Thursday, 15 Sep 2022

Written Answers Nos. 161-188

Enterprise Policy

Ceisteanna (161)

Bernard Durkan

Ceist:

161. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he remains satisfied that Ireland's export market continues to be accessible in the immediate aftermath of Brexit; if particular or specific challenges have been identified as potential major obstacles for Irish exporters and importers; if decisions have been made on contingency measures and are now in place; and if he will make a statement on the matter. [45386/22]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment (Deputy Dara Calleary)

Our export-led sector has demonstrated dexterity and resilience when faced with ongoing challenges in the global trading environment coupled with the aftermath of Brexit. The Central Statistics Office compiles statistical data in relation to Goods Exports and Imports. According to the CSO, in 2020, our total Goods Exports were valued at €162bn. Goods Exports to the UK were valued at €14.7bn (of which €12.3bn was exported to Great Britain and €2.4bn to Northern Ireland). In 2021, our total Goods Exports were valued at €165bn, an increase of €3bn over 2021. Goods Exports to the UK in 2021 were valued at €18.1bn (of which €14.4bn was exported to Great Britain and €3.7bn to Northern Ireland).

There are a number of current challenges that are potential obstacles to international trade such as the war in Ukraine, supply side problems, access to talent, Brexit, inflation and the response mechanisms of different countries. The Department and its agencies are working closely together to try to mitigate against challenges for companies through programmes that improve competitiveness, enhance digital capability and through assisting companies to access new opportunities in overseas markets.

Notwithstanding Brexit, Enterprise Ireland clients experienced impressively strong export growth to the UK in 2021 with exports valued at €7.9bn, including a 20% growth in Non-Food exports. New Brexit related rules and paperwork have been challenging for exporters and importers, but most companies have now gained a good understanding of how to navigate any obstacles. In particular, exporters of small consignments are being assisted by Local Enterprise Offices information sessions on customs as well as training offered by other bodies. Enterprise Ireland have also been raising awareness of regulatory change and recently held a webinar for health and beauty clients about labelling and other requirements.

The Government is continuing to closely monitor the impact that both Brexit and COVID-19 are having on imports and exports to and from the UK and other markets. We will continue to help companies diversify and discover new markets and reap the benefits of free trade agreements and work with them to adapt to new realities, both in relation to Brexit and to COVID-19.

Foreign Direct Investment

Ceisteanna (162)

Bernard Durkan

Ceist:

162. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps that are needed and likely to continue to ensure that Ireland remains an attractive location for foreign direct investment; if any particular obstacles have been identified in this regard; and if he will make a statement on the matter. [45387/22]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

Ireland’s reputation as an attractive location for FDI has remained strong, as evidenced by IDA Ireland’s 2022 mid-year results. Ireland won 155 investments up to the end of the second quarter this year, exceeding both 2021 and 2019 investment levels by 9% and 10% respectively, with total investments having an associated employment potential of over 18,000 jobs. Despite this success we must continue our efforts to maintain Ireland’s attractiveness as a location for investment.

To ensure Ireland remains an attractive investment location, IDA Ireland continues to emphasise the core elements of Ireland’s value proposition for FDI. Our strengths, including our pro-enterprise policy environment, highly educated English-speaking workforce and our membership of the European Union, remain attractive to international investors. In addition, IDA Ireland’s strategy for 2021-2024 was developed within the context of our uncertain and challenging environment and positions the Agency to respond. The Strategy is built on the five pillars of Regions, Growth, Transformation, Sustainability and Impact, and it has an ambitious set of targets including 800 investments and 50,000 new jobs. IDA Ireland will assess progress on the strategy and make any adjustments necessary to respond to changes in the global or national environment. My Department is also currently reviewing our broader enterprise policy through the development of a White Paper on Enterprise. In doing so we are reflecting on how we achieved our enterprise success, in addition to considering how we will address the challenges and obstacles ahead. The paper will set out a medium-to-long-term direction for enterprise policy in response to challenges, opportunities and new drivers of growth.

