Written Answers Nos. 236-253
241. Deputy Louise O'Reilly asked the Minister for Finance the regulations that are in place and the powers the Central Bank has to ensure that social media influencers or others advertising or promoting the use of crypto-assets adequately warn consumers of the potential risks of such investment; and if he will make a statement on the matter. [2975/22]
Amharc ar fhreagraAs I have previously stated, I believe that innovations that increase the efficiency of financial services to consumers should be 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.
As of 23 April 2021, firms providing certain services in relation to Virtual Assets (also known as crypto-assets), known as Virtual Asset Service Providers (“VASPs”), are required to register with the Central Bank of Ireland for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) purposes only. While Virtual Asset Service Providers are subject to AML/CTF requirements, however, they are not subject to prudential and conduct of business requirements at this time.
On 24 September 2020 the European Commission released its Digital Finance Package (www.ec.europa.eu/info/publications/200924-digital-finance-proposals). This contains a proposal for a new EU legislative framework for the Markets in Crypto-Assets (MiCA), which aims to enable and regulate markets in crypto-assets, including asset-referenced tokens (also known as 'stablecoins') and utility tokens as well as the tokenisation of traditional financial assets and wider use of distributed ledger technology (DLT) in financial services.
It is expected that MiCA will introduce provisions on advertising and marketing to ensure that marketing information should be clear, fair and not misleading. MiCA will be an EU regulation, not a Directive, so it will be applicable in Ireland as soon as the regulation comes into force.
My department has been working extensively in the negotiations relating to MiCA, with technical advice being provided across the department and the Central Bank of Ireland. The Central Bank informs me that it supports and welcomes a harmonised approach towards developing an appropriate regulatory framework for the markets in crypto-assets.
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 (www.eba.europa.eu/eba-reports-on-crypto-assets).
The Central Bank continues to identify and closely monitor risks associated with crypto-assets, and has issued warnings to consumers on the risks of buying virtual currencies (www.centralbank.ie/consumer-hub/consumer-notices/consumer-warning-on-virtual-currencies). These warnings are more relevant than ever due to the marked increase in digital payments and transactions since the start of the COVID pandemic.
242. Deputy Noel Grealish asked the Minister for Finance the number of mortgage rule exemptions the Central Bank has granted to banking institutions for their mortgage applicants in 2019, 2020 and 2021; and if he will make a statement on the matter. [3007/22]
Amharc ar fhreagraThe Central Bank has informed me that 5,146 mortgage applicants received a mortgage rule exemption (allowance) from their lender in 2019, which is approximately 13% of the total number of loans subject to the mortgage measures in that year.
The corresponding figure was 3,235 in 2020 (10% of total lending) and 1,415 in the first half of 2021 (8% of total lending). Data on the full year of lending in 2021 is not yet available.
These figures include all applicant types i.e. first time buyers, second and subsequent buyers and buy-to-let investors. A small number of mortgage applicants received an exemption from both the loan to value and loan to income limits and the Central Bank has indicated that these applicants are only counted once in the above figures.
243. Deputy Mairéad Farrell asked the Minister for Finance the position of Ireland for the reform of the EU economic governance framework; his proposals for same; and if he will make a statement on the matter. [3138/22]
Amharc ar fhreagraAs the Deputy will be aware, the European Commission published a Communication in October 2021 which relaunched the review of the economic governance framework. I strongly welcome the re-opening of the Commission’s review, as I believe now is the right time to discuss possible reforms to the existing fiscal framework in Europe.
To date, the Commission has not brought forward any specific proposals for reforms to the governance framework. However, as I have re-iterated on several occasions, I support efforts to increase the transparency and predictability of the framework.
The discussions on reform of the framework will be complex and take place against the backdrop of a number of fiscal challenges. The most immediate of these is the challenge posed by the impact of the Covid-19 pandemic on the public finances of EU Member States. Strong coordinated policy actions at EU and national levels (including the activation of the General Escape Clause of the Stability and Growth Pact) helped to reduce the societal and economic impact of the pandemic. While these measures were undoubtedly necessary and prudent, they have nevertheless resulted in significant increases in deficit and debt ratios throughout the EU.
