Wednesday, 29 Jun 2022

Written Answers Nos. 14-33

Transport Costs

Ceisteanna (14)

Alan Dillon

Ceist:

14. Deputy Alan Dillon asked the Minister for Transport the measures that are in place to help with transport costs. [34594/22]

Freagraí scríofa

Minister for Transport

As the Deputy will be aware, transport is a derived demand - one that is driven by economic and social need. 

A cost-efficient sector, including affordable and accessible public transport services, is vital to a functioning economy. In this context, a number of measures have been taken to ensure services remain affordable. 

In Budget 2022, my department secured approximately €538m of funding for Public Service Obligation (PSO) and Local Link services. €25m was also provided for the introduction of a young adult card (YAC).  This new measure will enable any person aged between 19 and 23 years old to avail of an average fare discount of 50% across all public transport services, including city, intercity and rural services.

As part of a suite of new measures introduced by Government to help combat the rising cost-of-living being experienced throughout the country, a 20% average fare reduction on PSO services has also been introduced. These discounted fares, which will benefit the hundreds of thousands of people across the country who use PSO public transport every day, will cost €54m and will be in place until the end of 2022. 

I would like to see the 20% fare reduction continue into 2023; however, I am acutely aware of the competing pressures across the system and the finite Exchequer resources. The funding implications of all measures must be considered in the round so I will work closely with Minister McGrath and other Government colleagues in the context of the 2023 Estimates process to see what we can do with regard to supporting public transport services. 

In relation to the road haulage sector, on 15 March the Government approved an emergency support measure – the Licensed Haulage Emergency Support Scheme (LHESS) - to address cost pressures arising from current high fuel prices. The Scheme provided support of €100 per week, for eight weeks, for each eligible heavy goods vehicle authorised on the licence of a road haulage operator as of 11 March 2022. Over €15 million has been paid out under the Scheme to nearly 3,000 operators.

In addition to the LHESS and in recognition of rising fuel costs for all citizens and businesses, on 10 March the Government introduced an excise duty reduction of 15 cent per litre of diesel, initially introduced until end August but later extended out to Budget Day.

The Diesel Rebate Scheme (DRS) remains available to licensed haulage operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided. There were around 1,000 claimants for DRS in 2021 and this has likely increased in 2022.

Furthermore, tax debt “warehoused” during the COVID crisis remains at an interest rate of 0% for the remainder of this year.

Finally, in relation to the impacts of increasing biofuel rates on fuel prices, an offsetting policy measure of a 1c per litre reduction in the NORA Levy and a 1c per litre reduction in excise has been introduced in agreement with the Minister for Finance. The excise relief takes effect from 1 April 2022 and will be in place until Budget Day in October 2022.

Departmental Schemes

Ceisteanna (15)

Brian Stanley

Ceist:

15. Deputy Brian Stanley asked the Minister for Transport if the criteria to qualify for a disabled persons parking permit will be reviewed as there are a number of medical conditions that do not qualify for these permits such as Chron's disease. [34856/22]

Freagraí scríofa

Minister of State at the Department of Transport

The Disabled Parking Permit (also known as the European Parking Card or Disabled Parking Badge) is available to people living in Ireland whose mobility is severely restricted, whether they are drivers or passengers, and also to those who are registered blind. 

In 2010 the Department conducted a review of the scheme, in consultation with various stakeholders. One of the issues examined was eligibility. Disability groups in particular were unhappy that some permits were issued for medical conditions, rather than mobility impairment. The scheme was revised so that permits are now given on the basis of mobility impairment, rather than the diagnosis of a particular condition or illness. This is in line with the original intention of the scheme.

The possibility of extending the eligibility criteria to include people with non-mobility related physical disabilities or conditions, or those with certain forms of intellectual or cognitive impairment, has been raised on a number of occasions and the Department has consulted extensively with the joint issuing authorities, the Disabled Drivers Association of Ireland and the Irish Wheelchair Association, on this matter. In light of this consultation, there are currently no plans to change the criteria.

I and my department appreciate that everyday life with a condition such as Crohn's Disease can be challenging. I must emphasise to the Deputy, however, that issuing a large number of extra permits by extending the eligibility criteria would put the existing scheme under significant additional pressure and, crucially, compromise the availability of disabled parking spaces for those who need them the most.

