Written Answers Nos. 52-71
52. Deputy John Paul Phelan asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will report on his Department's public consultation on collective bargaining; the number of submissions that his Department received; and if he will make a statement on the matter. [52260/22]
Amharc ar fhreagraIn March 2021 I set up the High-Level Group on Collective Bargaining under the auspices of the Labour Employer Economic Forum (LEEF) to review collective bargaining and the industrial relations landscape in Ireland.
As part of that review, my Department ran a consultation process over a three-week period in May/June 2022 seeking views on proposals that were being considered by the High Level Group.
Nine submissions were received during this period.
53. Deputy John Paul Phelan asked the Tánaiste and Minister for Enterprise, Trade and Employment the level of engagement that his Department has had on the European Union Chips Act; the impact that it will have on the semiconductor industry; and if he will make a statement on the matter. [52268/22]
Amharc ar fhreagraSemiconductors are ubiquitous in our daily lives and we need them in almost every vital sector and service. Recent supply chain challenges have revealed structural vulnerabilities in the European semiconductor value chain, exposing Europe’s dependency for supply on a limited number of companies, many of which are located outside of the EU.
On the 8th of February the European Commission announced the proposal for a regulation of the European Parliament and of the Council establishing a framework of measures for strengthening Europe’s semiconductor ecosystem (Chips Act). Since that date, officials from my Department have been engaged in discussions on the text through the Competitiveness and Growth (Industry) Working Party within the Council of the European Union and have provided written comments on the original proposal and three further compromise texts. The proposal was also included on the agenda of the Competitiveness Council for a progress report and policy debate in June 2022.
Since the initiative was announced, my Department has also conducted a public consultation to consider views from Irish stakeholders. The results of that consultation, which took place in March 2022, can be found on the Departmental website. While negotiating the precise form of the new Regulation, my Department has also engaged extensively with colleagues across the European Union Member States as well as with colleagues across Government, the enterprise agencies, industrial representative groups, and industry too.
The current Czech Presidency included the Chips Act proposal a priority for their term and aims to achieve a general approach by the 1st December 2022.
As negotiations are ongoing, it is too early to comment on the possible impact of the measure on the semiconductor industry. Nevertheless, the Government welcomes the overall goals of strengthening the European semiconductor ecosystem and strengthening the resilience of this important industry. The semiconductor industry is of considerable importance to Ireland and we are recognised as a European centre of excellence in the manufacture of semiconductors as well as in research and development. There are over 20,000 people currently employed in the Ireland’s semiconductor industry and the latest figures show that we export €13.5bn worth of products annually.
54. Deputy Ged Nash asked the Tánaiste and Minister for Enterprise, Trade and Employment if he plans to introduce a new fund for capital investment and expansion of existing enterprise centres; and if he will make a statement on the matter. [52388/22]
Amharc ar fhreagraEnterprise Centres provide important infrastructure for entrepreneurs and are an essential part of the start-up ecosystem across Ireland. The Centres, many of which are regionally based, provide space, mentoring and support to start-up founders and teams, helping them to scale internationally.
To date, my Department has provided funding of €250 million administered by Enterprise Ireland to support the establishment of some 270 Enterprise Centres throughout Ireland, of which approximately 40 of these Centres originated from the Regional Enterprise Plans.
This investment has enabled the establishment of physical space for entrepreneurs, start-ups, scaling companies, SMEs and a balance of small scale FDI. This has enabled the delivery of enterprise relevant programmes to companies and the provision of physical spaces to support remote working.
Since 2017, Enterprise Ireland has administered Departmental funding to 91 projects totalling €16.4 million under both the Regional Enterprise Development Fund and the Community Enterprise Centres Schemes.
€8.24 million in grants, administered through Enterprise Ireland, for 95 Enterprise Centres around the country was provided in November 2020 ensuring that these Enterprise Centres, many of which had been negatively impacted by COVID-19, could sustain their businesses, pivot and further develop their services, to continue to assist the development of our start-up companies. Together with the €5 million ‘Regional Development Feasibility Fund’ in 2022 which was available to promoters seeking to scope out and investigate the viability of larger full-scale projects such as remote working hubs.
