Written Answers Nos. 277-294
277. Deputy Catherine Murphy asked the Minister for Finance the number of occasions that officials from his Department have met with a bank and a company (details supplied) in the past two years to date; the date on which each meeting occurred; if each meeting was online, by telephone conference and in-person; and the division of his Department that attended these meetings. [52818/21]
Amharc ar fhreagraThe Shareholding and Financial Advisory Division within my Department have regular engagement with the banks in which the state has a shareholding. Likewise the Banking Policy Division also have regular engagement with the retail banks.
Davy is on the Department's panel of advisers and therefore the Department is in regular contact with them on general market matters. As part of stakeholder engagement with the credit union sector, officials from the Shareholding and Financial Advisory Division meet regularly with the credit union team in Davy. The Financial Services Division also have occasional contact with Davy.
Attached is a list of scheduled meetings and calls covering the period 1st October 2019 to 22nd October 2021
<a href="https://data.oireachtas.ie/ie/oireachtas/debates/questions/supportingDocumentation/2021-11-02_pq27702112021_en.docx ">Schedule of Meetings</a
279. Deputy Neale Richmond asked the Minister for Finance the status of the benefit-in-kind changes on electric vehicles; and if he will make a statement on the matter. [52820/21]
Amharc ar fhreagraIn this year's Budget I announced an extension of the BIK exemption for electric vehicles to end 2025, with a tapering mechanism on the vehicle value threshold.
The current BIK exemption will continue to apply to 31 December 2022 as currently provided for in the legislation. From 2023, the original market value (OMV) reduction for BIK purposes is progressively phased out until end 2025. This extension is in support of Government policy to incentivise the transition to electric vehicles, while the lead in time allows for fleet planning.
To end 2022, a full exemption of €50,000 for employer-provided electric vehicles with an OMV of €50,000 or less applies. For vehicles with an OMV above €50,000, a partial exemption applies whereby the OMV is reduced by €50,000 when calculating the cash equivalent for the car. The tapering mechanism works by progressively reducing this exemption over a further 3 years. The relief serves to reduce the OMV of the vehicle, for the purposes of determining the taxable cash equivalent, by €35,000 in 2023, €20,000 in 2024 and €10,000 in 2025. Any surplus OMV will be subject to BIK in accordance with the standard rates due to commence on 1 January 2023, which incorporates the vehicle’s emissions and mileage.
Full details are set out in the 2021 Finance Bill.
280. Deputy John Brady asked the Minister for Finance the steps he will be taking in relation to the recent announcement that a bank (details supplied) will be withdrawing cash, cheque lodgement services, foreign exchange and bank draft services from over the counter and lodgement machines in a branch; and if he will make a statement on the matter. [52869/21]
Amharc ar fhreagraThe Deputy will be aware that as Minister for Finance I have no role in the commercial decisions made by any bank in the State. This includes banks in which the State has a shareholding.
Decisions in this regard, including the management of branch networks, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market. The AIB Relationship Framework can be found on my department's website.
AIB have informed me that while their bank branch in Blessington will no longer offer over the counter cash services, their existing team will continue to personally support and advise customers on their financial needs, be it account opening, mortgages, business or personal loans or financial planning. The branch remains open Monday from 10am to 5pm and Tuesday to Friday from 10am to 4pm.
AIB’s partnership with An Post enables customers to conduct the vast majority of their day to day banking transactions through their local post office, also located on Main St, Blessington. These services, available to Personal and Business customers, include cash withdrawal, cash and coin lodgements. More banking services will become available in the Post Office from December 13th, including an “off counter” facility for business customers to enable faster lodgements. Also, the Post Office will have longer opening hours than the AIB branch, including Saturday opening. AIB’s team in Blessington is in ongoing contact with customers about this change.
281. Deputy Neale Richmond asked the Minister for Finance if his attention has been drawn to companies in the European Union opting to not deliver their goods, including alcohol, to Ireland due to additional taxes being applied to goods entering Ireland; the reason additional charges would be levied on goods moving from the European Union area into Ireland that would not be charged to other European Union countries; and if he will make a statement on the matter. [52875/21]
Amharc ar fhreagraI am advised by Revenue that no additional taxes are being applied to goods entering Ireland from other Member States so this cannot be the reason why any company would opt not to deliver their goods here.