These steps will enable us to address and respond to the numerous challenges and obstacles emerging from our changing global environment such as increased competition for FDI, inflation, rising energy costs, geopolitical issues, decarbonisation and digitalisation.

Foreign Direct Investment

Ceisteanna (163)

Bernard Durkan

Ceist:

163. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which a demand still exists for the location of international call centres in Ireland; and if he will make a statement on the matter. [45389/22]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

The international call centre industry is an important sector in Ireland. Customer experience operations have been a significant employer in Ireland since the 1980s, and in 2019 it was estimated that approximately 56,000 people were employed in this sector.In recent years it has evolved from traditional call centres to language and technology-based customer interaction and customer experience centres, facilitated by the introduction of customer relationship management tools.

Ireland has continued to be a leading location for customer experience related activities due to its highly skilled and motivated multilingual talent base and favourable economic environment. Ireland’s customer experience companies serve key markets in Ireland, the UK, Western Europe, Eastern Europe, and the US and Canada. Increasingly, newer markets in Asia Pacific, Africa, and Latin America are also being served.

In 2019, IDA Ireland, along with Enterprise Ireland and the Customer Contact Management Association, published a transformation strategy for the customer experience sector. That strategy cited technology adoption, people change and services transformation as key areas of focus for the sector to remain competitive against international competition. More recently, IDA Ireland collaborated with the Customer Contact Management Association to host a Team Leader Masterclass at IDA Headquarters to share best practices within the sector.

The role of customer contact centres is evolving, and industry will need to innovate to meet the demands of increasing automation and AI. This will be achieved by providing superior customer experience and by ensuring employee training and technology uplifts align to drive business objectives. In this way, the role of the customer contact centres will continue to grow and evolve in Ireland, ensuring the industry remains strong and is competitively placed on the global stage.

Competition for FDI is intense with virtually every country in the world actively seeking new FDI investments. But where there are customers, there will always be a need for high-quality customer service. In Ireland, we offer investors in this sector skilled employees, international connectivity, as well as strong infrastructure in energy, telecommunications, and services.

IDA Ireland will work with its existing client base to assist and support their growth and expansion in Ireland and will continue to highlight Ireland’s strong value proposition to prospective overseas investors.

Flexible Work Practices

Ceisteanna (164)

Bernard Durkan

Ceist:

164. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress to date in the national remote work strategy; when it is expected to implement any recommendations from same; and if he will make a statement on the matter. [45390/22]

Freagraí scríofa

Tánaiste and Minister for Enterprise, Trade and Employment

My Department published the National Remote Work Strategy on January 15th, 2021. The Strategy identified 15 actions to ensure that remote work is a permanent feature in the Irish workplace in a way that maximises its economic, social and environmental benefits.

My Department led the implementation of the Strategy’s actions through an Interdepartmental Group. The Interdepartmental Group met four times in 2021 and has continued to meet to share information during 2022. The Group will next meet in November. There has been significant progress in implementing the actions outlined in the Strategy which will facilitate remote working for employers and employees both now and into the future. I would highlight the following:

- On 25th January, the Government approved the priority drafting of the Right to Request Remote Working Bill 2022. The new law will set out a clear legal framework around which requesting, approving or refusing such a request can be based. The Bill commenced pre-legislative scrutiny by the Joint Oireachtas Committee for Enterprise, Trade and Employment on 9th February, with the Committee’s final report being published on 7th July. The Government is currently considering the Committee’s recommendations. The Government Bill will be published later this year and it is intended that it be progressed through the Oireachtas as quickly as possible thereafter.

- The publication of the Code of Practice on the Right to Disconnect in April 2021 by the Workplace Relations Commission.

- In Budget 2022, an enhanced income tax deduction for people working from home was announced. It amounts to 30 percent of the cost of vouched expenses for heat, electricity and broadband.