In addition, over the next 20 years, advances in digital technologies will transform the enterprise potential across the country, particularly in our smaller towns and rural areas. To maximise those opportunities, co-working spaces (or “eHubs”), are envisaged under Project Ireland 2040 as part of an ongoing suite of measures to encourage greater levels of collaboration between entrepreneurs in accessing available supports and assistance in helping to make their businesses grow.
There are a broad range of other hub-type facilities, both publicly and privately funded, around the country including Community Enterprise Centres and incubator/accelerators that are being considered by the National Hub Network Working Group in their mapping of a national network of remote working facilities.
My Department in inputting to work underway led by the Department of Rural and Community Development (DRCD) to map regional hubs and develop a National Hub Network strategy.
The DCRD has invested significantly in remote working infrastructure & connectivity through the Broadband Connection Point Network initiative and a number of programmes and schemes including the Town and Village Renewal Scheme, the Rural Regeneration and Development Fund and the Leader Programme.
In addition, a further allocation of €3 million in Budget 2023 was announced for the European Digital Innovation Hubs as part of the EU Digital Europe Programme which will provide over time a total of €13.4 million in funding to Ireland focused on bringing digital technology to businesses, SMEs, citizens and the public sector.
55. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications the current status of Ireland's implementation of the eIDAS regulation; and if he will make a statement on the matter. [52272/22]
Amharc ar fhreagraEU Regulation 910/2014 on electronic identification and trust services for electronic transactions in the internal market (eIDAS) sets out to harmonise digital interoperability within the EU by establishing a cross-border framework for trusted digital identities and trust services. While the Regulation has direct effect in Member States, there are a number of implementation requirements - namely the supervision of trust services, which falls to my Department and also electronic identification (eID), which falls to my colleague the Minister for Public Expenditure and Reform and the Office of the Government Chief information Officer (OGCIO). In 2020, I agreed to the designation of the communications regulator ComReg as the relevant supervisory body to oversee trust service providers in Ireland and work is underway to give effect to this in legislation. The OGCIO advises that the electronic identification (eID) interoperability infrastructure consisting of a national access point (called an eIDAS Node) which allows EU citizens to use their voluntarily notified eIDs to access public services in Ireland has been installed and configured, thereby meeting Ireland’s basic interoperability obligations of the Regulation. Separately, it can be noted that a revision of the 2014 eIDAS Regulation is currently being considered at EU level through a proposal called the European Digital Identity Framework Regulation.
56. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications if he will clearly outline the Government's plan to ensure security of supply of energy during the winter months; and if he will make a statement on the matter. [52261/22]
Amharc ar fhreagraThe Commission of Regulation of Utilities which has statutory responsibility to ensure security of supply, has the duty to monitor electricity supplies and to take sure measures as it considers necessary to protect the security of supply. It is assisted in its role by EirGrid, the electricity transmission system operator, and my Department. The CRU currently has a programme of actions underway to ensure the security of our electricity supply over the coming winters. The Security of Supply Programme of actions contains a number of both demand and supply side mitigation measures. These actions include; procurement of new, enduring capacity through a number of capacity auctions; procuring additional temporary generation; extending the availability of existing generation capacity; additional use of grid-scale batteries; and improved demand side measures. On 27 June 2022, the CRU published an update on the actions within the programme and this is available on their website. As part of this programme, the Government enacted legislation in July of this year and approved capital funding to support EirGrid’s role in expediting the delivery of temporary generation capacity.
Margins will remain tight during this coming winter period (2022/2023). The CRU is continuing to work with key stakeholders to implement appropriate mitigation measures to further reduce risks during this winter and lower peak demand during this period.
The Deputy may wish to note that CRU provides a dedicated email address for Oireachtas members, which enables them to raise questions to CRU at oireachtas@cru.ie for timely direct reply.
57. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications if he will report on the latest work of the energy security emergency group; and if he will make a statement on the matter. [52262/22]
Amharc ar fhreagraIn March of this year the Energy Security Emergency Group (ESEG) was established to coordinate Ireland’s response to the impacts of the war in Ukraine on our energy system. This ESEG is chaired by my Department and includes relevant State bodies and Departments.
The ESEG has met regularly since its creation and is supported by the work of a number of subgroups which focus on specific areas such as electricity and gas security of supply, oil security of supply, and communications.
