Written Answers Nos. 206-216
206. Deputy Bernard J. Durkan asked the Minister for Finance if it is proposed to take any specific measures to challenge cost of living increased with particular reference to their origins; and if he will make a statement on the matter. [31615/22]
Amharc ar fhreagra207. Deputy Bernard J. Durkan asked the Minister for Finance if he will indicate from an economic perspective, the most effective means of curbing inflation from whatever source and any other inflationary tendencies evident here that can be remedied; and if he will make a statement on the matter. [31616/22]
Amharc ar fhreagraI propose to take Questions Nos. 206 and 207 together.
Inflation picked up sharply over the course of the last year with the HICP index standing at 8.3 per cent in May, a multi-decade high. Almost every advanced country in the world is in the same position, with euro area HICP inflation reaching a record 8.1 per cent in May.
The key driver behind the elevated level of inflation at present is the sharp rise in wholesale energy, food and other commodity prices since the onset of the war in Ukraine. Pass-through price effects are already being felt in other sectors, such as food (via fertilisers and fuel costs) and consumer goods (via higher energy inputs). Indeed, the rise in non-energy or ‘core’ inflation suggests that inflationary pressures are becoming increasingly broad-based.
The Government is acutely aware of the cost pressures currently facing households and businesses and has responded to help alleviate some of this burden. On a cumulative basis, the Government has announced €2.4 billion in cost of living measures since last October. These measures include changes in tax and social welfare, the provision of an energy credit for households and a temporary reduction in the rate of VAT on the supply of certain energy products.
Whilst the Government will continue to work to minimise the fall-out on those who are least-equipped to respond, resources are limited and we cannot cushion all households and businesses from the entire impact of the current shock. Furthermore, in calibrating how we respond to the current challenges, it is important that we strike the right balance and ensure that policy doesn’t inadvertently add further inflationary pressures into the system.
Finally, it is worth pointing out that monetary policy is the first line of defence against inflation. In this context, the European Central Bank has indicated a tightening of policy in the coming months. By slowing demand in the economy, this should help bring demand and supply back into balance, with positive implications for inflation.
208. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which a review of the Living City Initiative has been undertaken by his Department and the extent of engagement, if any, with local authorities in respect of same with particular reference to Dublin City Council and the effectiveness of the scheme as currently implemented; if he or his Department has in mind any further plans to enhance this scheme in the near future; and if he will make a statement on the matter. [31627/22]
Amharc ar fhreagraThe Living City Initiative, provided for in Finance Act 2013 and commenced on 5 May 2015, is a tax incentive aimed at the regeneration of the historic inner cities of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined Special Regeneration Areas.
During Committee Stage of the 2021 Finance Bill, I gave a commitment to review the initiative. This is being done at present in line with my Department's Tax Expenditure Guidelines and before its scheduled sunset date at the end of this year. I am informed that it is expected to be completed shortly.
I would further inform the Deputy that it is not proposed that the review will incorporate consultation with local authorities at this time.
As the Deputy will appreciate, proposals for the amendment of tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Furthermore, any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
209. Deputy Bernard J. Durkan asked the Minister for Finance if it transpired that a person (details supplied) is deemed not to qualify for assistance under the employment wage subsidy scheme which in turn may push them into liquidation; if the matter can be urgently considered; and if he will make a statement on the matter. [31645/22]
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 scheme closed with effect from 31 May 2022.
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. The eligibility criteria set down in the legislation provides that where a business commenced trading in 2019 (but not later than 1 November 2019), it must be able to demonstrate at least a 30% reduction in either turnover or customer orders by comparing the trading months in 2019 to the equivalent months in 2021.
I am advised by Revenue that the question of whether a business is commencing or is the continuation of an existing business is determined by the facts of the case rather than through EWSS legislation. A substantial body of existing case law, in the wider tax context, exists on this issue and certain principles have been established. These established principles include whether the management and control, employees, activities, customer base, suppliers, and accounting systems of the business are substantially the same following any change in activity.
