Written Answers Nos. 247-268
247. Deputy Louise O'Reilly asked the Minister for Finance the annual increases in the retail price of the most popular price category MPPC for a 20-pack of cigarettes since 2011; the portion of the increase related to taxes; the portion of the increase due to price rises by the tobacco industry in tabular form; and if he will make a statement on the matter. [24257/22]
Amharc ar fhreagra248. Deputy Louise O'Reilly asked the Minister for Finance the estimated revenue that would be raised annually if tobacco taxation were to be increased annually on a pro-rata basis in order that all packs of 20 cigarettes cost at least €20 by 2025; the estimated revenue that would be raised annually if an equivalent annual tobacco tax on roll-your-own cigarettes was introduced; and if he will make a statement on the matter. [24258/22]
Amharc ar fhreagra250. Deputy Louise O'Reilly asked the Minister for Finance the estimated revenue that would be raised annually if an excise tax of €0.06 per ml of electronic cigarette liquid was applied; and if he will make a statement on the matter. [24264/22]
Amharc ar fhreagraI propose to take Questions Nos. 247, 248 and 250 together.
I am advised by Revenue that the table below shows the annual increases in the retail price of the most popular price category (MPPC) for a 20 pack of cigarettes since 2011, together with the portions related to tax increases and trade increases.
|
MPPC |
Tax |
Trade |
Total Increase |
MPPC |
|
|
Year |
at 1 January |
Increase |
Increase |
at 31 December |
|
|
€ |
€ |
€ |
€ |
€ |
|
|
2011 |
8.55 |
0.25 |
0.10 |
0.35 |
8.90 |
|
2012 |
8.90 |
0.28 |
0.12 |
0.40 |
9.30 |
|
2013 |
9.30 |
0.10 |
0.10 |
0.20 |
9.50 |
|
2014 |
9.50 |
0.40 |
0.10 |
0.50 |
10.00 |
|
2015 |
10.00 |
0.50 |
0.00 |
0.50 |
10.50 |
|
2016 |
10.50 |
0.50 |
0.30 |
0.80 |
11.30 |
|
2017 |
11.30 |
0.50 |
0.20 |
0.70 |
12.00 |
|
2018 |
12.00 |
0.50 |
0.20 |
0.70 |
12.70 |
|
2019 |
12.70 |
0.50 |
0.30 |
0.80 |
13.50 |
|
2020 |
13.50 |
0.30* |
0.20 |
0.50 |
14.00 |
|
2021 |
14.00 |
0.70** |
0.30 |
1.00 |
15.00 |
|
2022 |
15.00 |
0.00 |
0.30 |
0.30 |
15.30*** |
*The tax increase in 2020 of €0.30 represents an increase of €0.50 in excise in October 2020 and a €0.20 reduction in VAT from 23% to 21% on 1 Sep 2020.**Includes the increase of €0.50 in excise in October 2021 and the increase of €0.20 in VAT to 23% on 1 March 2021.***The latest price for the MPPC at 11 May 2022.
I am advised that Revenue’s Ready Reckoner includes estimates for the yield from changes in duties on cigarettes on page 25. These estimates assume pro-rata increases in other tobacco products. The Ready Reckoner is available on the Revenue website.
The Ready Reckoner can be used to estimate the yield from increasing the tax on a pack of 20 cigarettes to €20 from the current MPPC, based on no behavioural change. The proportional yield arising from the application of an equivalent increase to roll-your-own cigarettes is also included in this publication. The timing of the yield would depend on the timing of the price changes chosen over the period to 2025.
Finally, I am advised by Revenue that tax return information does not include data on products that are not currently within the scope of Tobacco Products Tax or other Excise duties and taxes, such as electronic cigarette liquid. Therefore, there is no basis for Revenue to estimate the yield for the scenario set out by the Deputy.
249. Deputy Louise O'Reilly asked the Minister for Finance the funding provided to the Revenue Commissioners for 2020 and 2022 to combat tobacco smuggling; if the Revenue Commissioners are developing a dedicated anti-smuggling strategy; if the Covid-19 Pandemic has had any impact on ability of the Revenue Commissioners to combat smuggling; and if he will make a statement on the matter. [24259/22]
Amharc ar fhreagraRevenue is a fully integrated tax and customs administration and, as a result, I am advised that it is not possible to disaggregate the resources deployed, or funding dedicated, at any given time to combat tobacco smuggling. Revenue currently has approximately 2,000 staff engaged on activities that are focused on targeting and confronting non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection. Resources allocated to these different aspects of enforcement and compliance work are adjusted and realigned in response to changes in the level of risk in different sectors.
I know that Revenue takes an integrated approach to combatting all forms of illegal trade and shadow economy activity, including combatting the illicit tobacco trade. I am advised by Revenue that, in its experience, those involved in the illicit tobacco trade do not necessarily confine themselves to a particular commodity type. As a result, Revenue implements an integrated approach to all forms of illegal trade as distinct from a product or commodity specific focus.