Furthermore, a number of more medium-term fiscal and structural challenges were already visible on the horizon before the pandemic hit. Amongst these are the challenges posed by the so-called ‘dual transitions’ to a digital and green economy. Concurrently, population ageing over the coming decades will also have a significant impact on the public finances. In this context, I recognise that a balance must be met between the need to finance additional investment requirements and the equally important need to ensure financial sustainability, particularly given the impact of the pandemic on the fiscal positions of Member States.
The structural budgetary challenges we are now facing, along with the economic interdependencies and risks which existed when the European Monetary Union was established, all speak to the continued need for fiscal rules at a European level. However, such rules must be appropriately calibrated in order to be credible. The rules must also contain a degree of flexibility, to allow Governments to tackle unanticipated shocks such as the Covid-19 pandemic.
Ultimately, effective economic and budgetary coordination remains a key building block for ensuring stability and growth in the EU and for strengthening the Economic and Monetary Union. Maintaining the sustainability of public finances as an objective of the fiscal rules is essential in this respect.
244. Deputy Cathal Crowe asked the Minister for Finance the reason the beauty industry is subject to a VAT rate of 13.5% while the hairdressing sector pays a 9% rate; if this anomaly can be rectified; and if he will make a statement on the matter. [3175/22]
Amharc ar fhreagraThe VAT rates applying in Ireland are subject to the requirements of EU VAT law with which Irish VAT law must comply. While hairdressing services apply the 9% rate from 1 November 2020, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate.
This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and are provided for under Article 118 of the EU VAT Directive. As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.
245. Deputy Éamon Ó Cuív asked the Minister for Finance the arrangements that have been made to issue a notice of liability for property registration tax for 2022 including the bar code to all those who have selected to pay in their local post office (details supplied); and if he will make a statement on the matter. [3256/22]
Amharc ar fhreagraI understand the Deputy is referring to the payment of Local Property Tax (LPT). LPT is a self-assessed tax, administered in accordance with the provisions set out in Finance (Local Property Tax) Act 2012 (as amended).
I am advised by Revenue that it wrote to approximately 1.4 million property owners in September and October 2021 advising them of their statutory obligations for the new LPT ‘valuation period’ (2022 to 2025). These obligations included determining the market value of their residential properties at 1 November 2021, filing their LPT return/s and paying or arranging to pay their LPT liability for 2022.
As part of campaign to contact 1.4 million property owners, Revenue identified approx. 200,000 property owners who had not previously engaged with them online. These property owners were sent hard copy paper LPT1 Forms, which gave them the option to submit their valuation to Revenue by way of paper return.
A barcode is not required to make a payment in the post office. Payment can be made once the property owner provides their Property ID and their PIN number. This is available on all LPT related correspondence, can be found online through myAccount or ROS, or can be provided to a property owner over the phone at Revenue’s LPT Helpline 01 7383626.
246. Deputy Willie O'Dea asked the Minister for Finance the justification for commercial landlords being allowed to write-off their defects levies against their tax liabilities given owner-occupiers and social landlords cannot; and if he will make a statement on the matter. [3283/22]
Amharc ar fhreagraThe tax treatment of commercial activities, including the rental of property, typically differs from that which applies to private individuals. For the business owner, the costs associated with running the business may be deductible for tax purposes.
As the Deputy may be aware, the Minister for Housing, Local Government and Heritage, has established an Independent Working Group to examine the issue of defective housing. Officials from my Department participate in this Working Group. The objectives of the group are to identify the scope of relevant significant defects in housing, to evaluate the scale of housing affected, to propose a means of prioritising defects, to evaluate the cost of remediation, to recommend appropriate mechanisms for resolving defects and, to consider financing options in line with the Programme for Government commitment to identifying options for those impacted by defects to access low-cost, long-term finance.
Separately, my Department's Tax Expenditure Guidelines are clear that a tax-based intervention should only be considered where it would be more efficient than a direct expenditure measure.
247. Deputy Mary Lou McDonald asked the Minister for Finance his Department’s total capital and current expenditure budget for 2021 and 2022 for domestic, sexual and gender-based violence with a breakdown for each related allocation for both years in tabular form. [3499/22]
Amharc ar fhreagraThere is a current budget allocation in 2022 for a training intervention that spans these areas. This is subject to final costs after a procurement exercise in Quarter 2, but costs are not expected to exceed €10,000.