Driver Test

Ceisteanna (16)

James Lawless

Ceist:

16. Deputy James Lawless asked the Minister for Transport if a driving test for a healthcare worker (details supplied) can be expedited; and if he will make a statement on the matter. [34635/22]

Freagraí scríofa

Minister of State at the Department of Transport

The operation of the national driving test service is the statutory responsibility of the Road Safety Authority and I have therefore referred this question to the Authority for direct reply.

I would ask the Deputy to contact my office if a response has not been received within ten days.

A referred reply was forwarded to the Deputy under Standing Order 51

Public Transport

Ceisteanna (17)

Darren O'Rourke

Ceist:

17. Deputy Darren O'Rourke asked the Minister for Transport further to Parliamentary Question No. 61 of 14 June 2022 (details supplied), if he will provide a list of the new services that will be introduced in 2022 as part of the initial roll-out of the Connecting Ireland plan; the current stage of progress of these services; the date on which they are expected to commence; and if he will make a statement on the matter. [34726/22]

Freagraí scríofa

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including the rollout of the Connecting Ireland Rural Mobility Plan.

In light of the NTA's responsibilities for the Connecting Ireland Rural Mobility Plan, I have referred your questions to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days. 

A referred reply was forwarded to the Deputy under Standing Order 51

Public Transport

Ceisteanna (18)

Emer Higgins

Ceist:

18. Deputy Emer Higgins asked the Minister for Transport if his attention has been drawn to the cancellation of a service (details supplied); if his attention has been further drawn to any grants or financial aid that may assist in restarting the aforementioned service; and if he will make a statement on the matter. [34829/22]

Freagraí scríofa

Minister for Transport

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. 

The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and is responsible for the licensing of public bus passenger services under the provisions of the Public Transport Regulation Act 2009. Therefore, I have forwarded the Deputy's question in relation to the cancellation of a service to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Greenways Provision

Ceisteanna (19)

Ciaran Cannon

Ceist:

19. Deputy Ciarán Cannon asked the Minister for Transport when he expects to receive the findings of a feasibility study into the development of the Quiet Man greenway, connecting Athenry to Milltown, considering that he first funded the study in July 2020. [34968/22]

Freagraí scríofa

Minister for Transport

As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to Greenways. The planning, design and construction of individual Greenways is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. In this context, TII is best placed to advise you on the status of this project.

Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Rail Network

Ceisteanna (20)

Ciaran Cannon

Ceist:

20. Deputy Ciarán Cannon asked the Minister for Transport if he will provide an update on his plans to double-track the rail line from Athenry to Galway city; and a timeline for same. [34971/22]

Freagraí scríofa

Minister for Transport

As Minister for Transport,  I have responsibility for policy and overall funding in relation to public transport.  The National Transport Authority (NTA) has, on a non-statutory basis, responsibility for the planning and development of public transport infrastructure in the Galway City Area, including railway infrastructure in consultation with Iarnród Éireann.

Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a more detailed reply to the specific questions asked.  Please contact my private office if you do not receive a reply within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

Tax Reliefs

Ceisteanna (21, 22)

James Lawless

Ceist:

21. Deputy James Lawless asked the Minister for Finance if he will address an issue with the first-time buyers scheme (details supplied); and if he will make a statement on the matter. [34709/22]

Michael Healy-Rae

Ceist:

22. Deputy Michael Healy-Rae asked the Minister for Finance if he plans to include second houses in the help-to-buy scheme to allow persons to get on the property ladder, given that new houses are not easy to buy at present. [34846/22]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 21 and 22 together.

The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.

An increase in the supply of new housing remains a priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not been previously been used as a dwelling.

A move to include other properties previously used as a residential home/second-hand properties within the scope of the scheme itself would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply. Extending the HTB scheme in this way would provide no incentive effect to encourage the building of new homes and would be likely to have a significant deadweight element and a high Exchequer cost. For these reasons, I currently have no plans to extend the HTB scheme to include such properties.