From 1 July 2021, significant changes came into force across the EU in the way VAT operates for cross border business-to-consumer (B2C) e-commerce activities. These changes apply in all Member States and their purpose is to facilitate cross-border online sales.
One aspect of the changes was to remove the advantage that non-EU businesses previously enjoyed in not having to charge VAT on certain sales into the EU; since 1 July, the EU has abolished the low value consignment VAT relief on imports valued up to €22. This means that all goods imported into any country in the EU are now subject to VAT. The current customs duty exemption for goods imported into the EU up to an intrinsic value of €150 remains unchanged.
To ease the compliance burden for businesses, the 1 July changes introduced a new scheme, the Import One Stop Shop (IOSS). This allows businesses that are selling goods that originate from outside the EU to declare the import VAT due through a monthly return in the Member State where they have registered for the scheme. If the business has not registered for the Import One Stop Shop (IOSS), the consumer must pay the VAT on these goods before they are released. This scheme applies to imported goods, excluding goods subject to excise duty, where the intrinsic value of the consignment does not exceed €150.
Also, from 1 July, the distance selling thresholds of €35,000 or €100,000 have been lowered. Where a business in any Member State supplies goods to a consumer in another Member State, they must now charge local VAT in the Member State to which the goods are delivered, subject to a €10,000 EU-wide threshold. Again, the new rules on intra-Community distance sales of goods are common to all EU Member States and are applied in the same way by all Member States.
With regard to Excise Duty on cross-border sales, Revenue advise that this is payable on alcohol and tobacco products and must be paid before the goods are dispatched. National rates of excise duty apply to alcohol and tobacco products being brought into Ireland for consumption here. Value-Added Tax (VAT) is generally payable on excisable products.
There is a long-standing, common EU administrative regime governing the movement of excisable products, such as alcohol, between Member States and their tax treatment on arrival in the destination Member State. Each Member State sets its own rates of excise and, when excisable products are moved between Member States, excise is payable in the country where the product will be consumed and at the rate applicable in that country. Responsibility for the payment of excise duty at prevailing rates on those products falls to either the seller’s agent in the destination Member State or, if no agent has been appointed, by the person who receives the products. When ordering excise products from another Member State, purchasers should check that the seller has arranged to pay excise duty in Ireland. Where the seller has not done so, the purchaser should contact their Revenue office to arrange payment. In the case of a duty-suspended commercial movement, the person who subsequently releases the products for consumption is responsible for payment of the excise duty. These are, and have always been, key features of excise that are common to all Member States.
282. Deputy Cathal Crowe asked the Minister for Finance the measures that are being considered to offset the impact of rising petrol and diesel prices in Ireland for motorists; and if he will make a statement on the matter. [53000/21]
Amharc ar fhreagraThe price of petrol and diesel is determined by a number of factors including taxation, the price of the raw materials, the prevailing exchange rates as well as the fact the different wholesalers can enter into forward contracts at different rates for the purchase of oil. The price of fuel on the forecourt is set by the individual retailer and would likely take into account the costs associated with the retail of the product such as those mentioned above together with the cost of having oil delivered.
The current spike in energy prices arises principally from the global recovery from the Covid-19 pandemic and is being witnessed across the European Union as well as many other regions.
On a national level, for large scale diesel consumers such as those involved in the road haulage and public transport sectors, the Deputy will be aware that the Diesel Rebate Scheme was introduced by my predecessor in 2013. This Scheme offers a partial excise refund to qualifying operators based on the retail price of diesel. The rebate kicks in when the price at the pumps goes above €1.23 per litre; increasing gradually to a maximum rebate of 7.5c when diesel reaches €1.43 per litre.
The Deputy may also wish to note that businesses that are registered for VAT may deduct the VAT charged to them on the purchase of business inputs, such as road diesel and other motoring costs.