There was nothing allocated for these areas in 2021.
|
2021 |
2022 |
|
Nil |
€10,000 |
248. Deputy Christopher O'Sullivan asked the Minister for Finance if consideration will be given to extending the 31 December 2021 deadline for companies to register for the employment wage subsidy scheme given that some companies experienced difficulties in accessing their accountant due to disruptions over the Christmas period; and if he will make a statement on the matter. [3527/22]
Amharc ar fhreagraSection 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020, provides for the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees. The Finance (Covid-19 and Miscellaneous Provisions) Act 2021 was published on 23 June and enacted on 19 July 2021 and extended EWSS to 31 December 2021. The Finance Act 2021, was published on 21 October 2021 and enacted on 21 December 2021 and extended EWSS to 30 April 2022 for eligible employers who are correctly registered for EWSS on or before 31 December 2021.
As the Deputy, will be aware, eligibility to EWSS is based on the employer demonstrating that its business is likely to experience a 30% reduction in turnover or orders during a specific reference period and that this disruption to business is caused by the Covid-19 pandemic. In addition, the business must also have tax clearance.
Since the introduction of the scheme, each employer availing of the scheme must carry out a self-review of its business circumstances at the end of each month and if it is manifest to the employer that it no longer meets the eligibility test for qualification for the scheme, then the employer must immediately cease claiming wage subsidy payments. For July to December 2021, employers provide to Revenue details of this eligibility review on a monthly Eligibility Review Form (ERF), filed through ROS. This form assists employers in determining whether they are eligible, ensuring timely deregistration and avoiding incorrect subsidy claims.
It should be noted that employers who became ineligible for EWSS from 1 December 2021 on foot of the eligibility review they undertook at the end of November 2021 could contact Revenue via My Enquiries by 15 January 2022 to amend the December projections included in their November 2021 ERF, where the projections they prepared on 30 November were overstated having regard to the public health restrictions introduced on 20 December. Once the December projections have been updated by Revenue, the employer can then amend their December payroll submissions to include the EWSS claim. Any December payroll submissions already filed, that included an EWSS claim, do not need to be resubmitted. These are automatically processed by Revenue once the November ERF is amended. These employers were also required to file their December ERF, by 15 January 2022.
On 21 December 2021, in light of public health restrictions announced on 17 December 2021, I announced a re-opening of the scheme for certain employers who might otherwise be ineligible. These were employers who were previously eligible for EWSS, but as their business activity was at a level where they would not have met the turnover qualification criteria, they were not eligible on 31 December 2021. In light of the restrictions introduced last December, some businesses may return to a position where they require EWSS support and as such the EWSS re-opened to certain employers from 1 January 2022.
Where employers determined they were eligible to re-enter the scheme, they could do so by completing and submitting a short template of required information to Revenue via MyEnquiries by 15 January 2022. The relevant template and further information can be found in Revenue’s guidelines on how employers can re-enter the EWSS.
If employers in either of those cohorts missed the 15 January deadline, I am advised that a submission can be submitted to Revenue by 31 January requesting that their late submission be considered. This submission should include details as to the reason the initial deadline was not met. I am further advised that Revenue will assess each late submission on a case by case basis to determine whether the late submission will be accepted.
249. Deputy Thomas Pringle asked the Minister for Finance if his attention has been drawn to the interpretation of the Revenue Commissioners that dental practices are not now VAT free enterprises particularly in relation to fees paid by associate dentists to principal dentists in a practice; if he has considered the impact this will have on the provision of services; if it is planned to revert to the system that previously prevailed in order to protect dental care; and if he will make a statement on the matter. [3573/22]
Amharc ar fhreagraThe VAT treatment of the supply of goods and services is subject to the requirements of the EU VAT Directive, with which Irish VAT law must comply. Exemptions from VAT for certain activities in the public interest are set out in Chapter 2 of Title IX of the Directive. These provisions are transposed into Irish legislation in Part 1, Schedule 1, VAT Consolidation Act 2010. Paragraph 2(5) of Schedule 1 provides for an exemption in respect of the supply of professional dental services.