Revenue’s Statement of Strategy 2021-2023 includes a commitment to confronting non-compliance, including tobacco smuggling. This commitment is given operational priority each year through Revenue’s business planning and delivery framework having regard to risk and trends and developments within illegal trades and the modus operandi of those involved. Revenue’s actions under these operational plans are designed to maximise coordination and efficiency Revenue-wide and deliver the best impact for the effort involved.
I am advised by Revenue that it implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco products, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue develops and shares intelligence on a national, EU and international basis, and deploys analytics and detection technologies and ensures effective risk focused deployment of resources.
The smuggling of tobacco products has a transnational and cross border dimension and, in addition to Revenue’s ongoing cooperation with An Garda Síochána in this area, I am advised that Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF), and international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.
I am advised that Revenue’s activities aimed at combatting tobacco smuggling continued throughout the COVID-19 pandemic. This work yielded excellent results and in 2020 Revenue seized 48.1 million illicit cigarettes and approximately 7,100 kgs of illicit tobacco while in 2021 Revenue seized over 60 million illicit cigarettes and 38,246 kgs of illicit tobacco. For this year, to the end of April Revenue has seized 9.67 million illicit cigarettes and 1,493 kgs of illicit tobacco.
Finally, the Government has ensured through the Finance Acts over recent years that Revenue has the necessary statutory powers to enable it to deliver on its key functions. I am satisfied that the current legislative framework provides an effective basis for undertaking and continuing the important work against the illegal tobacco trade. I know that Revenue will continue to be very active in this aspect of its overall compliance work.
251. Deputy Louise O'Reilly asked the Minister for Finance the amount of applications under the bike-to-work scheme in 2021 and to date in 2022 by the number of bicycles purchased within the €1,000 limit and the number of pedelecs or ebikes purchased within the €1,500 limit; and if he will make a statement on the matter. [24269/22]
Amharc ar fhreagra252. Deputy Louise O'Reilly asked the Minister for Finance his views on expanding the reach of the bike-to-work scheme to beyond PAYE to all employers, sole-traders, students, jobseekers, disabled, unpaid home-work and the retired; the estimated cost of same; and if he will make a statement on the matter. [24271/22]
Amharc ar fhreagraI propose to take Questions Nos. 251 and 252 together.
Section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment for an employee.
Under section 118B TCA 1997 an employer and employee may also enter into a salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a bicycle and related safety equipment.
Where a bicycle or safety equipment is purchased under the Cycle to Work scheme or through a salary sacrifice arrangement certain conditions must be met, for example:
- The exemption applies to the first €1,250 of expenditure incurred by the employer in obtaining a bicycle and related safety equipment. This exemption limit is increased to €1,500 for pedelecs or ebikes and related safety equipment. Employers may incur costs in excess of these limits, but any such excess will not qualify for the exemption and will be liable to tax. A salary sacrifice arrangement is subject to the same monetary limits.
- The bicycle and related safety equipment must be new and must be purchased by the employer.
- The bicycle and related safety equipment must be used by the employee or director mainly for the whole or part of their journey to or from work.
- An employee or director can only avail of the Cycle to Work scheme once in any 4 year period. A salary sacrifice arrangement is subject to the same time limits and any salary sacrifice arrangement entered into must be completed within a 12 month period
The Cycle to Work scheme is only applicable where the bicycle and safety equipment is provided by an employer to either a director or someone in its employment. Thus, where an employer-employee relationship does not exist, for example, in the case of self-employed individuals, students, retired individuals, job seekers or those in unpaid work, such individuals can’t qualify for the scheme. Likewise, salary sacrifice arrangements may only be entered into between an employer and a director or employee.
As the Deputy will be aware, the cycle to work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of its particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers. Accordingly, there are no records available on the number of people availing of the scheme or the cost of the scheme.
Further guidance regarding the Cycle to Work scheme and salary sacrifice arrangements can be found on Revenue’s website.
253. Deputy Louise O'Reilly asked the Minister for Finance the estimated revenue that would be raised if the carbon tax was doubled and the 2030 levy target was doubled to €200 per tonne; and if he will make a statement on the matter. [24288/22]
Amharc ar fhreagraThe most recent projection of additional carbon tax revenues provided by my Department for the period 2021 to 2030 amounted to €9.2 billion, based on the Government’s commitment to increasing the amount that is charged per tonne of CO2 emissions from fuels to €100 by 2030. This is a key pillar underpinning the Government’s Climate Action Plan ambitions to halve emissions by 2030 and reach net zero no later than 2050. The annual breakdown of these receipts was provided in reply to PQ No.78 of 10 November 2021. Further details were provided in response to PQ No.172 of 18 November 2021 and PQ NO.68 of 24 November 2021 in relation to the methodology behind this calculation.
