Jennifer Murnane O'Connor
Ceist:154. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if there are any plans to increase the vacant property tax; and if he will make a statement on the matter. [49342/22]
Amharc ar fhreagraVacant Properties
Ceisteanna (154)
Freagraí scríofa
In Housing for All, the Government has set out a suite of incentives available to encourage re-use of properties and increase the supply of housing. While both Revenue data and preliminary Census 2022 data show that vacancy lies within a range that is considered to be in line with a functioning housing market, it is important that the Government acts to ensure all viable housing stock is made available for use.Accordingly, a new Vacant Homes Tax (VHT) will be introduced in 2023. The measure aims to increase the supply of homes for rent or purchase to meet demand, rather than raise revenue.
The VHT will be self-assessed and administered by the Revenue Commissioners. The tax will apply to long-term vacant residential property and will be paid by property owners. A property will be considered vacant for the purposes of the tax if it is occupied for less than 30 days in a 12-month period.The VHT will operate by requiring owners of vacant residential properties to file an annual return declaring that their properties were vacant in the applicable 12-month period and indicating the LPT valuation band/valuation that applies to the property. This will be used to assess their VHT liability.The VHT will share some features with the existing Local Property Tax. The tax will apply to buildings which are residential properties for the purposes of LPT. This means that it will not apply to derelict or properties unsuitable for use as a dwelling which are not captured under the LPT system.
There will be a number of exemptions to ensure property owners are not unfairly charged for temporary periods of vacancy with genuine reasons.
The tax will be charged at a rate equal to three times the property’s existing base Local Property Tax liability – that is, the liability before the application of the Local Adjustment Factor (LAF).
I assume that the Deputy's question refers to the rate to be charged. In setting the appropriate rate for the tax, I believe that care must be taken to get the balance right between achieving the objective of encouraging the use of available housing, but at the same time not being excessively penal on a limited group of property owners.
As this is a new measure, it is important to see how the tax operates after coming into effect, and then make an assessment as to whether it is working. My Department will monitor the tax and if it is not considered to be effective in bringing more properties into use, then I will have no hesitation in reviewing the measure including the rate.
It is anticipated that the VHT will come into effect in 2023. Further detail on the operation of the tax will become available following the publication of the Finance Bill on 20 October.
Budget 2023
Ceisteanna (155)
Jennifer Murnane O'Connor
Ceist:155. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the amount in euros that the new concrete blocks levy will impact the cost of building one home; and if he will make a statement on the matter. [49343/22]
Amharc ar fhreagraFreagraí scríofa
As was announced in my Budget 2023 speech last Tuesday, September 27th, I propose to introduce a levy on concrete blocks, pouring concrete and certain other concrete product which are used in the construction of buildings.
This levy will be set at a rate of 10% on the price of the concrete product, and will apply at the point of first supply of the product in the State. The levy will apply from 03 April 2023.In line with a Government Decision taken in November 2021, the target revenue of €80 million per annum generated from this levy is to contribute towards offsetting the cost to the Exchequer, and so the tax-payer, of the Defective Concrete Blocks (Mica) Redress Scheme.
The Department of Housing, Local Government and Heritage have had a bottom up scientific analysis carried out by an independent Construction Economics Cost Consultant.
They estimate that, taking account of the variables involved, the impact of the levy on construction costs would be between €800 to €1,600 for a typical 3 bed semi-detached or €750 to €1,100 for a 6 floor apartment block with basement. For a typical dwelling this is an increase in of approximately 0.4% - 0.9% in cost.
When soft costs including cost of finance, fees, risk and contingency are included the impact on range for a typical dwelling is €1400 to €2,200 and for a typical apartment is €1300 to €2100, so the increase in costs remains at approximately 0.4% to 0.9% with soft costs included.
Departmental Contracts
Ceisteanna (156)
Paul Murphy
Ceist:156. Deputy Paul Murphy asked the Minister for Finance if he will confirm the contracts that his Department has with top security. [49262/22]
Amharc ar fhreagraFreagraí scríofa
I can inform the Deputy that my Department does not have any contracts with the company named.