It should also be noted that there is a significantly reduced rate of excise on green diesel which ensures costs for agricultural, fishing and construction are contained and provides for affordable transport via train.
My advice to consumers is to shop around and if possible use price comparison websites to ensure they receive the best value for money.
283. Deputy Colm Burke asked the Minister for Finance his views on whether the Central Bank tracker investigation is an important tool in rebuilding trust in banking institutions; and if he will make a statement on the matter. [53008/21]
Amharc ar fhreagraPublic trust in the banking industry has been badly damaged in recent years, most notably by the tracker mortgage scandal. The Central Bank Tracker Mortgage Examination demonstrated significant consumer harm and failures by mortgage lenders. Over 41,000 customers have been identified as impacted by tracker failures by their lender and over €730m in redress and compensation has been paid out those customers by their lenders. While the supervisory phase of the examination concluded with the publication of the Central Bank’s "Tracker Mortgage Examination Final Report" in July 2019, the Central Bank continues to monitor the outcomes of any complaints, appeals and court cases.
Furthermore, the Central Bank’s enforcement investigations are ongoing. To date, some enforcement actions have concluded and the Central Bank has fined PTSB €21m, KCB in excess of €18m and Ulster Bank in excess of €37m in relation to tracker mortgage related failings. These significant fines demonstrate the gravity which the Central Bank views tracker related failings by lenders to their customers.
There is now a heavy onus on banks to demonstrate that they can earn the trust of their customers. Consumer protection begins with firms themselves. Firms are responsible for selling their customers products that meet their needs both now and into the future. Firms must also have effective cultures and set the right standards. Responsibility for setting those standards rests with the boards and senior leadership of the banks, and they will need to clearly demonstrate that they will meet those standards into the future. Indeed it is a minimum requirement that customers should be able to trust their banks. The work being undertaken by the Irish Banking Culture Board is important in this regard.
284. Deputy Colm Burke asked the Minister for Finance when the results of the Central Bank tracker investigations which are completed will be published in respect of banks (details supplied); and if he will make a statement on the matter. [53009/21]
Amharc ar fhreagraWith regards to the Deputy's question, officials from my Department reached out to the Central Bank of Ireland and received the following response:
"The investigations into Bank of Ireland and AIB are ongoing and the Central Bank cannot comment on specifics of any ongoing investigations.
As the investigations were commenced at different times, they will conclude on different timelines."
285. Deputy Colm Burke asked the Minister for Finance if Central Bank enforcement notices will continue to be produced and published in respect of investigations completed on domestic banking firms, particularly banks (details supplied); the proposed schedule for these publications; and if he will make a statement on the matter. [53010/21]
Amharc ar fhreagraWith regards to the Deputy's question, officials from my Department contacted the Central Bank of Ireland and received the following response:
The Central Bank’s enforcement investigations and actions build on the Tracker Mortgage Examination, the largest and most complex consumer protection review the Central Bank has ever undertaken, and further demonstrate our commitment to our consumer protection mandate.
In accordance with the Central Bank’s principles of working with integrity and transparency, public statements are issued at the conclusion of enforcement actions. These statement also serve to inform and advise the financial sector and consumers of expected standards and behaviours.
To date, we have published statements in respect of the three concluded tracker enforcement actions into PTSB, KBC and Ulster Bank, which are available on the Central Bank of Ireland website.
The investigations into Bank of Ireland and AIB are ongoing and the Central Bank cannot comment on specifics of any ongoing investigations. As the investigations were commenced at different times, they will conclude on different timelines.
286. Deputy Kieran O'Donnell asked the Minister for Finance the number of residential and commercial applications received and granted under the living city initiative for Limerick city since its commencement by year to date in tabular form. [53069/21]
Amharc ar fhreagraThe Living City Initiative (LCI) was introduced in May 2015. The rented residential element of the LCI was introduced in 2017. The first year for which statistics were collected in respect of applications received is 2016.
Under LCI, applications are made to the relevant Local Authority in respect of the owner-occupier and rented residential elements of the scheme; applications to the Local Authority are not required to be made under the commercial element of the scheme.