The work of the group includes implementing the National Energy Security Framework, ensuring emergency plans are up to date and stress tested, identifying regulatory and other measures to support consumers (particularly financially vulnerable households) and businesses, ensuring security of energy supply, and reducing dependence on imported fossil fuels.
Meeting minutes which provide and overview of the activities of the group are uploaded regularly my Department's website at the following link: www.gov.ie/en/publication/de3cf-energy-security-emergency-group-eseg/.
58. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications the implications that the United Kingdom's Office of Gas and Electricity Markets’ warning of a significant supply shortage of natural gas could have on Ireland's gas supplies from the United Kingdom; if current contractual agreements will be affected as a result of a shock in supply; and if he will make a statement on the matter. [52264/22]
Amharc ar fhreagraThe UK, from where around three quarters of Ireland’s gas comes, has a diverse source of gas supplies. The UK National Grid Gas Winter Outlook Report 2022 published this month sets out that the Great Britain gas network has significant flexibility in its infrastructure, with a potential capability in excess of the anticipated peak demand that can be reasonably assumed during the winter period. In the event of a Natural Gas Supply Emergency being declared by the Network Emergency Coordinator (NEC) in Great Britain, the Moffat Interconnector will be treated by National Grid the same as a distribution network in Great Britain. In the event of a curtailment on the National Grid network, any reduction in supply to the Moffat Interconnector would be based on the principle of proportionality . This procedure is documented between National Grid and Gas Networks Ireland and is tested on an annual basis during the NEC annual emergency exercises, most recently in October 2022.
59. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications when he intends to publish a public consultation into the usage of direct lines and private wires; the reason that this consultation has been delayed; and if he will make a statement on the matter. [52266/22]
Amharc ar fhreagraThe Climate Action Plan 2021 includes a commitment to review the policy position on the development of private networks/direct lines (Action 115). A consultation paper on policy options for private wires was due to be published in Q1 of this year. Unfortunately, the consultation was delayed. However, work on progressing this matter is ongoing within my Department and a consultation will issue shortly.I appreciate that private wires/direct lines are an issue that is of interest and importance to many stakeholders. Publishing a consultation and, ultimately, providing a clear policy position on the issue of private wires/direct lines is a priority for my Department. My officials look forward to engaging with interested stakeholders as they continue to develop this important policy area.
60. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications if he will report on his Department's consultation on producing a national hydrogen strategy for Ireland; when such a strategy will be produced; and if he will make a statement on the matter. [52269/22]
Amharc ar fhreagraTo inform the development of a hydrogen strategy for Ireland, stakeholder views were sought on the broad landscape of potential hydrogen supply, infrastructure, storage, and demand in Ireland, as well as the potential export opportunities for hydrogen. The consultation paper set out various areas of interest to be considered in the development of the hydrogen strategy and invited stakeholders’ responses on specific questions to be answered in this regard. Preparation of the strategy document has begun, and analysis is ongoing of the 122 responses that were received during the public consultation, with a view to publication of the strategy before year-end. All submissions and views received are being considered during this process, and these will be published on the gov.ie website as set out at the launch of the consultation.
61. Deputy John Paul Phelan asked the Minister for the Environment, Climate and Communications the level of engagement that his Department has had with the Department of Housing, Local Government and Heritage in the context of reviewing planning laws pertaining to renewable energy developments; and if he will make a statement on the matter. [52270/22]
Amharc ar fhreagraMy officials engage on an ongoing basis with officials in the Department of Housing, Local Government and Heritage on all aspects of the planning system as it relates to the transition to renewable energy, at both a policy level, and on various legislative provisions.
A recent example of positive collaboration in this respect being the new regulations made by the Minister for Housing, Local Government and Heritage that significantly expand the planning exemptions for the installation of solar panels on the rooftops of houses and certain non-domestic buildings. These exemptions are aimed at increasing Ireland’s generation of solar energy and combating climate change. It supports a target of installing up to 380MW of microgeneration capacity as part of Ireland’s overall solar targets under the Climate Action Plan.