These projections for carbon tax receipts are based on a declining carbon tax base reflecting changing behaviour in response to the tax, amongst other factors. These estimates were based upon official projections from the Environmental Protection Agency (EPA) published, in June 2021 which represented an independent assessment of Ireland’s emissions trajectory to 2030. Specifically the estimates are based on the EPA’s non-ETS (EU Emissions Trading System) ‘WAM’, or with additional measures scenario for greenhouse gas emissions, which includes the Government’s commitment to a €100 per tonne carbon tax by 2030. Currently, the EPA has not published an alternative emissions scenario that incorporates doubling the carbon tax rate in the manner suggested by the Deputy. Therefore it is not possible to estimate the impact on carbon tax receipts in a similar manner to previous calculations.
For straight line estimates on tax rate increases Revenue’s Ready Reckoner includes estimates for the yield from changes in duties on Carbon Tax on page 23. The Ready Reckoner is available at:
www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
Where the cost of specific increases proposed are not displayed in the Ready Reckoner, they can be estimated on a straight-line or pro-rata basis from the costs shown.
I am advised by Revenue that the estimates in the Ready Reckoner are prepared on the assumption of no behavioural change in response to a change in the tax. The Revenue estimates are based on the regular volumes for each commodity expected in a normal (non-COVID) year and are inclusive of VAT.
254. Deputy Holly Cairns asked the Minister for Finance the way that his Department and public bodies and agencies that operate under his remit meet their obligations for reasonable accommodation under the Employment Equality Acts 1998-2015. [24306/22]
Amharc ar fhreagraI wish to inform the Deputy that my Department adheres fully to its requirements as set out by the Disability Act of 2005. The Department has an appointed Disability Liaison Officer (DLO) who works closely with the National Disability Authority to ensure that the Department is fully compliant with its obligations under the Act. All reasonable accommodation requests by staff with disabilities have been expedited fully and promptly.
In addition in 2016-17, a major refurbishment project was undertaken in Government Buildings on Merrion Street. As part of that project, for example, electronic doors were installed to assist the movement of staff across the campus. In 2019, an external lift was installed to South Block to allow staff and visitors with mobility difficulties to access the building easier, to ensure compliance in respect of accessibility.
The Department’s website (www.gov.ie/finance.ie), internal intranet and the Build to Share programmes, such as ePQ, eSubmission, and eCorrespondence, which are used by staff in the course of their work, all have software to aid the visually impaired. A ‘loop’ system’ is in place in the Department’s main Conference Room for the hearing impaired.
The Department regularly holds “Power Hours”, which are awareness presentations for staff in the areas of Autism and Dyslexia in the Workplace and supports the annual International Day of People with Disabilities.
I am advised by the bodies under the aegis of my Department as follows:
The Central Bank of Ireland is committed to meeting its obligations under the Employment Equality Acts. One of the five focus areas of the Bank’s three-year disability action plan is on its approach to providing reasonable accommodations and practical supports. Colleagues at any time can seek referral to the Bank’s occupational health specialist via their manager where accommodations can be requested. Similarly, a manager can request additional support for an employee if they feel it will be helpful or important to do so. The Bank works in partnership with its employee-led networks, and in particular the BankAbility Network, to help create an environment where employees will feel comfortable to disclose their disability in order to provide the support and/or accommodations they may require.
The Central Bank assesses ergonomic requirements/reasonable accommodations, some direct to Health and Safety and others through occupational health assessment. Any reasonable accommodations advised to the Bank during pre-employment screening, or following a medical absence, or at any time, are considered and supported. These are communicated to the individual and their manager and are monitored through regular engagement. The Bank communicates in all job adverts and on its careers website that it is an equal opportunities employer and that it will make any reasonable accommodations necessary throughout each stage of the recruitment process. The Bank launched a bespoke Diversity & Inclusion Learning Offering in 2022 for all staff, with a focus on core concepts such as equality, equity and unconscious bias, actionable tips for working and managing inclusively including creating awareness around its approach for making reasonable accommodations. The Bank’s headquarters on North Wall Quay has won national and international awards for its accessibility. Embedding universal design has created a better environment for all employees and visitors. This approach has reduced the need to facilitate reasonable accommodations retrospectively on a more expensive case-by-case basis.
Some examples of accommodations within the last twelve months include (i) Sign language Interpreting services for job interviews and meetings, (ii) Additional ergonomic assessment and equipment to enhance the physical workspace in the office or while working from home, (iii) Adaptations or modifications of work tasks, management styles, instruction and communication of information, and (iv) Assistive Technology e.g. screen reading software, screen magnification and voice activated software. The Bank continues to provide support for employees in high risk categories to work from home over the course of the pandemic. It also supported those with additional needs by providing extra IT and office equipment and furniture and accommodating specific work needs. For those in these categories who may now be preparing to return to the office, there is engagement with managers to understand what supports may be required, with specialist advice for occupational health being provided to ensure the right support and accommodations can be provided.
The Central Bank assigns staff to the Investor Compensation Company DAC, which is also a body under my Department's remit.
