Written Answers Nos. 244-257
244. Deputy Pearse Doherty asked the Minister for Finance when, he or his Department will collect data on vacancy levels in residential property in line with housing policy objective 19.12 of Housing for All with a view to introducing a vacant property tax; and if that data will be published. [19063/22]
Amharc ar fhreagraThe Government’s strategy ‘Housing For All’ includes an action for my Department to collect data on vacancy with a view to introducing a Vacant Property Tax. The timeframe for delivery on this commitment is the second quarter of 2022. The Finance (Local Property Tax) (Amendment) Act 2021 enabled Revenue to collect certain information in relation to the occupancy status of residential properties including , where unoccupied, the duration and reason for this, in the Local Property Tax (LPT) return forms submitted by residential property owners in respect of the new LPT valuation period 2022-2025. This information, together with information from other available sources, will be used to assess the merits and impact of introducing a Vacant Property Tax.
Revenue have completed a preliminary analysis of the LPT returns received to date which has recently been shared with my Department. The results of the preliminary analysis suggest that levels of vacancy are low across all counties. I anticipate that further detail in relation to this analysis will be available in the coming weeks. I understand Revenue intends to publish a profile of the occupancy data from the LPT returns in due course.
245. Deputy Pearse Doherty asked the Minister for Finance the projected deficit levels in nominal terms and as a percentage of GDP and GNI, in each of the years to 2030, taking into account such factors as demographic change and reduced tax revenues as a result of the green transition to less carbon-intensive consumption; and if he will make a statement on the matter. [19064/22]
Amharc ar fhreagraMy Department will set out updated scenarios for the trajectory of the general government balance as part of comprehensive macroeconomic and fiscal forecasts in the Stability Programme Update, to be published next week. These projections will have a forecast horizon as far as 2025.
My Department has not produced detailed annual deficit projections to 2030 of the nature outlined in the Deputy’s request. However, my Department published a report entitled Population Ageing and the Public Finances in Ireland last September. Included in this publication are long-term simulations of the impact of age-related expenditure on the deficit and debt ratios under a hypothetical, no-policy change scenario. This exercise assumes non-age related expenditure as a share of GNI* remains unchanged, while total revenue is assumed to move in line with nominal GDP/GNI*. As such, these simulations are not forecasts of the expected trajectory of the general government balance but instead show the potential impact of demographic change on the public finances in the absence of other policy changes over the coming decades. In addition, the starting point for this exercise began with outturn fiscal data from 2019 and the simulations do not, therefore, capture the significant increase in expenditure related to the support measures implemented by the Irish Government during the Covid-19 pandemic.
The results of the simulations, set out below, suggest that under this no-policy change scenario, and holding all other variables constant, age-related expenditure alone could result in a worsening of the general government balance of 3.4 percentage points of GNI* relative to 2019. These projections are published as a share of GNI*/GDP and not on a nominal basis.
Table 1: Percentage point difference in general government balance from base year (2019) as a result of projected age-related expenditure
|
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
|
|
percentage point of GDP |
-1.0% |
-0.8% |
-0.7% |
-0.8% |
-0.9% |
-1.1% |
-1.3% |
-1.5% |
-1.7% |
-1.8% |
-2.1% |
|
percentage point of GNI* |
-1.7% |
-1.4% |
-1.2% |
-1.4% |
-1.5% |
-1.8% |
-2.1% |
-2.4% |
-2.7% |
-3.0% |
-3.4% |
It is also important to note that these simulations do not account for second round effects or non-linearities. For example, continuing to run significant deficits over an extended time period would likely result in a notable risk premium, with adverse implications for sovereign borrowing costs and the interest bill over the long-term.
Finally, these projections do not account for the possibility of losses in tax revenue as a result of the green transition or any changes to the taxation framework. My Department is undertaking a review of the potential losses in tax revenues as the economy transitions to less carbon intensive consumption patterns. This analysis will form an integral part of the Department of Finance’s wider economic analysis of the effects of the green transition. As part of this ongoing work, the Department published a Review of Green Budgeting from a Tax Perspective alongside Budget 2022. The review found that approximately €5.7 billion of carbon-related tax revenues were collected in 2019, representing 9.6 per cent of total tax revenues. For comparative purposes, analysis undertaken by the UK government in the 2021 HMT Net Zero Review indicates that carbon-related tax revenues of £37 billion, or 5.8 per cent of all tax revenues over the period 2019-20, are at risk of declining almost to zero by 2040, as the economy transitions away from carbon-related activity.