- The Government is investing heavily in remote work infrastructure throughout the country to ensure that communities across Ireland are in a position to benefit from the opportunities presented by increased remote working.

- ConnectedHubs.ie- Ireland’s national digital hub network- was launched by the Department of Rural and Community Development in May 2021. The ConnectedHubs.ie platform will ultimately link over 400 hubs throughout our country. 281 hubs have been onboarded onto the platform to date with this number increasing on an ongoing basis.

- In June, €5m in funding was allocated to 81 projects across the country through the 2022 Connected Hubs Call. This follows the award of almost €9m in funding allocated to 117 projects via the 2021 Connected Hubs Call.

- To date, a total of approximately €100m has been provided by the Department of Rural and Community Development through its various funding streams to support the development of remote working infrastructure across the country. This includes €76 million in funding for projects under the Rural Regeneration and Development Fund (RRDF), many of which involved the regeneration of historic town centre buildings as enterprise centres and co-working hubs.

- My Department launched new Regional Enterprise Plans to 2024 during spring 2022. The plans include a strong focus on promoting remote working opportunities and investing in infrastructures across the nine regions.

- While National Broadband Plan has been impacted negatively by COVID-19, the Department of Environment, Climate and Communications is continuing to engage with National Broadband Ireland to address the delays that have arisen. As a result of actions taken by NBI, the project has been building momentum and month on month increases in Premises Passed are being recorded. This is expected to continue this year and beyond.

- The Civil Service Blended Working Policy Framework was published by the Department of Public Expenditure and Reform on March 31st, 2022, which will help deliver the Programme for Government commitment to move to 20% remote/home working across the sector.

- Ongoing remote work promotion and guidance including advice for employers and employees on best practice, health and safety, equality and skills by a range of agencies including the Health and Safety Authority, Enterprise Ireland, IDA Ireland, Western Development Commission, Údarás na Gaeltachta, Skillnet Ireland and local Education and Training Boards.

- My Department is continuing to develop and promote its Guidance for Working Remotely webpage. This webpage acts as a central access point for employers and employees and brings together the existing State guidance, legislation and advice on remote work into one place. The webpage is a live resource and is updated regularly. The webpage includes an Employer Checklist to provide employers with a quick way to successfully navigate the adoption of remote working arrangements.

- On May 18th, an Irish Government Economic and Evaluation Service (IGEES) research paper was published which found that remote working is likely to have a positive impact on the Irish economy and society. The paper, “An Evaluation of the Impacts of Remote Working” examines the impact of remote working on several key policy areas, finding positive effects on productivity, the environment, regional development, private finances, and labour market participation.

Public Sector Pensions

Ceisteanna (167, 174, 175)

Neale Richmond

Ceist:

167. Deputy Neale Richmond asked the Minister for the Environment, Climate and Communications if he has considered proposals that have been put to him to increase the pensions of those who worked for An Post; and if he will make a statement on the matter. [45240/22]

Róisín Shortall

Ceist:

174. Deputy Róisín Shortall asked the Minister for the Environment, Climate and Communications the reason that a 2% increase for members of the An Post Superannuation Scheme has not been implemented; the timeline that An Post is working towards for implementation of this rate, which was effective from 1 January 2022; and if he will make a statement on the matter. [45391/22]

Patrick Costello

Ceist:

175. Deputy Patrick Costello asked the Minister for the Environment, Climate and Communications when he will sign-off on the agreed pay rise for An Post pensioners; and if he will make a statement on the matter. [45395/22]

Freagraí scríofa

Minister for the Environment, Climate and Communications

I propose to take Questions Nos. 167, 174 and 175 together.

I received a recommendation from my officials on 1 September and granted my consent on 2 September to the payment of an increase of 2% to An Post pensioners with effect from 1 January 2022. The consent of the Minister for Public Expenditure and Reform for the proposal was subsequently provided on 7 September. An Post has been made aware of this and has communicated with the Group of Unions.