The number of valid applications received by Limerick City and County Council (based on the most recent information received by Revenue) since the introduction of the LCI are as follows:
|
Year |
Applications received |
|
2016 |
<10* |
|
2017 |
<10 |
|
2018 |
16 |
|
2019 |
19 |
|
2020 |
33 |
|
2021 |
33 |
*Fewer than 10 claimants, the exact number is not shown to protect taxpayer confidentiality
Further statistical information on LCI, including the maximum tax cost and the number of claimants under the LCI, is available on the Revenue website at:
https://www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/property-reliefs.pdf .
These statistics are not collated on a geographical basis.
287. Deputy Jackie Cahill asked the Minister for Finance if voluntary organisations can reclaim VAT on defibrillators; if so, the way they may go about doing so; and if he will make a statement on the matter. [53086/21]
Amharc ar fhreagraVAT legislation in Ireland as set out in the VAT Consolidation Act, 2010 must comply with the EU VAT Directive. There is no scope in the EU VAT Directive to exempt supplies or services on the basis of charitable status.
There is no provision in either European law or Irish VAT law to allow a zero-rating or exemption for supplies of this nature.
In recognition of this issue, which affects charities right across Ireland, I introduced a VAT Compensation Scheme for Charities in Budget 2018 to relieve the VAT burden on charities and to partially compensate them for the VAT they incur on expenditure related to independently raised income.
The Scheme applies to VAT incurred on expenditure on or after 1 January 2018 and will only be paid one year in arrears. The conditions under which a person can qualify for payment under this scheme are outlined on the Revenue Commissioners’ website. Where the total amount of eligible claims from all charities exceeds the capped amount, which is currently set at €5 million, claims are paid on a pro rata basis.
288. Deputy Marc Ó Cathasaigh asked the Minister for Finance the timeline for the extension of the excise relief programme which will offer 50% excise relief to small-scale cider producers following on from the announcement in Budget 2022; and if he will make a statement on the matter. [53099/21]
Amharc ar fhreagraCouncil Directive 92/83/EEC, also known as the “Alcohol Structures Directive”, lays down a harmonised approach for the application of excise duties on alcohol and alcoholic beverages in the EU. It sets out the categories of alcohol and alcoholic beverages that fall within scope of taxation and the basis on which excise duties on such products are to be established. Council Directive 2020/1151 amends Directive 92/83/EEC and comes into effect from next year. Directive 2020/1151 introduces a new provision (Article 13a) which will allow Member States the option to grant up to 50% excise relief to independent small producers of fermented beverages such as cider, subject to certain conditions.
Ireland fully supported the amendments to the Directive to allow Member States introduce excise reliefs for small producers of cider. I expect that such a relief could have a similar positive impact on the small independent cider production sector as the existing relief for small independent producers of beer has had for that sector. Therefore, as I indicated in my Budget speech on 12 October, I plan to bring forward legislative provisions in Finance Bill 2022 to introduce such a relief. Because the new Article 13a is structured differently to what is already permitted for small beer producers (under Article 4), the existing relief in Irish legislation for beer could not be simply extended to cider. It will be necessary to provide a separate new relief, which would be similar in concept but different in detail. While this measure will be broadly modelled on the existing relief arrangements for beer, further considerations will need to be given to ensure clarity in relation to scope of the relief and also to its design and implementation so as to minimise the administrative burden and any compliance risks. My Department is considering these matters further and will engage with the sector and with the Revenue Commissioners with a view to the measure being introduced in next year’s Finance Bill.
289. Deputy Thomas Pringle asked the Minister for Finance the number of credit unions that have applied for and been approved to invest in social housing provision by the Central Bank in each of the past two years; and if he will make a statement on the matter. [53165/21]
Amharc ar fhreagraOn 18 September 2021 it was announced that two credit union backed funds had received regulatory approval from the Central Bank to lend to Approved Housing Bodies (AHBs) for the purposes of delivering social and affordable housing. These include the Credit Union Approved Housing Body Fund and the Credit Union Development Association (CUDA) backed Approved Housing Body Fund.