The fiscal challenges described above will add significant pressure to the public finances and highlight the importance of rebuilding our fiscal buffers. Last year's Summer Economic Statement set out a medium-term framework for the public finances, with public expenditure ceilings that are fixed for the next few years. Following this strategy will allow for the rebuilding of fiscal buffers while continuing to make significant capital investment, as outlined in the National Development Plan.
246. Deputy Pearse Doherty asked the Minister for Finance the cost of introducing a new 30% rate of income tax by replacing the 40% rate or introducing a 30% rate with its tax rate band ranging from €36,800 to €40,000, €50,000 and €60,000, respectively. [19065/22]
Amharc ar fhreagraI am advised by Revenue that the estimated first and full year costs to the Exchequer of the Deputy's proposals are set out in the table below. The changes in the income tax rate bands are listed for single taxpayers, but the estimates include commensurate adjustments made for all other taxpayer categories.
|
First year cost |
Full year cost |
|
|
30% tax rate on the balance over €36,800 |
€3.4bn |
€4.0bn |
|
30% tax rate on band of €36,800 to €40,000* |
€310m |
€355m |
|
30% tax rate on band of €36,800 to €50,000* |
€1,020m |
€1,175m |
|
30% tax rate on band of €36,800 to €60,000* |
€1,490m |
€1,720m |
*Assumes that 40% rate applies above this level.
247. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to reduce the cost of insurance for the hospitality sector; and if he will make a statement on the matter. [19157/22]
Amharc ar fhreagraWhile neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, I can assure the Deputy that this Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups, including the hospitality sector.
The whole-of-Government approach being taken through the Action Plan for Insurance Reform which sets out 66 actions which aim to improve both the cost and availability of this key financial service, particularly for businesses. The Second Implementation Report, which was published on 1 March 2022, shows that 80 per cent of these actions have now been delivered.
Among the key developments so far are the implementation of the new Personal Injury Guidelines, which significantly reduce award levels for many categories of common injuries, particularly those of soft tissue. Recent data from the Personal Injury Assessment Board (PIAB) show that award levels have fallen by an average of 40 per cent, providing stability and certainty to the claims environment.
As part of the effort to increase competition, the Department of Finance is working closely with the IDA to broaden the supply of insurance in the Irish insurance market, including in areas which have been identified as ‘pinch-points’, such as the hospitality sector as highlighted by the Deputy. The IDA is currently commencing a multi-phased engagement process with targeted underwriters and will seek to leverage the achievements of the Government insurance reform agenda to date.
In terms of upcoming issues, rebalancing the duty of care is now a high priority action for Government and is being led by my colleague, Minister McEntee and the Department of Justice. Overhauling this legislation should help to address the issue of “slips, trips and falls”, which are particularly prevalent in high-risk/heavy-footfall areas such as hospitality. Minister McEntee has noted in the Justice Plan 2022, published last week, her intention to bring forward legislative proposals to reform the law in this area.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government.
248. Deputy Holly Cairns asked the Minister for Finance if defibrillators are installed in all offices and buildings accessible by the public in his Department, and public bodies and agencies that operate under his remit; and if he will make a statement on the matter. [19170/22]
Amharc ar fhreagraI wish to advise the Deputy that my Department offices are not open to the general public, with the exception of approved appointments. However, these offices under my remit are equipped with defibrillator devices which are portable and can be transported in an emergency situation for use if required.
The position in relation to the bodies under the aegis of my Department which are accessible by the public is set out below.
The Central Bank has a defibrillator on all floors of its building, including those where the public can access. The Investor Compensation Company DAC shares the premises with the Central Bank.
The Disabled Drivers Medical Board of Appeal (DDMBA) is a board of medical practitioners and has no employees or premises. The DDMBA operates through The National Rehabilitation Hospital (NRH), which provides all functions including facilities, IT infrastructure and staffing to facilitate it in carrying out its remit. Any costs are then reimbursed to the NRH by my Department.
The Financial Services and Pensions Ombudsman (FSPO) leases its public offices at Lincoln House, Lincoln Place, Dublin 2. There are no defibrillators currently installed at this location, however the FSPO keeps all health and safety matters under review and is committed to its compliance with the Safety, Health and Welfare at Work Act, 2005 (“the Act”) as well as all other health and safety legislation relevant to the organisation. In this regard, the FSPO has developed a Health and Safety Statement in accordance with Section 20 of the Act and has an established Safety Committee and Health and Safety Officer, tasked with monitoring health and safety in the workplace.