An Post formally sought Ministerial approval on 4th May of this year, in accordance with the relevant Code of Practice from the Department of Public Expenditure and Reform (DPER), to increase pensions and deferred pensions (for members of the An Post superannuation scheme) by 2% per annum with effect from 1st January 2022 and up to a further 2% per annum with effect from 1st January 2023.In line with the Code of Practice, NewERA’s views on the proposal were sought. This is to inform the business case required under DPER Circular 16/2021 (setting out the strategic, policy and financial rationale for providing the increases). The process is required to ensure good governance. On 9 August NewERA provided  a recommendation on the proposals and my Department is obliged to be satisfied that the business case is justified,  before the relevant approvals are formally sought from DPER.

NewERA and the Departments worked as quickly as possible to finalise their assessment, in accordance with the governance requirements. This is the same procedure that must be followed for any State body.In relation to the proposed increase for 2023, neither my Department nor DPER is legally permitted to grant pre-approval for a pension increase at this point. An Post has accordingly undertaken to submit that request in 2023 with the appropriate financial and actuarial reports required for further analysis.When this is received the same process will have to be followed, with NewERA’s views and assessment by officials again being required for the 2023 proposed increase prior to the consent of both Ministers being sought.

Question No. 174 answered with Question No. 167.

Question No. 175 answered with Question No. 167.

Road Traffic Accidents

Ceisteanna (176)

Duncan Smith

Ceist:

176. Deputy Duncan Smith asked the Minister for Transport the number of road fatalities by county in which the incidents occurred that have been supplied to his Department by the Road Safety Authority in each of the years 2017 to 2021 and to 9 September 2022, in tabular form. [45220/22]

Freagraí scríofa

Minister of State at the Department of Transport (Deputy Hildegarde Naughton)

Statistics and analysis of road fatalities in Ireland are in the public domain, and are published by the Road Safety Authority (RSA). The Deputy can consult these reports here - Provisional reviews of fatal road collisions. (rsa.ie) - and here - www.rsa.ie/road-safety/statistics/road-collisions-annual-report. The latter reports include county-by-county statistics. As it takes time for analysis of the figures, annual collisions reports are currently available up to 2019 only. The information will become available when the RSA have analysed the data received from An Garda Síochána and the results of inquests.

Public Transport

Ceisteanna (177)

Darren O'Rourke

Ceist:

177. Deputy Darren O'Rourke asked the Minister for Transport the total cost of the recent expansion of the youth travel card discounts to private bus operators; the estimated full-year cost; and if he will make a statement on the matter. [45229/22]

Freagraí scríofa

Minister for Transport

In recognition of the importance of incentivising young people to use public transport, as part of Budget 2022 I secured €25m of funding to provide for the introduction of a young adult card (YAC) which will allow any person nationwide who is between 19 and 23 years old, to avail of an entitlement for discounted travel costs, and to increase the level of discount over and above the current student discount to an average of discount of 50% across all services, including city, intercity and rural services. The YAC was introduced on PSO services on the 9th of May and then extended to participating commercial bus operators on the 5th of September. This will not only promote modal shift in the transport sector among this age group but should also contribute towards a reduced reliance on private transport with associated benefit of transport emission savings.

Any assessment of a proposed change to public transport fare structures is matter for the NTA to consider in the first instance. Therefore, in light of the NTA’s responsibility in this area I have forwarded the Deputy's specific question in relation to the total cost of the recent expansion of the youth travel card discounts to private bus operators and the estimated full-year cost to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working day

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

National Car Test

Ceisteanna (178)

Brendan Howlin

Ceist:

178. Deputy Brendan Howlin asked the Minister for Transport the waiting time for tests in each NCT test centre nationwide; the maximum waiting time that he regards as acceptable; the measures that he has put in place to validate NCT certificates in cases in which the waiting period exceeds the expiry date; and if he will make a statement on the matter. [45235/22]

Freagraí scríofa

Minister of State at the Department of Transport (Deputy Hildegarde Naughton)

The operation of the National Car Testing Service (NCTS) is the statutory responsibility of the Road Safety Authority (RSA). I have therefore referred the 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.