Since 1 January 2016, section 43 of the 1997 Act provides that the Central Bank may prescribe investments in which a credit union may invest its funds. Following a review of the investment framework for credit unions in 2017, the Central Bank introduced amending investment regulations for credit unions. Since 1 March 2018, credit unions have been permitted to invest in regulated investment vehicles where the underlying investments are investments in Tier 3 Approved Housing Bodies (AHBs) for the provision of social housing. The regulations require that investments by credit unions in Tier 3 AHBs must be made through a regulated investment vehicle.
290. Deputy Alan Dillon asked the Minister for Finance if consideration will be given to extend the availability of the highest 5% rate of the regional film development uplift for claims made after 31 December 2021; if there are similar or alternative proposals to encourage film production in regional areas as part of the film tax credit section 481; and if he will make a statement on the matter. [53188/21]
Amharc ar fhreagraSection 481 provides relief in the form of a corporation tax credit related to the cost of production of certain films. The scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of the Irish culture.
Finance Act 2018 introduced a short-term, tapered regional uplift for productions being made in areas designated under the State aid regional guidelines. The purpose of the regional uplift is to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.
The uplift originally provided an increased level of credit for four years, with 5% available in years 1 and 2 (2019 and 2020), 3% available in year 3 (2021), 2% available in year 4 (2022). However in recognition of the detrimental impact the COVID-19 crisis had on the audio-visual sector Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive year lost as a result of the COVID-related public health measures. The tapered withdrawal of the uplift then restarts, reducing to 3% in 2022, 2% in 2023, and Nil thereafter.
There are currently no plans to extend the availability of the regional uplift at the rate of 5%. In addition, there are currently no additional regional specific changes being considered in the context of Section 481. However I would note that the main film tax credit will remain available to qualifying productions in all areas of the country following the winding-down of the uplift.
291. Deputy Jim O'Callaghan asked the Minister for Finance if consideration is being given by his Department to restricting or prohibiting the use of cryptocurrencies in Ireland as a means of payment or trading commodity; and if he will make a statement on the matter. [53189/21]
Amharc ar fhreagraCryptocurrencies and their exchanges/platforms are not currently regulated and do not currently require an authorisation or licence from the Central Bank of Ireland.
In April 2020 the Central Bank issued its response to the European Commission public consultation on the Markets in Crypto-Assets, highlighting the views of the Central Bank on crypto-assets.
Risks associated with certain cryptocurrencies such as so called global stablecoins include risks to financial stability, monetary policy, consumer and investor protection, legal certainty and compliance with AML/CFT requirements and these are a key concern. The issuing of "currency" should firmly remain under the remit of the relevant public authorities (i.e. the European Central Bank).
Innovations that increase the efficiency of financial services to consumers are encouraged; however, innovations that fail to reach the high standards and controls that protect Irish consumers and underpin the integrity of the financial system, or those which put financial stability at risk, should not be allowed to flourish outside a regulatory and legal perimeter.
With these considerations in mind, on 24 September 2020, the European Commission released its Digital Finance Package. This contains a proposal for a new EU legislative framework for the Markets in Crypto-Assets (MiCA), which aims to regulate a markets in crypto-assets, including asset-referenced tokens, also known as 'stablecoins'.
My Department has been working extensively in these negotiations, with technical advice being provided across the Department and the Central Bank of Ireland. I would like to point out that MiCA will be a regulation, not a Directive, so it will be applicable in Ireland as soon as the regulation comes into force.
At an EU level, while the development of an appropriate regulatory framework continues, it is important to highlight that there is a consensus to adopt a conservative prudential approach towards crypto assets which is line with that set out in the EBA’s January 2019 report.
Finally, I would like refer to my written answer earlier this year Dail Question No. 66 (Eurozone Issues – Thursday, 25 Feb 2021 – Parliamentary Questions (33rd Dáil) – Houses of the Oireachtas) and to reiterate that the Central Bank has issued warnings to consumers on the risks of buying virtual currencies, a set of warnings that are more relevant than ever following from the marked increase in digital payments and transactions since the start of the COVID pandemic.