In respect of the maximum purchase value for a qualifying property to be eligible for HTB, the most recently available data from the Central Statistics Office, relating to April 2022, indicate that the average sale price in the case of first time buyer owner occupiers nationally is €372,900 and for Dublin the equivalent figure is €472,100.  Also, when we look at the breakdown of HTB claims by house price set out in Revenue's annual statistical report on the scheme for 2021, it sets out that some 76% of successful HTB claims in 2021 were for properties below €375,000 in value.  While not necessarily conclusive in terms of providing a guide as to the maximum purchase price that should apply under the scheme, these figures offer a perspective on the current maximum of €500,000.

As the Deputies may be aware, work by external consultants on the review of HTB is currently underway and, in fact, is nearing completion. The outcome of this review will help to inform decisions on the future of the scheme beyond its current sunset date of 31 December 2022. However, this is a matter that will fall to be considered by Government in the context of the Budget 2023 process and it would not be appropriate for me to offer further comment at this time.

Question No. 22 answered with Question No. 21.

Public Sector Staff

Ceisteanna (23)

Willie O'Dea

Ceist:

23. Deputy Willie O'Dea asked the Minister for Finance further to Parliamentary Question No. 67 of 18 May 2022, the number of appointments to the grade of assistant principal in the Limerick region; the reason for the significant deviation between appointments following competition from the open streams of both the Public Appointments Service and Revenue competitions versus the number of appointments from interdepartmental competitions; if there should be some level of parity between the streams; if Revenue envisions requesting candidates from this stream for appointment to the Limerick region in the near future; and if he will make a statement on the matter. [34677/22]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the current sequence in assigning posts at Assistant Principal grade envisages that for every six posts, two would be filled from open competition, two from transfer, one from interdepartmental competition and one from internal competition.

Revenue has also advised that in the context of prioritising its agility and responsiveness, including its capacity to engage with taxpayers in line with business models and needs as they evolve; and optimising the deployment of leadership, management and technical skill sets; there may, from time to time, be a temporary variation from that sequence in a specific location. It is expected that over time, the proportion of posts at Assistant Principal grade in Limerick that are filled from each available source will be in line with the sequence.

Fuel Prices

Ceisteanna (24)

Seán Sherlock

Ceist:

24. Deputy Sean Sherlock asked the Minister for Finance his views on correspondence regarding fuel costs for the haulage industry (details supplied). [34685/22]

Freagraí scríofa

Minister for Finance

I am very aware of the severity of the financial impact that rising fuel prices are placing on the haulage sector as well as on broader society.

The current trends in energy prices are not unique to Ireland and are in fact, part of a global trend: a multitude of factors is at work. These include the fact that demand for oil and other energy products such as natural gas has increased sharply following the re-opening of many economies in the second half of last year, as well as the impact of the war in Ukraine which continues to negatively affect international energy prices.

It is important to note at the outset that there are constraints on what the Government can do on both excise and VAT rates applying to fuel products such as diesel as a result of EU Directives.

On the excise front, Ireland’s taxation of fuel is based on European Union law as set out in the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply.  In the case of diesel, which is used as a propellant, the minimum rate is €330.00 per 1000 Litres exclusive of VAT.  This equates to 33 cents per litre.  The March 9th (pre reduction) rate of Mineral Oil Tax (MOT) on diesel was 53.55 cent per litre exclusive of VAT.  This point therefore represented the starting point for Government action in relation to excise reductions on diesel.

As you are aware, the Government excise reductions for diesel implemented in March and April 2022 have brought the overall MOT rate to 40.54 cents per litre (VAT exclusive). This represents just over 7.5 cent per litre over the EU minimum rate of 33 cents per litre. However, any scope for further reduction is removed by the fact that the Diesel Rebate Scheme (DRS), which has been in operation since 2013 and is currently at its maximum payment level of 7.5 cent per litre, brings the effective rate of excise paid to 33.04 cents (VAT exclusive) for those availing of the relief.  It is not possible to increase the DRS repayment amount by any further material amount as it would bring the effective rate below the ETD.  

The table below provides a comparison of  MOT Rates, Effective Rates and ETD Minimum from  October 21 to April 22.