The Deputy will be aware that the ‘National Public Procurement Policy Framework’, issued by the Office of Government Procurement (OGP) in November 2019, sets out the procurement procedures to be followed by government departments and state bodies in accordance with EU rules and national guidelines. My Department operates its procurement practices in line with these procedures when seeking to purchase works, goods, or services from suppliers.
Data Centres
Ceisteanna (157)
Paul Murphy
Ceist:157. Deputy Paul Murphy asked the Minister for Finance if data centres will be able to avail of the temporary business energy support scheme. [49153/22]
Amharc ar fhreagraFreagraí scríofa
I indicated in my Budget speech that I would be introducing a Temporary Business Energy Support scheme (TBESS) to assist businesses with their energy costs over the winter months.The scheme is being designed to be compliant with the EU state aid temporary crisis framework and will need to be approved by the EU Commission in advance of making payments.
The TBESS will be open to businesses that carry on a Case I trade, are tax compliant and have experienced a significant increase in their natural gas and electricity costs. The scheme will be administered by the Revenue Commissioners and will operate on a self-assessment basis. Businesses will be required to register for the scheme and to make claims within the required time limits.It is proposed that the scheme will operate by comparing the average unit price for the relevant bill period in 2022 with the average unit price in the corresponding reference period in 2021. If the increase in average unit price is more than 50% then the threshold has passed and the business is eligible for support under the scheme. A business who has not seen an increase of 50% over the period will not be eligible for the scheme. This means, for instance, larger corporates who have the purchasing power to enter into favourable forward pricing arrangements and have not seen an increase of 50% of 2021 prices, will not be eligible for support under the scheme. Once eligibility criteria are met, the support for businesses will be calculated on the basis of 40% of the amount of the increase in the bill amount. A monthly cap of €10,000 per trade will apply and an overall cap will apply on the total amount a business can claim in accordance with the State Aid Temporary Crisis Framework .
Where a business meets all of the criteria for the scheme, they may apply for support under the scheme subject to the applicable caps.
The operational details of the scheme are being worked through by officials and will be available soon.
Budget 2023
Ceisteanna (158)
Michael Healy-Rae
Ceist:158. Deputy Michael Healy-Rae asked the Minister for Finance if he took into account the cost of haulage when he proposed the 10% levy on concrete products (details supplied); and if he will make a statement on the matter. [49154/22]
Amharc ar fhreagraFreagraí scríofa
As was announced in my Budget 2023 speech last Tuesday, September 27th, I propose to introduce a levy on concrete blocks, pouring concrete and certain other concrete products, which are used in the construction of buildings. This levy will be set at a rate of 10% on the price of the concrete product, and will apply at the point of first supply of the product in the State. It will apply from 03 April 2023.
This follows on from a Government Decision of November 2021 which approved an enhanced redress scheme for households which have been impacted by the use of defective concrete products in the construction of their homes.
That Government decision also agreed to the development of a levy so that the construction industry would make a contribution that would go some way to offset the significant costs of the Defective Concrete Blocks (Mica) Redress Scheme, which is currently estimated at €2.7 billion. The levy is designed to raise a target revenue of €80 million per annum.
Further detail on the levy, and in particular in regards to the specific products it will apply to will be set out in the Finance Bill 2022 when that is published on 20 October.
Vehicle Registration Tax
Ceisteanna (159)
Marian Harkin
Ceist:159. Deputy Marian Harkin asked the Minister for Finance if he will provide the statistics on vehicles (details supplied) from May to August 2022 inclusive in tabular form; and if he will make a statement on the matter. [49158/22]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that its approach to enforcement of the law relating to Vehicle Registration Tax (VRT) is that in each instance where a failure to comply with the relevant legal requirements is detected, the matter is dealt with in a manner that is fair and proportionate in the circumstances of the particular case. Section 5.4.2 of the VRT Enforcement Manual gives examples of the forms of action appropriate in the various situations that a Revenue Officer may encounter.
In certain instances, a warning will be given or a VRT Demand Notice issued in accordance with Section 5.5 of VRT Enforcement Manual.
A vehicle may be detained under section 140(3) of the Finance Act 2001 where an Officer has reasonable suspicion that the vehicle has not been registered in the State, has been converted and a declaration of conversion has not been made, or VRT has not been paid. It may be detained for such period as is required by the Officer to carry out enquiries to determine whether such vehicle has been registered, such declaration has been made or such VRT has been paid. The period of detention is the earlier of the period of time taken to make such enquiries or on the expiration of a period of one month.