The Financial Services and Pensions Ombudsman (FSPO) fully recognises its obligations and responsibilities with regards to the Employment Equality Acts 1998-2015 and the Disability Act 2005, and is committed to enabling access to employment for persons from minority and/or disadvantaged communities, including persons with disabilities. The FSPO operates its recruitment campaigns in compliance with the Codes of Practice for Appointment to Positions in the Civil Service and Public Service and is committed to a policy of equal opportunity for prospective candidates. We encourage applications under all nine grounds of the Employment Equality Acts and offer reasonable accommodation to current and prospective employees with disabilities, in accordance with the Acts. The FSPO has an appointed Access Officer who is responsible for ensuring appropriate measures are put in place to enable employees with a disability to carry out their work on an equal footing with other employees. In addition, a staff census undertaken in 2021 indicated that at 6.45%, the FSPO exceeded the minimum requirement set out in the Disability Act 2005 in relation to the level of employment of people with disabilities, which demonstrates that its policies have been effective in reaching and maintaining the targets set out in the Comprehensive Employment Strategy for Persons with Disabilities. The FSPO continues to enhance practices in this area and has emphasised the requirement to achieve an inclusive and diverse workplace over the course of the next strategic period.
The Irish Fiscal Advisory Council is an equal opportunities employer. Its Recruitment Policy and Procedures outline equality of opportunity at the Fiscal Council, articulating that rights under the Employment Equality Acts are guaranteed and that no one will receive less favourable treatment and can be assured of equality of participation in the workplace and that all employees have a responsibility to create a working environment in which differences are respected. The Fiscal Council is aware of obligations for reasonable accommodation under the Employment Equality Acts 1998-2015. This is achieved by affording an individual with a disability equal participation in the recruitment process. Reasonable accommodations will be implemented which may be required in respect of changes to the tasks and structure of a position, or to make changes to the workplace environment to enable an individual with disabilities to commence employment or to return to employment having acquired a disability to ensure that they can enjoy benefits and privileges accorded to other employees.
The National Treasury Management Agency (NTMA) has been proactive in making reasonable accommodations to the specific needs of individuals through a number of means including, but not limited to, purchasing of additional software, hardware and modifications to work stations, modifications to roles, duties and working hours, as well as ensuring our policies, processes, initiatives and facilities provide and support an inclusive working environment. The NTMA assesses the above needs when disclosed upon joining and throughout an individual’s employment.
In line with a Service Level Agreement, the NTMA assigns staff to three further bodies under my Department’s aegis; these are Home Building Finance Ireland, the National Asset Management Agency and the Strategic Banking Corporation of Ireland.
The Office of the Comptroller and Auditor General takes all reasonable measures to promote and support the employment of persons with disabilities and to meet its obligations for reasonable accommodations under the Employment Equality Acts 1998-2015. Each employee is asked to complete a Disability Status form as part of their induction into the Office. All employees are given access to this form via the Office intranet and may also submit this form at any time during employment should a disability develop or come to light. A DLO is in place to support staff with a disability employed by the Office. Staff with a disability requiring a reasonable accommodation will contact the disability liaison officer who will arrange to put the accommodation in place. In addition to specific individual requests for reasonable accommodations, the Office has a range of items available to assist staff with a disability. These include sit-stand desks and scanner pens which read text aloud once scanned over an electronic document. Aids are also available for the hearing-impaired which can be linked to telephone extension numbers. Other items, such as larger monitors for the visually impaired or specialised chairs for back conditions are purchased by the Office on a case by case basis. The Office is also fully wheelchair accessible.
The Office of the Revenue Commissioners, as an equal opportunities employer, is strongly committed to the development and implementation of measures to promote and support the employment of individuals with disabilities. They observe and promote the “Code of Practice for the Employment of People with Disability in the Civil Service” which applies to the employment of people with a disability across the Civil Service. During the recruitment process and via regular communications thereafter, staff are encouraged to indicate if they have any needs for reasonable accommodation related to a disability. Revenue has three DLOs who provide assistance and information to support employees who may require workplace accommodations. All Revenue employees are regularly kept informed of supports available. Consultations with the DLOs are strictly confidential, and personal or medical information is not shared. Revenue is committed to providing workplace accommodations to staff with disabilities on an individual needs basis, including assistive technology, office equipment, interpretation services, mentoring, training, facilitating attendance at medical appointments, flexible working hours, work sharing arrangements and shorter working hours. These measures are put in place in consultation with the staff member. In some instances, in particular with non-visible disabilities, medical advice is sought from the CMO. The vast majority of Revenue buildings countrywide are adapted for use by those with physical disabilities, and access audits are available on request in any Revenue location. Revenue public offices are accessible and adapted for use by the public and in particular by those with a disability.