Auto-diesel rates/1,000L from	MOT non-carbon	MOT carbon	Total MOT	Effective MOT incl. DRS	ETD minimum	MOT rate > ETD min. by	Effective MOT > ETD min. by
13-Oct-21	€425.72	€109.74	€535.46	€460.46	€330.00	€205.46	€130.46
10-Mar-22	€303.77	€109.74	€413.51	€338.51	€330.00	€83.51	€8.51
01-Apr-22	€295.64	€109.74	€405.38	€330.38	€330.00	€75.38	€0.38

 

The position in relation to VAT is that under EU rules, there is a standard rate which applies to most products and services. In addition, a Member State can have two reduced rates. Ireland’s standard rate is 23%, and its two reduced rates are 13.5% and 9% respectively.

Annex III of the VAT Directive determines what products and services can fall into the reduced rate categories. In this regard, it should be noted that petrol and diesel are standard rated products. Therefore, the rate of VAT is 23%. There is no potential for them being classified as reduced rates. 

As there can only be one standard rate of VAT, any reduction in this rate must be applied to all other products and services that fall into this standard rate category. What this means therefore is that there is a very significant exchequer cost for any reduction in the standard rate.  For instance reducing it by 1% would cost approximately €542m per annum. A reduction in VAT on diesel to 15% the minimum rate at which the standard rate can be set would cost the Exchequer €4.34 billion in revenue.

In relation to the issue of VAT being charged on other taxes, the Deputy should note that Revenue advise that this is standard practice. Further details can be found at the following link: www.revenue.ie/en/vat/charging-vat/on-what-amount-do-you-charge-vat/index.aspx

In summary, you will note that the Government has brought excise rates on diesel to the minimum level under EU rules through a combination of an excise reduction, and the application of the DRS. 

Tax Reliefs

Ceisteanna (25)

Paul Murphy

Ceist:

25. Deputy Paul Murphy asked the Minister for Finance if tax relief (details supplied) for taking care of an incapacitated individual at the same time as tax relief on employing a home carer will be applied to the previous years when the legislation was the same; if persons that would have qualified for both tax reliefs will be contacted to make them aware of this e-Brief and the consequences for their entitlements. [34722/22]

Freagraí scríofa

Minister for Finance

While the particular tax relief that may be available will depend on the specific facts and circumstances of a case, in broad terms, where an individual is responsible for the care of an incapacitated individual, the reliefs available include:

1. relief where the individual employs a carer to look after the incapacitated person (provided for under section 467 TCA 1997); and

2. relief where the individual looks after the incapacitated person themselves (the home carer tax credit as provided for under section 466A).

Some of the other reliefs which may be available where an individual is responsible for an incapacitated person include:

1. the incapacitated child tax credit (provided for under section 465 TCA 1997); and

2. the dependent person tax credit (provided for under section 466 TCA 1997).

With regard to employing a carer to look after an incapacitated individual, I am advised by Revenue that eBrief No. 128/22 relates to Tax and Duty Manual Part 15-01-20, and has been updated to provide further clarity on the interaction between the tax relief available to an individual who employs a carer to care for an incapacitated individual, and the incapacitated child and dependent relative tax credits.

It should be noted that the updated guidance does not refer to the home carer tax credit nor does it reflect a change in the existing statutory position.

Section 467 TCA 1997 provides for tax relief where an individual incurs costs in employing a person to take care of an incapacitated individual. The incapacitated individual can be the claimant themselves, or the claimant’s spouse or relative. The tax relief is given by way of a deduction and is equal to the lower of the cost incurred and €75,000.

The incapacitated child tax credit of €3,300, as provided for in section 465 TCA 1997, is available to an individual who proves that he or she has living, at any time during the year of assessment, a child who:

1. if under the age of 18, is permanently incapacitated by reason of mental or physical infirmity to such an extent that there is a reasonable expectation that the child would be incapacitated from maintaining him or herself if they were over the age of 18; or

2. if over the age of 18, is permanently incapacitated by reason of mental or physical infirmity from maintaining him or herself and had become so incapacitated either before attaining the age of 21 or whilst in full-time instruction at any university, college school or other educational establishment.