I am very aware of the challenges that the RSA and the NCTS are currently facing to meet demand and the delays which vehicle owners have encountered since the start of this year. This is a serious matter and my department will continue to monitor the RSA's progress in reducing test delays, as part of ongoing corporate governance processes, as well as supporting any appropriate requests from the RSA for assistance.

I am also given to understand that customers seeking test appointments may contact the NCTS directly, by calling 01-4135992, or may avail of the priority waiting list function via the NCT website www.ncts.ie. In the vast majority of cases, these vehicle owners are provided with an appointment within 30 days.

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

Driver Test

Ceisteanna (179)

Mary Lou McDonald

Ceist:

179. Deputy Mary Lou McDonald asked the Minister for Transport the current average driving test wait period in all test centres in tabular form; and if he is satisfied with the variation and length of wait times. [45287/22]

Freagraí scríofa

Minister of State at the Department of Transport (Deputy Hildegarde Naughton)

The operation of the national driving test service is the statutory responsibility of the Road Safety Authority (RSA). Information on the driving test waiting times is held by the RSA. I have therefore referred this part of the 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.

Due to the suspension of driver testing services in the first 2020 lockdown, along with health protocols put in place since resumption and further curtailing of services during subsequent restrictions, a significant backlog developed.

Since public health restrictions have eased, considerable progress has been made in addressing these backlogs, with waiting times having reduced significantly.

Pre-Covid, the target national average wait for a test was 10 weeks. On the eve of the pandemic, however, the actual waiting time was around six and a half weeks. This increased to 25 weeks during the pandemic. The pre-pandemic target of having a national average wait of ten weeks was once again achieved by the end of 2021. Projections made early last year had estimated it would be February 2022 before this point was reached.

At the end of July 2022, the national average time to receive an invitation for a test was just over 10 weeks. At that time there were 13,800 people scheduled to take a driving test and a further 32,700 waiting for their invitation. There has been an increase in application volumes since. While there has been some growth in demand over the summer months and accompanying seasonal capacity constraints, the RSA are confident that current delays within the system will rectify before year end.

In early 2022, the RSA conducted a review of the current and evolving needs of the driver tester service. This recommended that the number of permanent driver testers employed by the RSA should be raised from 100 to 130. My Department considered the RSA’s request and gave its approval in June 2022. This recruitment process is now underway. The RSA hope to see new testers start work in late Autumn.

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

Public Transport

Ceisteanna (180)

Bríd Smith

Ceist:

180. Deputy Bríd Smith asked the Minister for Transport if he will provide a breakdown and rationale for the figures provided by the National Transport Authority for the provision of free public transport given that previous estimates were based only on fare collections from public transport which were considerably lower (details supplied); and if he will make a statement on the matter. [45307/22]

Freagraí scríofa

Minister for Transport

The National Transport Authority (NTA) has the statutory responsibility for the regulation of fares in relation to public passenger transport services and also has statutory responsibility for securing the provision of public transport services by way of public transport services contracts in respect of services that are socially necessary but commercially unviable. The funding of those services comprises both the fares paid by passengers and the subvention payments from the Exchequer. The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.

In light of the Authority's responsibility in this area, I have forwarded the Deputy's question regarding a breakdown and rationale for the figures provided by the NTA in response to PQ No 293 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

Departmental Staff

Ceisteanna (181)

Denis Naughten

Ceist:

181. Deputy Denis Naughten asked the Minister for Transport the number of persons within his Department who received the special leave with pay for Covid-19 up to 1 July 2022; the number of workers who have availed of this payment for an extended period of 12 weeks or more; the number of persons who availed of the special leave with pay for COVID-19 since 1 July 2022; the number of such persons who have been in receipt of this payment in excess of 14 days; and if he will make a statement on the matter. [45327/22]

Freagraí scríofa

Minister for Transport

The number of officers who have availed of Special Leave with Pay for COVID-19, up to 1 July 2022 and therefrom, is set out in tabular form below:

To July 1 2022	No. of officers	No. availed for greater than 12 weeks
	215	1
Since July 1 2022	No. of officers	No. availed for greater than 14 days:
	8	Nil

My Department is committed to providing a safe and healthy workplace for all staff and customers. The arrangements for Special Leave with pay for COVID-19 were introduced by the Department of Public Expenditure and Reform in March 2020 to assist in the prevention of the onward spread of COVID-19 in work premises and are renewed and monitored by that Department in line with expert public health advice.