The exemption from VAT in respect of dental services is not dependent on the legal form of the taxable person supplying the service. It is the nature of the service that informs the VAT treatment. The legislation which transposes Article 132 of the Directive, and Revenue’s interpretation of the legislation, ensures that the exemption from VAT to the supply of dental services is applied consistently and in a manner which is not dependent on the legal form of the person supplying the service. In accordance with the Directive and CJEU jurisprudence the VAT exemption applies to dental services provided by a clinic, a principal dentist, or by an associate dentist, where those services are provided to a patient.
Where a principal dentist receives consideration in respect of fee sharing arrangements and the nature of services consists of the supply of facilities for the carrying on of a dental practice, Revenue views this as a taxable supply of services within the scope of VAT. The final consumer in this fee sharing arrangement is not a patient availing of a supply of dental services to which the exemption applies.
Revenue has been clear at all times regarding the VAT treatment of dental fee sharing arrangements and has outlined its position in correspondence and meetings with the Irish Dental Association.
250. Deputy Violet-Anne Wynne asked the Minister for Public Expenditure and Reform if Government policy during the pandemic can be taken to mean that public servants were protected from short time working notwithstanding the commercial position of the employer as per a Labour Court recommendation; and if he will make a statement on the matter. [3203/22]
Amharc ar fhreagraMy Department developed Guidance and FAQs on working arrangements and temporary assignments during COVID-19 for civil and public service employers. In this guidance, individual employers are advised of the need to identify which of their employees fall into the category of civil and public service employees.
This Guidance and FAQs document has been continually updated to reflect public health and Government policy throughout the COVID-19 pandemic. The FAQs have been prepared to assist employees and management in the Civil and Public Service to understand the process, rules and expectations associated with work arrangements during the COVID-19 across the public service.
In order to continue to facilitate physical distancing and public health requirements, Civil and Public Service employers are providing for working from home where possible, and continuing temporary alternative arrangements e.g. flexible shifts, staggered hours, longer opening hours, blended working patterns, weekend working etc., where feasible.
251. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform when the new sea wall will be built at Magheraroarty, Gortahork, County Donegal to protect the beach from further erosion; and if he will make a statement on the matter. [2911/22]
Amharc ar fhreagraCoastal protection and localised flooding issues are matters, in the first instance, for each local authority to investigate and address. To assist Local Authorities in managing the coastline for coastal erosion, the OPW has undertaken a national assessment of coastal erosion (including erosion rates) under the Irish Coastal Protection Strategy Study (ICPSS) and the results of this study have been published on the OPW website. This data enables Local Authorities to develop appropriate plans and strategies for the sustainable management of the coastline in their counties.
The Local Authorities may carry out coastal protection works using their own resources. If necessary, they may also put forward proposals to the relevant Government Departments for funding of appropriate measures.
The OPW operates the Minor Flood Mitigation Works and Coastal Protection Scheme since 2009, under which applications for funding from local authorities for small-localised works are considered for measures costing up to €750,000 in each instance. Funding for coastal risk management studies may also be applied for under this scheme. Funding of up to 90% of the cost is available for projects that meet the eligibility criteria including a requirement that the proposed measures are cost beneficial. It is a matter for each local authority to ensure that all the necessary environmental, statutory and regulatory approvals are in place prior to any works being undertaken.
The OPW guidelines for funding applications under the Minor Flood Mitigation Works and Coastal Protection Scheme are available on the OPW website at www.gov.ie/opw
While the OPW has no application in respect of a sea wall at this location., in 2018, Donegal County Council was approved funding of €76,500 under this scheme to carry out a Coastal Erosion Risk Management Study at Magheraroarty known as the Ballyness Bay Coastal Flooding and Erosion Risk Management Study. Works on the study are ongoing, The completed study will inform the appropriate measures necessary to address the coastal erosion risk into the future and identify any measures necessary to protect the identified community/business assets at risk.
252. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he and or his officials made amendments and or suggested amendments to the business case presented by the Minister for Agriculture, Food and the Marine regarding the salary and remuneration package of the new Horse Racing Ireland Chief Executive Officer; if he will publish the business case in full; and if he will also provide details of the full pension package and severance and or lump sum associated with the role in the context of the increased salary. [3059/22]
Amharc ar fhreagra255. Deputy Matt Carthy asked the Minister for Public Expenditure and Reform the basis on which he determined that a new Chief Executive Officer of Horse Racing Ireland should be appointed at a salary of €137,356; the reason that the salary for the new Chief Executive Officer of Horse Racing Ireland was set at a higher rate than that previously stipulated; if views were sought from NewERA of the National Treasury Management Agency on same; and if he will make a statement on the matter. [3231/22]
Amharc ar fhreagra256. Deputy Matt Carthy asked the Minister for Public Expenditure and Reform the salary against which the salary of the new Chief Executive Officer of Horse Racing Ireland was benchmarked; and if he will make a statement on the matter. [3232/22]
Amharc ar fhreagra257. Deputy Matt Carthy asked the Minister for Public Expenditure and Reform if a condition or mechanism exists within the contract of the new Chief Executive Officer of Horse Racing Ireland which would see proposed salary increases in years two and three of the contract not implemented; if such a condition or mechanism exists which would see the salary reduced; and if he will make a statement on the matter. [3233/22]
Amharc ar fhreagraI propose to take Questions Nos. 252, 255, 256 and 257 together.
Section 21 of the Irish Horse Racing Industry Act 1994 provides that the terms and conditions for the CEO of Horse Racing Ireland (HRI) are subject to the approval of the Authority (HRI) with the consent of the Minister for Agriculture, Food and the Marine, and the Minister for Public Expenditure and Reform. The Code of Practice for the Governance of State Bodies also provides that the CEO of each Commercial State Body shall hold office subject to the terms and conditions as determined by the Board of the State Body with the consent of the relevant Minister and the Minister for Public Expenditure and Reform.
In accordance with the above, following proposals from the Board of HRI, the Minister for Agriculture, Food and the Marine sought my consent to the terms for the appointment of a new CEO. To fully appraise the proposal, my Department requested that further information be provided by the Department of Agriculture, Food and the Marine in support of the proposal, including a business case and an independent assessment by NewERA.
Having considered the business case and supporting recommendation from NewERA, I provided my consent to the terms proposed. i.e. a salary of €190,773 and the provision of the standard superannuation terms for CEOs of Commercial State Bodies. The terms do not represent an increase on the terms for the outgoing CEO. There is no scheduled increases to the salary in years two and three of the contract.
I refer the Deputy to the standard superannuation arrangements for CEOs of Commercial State Bodies also published at the following link:
www.gov.ie/en/publication/7adff-governance/?referrer=www.govacc.per.gov.ie/governance-of-state-bodies/
The terms for the CEO post are as outlined above. Due to General Data Protection Regulations (GDPR) around personal data, information in relation to the specific superannuation terms applying to the individual is of a personal nature and is unable to be provided. Furthermore, as a Commercial State Body, documentation relating to Horse Racing Ireland and the assessment by NewERA contain information that may be of a commercially sensitive nature. The documents also contain personal information.
253. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the number of civilian and Garda Ministerial drivers in his current corps of drivers; the breakdown of the civilian versus Garda drivers; and the total costs including salaries, maintenance, fuel and other costs incurred by the driver corps in 2020 and 2021. [3119/22]
Amharc ar fhreagraAs the Deputy may be aware, following a recent security review by Garda Commissioner Harris, it has been agreed to provide 2 Garda drivers to me. As I currently have 1 civilian driver assigned to me, interim arrangements are in place while the full plans are being mapped out.
The aggregate total of salary and employer’s PRSI costs for civilian drivers in my department overall, including the Ministers of the State and the previous Minister and the previous Ministers of State, were €138,216 in 2020 and €111,898 in 2021. The Deputy will be aware that there was a change of government in 2020. There were no costs in relation to Garda drivers in 2020 or 2021.
Ministers may claim mileage rates in line with relevant circulars. The rates include provision for maintenance, depreciation and fuel. The aggregate total claimed by Ministers and Ministers of State was €15,327 in mileage in 2020 and €10,974 in mileage in 2021.
Subsistence claimed by civilian drivers in 2020 was €7,001 and €18,271 in 2021.