The dependent relative tax credit of €245, as provided for in section 466 TCA 1997, is available to an individual who maintains, at his or her own expense, a relative who is unable to maintain him or herself or a widowed parent. The credit is also available where an individual depends on his or her own child, due to infirmity, and resides with and maintains the child at his or her own expense. Eligibility for the dependent relative credit is subject to the requirement that the relative, child or widowed parent’s income for the year does not exceed a specified amount provided for in the legislation.

Where the individual employs a carer to look after an incapacitated person and also qualifies for either the incapacitated child tax credit or the dependent relative credit in respect of that same incapacitated person, he or she may claim relief under both section 467 and section 465 and/or 466 TCA 1997 as appropriate.

However, it should be noted that tax relief under section 467 TCA 1997 cannot be claimed where the individual employed to take care of an incapacitated person is the same individual in respect of whom the claimant receives either the incapacitated child or dependent relative tax credits.

The Deputy also refers to the home carer tax credit in his Question.  The home carer tax credit of €1,600, as provided for in section 466A TCA 1997, is available to jointly assessed married couples or civil partners where one spouse or civil partner stays at home to take care of a dependent person. The carer may earn up to €7,200 per year without affecting the value of the credit awarded, however once the carer’s income exceeds this amount the value of the credit will be impacted.

Where an individual employs a carer to take care of an incapacitated individual it is unlikely that he or she will also be eligible to claim the home carer tax credit as it is a requirement, under section 466A TCA 1997, for the individual to care for the dependent person himself or herself in order to qualify for the home carer credit. The facts and circumstances of each individual case determine the entitlement to tax relief however, additional tax relief will generally not be due in such a scenario. 

In relation to the issue of making taxpayers aware of their tax credit entitlements, I am advised that Revenue pro-actively corresponds with different cohorts of taxpayers to publicise the range of credits which they may be entitled to claim.  For example, Revenue is currently in the process of writing to all PAYE taxpayers whose final tax position for the years 2019, 2020 and 2021 is not yet balanced.  This communications process may also prompt individual taxpayers to claim as yet unclaimed tax credits. 

Detailed guidance material on each of these credits and reliefs is available on Revenue’s website and can be found at the following links:

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-20.pdf

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-05.pdf

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-27.pdf

- www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-29.pdf

Any individual who requires assistance in determining the full range of tax credits and reliefs which he or she may be entitled to claim, should contact Revenue through MyAccount -

www.revenue.ie/en/online-services/support/data-and-security/security/revenue.ie-and-myaccount.aspx

Tax Reliefs

Ceisteanna (26)

Matt Carthy

Ceist:

26. Deputy Matt Carthy asked the Minister for Finance the number of instances since 2017 in which a gift clawback has arisen as a result of farmer who has inherited or been gifted land and has placed such land jointly in the name of their spouse; the average tax intake as a result; and if he will make a statement on the matter. [34732/22]

Freagraí scríofa

Minister for Finance

Assuming this relates to a clawback of agricultural relief claimed under Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003, on an inheritance or gift of land, I am advised by Revenue that it is not possible to furnish precise figures of the number of instances in which a gift clawback has arisen in these particular circumstances.

Section 89 provides for agricultural relief to be applied on the receipt of a gift or inheritance comprising agricultural property.  The relief operates by charging Capital Acquisitions Tax (CAT) on a reduced market value of the particular agricultural property, which takes the form of a 90% reduction in the taxable value of gifted or inherited agricultural property. 

However the Relief can be withdrawn or clawed back if any part of the property (other than crops, trees and underwood) is disposed of or compulsorily acquired within six years of receiving a gift or inheritance, and it is not replaced with other agricultural property.

In addition, where the date of the gift or inheritance and the valuation date are on or after 1 January 2015, relief may be withdrawn if the claimant no longer farms the property for at least 50% of their working hours, or does not farm the property on a commercial basis for at least six years from that date.

As agricultural relief may be clawed back where there is a disposal of any part of the agricultural property, relief could be clawed back where the claimant disposes of any part of his or her beneficial interest in the land to his or her spouse.  However, it would not be clawed back where the land is simply placed jointly in the name of a spouse.