Airport Policy

Ceisteanna (182)

Róisín Shortall

Ceist:

182. Deputy Róisín Shortall asked the Minister for Transport if the Dublin Airport noise insulation scheme will be extended to an area (details supplied) in Dublin 17 given that residents have reported a greatly-increased level of airport noise disturbance since the opening of the new runway; and if he will make a statement on the matter. [45353/22]

Freagraí scríofa

Minister of State at the Department of Transport (Deputy Hildegarde Naughton)

While I have no role in this process, I can advise the deputy that the Aircraft Noise (Dublin Airport) Regulation Act 2019 (the Act of 2019) established the Aircraft Noise Competent Authority (ANCA). The Act provides a wholly independent aircraft noise regulation process in accordance with EU Regulation 598/2014, ensuring that development at Dublin Airport is subject to assessment and mitigation in respect of the impact of associated aircraft movements on the noise environment around Dublin airport.

ANCA is responsible for ensuring that noise generated by aircraft activity at Dublin Airport is assessed in accordance with EU and Irish legislation and that the 'Balanced Approach' is applied where a noise problem at the airport is identified.

ANCA review planning applications for development at the airport to determine if there is an aspect of the application that would cause an aircraft generated noise problem. It has recently adopted a noise abatement objective (NAO) for Dublin Airport and published its regulatory decision. The NAO is to limit and reduce the long-term adverse effects of aircraft noise on health and quality of life, particularly at night, as part of the sustainable development of Dublin Airport.

ANCA directed the planning authority to include the noise mitigation measure and operating restrictions specified in their regulatory decision as conditions of any decision that the planning authority made.

As part of daa’s application to amend and replace two planning conditions associated with the North Runway, an insulation grant scheme has been proposed. If implemented, the Scheme will provide financial assistance to eligible property owners in the form of a €20,000 grant which can be put towards the cost of noise insulation measures in the bedrooms of eligible properties. Approximately 300 households are located within the noise contour associated with this proposed Scheme.

Fingal County Council's decision on the planning application provides that initial eligibility to a voluntary residential sound insulation grant scheme (RSIGS) for residential dwellings shall apply to all residential dwellings situated within the Initial Eligibility Contour Area map defined by ANCA in its regulatory decision. My understanding is that the estate referenced by the Deputy is not within the contour area.

Under the condition, eligibility for the scheme would be reviewed every two years commencing in 2027 with residential dwellings situated in the 55 dB Lnight contour being eligible under the scheme.

By 31 March 2027 and every two years thereafter, Dublin Airport would update and publish a revised Eligibility Contour Area map identifying all authorised habitable dwellings within the 55 dB Lnight contour in the calendar year immediately preceding the review.

ANCA's role includes a monitoring aspect associated with compliance and implementation of noise mitigation measures and operating restrictions.

Fingal County Council's decision has been appealed to An Bord Pleanála. Current indications are that an appeal decision will be issued by An Bord Pleanála in early January 2023.

Tax Code

Ceisteanna (183)

Michael Healy-Rae

Ceist:

183. Deputy Michael Healy-Rae asked the Minister for Finance his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [45331/22]

Freagraí scríofa

Minister for Finance

At the outset, the Deputy should note that recent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the Finance Act 2019 Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime, despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced). Section 6 of the Finance Act 2019 legislated for a fundamental overhaul of the regime which brought in discount and surcharge rates based on a car’s emissions profile, and is due to commence from 1/1/2023.