All Revenue employees are treated equally with training and promotion opportunities available to all staff. Furthermore, Revenue offers paid internships for persons with disabilities such as the Specialisterne Ireland and the Association for Higher Education Access & Disability (AHEAD) Willing Able and Mentoring (WAM) Programmes. Specialisterne Ireland is a not-for-profit company and a registered Charity that promotes employment opportunities for people with autism and similar challenges. Specialisterne Ireland, through its employer partnerships, arranges for its candidates to be recruited through an autism friendly process. The WAM Programme serves to widen access to employment for those with disabilities and create attitudinal change and opportunities for further employment. I am advised by Revenue that in recognition of their significant contribution to the WAM programme, they received a ‘Leader’ award at the Building for the Future/Willing Able Mentoring (WAM) Awards in 2017 and they continue to actively participate in this initiative. Finally, in line with Revenue’s mission to ensure an accessible, respectful and fair environment for its staff, Revenue conducted a staff survey in May 2021 which included the collection of information on the diverse composition of their workforce. This survey included questions relating to gender, including binary and transgender, sexual orientation, disability, ethnic/cultural background and citizenship. Revenue notes that responses from this survey will enable them to better understand, anticipate and respond to the needs of their staff.
The Tax Appeals Commission currently has no staff that require reasonable accommodation but is aware of its obligations under the Employment Equality Acts 1998-2015. However, if the Commission was notified by the Government’s Public Appointments Service that an additional staff member was joining the organisation with reasonable accommodation requirements, it would gather all the necessary information and contact the individual in advance of their commencement to ensure the most reasonable working conditions were acceptable by all parties involved.
255. Deputy Louise O'Reilly asked the Minister for Finance the number of category A vehicles that were charged with the nitrogen dioxide emissions levy in 2021 and 2022; the revenue raised each year; and if he will make a statement on the matter. [24319/22]
Amharc ar fhreagra256. Deputy Louise O'Reilly asked the Minister for Finance the estimated revenue that would be raised if the current nitrogen dioxide levy was doubled; and if he will make a statement on the matter. [24320/22]
Amharc ar fhreagra257. Deputy Louise O'Reilly asked the Minister for Finance the estimated revenue that would be raised annually if the current nitrogen dioxide levy was applied to both category A and B vehicles; and if he will make a statement on the matter. [24321/22]
Amharc ar fhreagraI propose to take Questions Nos. 255 to 257, inclusive, together.
I am advised by Revenue that the table below provides the number of category A vehicles that were charged the nitrogen dioxide emissions levy in 2021 and to the end of April in 2022, as well as the revenue raised in each of these years. The charge is currently applicable to all Category A vehicles excluding electrics but including hybrids. Vehicles that qualify for a VRT exemption are also exempt from the NOx levy.
|
Year |
Total Category A Registrations |
Number NOx Levy Applied |
Revenue Raised €m |
|
2021 |
170,840 |
153,476 |
31 |
|
2022* |
74,255 |
61,7636 |
8 |
* The 2022 figures are provisional and to 30 April 2022 only.
I am informed by Revenue that the total revenue that would be raised if the current nitrogen dioxide levy was doubled is estimated to be in the region of €60m and the estimated revenue that would be raised annually if the current nitrogen dioxide levy was applied to both category A and B vehicles would be in the region of €60m, both estimates based on 2021 data.
These estimate does not take into consideration any behavioural change that may result due to the increased tax charged on a motor vehicle.
258. Deputy Holly Cairns asked the Minister for Finance if he will remove the VAT associated with the purchase of AEDs (Automated External Defibrillators). [24344/22]
Amharc ar fhreagraOfficials in my Department are currently reviewing the options now available to Ireland in setting VAT rates. This will include consideration of the new options available to Member States as a result of the recently updated EU VAT rules when setting VAT rates as well as the new limitations introduced on how reduced rates may be applied.
Decisions about tax changes are generally taken in the context of the Budget and, as part of our normal annual Budget preparations. In this context, various options for tax policy changes will be considered by the Tax Strategy Group prior to Budget 2023.
259. Deputy Paul Donnelly asked the Minister for Finance if he will provide the necessary funding to replace the Revenue Commissioners' custom vessels; and if so, when the tender for the replacement of the vessels will be published. [24384/22]
Amharc ar fhreagraI am advised by Revenue that it has two cutters (patrol vessels) in service, at the moment. One of those vessels is approaching the end of its service life and I am informed by Revenue that it intends to purchase a replacement vessel. It is anticipated that the relevant procurement competition will include an option for a second vessel which could be a future replacement for the second vessel in time. Revenue is finalising the detailed specifications and requirements in regard to the procurement of a replacement cutter with the intention to publish a tender in 2022.
I have been consistently strongly supportive in ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration and for the State generally. The necessary funding to acquire these cutters will come from a combination of State resources and available EU funds. In that regard, Revenue is engaging with applicable EU grant funding programmes to support this initiative.
260. Deputy Ged Nash asked the Minister for Finance the status of the promised excise relief programme that is currently available to craft brewers; if the programme is being extended to craft cider producers in the forthcoming finance Bill; and if he will make a statement on the matter. [24462/22]
Amharc ar fhreagraAs indicated in the Budget speech of 12 October, it is planned to bring forward legislative provisions in Finance Bill 2022 to introduce a 50% excise relief to microproducers of cider. However, as the new legislation, 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 cannot 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. To this end, Revenue are currently working to bring forward a new relief broadly modelled on the existing relief arrangements for beer but compatible with the amended legislation for the forthcoming Finance Bill.