Revenue has published extensive guidance on the operation of Agricultural relief in respect of CAT on the Revenue website at  www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/index.aspx, and also operates a CAT Helpline for anyone seeking further clarification/guidance. Contact details for the CAT Helpline are available on the Revenue website at

www.revenue.ie/en/contact-us/customer-service-contact/national-capital-acquisitions-tax-cat-unit.aspx

Tax Reliefs

Ceisteanna (27)

Matt Carthy

Ceist:

27. Deputy Matt Carthy asked the Minister for Finance further to Parliamentary Questions Nos. 370 and 371 of 14 June 2022, the total value of income deferred in relation to the 90 taxpayer units that declared exempt income from the leasing of agricultural land and also claimed consanguinity relief during 2019; if he intends to repeat the 2019 analysis on the basis of any other year; and if he will make a statement on the matter. [34733/22]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the amount of income from the leasing of farmland that was exempted from taxation in 2019 under Section 664 of the Taxes Consolidation Act 1997, by taxpayers who also claimed consanguinity relief in the same year, was €0.9m. Based on the available data, it is not possible to determine if these claims relate to the same land.

I am further advised that analysis of income tax returns by Revenue in relation to 2020 is ongoing.

Tax Reliefs

Ceisteanna (28)

Matt Carthy

Ceist:

28. Deputy Matt Carthy asked the Minister for Finance the specific tax reliefs available to farmers which are due to expire in 2022/2023; and if he will make a statement on the matter. [34734/22]

Freagraí scríofa

Minister for Finance

The following table lists the  tax reliefs specific to the farming sector which are due to expire in either 2022 or 2023, including the relevant legislative provision and sunset date.

Relief	Legislative provision	Sunset
CGT Relief for Farm Restructuring	Section 604B Taxes Consolidation Act 1997	31 December 2022
Stock Relief on Income Tax for Certain Young Trained Farmers	Section 667B Taxes Consolidation Act 1997	31 December 2022
Stock Relief on Income Tax for Registered Farm Partnerships	Section 667C Taxes Consolidation Act 1997	31 December 2022
Acceleration of wear and tear allowances for farm safety equipment	Section 285D Taxes Consolidation Act 1997	31 December 2023
Stamp Duty Exemption on Transfers of Land to Young Trained Farmers	Section 81AA Stamp Duties Consolidation Act 1999	31 December 2022
Stamp Duty relief on Farm Consolidation	Section 81C Stamp Duties Consolidation Act 1999	31 December 2022
Stamp Duty Consanguinity Relief on Non-Residential Transfers	Schedule 1 Stamp Duties Consolidation Act 1999	31 December 2023

Five of these reliefs are due to expire at 31 December 2022. As each relief is categorised as a State Aid, extending them requires European Commission approval under the Agricultural Block Exemption Regulation (ABER). A new ABER is expected to be in place by the time of Budget 2023.

Any extension of the reliefs beyond their current sunset dates will fall to be considered by Government as part of the Budget and Finance Bill process.

Banking Sector

Ceisteanna (29)

Michael Lowry

Ceist:

29. Deputy Michael Lowry asked the Minister for Finance if he will review issues raised by a person (details supplied) in County Tipperary in relation to the proposed withdrawal of banks from the Irish market; and if he will make a statement on the matter. [34812/22]

Freagraí scríofa

Minister for Finance

The withdrawal of KBC from the Irish market is disappointing but as the Deputy is aware, such decisions in this regard are commercial matters and are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. 

My priority is that the withdrawal takes place in an orderly manner. This is emphasised in all engagements with KBC, who meet with officials from my Department on a monthly basis.

On 25 June 2021, the Central Bank, as the relevant competent authority, issued a Dear CEO letter to the main retail banks setting out its consumer protection expectations in a changing retail banking landscape. These expectations include that all customers are protected and fairly treated throughout this period of change and that regulated entities proactively (as part of decision-making) assess the risks a decision may pose to new and existing customers, and develop comprehensive action plans to mitigate these risks.

The Central Bank continues to engage with KBCI to ensure that its expectations are met and that the withdrawing bank adheres to regulatory requirements, including the consumer protections set out in statutory Codes and Regulations.

The FAQ on the KBC website provides information to consumers in relation to KBC’s plans for its withdrawal. (See link - www.kbc.ie/important-update-from-kbc-bank-ireland). While decisions related to the strategic direction of regulated firms are for the boards of those firms, the Central Bank has advised me that it has made it clear to the management of KBC Bank Ireland that it expects a customer-focused approach to be taken in all aspects of business.