Revenue have clarified that EWSS legislation, specifically Section 28B Financial Provisions (Covid-19) (No. 2) Act 2020, makes references to "employer's business". Therefore, tests for eligibility are performed on an employer’s business, not separate service offerings or diversification of services but the business as a whole. As such, actual turnover for 2019, i.e. 1 January 2019 to 31 December 2019, instead of projections, is used to compare to turnover in periods that EWSS was claimed to determine eligibility. As the employer (details supplied) has not met the eligibility criteria of EWSS that requires a business to have suffered a 30% reduction in turnover as a result of Covid-19, Revenue has advised the company they need to correct all payroll submissions for periods where the EWSS has been incorrectly claimed and repay any relevant EWSS amounts and PRSI credits it has claimed.
Revenue works closely with businesses to put in place arrangements appropriate to the circumstances and viability of each business in order to secure payment of any debt over a reasonable timeframe. In addition, certain tax and other Revenue debts, including overpayments of EWSS, may be deferred or ‘warehoused’ if a business is unable to pay these debts as a consequence of the impact of COVID-19. The scheme allows businesses who are eligible for the warehousing scheme to defer paying such debts until 1 January 2023 (or 30 April 2023 in certain circumstances) and applies a lower interest rate of 3% per annum on the repayment of such warehoused debts after that date.
I am further advised by Revenue that it has engaged extensively with the Business in question and confirmed that it has made them aware of Revenue’s Complaint and Review Procedures and will continue to work with this business to facilitate it in paying its Revenue liabilities.
210. Deputy Bríd Smith asked the Minister for Finance if property tax revenue for the individual electoral areas in each county are available or kept by his Department. [31657/22]
Amharc ar fhreagraI am advised by Revenue that a breakdown of Local Property Tax (LPT) receipts by Electoral Division is not available as this information is not captured within the LPT return. A breakdown of LPT receipts by Local Authority area is published annually and is available on the Revenue website, under the statistics section. The most recent breakdown can be found of page 5 of the Local Property Tax (LPT) Statistics End-of-year Report for 2021.
211. Deputy Holly Cairns asked the Minister for Finance if his Department and public bodies and agencies that operate under his remit that operate in direct contact with members of the public have policies in place for members of the public to report instances of sexual harassment or assault that occur on the property of his Department or each public body and agency under his remit; if so, if these policies are publicly accessible on the relevant website; and if he will make a statement on the matter. [31742/22]
Amharc ar fhreagra212. Deputy Holly Cairns asked the Minister for Finance if his Department and public bodies and agencies that operate under his remit have policies in place for employees to report instances of sexual harassment or assault that occur involving other employees or members of the public or on the property of his Department or each public body and agency that operate under his remit; if so, if these policies are publicly accessible on the relevant website; and if he will make a statement on the matter. [31761/22]
Amharc ar fhreagraI propose to take Questions Nos. 211 and 212 together.
I wish to advise the Deputy that in 2015, the Department of Public Expenditure and Reform published a revised Dignity at Work Policy, Dignity at Work - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service, which was developed in partnership between the Civil Service Management and Staff Unions. The revised policy, which applies to staff of the Department of Finance, aims to promote respect, dignity, safety and equality in the workplace. The policy also sets out the process of reporting such instances to a Designated Person. Along with the Civil Service Code of Standards and Behaviour, all new entrants to the Department are provided with a copy of the Dignity at Work Policy and it is also brought to the attention of staff during the induction programme. The policy on bullying and harassment is also included in the Staff Handbook which is provided to all staff. All of these documents are available to the Department’s employees on the internal intranet site, as well as publicly on www.gov.ie.
My Department does not operate in direct contact with the public.
A number of the bodies under the aegis of my Department have direct contact with members of the public and some of these bodies have employees; they have advised the following:
The Central Bank has a wide range of people policies which are readily available on the Bank’s intranet and website. The Dignity at Work Policy and Charter would be the most appropriate policy in the context of sexual harassment. The section of the Bank’s website ‘Make a complaint against the Central Bank of Ireland’ provides detailed contact details and instructions for members of the public on how to make complaints.
The Central Bank provides staff, by way of secondment, to another of the bodies under the aegis of my Department, the Investor Compensation Company DAC (ICC). As such, the ICC is covered by the Bank’s policies.