I am informed by the Office of the Revenue Commissioners that all of its public offices have defibrillators installed and have staff trained to operate them.
Finally, the Tax Appeals Commissions has confirmed that a defibrillator is installed with staff members qualified to use it.
249. Deputy Ged Nash asked the Minister for Finance the total value of consultancy contracts awarded to an organisation (details supplied) for work with his Department and bodies under the auspices of his Department in each of the years 2017 to 2021, in tabular form; and if he will make a statement on the matter. [19189/22]
Amharc ar fhreagraI can advise the Deputy that neither the Department of Finance nor bodies under the aegis of the Department of Finance have any record of consultancy contracts being awarded to the organisation named in the years 2017 to 2021.
250. Deputy Eoin Ó Broin asked the Minister for Public Expenditure and Reform the total amount of voted expenditure provided to the Office of Public Works, OPW, by his Department in each of the years 2017 to 2021; and the breakdown of expenditure by the OPW, by project head or vote sub-head, for each of those years. [18985/22]
Amharc ar fhreagraIn relation to the first part of this question, the information is already publicly available through the published Revised Estimates Volume for the years in question, including at subhead level. The link to the Revised Estimates Volumes are available here: www.gov.ie/en/collection/e20037-revised-estimates/ Expenditure for all of these years (except 2021) is available through the yearly audited Appropriation Accounts by the Comptroller and Auditor General; Link available here: www.audit.gov.ie/en/find-report/publications/appropriation%20accounts/
End of year expenditure for 2021 and the Appropriation Account for OPW for 2021 is still being audited and will be published the Comptroller and Auditor General later this year.
251. Deputy Michael Ring asked the Minister for Public Expenditure and Reform when he will review public works contracts; and if he will make a statement on the matter. [18994/22]
Amharc ar fhreagraAll public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the Capital Works Management Framework (CWMF). The CWMF represents the tools that a public body must use to procure and manage the external resources necessary to deliver a public works project that is to be delivered under the Exchequer-funded element of the National Development Plan. It consists of a suite of best practice guidance, standard contracts, generic template documents and procedures that cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements.
A review of the policies and practices deployed in the procurement of public works projects commenced in March 2019 and is ongoing. The focus of the review is on improving the delivery of construction projects in terms of quality, timely delivery and cost outcomes. The review will deliver significant changes to the CWMF over the coming years. The review process involves extensive engagement, both with industry stakeholders, and with the public bodies charged with the delivery of public works projects on a broad range of issues such as:
- inflation;
- risk management;
- creating a better quality: price balance in the award of contracts;
- adoption of BIM on public works projects;
- liability, indemnity and insurance requirements;
- performance evaluation; and
- encouraging collaborative working.
A high-level strategy has been developed by the Office of Government Procurement (OGP) with the Government Construction Contracts Committee (GCCC) that will guide the implementation and will be addressed primarily through the progressive refinement and enhancement of the CWMF.
Covid-19 impacted the review in 2020 and 2021 as resources were redeployed to address the contractual and procurement issues that arose during construction lockdown. However, progress is being made on a number of fronts.
- The initial focus is on the engagement of consultancy services, which is aimed at driving better project definition, in order to provide greater certainty for all those engaged in the construction stage. Overall improvement in project definition is required through establishing minimum standards for information at the different stages of a project’s development. Work is ongoing on the detailed implementation aspects of the review of the engagement of consultancy services, which will be delivered by means of changes to the template tender documents, publication of new guidance material and exploring digital solutions.
- A review of the price variation mechanisms used in both the CWMF consultancy and construction contracts is currently underway. Initial research to review the inflation provisions in both the CWMF consultancy and construction contracts has been completed by consultants. Significant increases in construction material costs is affecting live tenders and contracts. Procurement guidance for ‘live’ tenders was published in November 2021. Interim amendments to the provisions in the public works contracts to address inflation in construction materials were introduced in January 2022. Consultation on broader changes is due to commence with stakeholders in 2022.
- Building Information Modelling (BIM) has the potential to transform the processes surrounding project and data management on construction projects and can drive significant efficiencies. The OGP is currently engaged with National Standards Authority of Ireland on preparing a national annex to the international standard (ISO) for BIM implementation. The aim is to ensure a consistent approach to its application across the public sector. An implementation plan for the adoption of BIM will be published later in 2022 setting out dates for a phased adoption of BIM. A series of masterclasses is ongoing to prepare public bodies for the implementation of BIM. In 2022, external advisers will be engaged to draft contract amendments to incorporate BIM into the CWMF and to prepare template procurement documents for publication.