261. Deputy Cathal Crowe asked the Minister for Finance if he will issue guidance on whether the help-to-buy scheme will be extended to 2023; if his Department will, in conjunction with the Department of Housing. Local Government and Heritage examine other schemes to assist those looking to buy a home will be rolled out; and if he will make a statement on the matter. [24634/22]
Amharc ar fhreagraIn my Budget 2022 address, I announced that a formal review of the Help-to-Buy (HTB) scheme would take place this year. The terms of reference for the review are as follows:
"To examine all aspects of the Help-to-Buy scheme (s.477C of the Taxes Consolidation Act 1997) including its design, its operation, the extent to which it has met its key policy aims of assisting first-time buyers of new homes to fund their deposit and encouraging the building of additional new properties.
In doing so, the review should explore the cost effectiveness of the scheme to-date, including the issue of deadweight. It should also examine the impact of the scheme on house prices since inception.
The findings should present an assessment on a national basis while highlighting any regional aspects.
Having regard to the Government’s Housing for All strategy, and in particular to other initiatives included in Housing for All that have the same broad policy objectives as currently apply for the scheme, to examine whether there is a continued role for Help-to-Buy and, if so, to present options on how such role might best be fulfilled in the most efficient and cost-effective manner in the medium to long term, including on the question of any transitioning.
As part of the overall context, the review should draw on experience internationally and offer views in this regard as appropriate.
The study should be completed by c.o.b. Friday, 24 June 2022."
A tender process for the review exercise closed early last month and a contract for the review is currently being finalised. The review is intended to be fundamental in nature and to help inform decisions on the future of the scheme.
The Housing for All strategy sets out the Government's housing policy aims and objectives and, in addition to commitments in relation to the HTB scheme, includes proposals for other measures that have the same broad policy objectives as HTB.
Also, as is clear from the terms of reference above, it is expected that the HTB review will take account of these measures as part of its work.
In the circumstances, it would not be appropriate at this point to make any statement about the future of HTB beyond 2022. In addition, the question of examining further measures beyond the scope of the HTB scheme as mentioned by the Deputy does not arise at this stage.
262. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to concerns raised by a person (details supplied) in relation to their employment; and if he will make a statement on the matter. [24641/22]
Amharc ar fhreagraI would like to thank Deputy O’Dowd for raising this question. My officials have consulted with the Central Bank of Ireland on the particulars of this matter.
Financial sanctions are restrictive measures imposed on persons, entities and bodies in an effort to curtail their activities and to exert pressure and influence on them. Restrictive measures include, but are not limited to, financial sanctions, trade sanctions, restrictions on travel or civil aviation restrictions.
Financial sanctions emanate from the EU and the UN. All natural and legal persons in the EU are obliged to comply with financial sanctions. You will appreciate that the effective implementation of these measures is a binding obligation for Ireland, the importance of which has been reinforced following the Russian Federation’s invasion of Ukraine.
The Central Bank does not have any role in deciding on who should be subject to sanctions as all such decisions are taken by the European Council. Specific EU sanctions regulations require the immediate freezing of funds and/or economic resources of sanctioned individuals and/or entities. EU sanctions regulations apply to the individuals/entities specifically listed in the sanctions, but they also apply to entities that are owned or controlled by sanctioned individuals/entities.
It is important to note that the Central Bank has no role in freezing funds or economic resources of sanctioned individuals/entities. The legal obligation to freeze funds and economic resources (including bank accounts) is placed on economic operators such as credit and financial institutions.
The EU sanctions regulations provide for a limited number of derogations under which frozen funds can be released. As part of its role as a Competent Authority for sanctions, the Central Bank is responsible for the assessment of derogation applications.
The Central Bank is fully engaging with all applicants for derogations. I am sure you will appreciate that as derogations are designed to allow the release of funds that should otherwise be frozen, a robust assessment of applications is required to ensure that any authorisation of a derogation does not undermine the purpose of the sanctions. Therefore, the assessment of derogations is complex and it requires establishing with certainty that the applicant is legally entitled to the requested derogation. Unfortunately, this may be time consuming in some cases.
I am sympathetic to the situation in which your constituent finds himself. However, I can confirm that the Central Bank is actively assessing all derogation applications it has received and continually liaises and provides feedback directly to the applicants throughout the course of the assessment.
263. Deputy Michael Healy-Rae asked the Minister for Finance if an organisation (details supplied) can receive an exemption or rebate on VAT payable on tools, materials and electricity; if commercial rates will be waived for the organisation; and if he will make a statement on the matter. [24719/22]
Amharc ar fhreagraI am advised by Revenue that the application of VAT to the supply of goods and services is subject to EU VAT law, with which Irish VAT law must comply. An entity is required to register for VAT where they make taxable supplies which exceed certain thresholds. Once VAT-registered, it is generally entitled to claim a refund of the VAT it has incurred on its various inputs and business cost. In accordance with the VAT Directive an entity that is not registered for VAT generally is not entitled to reclaim VAT they have incurred on the purchase of goods and services.