Where an Officer forms the view that a person is a resident of the State and in possession of an unregistered vehicle contrary to section 139 of the Finance Act 1992, and that the person has had the vehicle in the State for in excess of a 30-day period, the vehicle may be lawfully seized in accordance with Section 141 of the Finance Act 2001.
Depending on the circumstances of the particular case, an Officer may offer release of the vehicle at the roadside pursuant to the provisions of s.144(2) of the Finance Act 2001 on payment, of a compromised sum.
I am advised by Revenue that the number of warnings issued, detentions, vehicles seized for VRT related offences and the number of cases where a compromise sum was paid for the months of May to August 2022, inclusive, is set out in tabular form below:
|
2022 |
Warnings |
Detentions (S.140 FA 2001) |
Seizures (S. 141 FA 2001) |
Vehicles restored pursuant to S. 144 (2) FA 2001 on payment of a compromise penalty |
Vehicles released pursuant to S. 144 (3)(a) FA 2001 on payment of a compromise penalty |
Total Value of compromise penalties € |
|
May |
31 |
3 |
83 |
82 |
- |
77,255 |
|
June |
16 |
- |
70 |
70 |
1 |
39,796 |
|
July |
7 |
2 |
71 |
66 |
1 |
72,744 |
|
August |
1 |
3 |
73 |
67 |
- |
50,699 |
Departmental Contracts
Ceisteanna (160)
Mick Barry
Ceist:160. Deputy Mick Barry asked the Minister for Finance if his Department has any contracts with a company (details supplied); and if he will make a statement on the matter. [49165/22]
Amharc ar fhreagraFreagraí scríofa
I can inform the Deputy that my Department does not have any contracts with the company named.
The Deputy will be aware that the ‘National Public Procurement Policy Framework’, issued by the Office of Government Procurement (OGP) in November 2019, sets out the procurement procedures to be followed by government departments and state bodies in accordance with EU rules and national guidelines. My Department operates its procurement practices in line with these procedures when seeking to purchase works, goods, or services from suppliers.
Departmental Bodies
Ceisteanna (161)
Michael Ring
Ceist:161. Deputy Michael Ring asked the Minister for Finance the name, function and establishment date of all the organisations and agencies that are funded by his Department; the number of employees in each; the salary of the chief executive in each organisation and agency; and if he will make a statement on the matter. [49185/22]
Amharc ar fhreagraFreagraí scríofa
Two of the bodies under the aegis of my Department are fully funded, and one is partially funded, from my Department’s voted expenditure. Details of these three bodies are set out below.
The Disabled Drivers Medical Board of Appeal (DDMBA) was established in 1989 to act as an appeals body for those applicants refused a Primary Medical Certificate by the HSE in respect of the Disabled Drivers and Disabled Drivers (Tax Concessions) scheme. The DDMBA are a board of medical practitioners and have no employees or premises. The DDMBA operate through the National Rehabilitation Hospital (NRH), who provide all functions, including facilities, infrastructure and staffing, to facilitate the DDMBA in carrying out its remit. The costs are then reimbursed to the NRH by my Department. €370,000 has been provided for in Vote 7 annually in respect of the DDMBA in recent years. As the Deputy will be aware, 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.
From these campaigns, three suitable candidates have been identified and are being Garda vetted. It is hoped to interview two other candidates shortly.
The Credit Union Advisory Committee (CUAC) advises me, as Minister for Finance, on the improvement in the management of credit unions and other matters relating to credit unions. It was established under Section 180(3) of the Credit Union Act 1997 and has 7 part-time members. Annual fees and any expenses incurred by the Committee members are paid by my Department.
