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Thursday, 30 Jun 2022

Written Answers Nos. 122-136

Road Tolls

Ceisteanna (122)

Patricia Ryan

Ceist:

122. Deputy Patricia Ryan asked the Minister for Transport if he will reduce or abolish toll charges for commercial passenger operators; and if he will make a statement on the matter. [35103/22]

Amharc ar fhreagra

Freagraí scríofa

As Minister for Transport I have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Therefore, matters relating to the day to day operations regarding national roads, including toll roads and the establishment of a system of tolls, are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll bye-laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended).

Toll revenue is a very important source of revenue for TII and is used to fund essential services including the operation and maintenance of the primary and secondary road network; Dublin Tunnel, the Jack Lynch Tunnel; and TII’s Motorway Control Centre.

In addition, the Public Private Partnership (PPP) toll concessions on the national road network are also under the remit of TII. However, the toll revenue generated by these toll roads is collected by the PPP concessionaire and generally funds the construction debt as well as the operation and maintenance of the road itself. Therefore, because of the criticality of tolling revenue streams for the smooth functioning of our roads network and access tunnels, the fact that PPP toll concessionaires own the revenue collected on those tolls, and TII’s statutory obligations, TII are not in a position to introduce any additional exemptions.

Bus Services

Ceisteanna (123)

Pauline Tully

Ceist:

123. Deputy Pauline Tully asked the Minister for Transport if he will report on the expressway bus service from Donegal to Dublin, route 30/X30; if it is necessary to book this service in advance; the number of times the service has not turned up at Cavan bus station; the number of times the service has arrived late at Cavan bus station; and if he will make a statement on the matter. [35111/22]

Amharc ar fhreagra

Freagraí scríofa

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. Further, Bus Éireann's Expressway services, including routes 30 and X30, are commercial bus services and as such responsibility for the operation of those services is a matter for the company. I have, therefore, referred the Deputy's question to Bus Éireann for direct reply. Please advise my private office if you do not receive a reply within ten working days.

Rail Network

Ceisteanna (124)

Emer Higgins

Ceist:

124. Deputy Emer Higgins asked the Minister for Transport the status of the all-island strategic rail review; the expected timeline for completion of the review; and if he will make a statement on the matter. [35115/22]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy may be aware, the Strategic Rail Review is considering the future development of the rail network in Ireland. The Review, which is ongoing and for which Arup Consultants have been appointed, is being undertaken in co-operation with the Department for Infrastructure in Northern Ireland. Upon completion, the Review will inform the future development of the railway sector on the Island of Ireland over the coming decades.

I look forward to its completion and the final report, which is expected in Quarter 4 of this year.

Customs and Excise

Ceisteanna (125)

Patricia Ryan

Ceist:

125. Deputy Patricia Ryan asked the Minister for Finance his plans to reform excise duty; and if he will make a statement on the matter. [35102/22]

Amharc ar fhreagra

Freagraí scríofa

The Government is very aware of the impact of rising fuel prices on households and businesses. These trends are driven primarily by global factors. The key drivers of this increase are increases in wholesale energy prices as a result of the rapid rebound in global demand, global supply chain disruptions and the imbalance between demand and supply that emerged as economies re-opened. More recently, as a result of the war in Ukraine, oil and gas prices have risen further. It is not possible for the Government to fully insulate consumers against these price impacts, however, a number of very significant steps have been taken to lessen the impact of increased fuel prices.

On fuel excise, a package of measures, to the value of €320 million, was introduced with effect from 10 March until August 31st, reducing the VAT inclusive excise duty on petrol, diesel and MGO by 20, 15 and 2 cent per litre respectively. These reductions mitigate the cost of a fill of a 60 litre tank by some €12 for petrol and €9 for diesel. This assists all transport users, rural and urban, including commuters, business and farmers. In April these measures were extended to 11 October 2022, with an additional 3 cent reduction for MGO. These measures will cost €417mn from 10 March to 11 October.

In addition to the above rate changes, I also brought forward legislation in Finance Act 2021 to provide for a temporary reduction of 1 cent per litre inclusive of VAT to MOT on petrol and diesel . This reduction came into effect on 1 April. I took this step to partially offset the expected rise in fuel costs arising from an increase in the Biofuel Obligation for transport fuels proposed by my colleague the Minister for Transport. Both rate cuts will remain in place until 11 October this year.

