contracting authority, in partnership with the OPW, and has appointed a number of consultant engineering and environmental consultants to progress schemes.
The table below outlines the current stage of development for Flood Relief Schemes for County Limerick.
|
Flood Relief Scheme |
Date Consultant Appointed |
Stage |
|
Flood Relief Scheme |
Date Consultant Appointed |
Stage |
|
Limerick City & Environs |
3rd May, 2021 |
Stage 1 |
|
Kings Island |
18 August, 2015 |
Stage 2 |
|
Castleconnell |
17 July, 2019 |
Stage 1 |
|
Athea |
24 October, 2019 |
Stage 1 |
|
Adare |
Expected August/September 2021 |
Preliminary design expected to commence August/ September 2021 |
|
Rathkeale |
Brief for preliminary design being developed |
Stage 1 |
The seventh scheme where design of works are being advanced during 2021 relates to OPW approved funding of €45,720 on 11 May 2021 for works at Bresheen South, Kilmallock under its Minor Flood Mitigation and Coastal Protection Scheme. These works to replace culverts and construct a drainage channel are planned to be undertaken in 2022.