- The OGP is engaging with key stakeholders on the issue of liability, indemnities and insurance and is reviewing broader aspects of the required terms in the contracts used to engage design teams and contractors. Engagement with the insurance sector and construction industry stakeholders has also taken place on issues relating to cost increases on Professional Indemnity Insurance premiums and the reduction in cover available. Amendments to CWMF documents and additional guidance was published in February 2022.
- Engagement is ongoing in developing standard metrics for life cycle costing and life cycle analysis that can be applied to the evaluation of projects’ cost of use in service and full life cycle analysis, including the carbon impact of individual projects. The OGP is liaising with the GCCC and the Irish Green Building Council in developing these metrics.
- The Cost Control Templates published under the CWMF are undergoing review to incorporate the International Construction Measurement Standard (ICMS). A working group has been established and revised templates will be published in 2022. ICMS is a global standard for benchmarking and reporting of construction project cost and covers both capital and whole life costing while providing a way of presenting costs in a consistent format.
- A review into the performance of alternative dispute resolution (ADR) provisions that were introduced in 2016 has also taken place in 2021. A final report on the review is being prepared by consultants, which will form the basis of a position paper in 2022 on ADR provisions in the public works contracts.
Together these reform processes will lead to meaningful policy change and will assist in delivering better value for money for the taxpayer in the implementation of Project Ireland 2040.
252. Deputy Michael Ring asked the Minister for Public Expenditure and Reform the position regarding a feasibility study (details supplied) which was carried out by the Office of Public Works; if it has been finalised; the outcome of the cost-benefit analysis that was carried out; and if he will make a statement on the matter. [18995/22]
Amharc ar fhreagraLocal flooding and coastal erosion issues are a matter, in the first instance, for each Local Authority to investigate and address. Where necessary, Local Authorities may put forward proposals to relevant central Government Departments, including the Office of Public Works, for funding of appropriate measures depending on the infrastructure or assets under threat.
Under the OPW Minor Flood Mitigation Works and Coastal Protection Scheme, applications are considered for projects that are estimated to cost not more than €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects. Applications are assessed by the OPW having regard to the specific economic, social and environmental criteria of the scheme, including a cost benefit ratio and having regard to the availability of funding for flood risk management. Full details of this scheme are available on www.opw.ie.
The Office of Public Works has provided €203,485 funding for a feasibility study, which was carried out by Mayo County Council.
Mayo County Council is discussing the options identified by the feasibility study with the OPW.
253. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the number of staff within his Department who are based and working with the European Union in Brussels; their present roles and responsibilities; the posts and responsibilities that are presently vacant; the corresponding figures on 23 June 2016; and if he will make a statement on the matter. [19039/22]
Amharc ar fhreagraI wish to inform the Deputy that one member of staff of my Department is assigned to the post of Public Expenditure and Reform Attaché in the Permanent Representation of Ireland to the European Union in Brussels. The role of the Attaché is to represent and promote Ireland's interests in the policy areas under the remit of the Department, including Cohesion policy and funding, public procurement, e-government, transparency, and EU institutional staffing matters.
There are currently no vacant posts linked to my Department.
In the wake of the Brexit Referendum, my Department was represented in the Permanent Representation by a member of staff serving in a post shared with the Department of Finance. As a consequence of the referendum, however, it was decided to upgrade that post to a dedicated one for my Department alone.
In addition, two members of DPER staff are currently seconded out to the European Commission under the terms of the Seconded National Experts scheme that provides civil servants with the opportunity to work temporarily for an EU Institution. One is located in the DG HR in Brussels and one is located in the DG CNECT in Luxembourg.
254. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform if defibrillators are installed in all offices and buildings accessible by the public in his Department and public bodies and agencies that operate under his remit; and if he will make a statement on the matter. [19176/22]
Amharc ar fhreagraI wish to advise the Deputy that due to the nature of its role, the offices of my Department are not open to the general public, with the exception of approved appointments. However, the buildings used by my Department are equipped with defibrillator devices which are portable and can be transported in an emergency situation for use should they be required.
I wish to further advise the Deputy that defibrillator devices are also available at each of the offices of the bodies under the aegis of my Department. I have been advised by the OPW that they will respond directly to the Deputy on this matter.
255. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if additional supports will be introduced to support all the families that are most affected by recent increases in the cost of living; and if he will make a statement on the matter. [19182/22]
Amharc ar fhreagraGovernment is acutely aware of the challenges still facing households, especially those at lower incomes from increased costs of living. In 2020 we saw a fall in prices as a result of the pandemic. As we emerge from the pandemic and the economy recovers we are faced with a new set of challenges including rising energy prices and transitory supply issues which are causing prices to increase, exacerbated by the war in Ukraine.
In recognition of the challenge that households face at the moment with rising energy costs, in particular those on low incomes, Government announced on 10 February a package of measures, bringing to over €500 million the measures introduced post Budget day, targeted at mitigating the impact of cost of living pressures. This package included:
- An increase in the energy credit to €200 including VAT, estimated to impact just over 2 million households;
- A lump sum payment of €125 to be paid in March to fuel allowance recipients;
- To reduce the burden on people returning to the workplace and other people using public transport, there will be a temporary reduction in fares of 20% on PSO public transport services from early May to the end of the year. This will impact approximately 800,000 daily users;
- The Drug Payment Scheme threshold will be further reduced to €80 per month, having been reduced to €100 per month in Budget 2022. This will benefit just over 70,000 recipients;
- The increase in the threshold for the working family payment announced on Budget Day will be brought forward from June to April; and
- Reduced caps for multiple children on school transport fees to €500 per family post primary and €150 for primary school children for the next academic year.
This package builds on the range of measures introduced in Budget 2022 to help families with affordability issues, including Social Protection measures totalling over half a billion euro, health affordability measures and a funding stream for childcare providers. Budget 2022 also contained an income tax package of just over half a billion.
In March, in light of the continued high fuel prices, an emergency support measure for licensed hauliers provides a payment of €100 per week per heavy goods vehicle in light of the important role played by the sector in ensuring goods are available to families and businesses. The Department of Finance introduced a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil to 31st August at an estimated revenue foregone cost of €320m.
The aim of the Cost of Living package was to provide temporary targeted measures to assist households on lower incomes and other families who are facing increased energy bills. This package sought to balance targeting the main underlying problem of higher energy prices with the need to operate with the fiscal framework set out in the Summer Economic Statement. Taken with the Budget 2022 measures and the excise duty cut, Government has committed significant resources to address cost of living issues.
256. Deputy Ged Nash asked the Minister for Public Expenditure and Reform the total value of consultancy contracts awarded to an organisation (details supplied) for work with his Department and bodies under the auspices of his Department in each of the years 2017 to 2021, in tabular form; and if he will make a statement on the matter. [19195/22]
Amharc ar fhreagraI wish to advise the Deputy that my Department, including the Office of Government Procurement, has not awarded any contracts to the named company during the period specified. This is also the case with regard to the bodies under the aegis of my Department.
257. Deputy Mairéad Farrell asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media , further to Parliamentary Question No. 295 of 29 March, the details of the licensing to which she refers; the reference number of the planning permission obtained by Údarás na Gaeltachta relating to the external works made to the building at issue; the change of use of the existing building to the hi-tech health laboratories development detailed; the total cost of the interior and exterior development of the existing building (details supplied); and if she will make a statement on the matter. [18965/22]
Amharc ar fhreagraI am informed by Údarás na Gaeltachta that the development the Deputy refers to includes minimal external Class 21 works which have been clarified as exempt from planning permission and also Class 41 exempted works which were required to comply with appropriate fire safety certificate requirements. As part of the development works, the facilities will achieve the appropriate standard as required by the Health Products Regulatory Authority in addition to all standards associated with Good Manufacturing Processes (G.M.P).
The development, I am informed, does not constitute a change of use of the building as it will remain as light industrial. In order to allow the company to conduct research and development work in Eastát Tionscail na Tulaigh, the internal refurbishment of an existing property to include the design and construction of a new cell and gene therapy facility, including clean room facilities for Hi-Tech Health Laboratories, was tendered for in 2021, following which construction got underway in recent months.
I am informed that the project expenditure to date is €1.9m and that the property will remain in the ownership of Údarás na Gaeltachta.
It is expected that the project will provide significant high quality employment in the South Connemara area.
As the Deputy will be aware, the continued redevelopment and refurbishment of the Údarás na Gaeltachta property portfolio remains critical to the sustainability of the Gaeltacht as a vibrant region in which to live and work.