It should be noted that the above changes were made within the constraints of the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in Finance Act 1999 (as amended). Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels.

The Diesel Rebate Scheme (DRS) was introduced in 2013 with the aim of providing support to road haulage and bus transport operators when the retail price of diesel is relatively high. The DRS operates on a sliding scale basis, whereby a partial rebate of MOT is available when the retail price of diesel exceeds €1.00 per litre excluding VAT. The repayment rate increases gradually as the retail price increases, up to a maximum repayment rate of 7.5 cents per litre/€75.00 per 1,000 litres. At current retail prices the repayment rate is at this maximum.

It is important to note that the effective MOT rate on auto-diesel must be considered in ensuring compliance with the ETD. The effective rate includes the maximum MOT rate repayable under the Diesel Rebate Scheme (DRS), currently €75.00 per 1,000 litres. The current MOT rate on auto-diesel is €405.38 per 1,000 litres, which is €75.38 above the ETD minimum. However, when the DRS is taken into account, the effective MOT rate is €0.38 per 1,000 litres, or 0.038 cents per litre, above the ETD minimum, meaning that any material reduction in the effective MOT rate would be incompatible with EU law.

In conclusion, there are limitations within the ETD as to what I can do in relation to excise, however within these constraints, I propose to keep the taxation of fuel under review as part of preparations for Budget 2023.

Charitable and Voluntary Organisations

Ceisteanna (126)

Jennifer Whitmore

Ceist:

126. Deputy Jennifer Whitmore asked the Minister for Finance if any State or semi-State bodies that report to him are currently or have been registered as a charity; the reason for the charity status; the person or body that holds primacy for accountability in those instances, whether the Minister or the Charities Regulator; and if he will make a statement on the matter. [35007/22]

Amharc ar fhreagra

Freagraí scríofa

I wish to inform the Deputy that none of the State bodies under the aegis of my Department are currently or have been registered as a charity.

Vehicle Registration Tax

Ceisteanna (127)

Michael Healy-Rae

Ceist:

127. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) in relation to the registration of a car; and if he will make a statement on the matter. [35021/22]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that vehicle registrations cannot be processed without satisfactory proof of ownership for a number of reasons, including ensuring the correct categorisation and history of vehicles through ownership records, and verifying a vehicle’s point of origin for taxation purposes.

Revenue has published extensive guidance in relation to the documents and proofs that are required in order to register a vehicle imported from the UK, including Revenue’s policy that UK vehicles will not be registered in the absence of the V5C, all available on Revenue's website.

The V5C, and other relevant documentation, is essential to the integrity of the registration process, as it provides the identity, history, ownership, and other particulars of the vehicle in question.

Notwithstanding, Revenue have advised that due to the extenuating circumstances of this case, they will contact the individual concerned with a view to finding a solution.

Tax Code

Ceisteanna (128)

Ivana Bacik

Ceist:

128. Deputy Ivana Bacik asked the Minister for Finance the rationale for setting the VAT rate for dog grooming at 23%, rather than 13.5% or 9%. [35076/22]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.

The provision of dog grooming services is not included in Annex III and as such is subject to the standard rate of VAT, currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to this service.

The Deputy may be interested to know that by way of special derogation from the general rule, Ireland is permitted to continue its long-standing practice of applying a reduced rate, currently 13.5%, to the supply of services by a veterinary surgeon in the course of their profession, but there are strict restrictions on this derogation, including that the rate cannot be reduced below 12%. However, where a veterinary surgeon carries out a dog grooming services as part of the veterinary procedure, such as treating an illness or disease, the dog grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the reduced rate. Where a veterinary surgeon provides a dog grooming service as a supply that is distinct from a veterinary procedure the service is liable to VAT at the standard rate of 23%.

Credit Unions

Ceisteanna (129)

Patricia Ryan

Ceist:

129. Deputy Patricia Ryan asked the Minister for Finance his plans to expand the role of credit unions; and if he will make a statement on the matter. [35093/22]

Amharc ar fhreagra

Freagraí scríofa

This Government recognises the importance of credit unions. The Programme for Government contains commitments to:

- Review the policy framework within which credit unions operate;

- Enable and support the credit union movement to grow; 

- Support credit unions in the expansion of services, to encourage community development; and

- Enable the credit union movement to grow as a key provider of community banking in the country.

With regard to fulfilling the commitments in the Programme for Government for credit unions, the Review of the Policy Framework has been completed.