The Central Bank has also advised that while it cannot comment on the operations of specific regulated entities, however, in scenarios such as the one outlined it would expect a regulated entity, at a minimum, to have a sound legal basis on which to redeem customer investments, and to provide clear and timely notice to affected customers.

If a consumer is dissatisfied with the services provided by KBC they can submit a complaint via the bank's formal internal complaint process. If their complaint is not resolved to their satisfaction through this process, they can then seek recourse via the Financial Services and Pensions Ombudsman (FSPO). The FSPO will take on complaints once the bank's internal complaints process has been exhausted.

Contact details for the FSPO are as follows:

- Address: The Financial Services and Pensions Ombudsman, Lincoln House, Lincoln Place, Dublin 2, D02 VH29.

- Tel: [phone]

- Email: [e-mail] 

Website: www.fspo.ie/

Tax Code

Ceisteanna (30)

Michael Lowry

Ceist:

30. Deputy Michael Lowry asked the Minister for Finance if he will reconsider Ireland’s position on the global minimum tax rate in view of the fiscal challenges impacting and expected to impact Ireland and the need to make the country as attractive as possible for multinational investment; and if he will make a statement on the matter. [34814/22]

Freagraí scríofa

Minister for Finance

Ireland is very supportive of the two-pillar solution for the taxation of the digital economy reached globally at the OECD, an agreement to which we signed up along with over 130 other countries in October 2021. I believe that this agreement represents a fair compromise reflecting the competing interests of the many countries involved in the negotiations, large and small, developed and developing.

The decision to join the global agreement was not taken lightly but I firmly believe this agreement brings a unique opportunity to reframe the international taxation architecture which has largely remained in place for almost a century. 

It is widely accepted that the international tax system needs to adapt to keep pace with changes in how business is conducted in an increasingly globalised and digitalised world. The last decade has been one of unprecedented change for multinational companies, with many anti-BEPS measures being introduced to tackle perceived tax avoidance. While these measures have been necessary, they have undeniably increased complexity for businesses.

This is a global issue, which requires global action to solve in a coordinated way, in order to avoid the proliferation of unilateral tax measures and trade tensions. The OECD agreement will ultimately bring long-term stability and certainty to the international tax framework, based on a shared understanding of where value is created in digital business models. This stability is of critical importance for business investment. This agreement will come at a cost, a substantial cost even, to Ireland in terms of reduced tax receipts, but I believe that this is a price worth paying to bring certainty and stability to the global trading environment and move away from the risk of trade wars, the impact of which would be amplified at a time of economic challenge.

Ireland has been to the forefront in recent years in implementing international tax reforms, and stakeholder engagement has been an essential element of this process. I published Ireland’s Corporation Tax Roadmap in 2018 to provide a clear line of sight for businesses on future planned reforms and updated it in 2021 to mark the concrete actions we have taken to adapt to agreed new international standards. My Department facilitates extensive engagement with stakeholders in advance of most new legislative measures being introduced, and this collaborative, transparent process provides certainty both to businesses already established here and those considering investing.

It is therefore my view that a considered, collaborative implementation of the Pillar Two minimum tax agreement, in conjunction with our EU and OECD partners, continues to be in the best interests both of Ireland and of globalised businesses investing here. 

Regulatory Bodies

Ceisteanna (31)

Catherine Murphy

Ceist:

31. Deputy Catherine Murphy asked the Minister for Finance the number of persons assigned to the regulatory section within the Central Bank who are dedicated to the building society market; if he will provide details of same in respect of credit unions. [34830/22]

Freagraí scríofa

Minister for Finance

Credit unions in Ireland are regulated and supervised under the Credit Union Act, 1997 (the 1997 Act) and regulations issued by the Central Bank of Ireland (the Central Bank), which set out the framework for the registration, regulation and operation of credit unions including detailed governance requirements and prudential requirements on items such as reserves, liquidity, investments, member savings and lending.

Under the 1997 Act, the Central Bank is responsible for administering the system of regulation and supervision of credit unions with a view to:

(a) The protection by each credit union of the funds of its members; and

(b) The maintenance of the financial stability and well-being of credit unions generally.