The Financial Services and Pensions Ombudsman (FSPO) is committed to protecting the dignity and respect of its employees and users of its services and understands its obligations under the Employment Equality Acts 1998-2011 and the Safety, Health and Welfare at Work Act 2005 in this regard. The FSPO has adopted the central policy Dignity at Work - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service, a key aim of which is to provide awareness regarding the steps which employees may take if they believe that they have been bullied, harassed, or sexually harassed. It also outlines the recommended procedures which should be followed by all parties to complaints regarding bullying, harassment, and sexual harassment and provides a clear reporting framework for any instances of bullying, harassment and sexual harassment in the workplace.
The FSPO has also adopted the Civil Service Code of Standards and Behaviour which outlines the standards expected of civil and public servants in the performance of their official duties. All staff receive training on these policies, which are publicly available, during the FSPO’s induction process. The FSPO has published its Customer Charter and Customer Action Plan (2022-2025), which sets out commitments and service standards in the delivery of its statutory remit. The FSPO is committed to fostering an environment of mutual respect between customers and employees. The FSPO has also commenced work on the development of a Safeguarding Policy, which will set out its commitment to safeguard any children, young people and vulnerable adults that come into contact with its services, and which will be published on the FSPO website in due course.
The Irish Fiscal Advisory Council has an Employee Hand Book and HR Manual in place and adheres to the Dignity at Work - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service for employees to report instances of sexual harassment or assault that occur in the workplace. The Fiscal Council is committed to developing and maintaining a positive work environment. An essential component of this is treating colleagues with respect and dignity. Breaches of this policy are not acceptable within the Fiscal Council. The Fiscal Council does not routinely provide services directly to the public and it would not be the case that members of the public would visit the office.
The National Treasury Management Agency (NTMA) has policies in place for employees to report instances of sexual harassment or assault. These policies are available on the NTMA internal intranet site and are accessible by all employees. The NTMA assigns staff to a number of other bodies under my Department’s remit, namely Home Building Finance Ireland, the National Asset Management Agency and the Strategic Banking Corporation of Ireland, all of which operate out of the Treasury Dock building which is not accessible to the public.
The Office of the Comptroller and Auditor General operates under the framework of civil service policies and procedures including the Dignity at Work Policy - an Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service . The Office also has an internal Speak Up policy and procedure where it commits to providing an environment which encourages all staff to voice any concerns they may have about wrongdoing in relation to any aspect of the way it does business or matters concerning personal conduct or behaviour. The Speak Up policy is accessible on the Office’s website at www.audit.gov.ie. The Office of the Comptroller and Auditor General does not operate in direct contact with members of the public.
The Office of the Revenue Commissioners deals with allegations of sexual harassment or assault under the Dignity at Work – An Anti-Bullying, Harassment and Sexual Harassment Policy for the Civil Service . This policy aims to promote respect, dignity, safety, and equality in the workplace. Every member of staff should be aware that all forms of bullying, harassment, and sexual harassment are unacceptable, and every member of staff has a duty to behave in an acceptable and respectful manner. Revenue’s Employee Engagement Charter supports the policy by specifying that employees should treat everyone with courtesy and respect. Revenue’s policy on Protected Disclosure Reporting in the Workplace also covers the disclosure of information by employees in relation to various types of wrongdoing. This policy is available on the Revenue website.
The Dignity at Work Policy is made available to all staff in Revenue at induction and is also placed on their intranet. It is available to members of the public on the Department of Public Expenditure and Reform website.
Revenue further advise that they operate in accordance with the Equal Status Acts 2000-2018 which aim to protect individuals from discrimination, harassment and sexual harassment. Revenue’s Complaint and Review procedure provides an easily accessible route for a customer to complain about any aspect of their treatment. The procedure is available on Revenue’s website at https://www.revenue.ie/en/corporate/documents/customer-service/cs4.pdf. In line with its commitment to protect and respect equality and human rights in accordance with Public Sector Duty principles, Revenue publishes data on the numbers of complaints, including those to the Ombudsman, and reviews requested and those upheld relating to Equality and/or Human Rights.
The Tax Appeals Commission has a Complaints Procedures Policy in place which is accessible to members of the public on its website where any instance of sexual harassment or assault can be reported. A similar policy is available to its employees.
213. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform if he will provide an update on the extent that Ireland’s efforts to host and take care of Ukrainian refugees will be supported by the EU Commission through CARE and REACT-EU; the level of funding that has been requested by Government; and the way that Ireland will utilise access to these EU funds to spend across infrastructure, housing, equipment and services in employment, education, social inclusion, healthcare and childcare. [24510/22]
Amharc ar fhreagraThe EU has introduced a range of flexibilities to address the impact of the influx of Ukrainian refugees including a regulation on Cohesion Action for Refugees in Europe (CARE) allowing for the swift release and reallocation of existing cohesion policy funding.
In addition, Ireland receives existing funding under the Asylum Migration and Integration Fund (AMIF) to support migrant integration, protection and returns programmes, and receives support for an Integration and Employment of Migrants scheme under the European Social Fund. The Department of Children, Equality, Disability, Integration and Youth has responsibility for the AMIF while the ESF is managed by the Department of Further and Higher Education.
The CARE Regulation introduced four main changes to cohesion policy rules to maximise the speed and ease with which Member States can help people fleeing Ukraine, while continuing to support regions' recovery:
- It extended the time for availing of 100% EU co-financing for 2014-2020 Cohesion policy funding;
- It allowed full flexibility for Member States and regions to use resources from either the European Fund for Regional Development (ERDF) or the European Social Fund (ESF) for any type of measures to support people fleeing Ukraine;
- It backdated eligibility for Member State spending on all actions helping people fleeing Ukraine to the start date of the Russian invasion (24 February 2022);and
- It simplified the reporting and the programme modifications requirements.
Member States were also permitted to use existing funds not yet programmed under the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU), a post-COVID recovery package and all unallocated resources under the current 2014-2020 funding period where programmes are drawing to a close. Ireland is making use of remaining unallocated funding under the European Regional Development Fund (€0.4m) and REACT-EU (€53m) for this purpose.
My Department is currently working closely with other Government Departments and agencies to determine the range of existing activities supporting Ukrainian refugees which could be financed under this mechanism. It is anticipated that these may include:
- Use of a straightforward, ready-to-use unit cost or ‘Simplified Cost Option’ (SCO) to provide for a per capita payment of €40 for up to 13 weeks for each Ukrainian refugee. This will support a number of measures assisting Ukrainian refugees on arrival in Ireland including, for example, reception, processing and transport;
- Short-term and medium term accommodation.
Funding will be disbursed through programme activities under the European Regional Development Fund and European Social Fund over the period up to July 2023. Programme beneficiaries will submit claims for expenditure on eligible activities and be reimbursed.
214. Deputy Richard O'Donoghue asked the Minister for Public Expenditure and Reform the details of the car and driver expenses in his Department that were claimed by junior and senior Ministers in 2021, in tabular form. [31392/22]
Amharc ar fhreagraI wish to advise the Deputy that a response will be forwarded directly to him, as set out under Standing Order 51B.
215. Deputy Kathleen Funchion asked the Minister for Public Expenditure and Reform if the Government will increase civil service pay rates considering the cost-of-living crisis and the impact that it is having on persons and their ability to travel to their employment; and if he will make a statement on the matter. [31426/22]
Amharc ar fhreagraCivil and public service pay has been governed by a system of collective agreements since the Croke Park Agreement was negotiated in 2010. These collective agreements have helped to ensure that public pay is managed in a sustainable, affordable and orderly manner. These agreements have also enabled significant reform of public services and changes to work practices.The current public service agreement is Building Momentum - A New Public Service Agreement 2021-2022. This Agreement is weighted towards those at lower incomes with headline increases of approximately 5% for the lowest paid public servants. These groups will also benefit more from other measures in the Agreement including the overtime rates and premia payment adjustments.Building Momentum is a two year Agreement, which is due to expire at the end of 2022. As the Deputies will be aware, exploratory discussions have taken place between the parties to the Agreement following the triggering of the review clause in Building Momentum by public service unions and associations due to the increasing cost in living. These discussions have now moved to formal phase of discussions which are being facilitated by the Workplace Relations Commissions. As the Deputies will appreciate, while these discussions are ongoing it would not be appropriate for me to comment on the detail of those talks which should remain confidential to the parties. However, inflation and cost of living issues to which the Deputies have referred will feature in those discussions.These are challenging discussions given the impact high levels of inflation are having on living standards of workers but also because of the uncertainty in the global economic outlook. The aim in these talks will be to strike the right balance and seek to achieve a deal that is fair and affordable to both taxpayers generally and public service employees.Nevertheless, an agreement on public service pay could play an important role in underpinning stability, minimising industrial unrest and supporting the continued delivery of reform and quality public services over the period ahead. However, any such agreement would need to reflect the broader economic context and the current fiscal position where significant challenges are emerging.
216. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the steps he will take to curb inflation in the economy thus lightening the load on the general public; and if he will make a statement on the matter. [31617/22]
Amharc ar fhreagra217. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that adequate opportunities remain to challenge the increase in the cost of living; and if he will make a statement on the matter. [31618/22]
Amharc ar fhreagra219. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent, if known to which reform in the context of management of inflationary tendencies in the economy can be utilised to curb inflationary; and if he will make a statement on the matter. [31620/22]
Amharc ar fhreagra220. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree, if any, to which the overheating of the economy can be managed through the medium of public expenditure and reform; and if he will make a statement on the matter. [31621/22]
Amharc ar fhreagra221. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he foresees the possibility of taking remedial action in the context of public expenditure and reform to reduce inflation and inflationary tendencies; and if he will make a statement on the matter. [31622/22]
Amharc ar fhreagra222. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform whether, within his Ministerial remit, he can see opportunities for curbing the cost-of-living increases; and if he will make a statement on the matter. [31623/22]
Amharc ar fhreagraI propose to take Questions Nos. 216, 217, 219, 220, 221 and 222 together.
As the economy recovers from the impacts of the pandemic we are encountering new challenges from rising energy prices and supply chain issues. These are exacerbated by the war in Ukraine, which has added to inflationary pressures globally. This is not a difficulty unique to Ireland and is faced by almost every advanced economy in the world.
The Government is aware of the challenge posed to many households by the rising costs of living, in particular for those on lower incomes. While the Government cannot fully insulate all from the impact of rising prices, significant resources have been provided to protect those that may be struggling due to price pressures. Budget 2022 set out a €1.2 billion package of expenditure measures to support citizens across a range of sectors with cost of living pressures and also contained an income tax package of just over half a billion euro.
Since December 2021, over half a billion euro of additional expenditure measures have been put in place to support citizens and businesses with increased costs targeted at energy prices. This includes the Electricity Credit for all domestic account holders of €200. To provide further support towards mitigating fuel cost increases, the Department of Finance introduced temporary reductions in the excise duties charged on petrol, diesel and marked gas oil and reduced the rate of VAT on the supply of gas and electricity.
In implementing these measures, Government has sought to balance a number of considerations. In the context of increased energy costs driving inflation, measures have been targeted in this area. To ensure swift support to help lower income households experiencing immediate difficulties, it was also important that measures could be enacted in a timely manner. Measures introduced are largely temporary and avoid committing funding for future years to ensure that our public finances remain on a sustainable trajectory. It is also essential that policy avoids generating second round effects which could add to inflationary pressures.
In terms of the overall budgetary framework, my Department seeks to drive reform and value for money in the management of day-to-day spending as well as the formulation of new policies. It is also a key responsibility of every Department and Minister to manage expenditure within their respective allocations. Careful monitoring of spending against profile and consideration of efficient and effective delivery of programmes and projects is required.
The Programme for Government commits to continuing reform and improvement of the budgetary process. In this context a range of reforms have been put in place in recent years, to support this drive to deliver more efficient and effective public services. This work includes the ‘whole-of-year’ budgetary framework, the Spending Review process, Performance Budgeting and Equality Budgeting and the development of the Wellbeing Framework for Ireland.
I am currently engaged in preparations for this year's Summer Economic Statement with my colleague the Minister for Finance. The challenging economic context is adding complexity to the formulation of our fiscal strategy for 2023. In finalising the budgetary parameters, we will seek to strike a balance between helping to mitigate cost of living pressures and ensuring sustainability of the public finances. Overall we aim to design policy to protect the most vulnerable in society while also ensuring measures do not add to inflationary pressures. The Summer Economic Statement and the Mid-Year Expenditure Report will be published in the coming weeks.