There have been arguments surrounding the mileage bands in the BIK structure as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars more integral to the conduct of business receive preferential tax treatment.

The new system takes account of these environmental concerns by reducing the mileage bands from five to four, thus weakening any perverse incentives of increasing mileage to reduce tax liability while still seeking to apply the tax in proportion to the quantum of benefit derived from the car. The new structure with CO2-based discounts and surcharges provides a broad structure to incentivise employers to make greener choices when providing employees with company cars; the system will mean that low-emission vehicles and any EVs that are liable for a BIK charge will benefit from a preferential rate ranging from 9 - 22.5%, depending on mileage. Conversely, high emissions vehicles will be subject to higher rates of BIK. This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2 -based vehicle BIK regimes in other member states.

In addition, Ireland currently has a BIK relief for electric vehicles which is due to continue until end 2025. Further details are available on the Revenue website.

Tax Code

Ceisteanna (184)

Claire Kerrane

Ceist:

184. Deputy Claire Kerrane asked the Minister for Finance if he intends to extend eligibility for the help-to-buy scheme to pre-owned homes for first-time buyers in rural areas given that the availability of new homes is much lower in rural areas than in rural areas and therefore current scheme guidelines may reduce accessibility to the scheme for first-time buyers in rural communities; and if he will make a statement on the matter. [45347/22]

Freagraí scríofa

Minister for Finance

The Help to Buy 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 Section 477C Taxes Consolidation Act 1997.

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 properties which 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 dead-weight element and a high Exchequer cost.

As the Deputy may be aware, a review of the scheme has been undertaken by external consultants. Following that, decisions about the future of the scheme beyond its current sunset date of 31 December 2022 will be taken in the context of Budget 2023.

As we are less than two weeks out from the Budget, it would be inappropriate for me to offer further comment on the matter at this time.

Primary Medical Certificates

Ceisteanna (185)

Rose Conway-Walsh

Ceist:

185. Deputy Rose Conway-Walsh asked the Minister for Finance the progress that has been made regarding the reconvening of the Disabled Drivers Medical Board of Appeal; when the Board is likely to be up and running; and if he will make a statement on the matter. [45192/22]

Freagraí scríofa

Minister for Finance

Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal, effective from 30th November 2021, two Expression of Interest campaigns have been held, seeking suitable candidates for the Board. The Department of Health leads on all actions and tasks with respect to the Expression of Interest Campaigns. Department of Finance officials provide support to the Department of Health in this matter.

The first campaign closed on 29th April. As there were insufficient suitable candidates arising from the first campaign, a second round was issued with a closing date of 5th July 2022. Processes to support the nomination of suitable candidates are nearing completion. Once these processes have been completed the Minister for Finance will then be in a position to appoint any suitable Department of Health nominee to the Board. When the new Board is up and running, it will consider the best way of ensuring outstanding appeals are addressed as quickly as possible.

Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place. Assessments for the primary medical certificate, by the HSE, are continuing to take place.

Commissions of Investigation

Ceisteanna (186)

Catherine Murphy

Ceist:

186. Deputy Catherine Murphy asked the Minister for Finance if his attention has been drawn to aspects of the Commission of Investigation into companies (details supplied) in the context that it is concern expressed regarding the definition of capital loss as used by the Special Liquidator; his views on whether the definition is inconsistent with the concept of prudence, a requirement of European Union company law and that it gives the Special Liquidator an opportunity to withhold from the Commission certain preferential loans to connected parties that are loss making for the taxpayer; and if he has received a copy of a letter dated 23 October 2015 that the Special Liquidator wrote to the Commission on this matter. [45215/22]

Freagraí scríofa

Minister for Finance

I am advised that the Deputy has clarified that the report referred to in this parliamentary question is the Commission of Investigation’s First Interim Report of November 2015, and not the Final Report of the Commission of Investigation published by An Taoiseach on 7 September 2022. While this matter was raised by the Commission of Investigation in its First Interim report, as set out below, I am confident the Commission resolved the concerns to its satisfaction in the interim as this matter is not raised in the Commission’s Final Report.