The Financial Services and Pensions Ombudsman (FSPO) was established on 1 January 2018 by the Financial Services and Pensions Ombudsman Act 2017. Its role is to resolve complaints from consumers, including non-personal customers, businesses and other organisations, about the conduct of regulated financial service providers and pension providers. The FSPO has 88 employees and the salary of the Chief Executive Officer is €166,318. It should be noted that the expenses incurred by the Ombudsman in the performance of his functions in so far as they relate to the investigation of complaints regarding pension providers are paid out of voted expenditure. The majority of the FSPO’s funding is by means of a levy paid by the financial services industry with a proportion of the FSPO’s funding provided by the Exchequer based on the ratio of pensions-related complaints to financial services complaints, and is 5% for 2022.
Tax Rebates
Ceisteanna (162, 163)
Michael Healy-Rae
Ceist:162. Deputy Michael Healy-Rae asked the Minister for Finance if contractors working on public works contracts will be able to recover the additional cost of the proposed tax on concrete and concrete products from the taxpayer; and if he will make a statement on the matter. [49261/22]
Amharc ar fhreagraMichael Healy-Rae
Ceist:163. Deputy Michael Healy-Rae asked the Minister for Finance the projected increase in gross costs of public works contracts due to the proposed tax on concrete and concrete products. [49263/22]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 162 and 163 together.
The Deputy will be well aware of the difficult issues facing households in parts of this country who were badly affected by defective concrete products, which were used in the construction of their homes.
That is why this Government has put in place a comprehensive redress scheme to support them. The scheme is currently estimated to cost the exchequer in the region of €2.7 billion euro. This is on the basis that it will support approximately 7,500 affected householders.
A redress scheme of this scale and nature is only possible if industry make a contribution. That is why the Government also decided last November that a levy should be put in place so that the construction industry would make a contribution that would go some way to offset the significant costs.
I announced this levy during my budget 2023 speech. It will be set at a rate of 10% on concrete blocks, pouring concrete and certain other concrete products. It will apply from 03 April 2023 and is intended to raise in the region of €80 million per annum.
The levy will be applied to all in scope products irrespective of whether they are used in public works or not. The full range of in scope products was detailed in Annex C the Budget Day publication “Budget 2023: Tax Policy Changes” which is available at www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.
Question No. 163 answered with Question No. 162.
Consumer Protection
Ceisteanna (164)
Paul Kehoe
Ceist:164. Deputy Paul Kehoe asked the Minister for Finance if a response will issue to guidance sought by a person (details supplied); and if he will make a statement on the matter. [49275/22]
Amharc ar fhreagraFreagraí scríofa
An individual wrote to me on 12 August 2022 and on subsequent dates (the latest of which was 8 September 2022) regarding an alleged breach of section 129 of the Consumer Credit Act 1995 and a reply issued on 31 August 2022. While the Deputy has not provided sufficient information to precisely identify the person he is referring to it is presumed that this is the correspondence to which he refers.
As indicated to the correspondent, the Central Bank of Ireland is independent in the performance of its statutory enforcement functions and the Minister cannot instruct the Central Bank to initiate or not initiate any particular enforcement action. Such a decision is one solely for the Central Bank in the light of all the relevant and appropriate circumstances of a particular case.
Departmental Correspondence
Ceisteanna (165)
Brendan Griffin
Ceist:165. Deputy Brendan Griffin asked the Minister for Finance further to Parliamentary Question No. 433 of 12 July 2022, if advice will be provided (details supplied); and if he will make a statement on the matter. [49279/22]
Amharc ar fhreagraFreagraí scríofa
This PQ has been submitted to both myself and my colleague the Minister for Housing, Local Government and Heritage, Darragh O'Brien TD, however as the levy is of itself a tax matter I will be providing the one answer made to this question.
As was announced in my Budget 2023 speech I propose to introduce a levy on pouring concrete, concrete blocks and certain other concrete products, which are used in the construction of buildings. The full range of in scope products was detailed in Annex C the Budget Day publication “Budget 2023: Tax Policy Changes” which is available at www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.
This levy will be set at a rate of 10% on the price of the concrete product, and will apply at the point of first supply of the product in the State. The levy will be applied from 03 April 2022.
In line with a Government Decision taken in November 2021, the target revenue of €80 million per annum generated from this levy is to contribute towards offsetting the cost to the Exchequer, and so the tax-payer, of the Redress Scheme which was put in place to support affected households.
Further detail on the levy, and in particular on how it is to be applied will be set out in the Finance Bill 2022 when that is published on 20 October.