It is a fundamental feature of the EU and national VAT arrangements that the liability to VAT depends on the nature of the goods and services being supplied and it does not differ according to the circumstances of a particular customer or purchaser. There is no provision under European or Irish VAT legislation to exempt the supply of tools, materials or electricity to a particular organisation such as the one the Deputy is enquiring about.
However, the Deputy may wish to note that, alongside the VAT system, there is a grant scheme in place under which bodies which are qualifying charities may qualify for a grant in recognition of the VAT they have incurred. The VAT Compensation Scheme was introduced to reduce the tax burden on Charities by partially compensating them for the VAT incurred in delivering on their charitable purpose. Under the scheme, Charities may apply for a grant related to a proportion of their VAT costs, based on their level of funding other than from public funds and certain other sources. In order to be a qualifying charity for the scheme, an organisation would need to be registered with the Revenue Commissioners and hold a charitable tax exemption under section 207 Taxes Consolidation Act 1997 and be registered with the Charities Regulatory Authority. A fund of €5m is available annually under the Scheme. Where the eligible applications in a year exceed the capped amount of the fund, grants are paid to the qualifying charities on a pro rata basis. Detailed information regarding the VAT Compensation Scheme for Charities is available on the Revenue Commissioners website at the following link:
www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/vat-compensation-scheme/vat-compensation-scheme-for-charities/index.aspx
Finally, the Deputy has also asked about the possibility of a waiver of commercial rates. Revenue does not have a role in relation to rates, which are part of the financing of the local government sector and are dealt with at a policy level by my colleague the Minister for Housing, Local Government and Heritage, and implemented by the relevant local authorities.
264. Deputy Alan Kelly asked the Minister for Finance his views on whether it was appropriate for the Revenue Commissioners to advise a person to pay their local property tax in their deceased mother’s name after the deceased had willed the property to the person's son, the deceased’s grandson who is a teenager. [24759/22]
Amharc ar fhreagraIn the absence of specific details, Revenue cannot advise me on the circumstances of the individual case referenced. If the Deputy provides specific details in relation to the property Revenue will examine what happened in the case.
Revenue administers Local Property Tax (LPT) in accordance with the provisions set out in the Finance (Local Property Tax) Act 2012 (as amended). Section 11 of the Act provides that where the liable owner of a property is deceased, it is the personal representative of the estate of the deceased who shall become the liable person for LPT in respect of that property, until the transfer of ownership to the beneficiary is complete.
There are no criteria set out in the Act regarding the age of a liable person. However, section 16(4) of the Act provides that LPT can be paid by another person, on behalf of the liable person. Furthermore, in accordance with section 36 of the Act, a liable property owner can authorise another person to complete any LPT filing obligations on his/her behalf.
265. Deputy Ged Nash asked the Minister for Finance his views on the potential sale of the tracker mortgages of a bank (details supplied) to another bank in which the State owns a majority shareholding; if the transfer of this performing loan book will be transferred at a discounted rate; his views on whether the affected tracker mortgage customers should also be permitted to avail of any potential discounted rate provided to the receiving organisation upon the sale of these tracker mortgages and that they should be offered the option of repayment at any given discounted rate; and if he will make a statement on the matter. [24887/22]
Amharc ar fhreagraI wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, including this potential transaction, are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The bank's independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
Notwithstanding the above, Department of Finance officials contacted AIB in relation to this matter and received the following response:
"AIB Group announced last month that it is has entered into exclusive discussions with NatWest Group plc for the acquisition of the Ulster Bank performing tracker mortgages portfolio. Any potential transaction remains subject to negotiations and agreement and the Bank cannot comment any further at this point."
The successful conclusion of this transaction by AIB would be very positive in providing a significant number of Ulster Bank customers with certainty as to the destination of their mortgages. I am hopeful that these discussions will lead to a successful outcome, however, I do appreciate that the conclusion of this transaction is subject to normal due diligence, agreement of final terms, as well as obtaining appropriate approvals.
266. Deputy Ged Nash asked the Minister for Finance the number of tracker mortgages that are held by an organisation (details supplied); the average number of years left per tracker mortgage customer; the average loan amount per tracker mortgage customer; and if he will make a statement on the matter. [24888/22]
Amharc ar fhreagraAs the Deputy is aware, AIB recently announced that it has entered into exclusive discussions with NatWest Group for the acquisition of circa €6 billion Ulster Bank performing tracker (and linked) mortgages. I welcomed that announcement as, if it leads to a successful outcome, it would provide a significant number of Ulster Bank customers with certainty on the destination of their mortgages.