This First Interim Report (Section 15) identified a concern of the Commission in November 2015 that the definition of “capital loss” adopted by the Special Liquidators may not respond fully to the objectives of the Commission, and noted that the Commission intended to arrive at a concluded view as to the meaning of capital loss.

I understand that the definition of capital loss for the purposes of the Terms of Reference is primarily relevant to identifying which transactions fall to be investigated by the Commission, whether the initially identified 38 transactions, or a greater number which might result from a wider definition of capital loss. It remains to be determined whether other transactions will ultimately be investigated by the Commission of Investigation.

I understand from the Commission’s First Interim Report that the definition of capital loss adopted by the Special Liquidators and provided to the Commission did not include loans in respect of which the underlying security had been sold and the remaining balance had been deemed irrecoverable, unless that balance was written off in the books of the Bank in the Relevant Period, being 21 January 2009 (the date of the nationalisation of IBRC) and 7 February 2013. In its Second Interim Report (Section 2.17 et seq), the Commission confirmed that it had further engaged with the Special Liquidators and also obtained expert advice on the meaning of capital loss as understood in the banking industry. The Commission noted that it would welcome clarification of the intended meaning of the term “capital loss”.

I am advised that this issue was not raised in the Commission’s next ten interim reports, nor in its Final Report, which is some 1376 pages long, plus appendices of a further 165 pages. In the circumstances, it seems reasonable to conclude that the Commission, having considered the matter and taken advice, was satisfied with the definition of “capital loss”.

I note that Judge Brian Cregan, a judge of the High Court, has spent seven years investigating the matters set out in the Terms of Reference approved by the Oireachtas. I am satisfied that the Commission undertook its work diligently and investigated all relevant matters, including taking expert advice where required, and that the SLs assisted the Commission fully and comprehensively. I have no reason to believe that the Special Liquidators in any way withheld information from the Commission. I am satisfied that the definition of capital loss adopted by the Commission was appropriate and I can confirm that the then Minister for Finance did not receive a copy of a letter dated 23 October 2015 from the SLs to the Commission on the matter.

State Savings Schemes

Ceisteanna (187)

Noel Grealish

Ceist:

187. Deputy Noel Grealish asked the Minister for Finance if he will outline the agreement or legislation underpinning the arrangement that An Post is the sole distributor of State savings on behalf of the National Treasury Management Agency; if there are any plans to extend the arrangements to other regulated financial entities; and if he will make a statement on the matter. [45225/22]

Freagraí scríofa

Minister for Finance

The National Treasury Management Agency (NTMA) who manages State Savings have informed me that, State Savings products are offered by the Minister for Finance acting through the NTMA pursuant to the powers conferred on the NTMA by the National Treasury Management Agency Act 1990 and the National Treasury Management Agency Act 1990 (Delegation of and Declaration as to Functions) Order 1990 (S.I. No. 277 of 1990). In respect of deposit accounts, the applicable legislation names An Post as the entity authorised to receive deposits and administer the related accounts (Post Office Savings Bank Acts 1861 to 1958 as amended and Post Office Savings Bank Regulations 1921 as amended).An Post acts as an agent of the NTMA in relation to the sale and administration of State Savings products (except Prize Bonds). The Prize Bond Company, a joint venture between An Post and Fexco, acts as an agent of the NTMA in relation to the operation of the Prize Bond Scheme. The agreements between the NTMA and its agents relating to the foregoing matters are reviewed at regular intervals.

Budget 2023

Ceisteanna (188)

Niamh Smyth

Ceist:

188. Deputy Niamh Smyth asked the Minister for Finance if he is considering a 0% VAT rate for the newspaper industry ahead of Budget 2023 (details supplied); and if he will make a statement on the matter. [45245/22]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decision.