Minister of State Sean Fleming recently met with all the credit union representative bodies on the proposals and they broadly support the proposals. Legislation to implement the proposals will go to Cabinet shortly.

The policy proposals contained in the Review address five key objectives:

1. Improving member services

2. Supporting investment in collaboration

3. Supporting Governance

4. Recognition of the role of credit unions

5. Transparency of regulatory engagement 

Cumulatively, the desired outcome of these objectives is to strengthen the role of credit unions as a provider of community banking and to further enable credit unions to focus on priorities that will better position the sector to face the challenges and opportunities of the future. 

In developing these proposals Minister Fleming has met the Irish League of Credit Unions, the Credit Union Development Association, the Credit Union Managers Association, the National Supervisors Forum, the Registrar of Credit Unions, the Credit Union Advisory Committee, the CEO Forum, collaborative ventures and many individual credit unions.

In total as part of the Review process Minister Fleming has held over 50 stakeholder meetings with the credit union sector and considered well over 100 proposals.

Credit Unions

Ceisteanna (130)

Patricia Ryan

Ceist:

130. Deputy Patricia Ryan asked the Minister for Finance if he will provide funding for credit unions to provide ATM machines in towns that have lost their 24-hour accessible ATM machine due to bank branch closures; and if he will make a statement on the matter. [35094/22]

Amharc ar fhreagra

Freagraí scríofa

This Government recognises the importance of credit unions.  The Programme for Government Review of the Policy Framework for credit unions has been completed and will go to Government shortly. 

We are separately undertaking a Retail Banking Review, the terms of reference of which have been published on my department's website.  I would encourage the credit union sector to make a submission to the consultation process by the deadline of 8 July.  Should credit union stakeholders submit the proposal you raise it will be given due consideration.

Public Sector Pensions

Ceisteanna (131)

Patricia Ryan

Ceist:

131. Deputy Patricia Ryan asked the Minister for Public Expenditure and Reform his plans to end pension abatement for post-2012 entrants into the Defence Forces who take up a position in the public sector; and if he will make a statement on the matter. [35096/22]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy may be aware, the principle of abatement of a public service pension is longstanding within the rules of various public service pension schemes and pension abatement is an important aspect of the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 (the Single Scheme Act).  

The Act provides for the abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service such that no more of the pension when combined with the remuneration in the new position shall exceed the pensionable remuneration of the old position.  It should be noted that it is the pension which is abated and not the salary in the new position.  The measure applies across the public service, including the Defence Forces.

Abatement policy remains a key component of Public Service pension policy and addresses valid concerns about simultaneous payment of both pension and salary in the Public service.  While the high level operation of abatement is monitored on an ongoing basis, there are no current plans to review pension abatement policy as it applies to specific sectors of the public service.

Flood Risk Management

Ceisteanna (132, 136)

Denis Naughten

Ceist:

132. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the steps that are being taken at present to protect meadows within the Shannon Callows from flooding given the expected fodder shortage this winter following the significant levels of rainfall within the upper Shannon catchment recently; the number of sluice gates that were open and closed by the ESB and Waterways Ireland on 24 and 27 June 2022; the number of boards removed at Meelick Weir and Athlone for June 2022; the corresponding water level reference point north of each location in tabular form; and if he will make a statement on the matter. [35153/22]

Amharc ar fhreagra

Denis Naughten

Ceist:

136. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the current status of works on the removal of the pinch points in the Shannon Callows between Athlone and Meelick Weir; and if he will make a statement on the matter. [35154/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 132 and 136 together.

On the Shannon Navigation, the water levels on the 3 lakes (Lough Allen, Lough Ree and Lough Derg) are controlled and managed by the ESB while the levels in between the lakes are managed by Waterways Ireland.

The ESB manages the outlets of the major lakes through sluice barrages at Bellantra (Lough Allen), Athlone (Lough Ree) and Parteen/Ardnacrusha (Lough Derg).  The outlets at Bellantra and Parteen/Ardnacrusha are controlled and managed by the ESB. Waterways Ireland provides manual assistance at Athlone working to instruction from the ESB. There are interim sluices/weirs at Jamestown, Roosky, Tarmonbarry and Meelick/New Cut, all of which are managed and operated by Waterways Ireland.