The Registrar of Credit Unions, as the head of the Registry of Credit Unions regulatory division within the Central Bank, is responsible, as the delegate of the Central Bank, for managing the performance and exercise of the functions and powers of the Central Bank under the 1997 Act and has the power to do whatever is necessary for or in connection with, or reasonably incidental to, carrying out his or her responsibilities.

There are 42 persons (41 Full-Time Equivalent) assigned to the Registry of Credit Unions within the Central Bank.

There are no building societies in Ireland and as such no Central Bank staff assigned to regulate them.

Banking Sector

Ceisteanna (32)

Catherine Murphy

Ceist:

32. Deputy Catherine Murphy asked the Minister for Finance if he and or his officials have developed any plans to launch a State-owned building society. [34831/22]

Freagraí scríofa

Minister for Finance

Neither I, as Minister for Finance, nor my Department have any plans for a State-owned building society. 

The Irish retail banking system is relatively concentrated by international standards and the recent decisions by some banks to leave the Irish market will further impact on this. However it should also be noted that some new lenders have entered the market and are playing a greater role in the provision of new services.

More generally, it is likely that increased competition in the provision of financial services globally will take place and that this will have an influence in Ireland with potential new entrants to the deposit-taking, credit and payments markets for households and businesses.

The European Union’s initiatives in the context of the Capital Markets Union, which aim to improve the provision of financial services across borders within the Union, also has the potential to further improve levels of choice regarding savings and investments for consumers, and to improve access to finance for businesses in the Irish economy. Further, the scope for provision of services within the Union will be enhanced by the adoption of digital financial technologies already underway.

However, I fully appreciate that enhanced sustainable competition in the credit and banking market more generally will be of benefit to consumers and other borrowers. Accordingly, the review of the retail banking market which is underway in my Department will assess various aspects of the banking market and will consider options to encourage greater competition in the credit and banking market, including possible options to develop the mortgage market.

Tax Reliefs

Ceisteanna (33)

Louise O'Reilly

Ceist:

33. Deputy Louise O'Reilly asked the Minister for Finance if the reimbursement rate under the drivers and passengers with disabilities fuel grant will be increased to reflect recent increases in fuel prices. [34992/22]

Freagraí scríofa

Minister for Finance

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) set against the purchase and use of an adapted car, and for transport of a person with specific severe and permanent physical disabilities. The Scheme also provides payment of a Fuel Grant, and an exemption from Motor Tax. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

The relief from Value Added Tax and Vehicle Registration Tax are generous in nature amounting to up to €10,000, €16,000 or €22,000, depending on the level of adaption required for the vehicle. The Fuel Grant Scheme covers annual payments to those incurring fuel costs in the past 12 months, up to a maximum of 2,730 litres. 2022 rates of payment are as below.

Fuel Type	Rate per litre
Petrol	€0.636
Heavy oil	€0.535
Liquefied petroleum gas	€0.130

The Scheme is open to severely and permanently disabled persons who meet one of six medical criteria, as a driver or as a passenger and also to certain organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

 I gave a commitment that a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, would be undertaken.

 In this context I have been working with my Government colleague, Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. We are both agreed that the review should be brought within a wider review under the auspices of the National Disability Inclusion Strategy, to examine transport supports encompassing all Government funded transport and mobility schemes for people with disabilities.

We consider this the most appropriate forum to meet mutual objectives in respect of transport solutions/mobility supports for those with a disability.

The NDIS working group, chaired by Minister Anne Rabbitte, with officials from both my Department and the Department of Children, Equality, Disability, Integration and Youth as well as others, held its first meeting on the 26th January 2022. A stock-taking exercise of existing transport and mobility schemes currently supporting people with disabilities is ongoing ahead of the next meeting of the group. The issue was also discussed at the most recent meeting of the NDIS Steering Group on April 13th, which included input from stakeholders.

My officials will continue to work closely with officials from the Department of Children, Equality, Disability, Integration and Youth, to progress this review, and on foot of that will bring forward proposals for consideration.

 I cannot comment on any potential changes to the scheme in advance of these proposals.