292. Deputy Mary Lou McDonald asked the Minister for Finance the number of existing contracts of an indefinite period entered into by his Department prior to the enactment of the EU Procurement Directive. [53229/21]
Amharc ar fhreagraDeputy, In relation to your question concerning existing contracts of an indefinite duration entered into prior to the enactment of the EU Procurement Directive, I wish to advise that my Department currently has four such contracts entered into prior to 26 February 2014.
Details of these four contracts are tabled below:
|
Supplier Name |
Description of service |
|
|
1. |
Softworks Computing Limited |
Provision of annual software maintenance services for the Department’s ‘Time and Attendance (Flexi)’ system. |
|
2. |
Oracle Emea Limited |
Provision and maintenance of annual software support for the Department’s Financial Management system. |
|
3. |
Arthur Cox |
Provision of legal advisory services in relation to the recapitalisation of Irish Life and Permanent. |
|
4. |
National Council for the Blind (NCBI) |
Provision of telephony services (on a shared services basis) to both the Department of Finance and the Department of Public Expenditure and Reform. |
293. Deputy Joe Carey asked the Minister for Finance further to Parliamentary Question No. 176 of 21 October 2021, if a query (details supplied) will receive a response; and if he will make a statement on the matter. [53257/21]
Amharc ar fhreagra294. Deputy Joe Carey asked the Minister for Finance further to Parliamentary Question No. 176 of 21 October 2021, if a query (details supplied) will receive a response; and if he will make a statement on the matter. [53258/21]
Amharc ar fhreagra295. Deputy Joe Carey asked the Minister for Finance further to Parliamentary Question No. 176 of 21 October 2021, if a query (details supplied) will receive a response; and if he will make a statement on the matter. [53259/21]
Amharc ar fhreagra296. Deputy Joe Carey asked the Minister for Finance further to Parliamentary Question No. 176 of 21 October 2021, if a query (details supplied) will receive a response; and if he will make a statement on the matter. [53260/21]
Amharc ar fhreagra297. Deputy Joe Carey asked the Minister for Finance further to Parliamentary Question No. 176 of 21 October 2021, if a query (details supplied) will receive a response; and if he will make a statement on the matter. [53261/21]
Amharc ar fhreagraI propose to take Questions Nos. 293, 294, 295, 296 and 297 together.
By way of background, I am advised by Revenue that the rationalisation and integration of General Service and Departmental Taxes grading structures in Revenue followed an extensive industrial relations negotiation and communications process more than 18 years ago, in the lead-up to Integration Day on 1 January 2003.
Revenue advises that the final integration proposal offer was published on RevNet, Revenue’s intranet, and was sent by email to all staff, in a period throughout which Revenue engaged in very extensive communications with staff and their representatives. During the same period, staff representatives held numerous information sessions and the final proposal was balloted and agreed by all Trade Unions representing Revenue staff members.
It is noted that the officer in question availed of various family friendly leave facilities over the 11-year period between 1988 and 2010, and that while stating that they had no access to RevNet or to home email during their time off, confirm they recall receiving various communications from their managers during their time off. As such, there is nothing to indicate that the officer was not notified of the proposals. However, Revenue does not hold postal or telephone records in this matter dating back to 2002/2003 and confirms that on the officer’s request in April 2021, the officer was provided with a copy of a letter dated 11 November 2002 from the then Chairman of Revenue, outlining the terms of the Integration Agreement proposal.
I am advised by Revenue that under the terms of the Integration Agreement, Clerical Officers who were on a Career Break on 1 January 2003 are not eligible to receive the Annual Personal to Holder (APTH) payment. This is because they were not serving in Revenue on 1 January 2003 (Integration Day), the designated date by reference to which eligibility for payment of the APTH was determined. As regards comparison between cases with different circumstances, eligibility under the provisions of the Integration Agreement is determined by the facts in each case. For example, maternity leave entitlements are a statutory right as provided for in the Maternity Act 2004 and there is no valid basis for comparison to be drawn between the case of any officer availing of that statutory entitlement and the case under query. The terms of the Integration Agreement are very clear as regards eligibility and there is no provision for payment of the APTH other than under the terms of the Integration Agreement.