Waterways Ireland and the ESB have an agreed protocol under which the decision-making process and communication functions in relation to water level management are undertaken.  Both organisations  communicate on a daily basis to ensure a co-ordinated approach to the management of water levels, with the ESB managing levels for electricity production and Waterways Ireland managing the levels for navigation during the boating season.

Waterways Ireland has provided the data requested by the Deputy for the period 24th June to 28th June in Table 1, at the link.  The ESB has provided data in respect of Athlone which is set out in Table 2, at the link.

ShannonWaterways - Waterways Ireland

ShannonWaterways - ESB

The ESB has lowered the level of Lough Ree during the recent dry period in accordance with its regulations, by operation of the sluices adjacent to Athlone Weir. The level downstream of Athlone Weir was also significantly below the determined “callows flood level” following the recent dry spell.

Significant rainfall has occurred on the Middle Shannon Catchment over the past number of days which has caused water levels to increase sharply across the catchment.

There is currently one sluice open at Athlone Weir, reduced from 2, as of this morning (29th June). This is monitored on an ongoing basis with review of water levels, rainfall, forecasted rain and discussions with Waterways Ireland.  The ESB continues to operate in accordance with its regulations and guidelines for control of the River Shannon. 

Separately, work is advancing to progress the project for the removal of the ‘pinch points’ in the Shannon Callows between Athlone and Meelick Weir.  A Steering Group has been established to oversee this project and a brief is being finalised for the appointment of a consultant to carry out the initial analysis and design work.  Waterways Ireland, on behalf of the Shannon Group, will act as the Contracting Authority for this project. 

The works can only commence following the completion of the appropriate environmental assessments which are expected to be significant.  In addition, planning consent will be required to progress the project.  This is a time intensive process and there are a range of variables outside the control of the Shannon Group that may impact on the overall timescale for the delivery of this project.

Charitable and Voluntary Organisations

Ceisteanna (133)

Jennifer Whitmore

Ceist:

133. Deputy Jennifer Whitmore asked the Minister for Public Expenditure and Reform if any State or semi-State bodies that report to him are currently or have been registered as a charity; the reason for the charity status; the person or body that holds primacy for accountability in those instances, whether the Minister or the Charities Regulator; and if he will make a statement on the matter. [35013/22]

Amharc ar fhreagra

Freagraí scríofa

I wish to advise the Deputy that none of the bodies under the aegis of my Department are currently registered as a charity and also that none have held that status in the past.

Civil Service

Ceisteanna (134)

Patricia Ryan

Ceist:

134. Deputy Patricia Ryan asked the Minister for Public Expenditure and Reform his plans to implement the report of the independent body examining additional working hours; and if he will make a statement on the matter. [35085/22]

Amharc ar fhreagra

Freagraí scríofa

Section 4.2 of Building Momentum provided for the establishment of an independent body to assess issues arising in addressing the Haddington Road Hours and to make appropriate recommendations to be applied equitably across all affected grades, groups, categories and sectors.

Government approved the Independent Hours Body Report last April. 

The circular issued recently, at the link, sets out arrangements for the implementation of the Body's recommendations in the civil service. This circular is also available to view at www.gov.ie/en/circulars.  

Additional Working Hours (Circular 14)

Circulars regarding the implementation of the Body's recommendations in other sectors are a matter for the relevant Department/Sector. 

Flood Risk Management

Ceisteanna (135)

Thomas Pringle

Ceist:

135. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform if he will increase funding to the minor flood mitigation works and coastal protection scheme given the identified level of need by local authorities for works in this area; and if he will make a statement on the matter. [35143/22]

Amharc ar fhreagra

Freagraí scríofa

The Minor Works Scheme was introduced by the OPW on an administrative, non-statutory basis in 2009. The purpose of the scheme is to provide funding to Local Authorities to undertake minor flood mitigation works or studies to address localised fluvial flooding and coastal protection problems within their administrative areas.

Under the scheme, applications are considered for projects that are estimated to cost not more than €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects.  Applications are assessed by the OPW having regard to the specific economic, social and environmental criteria of the scheme, including a cost benefit ratio and having regard to the availability of funding for flood risk management.  The original maximum amount was €500,000 and was increased to €750,000 following a review of the Scheme in June 2017.

This is a demand led scheme and the OPW has never had to refuse or defer an application due to annual budgetary constraints for this scheme. The OPW has made financial provision of €3m in 2022 for this scheme, which is reflective of annual expenditure under the scheme in previous years.

Question No. 136 answered with Question No. 132.
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