However, the details and decisions in relation to this potential transaction, including details of the particular loan book, are commercial matters for the respective parties and any potential transaction remains subject to negotiations and agreement as well as obtaining appropriate approvals.
Also, from a regulatory perspective, I have been informed by the Central Bank of Ireland has advised that due to its data confidentiality obligations it does not does not publish data on individual institutions.
267. Deputy Bríd Smith asked the Minister for Public Expenditure and Reform the estimated cost of including those who work in the homeless sector (details supplied) in the Covid-19 recognition scheme; and if he will make a statement on the matter. [24246/22]
Amharc ar fhreagraAs the Deputy will appreciate, many workers went above and beyond over the course of the last two years very challenging years. Their continued contribution has been essential to getting us through this difficult time.
After careful consideration, the Government made decisions earlier this year in relation to recognition of these efforts. A national day of recognition and commemoration to recognise the contribution of all workers across the economy was held on 18 March this year. Furthermore, an additional permanent public holiday will be in place from next year.
The Government took many factors into consideration when coming to a decision in relation to any additional recognition measure for specific sectors and workers, and this was announced on 19 January. The detailed administrative arrangements and terms and conditions associated with this measure are matters for my colleague the Minister for Health.
Overall, this is a balanced package of measures that benefits workers across the economy.
268. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the protocol that is in place for the re-use of computer hardware when it is replaced or upgraded within his Department and the bodies under the aegis of his Department; his plans to ensure that this complies with the forthcoming Circular Economy and Waste Management (Amendment) Act 2022; and if he will make a statement on the matter. [24146/22]
Amharc ar fhreagraMy Department has a policy of utilising computer hardware until it is end of life and goes to the market regularly to award a device destruction contract to a recognised device destruction company, with security and commitment to green re-cycling the predominant award criteria. In addition, certification of destruction for each device which attests to the green and secure destruction of each device is provided. The current recycling partner for my Department is ISO 14001 certified - an international standard that specifies requirements for an effective environmental management system (EMS).
My Department, and the bodies under its aegis, will continue to ensure that they meet all relevant legal obligations in this area. The specific position regarding the bodies under the aegis of my Department is as follows.
Office of Public Works (OPW)
The OPW endeavours to recycle equipment internally where possible, in line with its policy on sustainability. Where there is no longer an internal use for the equipment, it is offered to a company that specialises in the ethical repurposing of computer equipment for educational purposes. This is done in a secure manner and all data is wiped from the machines as part of the process. Where it is not possible to repurpose a piece of equipment, it is disposed of in a secure fashion by specialist companies in line with sustainability directives.
National Shared Services Office (NSSO)
The NSSO has a policy of utilising its computer hardware until it is end of life. The NSSO returns some of its equipment to the Office of the Government Chief Information Officer (OGCIO) for disposal. For any remaining hardware, the NSSO currently utilises the Office of Government Procurement (OGP) Framework to award a device destruction contract to a recognised device destruction company with security and commitment to green recycling the predominant award criteria. Certification of destruction from the ISO 14001 certified partner for each device which attests to the green and secure destruction of each device is also obtained.
Public Appointments Service (PAS)
PAS use a recognised specialist IT asset disposal service provider when disposing of obsolete or damaged/unusable computer equipment. The service providers used are required to have a WEEE Waste Collection Permit and comply fully with the WEEE directive. They must also hold a current Waste Facility Permit for the processing of WEEE. A certification of destruction is provided to PAS once the equipment is securely disposed of. The PAS Management Board authorise all requests for IT asset disposal in advance.
State Laboratory
The State Laboratory does not re-use any ICT hardware when replaced or upgraded. All legacy and replaced hardware is currently disposed of in line with the WEEE directive. New ICT physical devices procured through OGP frameworks include environmental characteristics as an award criterion.
Office of the Ombudsman
The Office of the Ombudsman ICT Unit operates on a standard hardware lifecycle for desktops and laptops, whereby devices are scheduled for replacement every five years, subject to major technology and/or device security requirements. All new hardware is sourced via OGP frameworks to ensure best value-for-money, adherence to established procurement channels and alignment to all governance compliance requirements.
All retired hardware is disposed of in adherence with WEEE and Waste Management best practice and is done so using authorised WEEE providers. This ensures that hardware disposals are aligned to the reuse, recovery and recycling WEEE targets. All hard drives are shredded onsite prior to disposal of desktop/laptop/servers to ensure secure data disposal. All disposed hardware is signed off by the Accounting Officer and associated certificates of destruction issued from the WEEE services providers on disposal.
Office of the National Lottery Regulator (ORNL)
The ORNL has not yet formally devised a protocol for the re-use of computer hardware when it is replaced or upgraded. In 2020, prior to the initiation of the Bill, the ORNL commenced its first ever replacement of outdated IT equipment, engaging a registered contractor to safely dispose of a small number of PCs, and donating 2 old laptops to the Tech2Students programme developed by Trinity Access and Camara Ireland that repurposes IT equipment for disadvantaged students.