My Department also participates in the inter-departmental working group run by the Department of Housing, Local Government and Heritage in respect of the review of the Planning and Development Act, 2000 (as amended) and that Department participates in a cross-Government / agency working group run by my officials in respect of the transposition of the relevant aspects of the Renewable Energy Directive into Irish law. The National Energy Security Framework also contains a commitment for both Departments to work together to ensure that the planning system fully supports the transition to renewable energy in the interests of energy security, as expressed in Response 25 of same.
Our Departments will continue to engage collaboratively on these issues in order to enable Ireland to achieve a 51% reduction in overall greenhouse gas emissions by 2030 and setting us on a path to reach net-zero emissions by no later than 2050, as committed to in the Programme for Government and set out in the Climate Act 2021.
62. Deputy Paul Murphy asked the Minister for the Environment, Climate and Communications if the Government will endorse the civil-society proposal for a fossil fuel non-proliferation treaty to manage a fair and rapid phase-out of fossil fuels, support workers and communities, and transition rapidly to renewable energy, approaching COP27; if the Government will support the need for additional finance to pay for "loss and damage" in the global south, and demand the formal establishment and collective financing of a UN loss-and-damage finance facility; and if he will make a statement on the matter. [52286/22]
Amharc ar fhreagraLoss and damage is a priority for Ireland’s work on climate change. Ireland’s position is that we urgently need to scale up and improve access to climate finance to reach those most vulnerable to the impacts of climate change. There is a clear need for increased finance to avert, minimise and address loss and damage when devastating droughts, heat waves, floods, extreme weather events, and rising sea levels destroy lives, livelihoods, and homes. These impacts of climate change are already causing mass displacement, submerging national heritage sites, and causing entire communities to lose their way of life. At COP26, Ireland committed to more than double its climate finance to €225million a year by 2025 to support developing countries, as well as pledging €5million to support operationalising the Santiago Network to catalyse the technical assistance of relevant organisations, bodies, networks and experts, for the implementation of appropriate approaches to averting, minimising and addressing loss and damage at the local, national and regional levels, in developing countries that are particularly vulnerable to the adverse effects of climate change. Looking to COP27, Ireland supports progressing dialogue on finance for loss and damage and encourages parties to maximise the value of the Glasgow Dialogue, seeing it as a valuable space for analysis of needs, gaps, and opportunities. Ireland is also ready to work with key stakeholders across the humanitarian, development, and climate sectors, including financial institutions whose existing work is relevant in this space. Through the Climate Action and Low Carbon Development (Amendment) Act 2021, Ireland has closed the door on new oil and gas exploration activities. Ireland is committed to enabling sustainable climate resilient development using clean and renewable energy sources and will promote and support measures at an international level which avoid locking in further long-term fossil fuel consumption. To this end, Ireland joined the Beyond Oil and Gas Alliance (BOGA) at COP26 to promote dialogue on the need for a managed and just phase-out of oil and gas production. As a core member, Ireland looks forward to actively participating in progressing BOGA priorities this year.
63. Deputy Chris Andrews asked the Minister for Transport if planning permission has been approved for the new BusConnects route due to travel down Highfield Road, Rathgar, Dublin 6; the number of stops in total that will be installed on this road; and if residents were given prior notice before construction work recently commenced. [52139/22]
Amharc ar fhreagraAs 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 the planning and development of public transport infrastructure in the Greater Dublin Area, including BusConnects Dublin.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
64. Deputy Thomas Gould asked the Minister for Transport the number of HGV driving tests provided in 2020, 2021 and to date in 2022, in tabular form. [52156/22]
Amharc ar fhreagraThis is a matter for the Road Safety Authority. I have referred the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.
65. Deputy Pádraig O'Sullivan asked the Minister for Transport if he has engaged with the National Transport Authority concerning the reliability of buses in Cork (details supplied); and if he will make a statement on the matter. [52226/22]
Amharc ar fhreagraAs 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 issue raised by the deputy in relation to the reliability of buses in Cork is an operational matter for Bus Éireann.
I have, therefore, referred the Deputy's question to the company for direct reply. Please advise my private office if you do not receive a reply within ten working days.
66. Deputy Pauline Tully asked the Minister for Transport if his attention has been drawn to reports that taxis for disabled persons in Dublin often do not turn up even when booked well in advance; his views on the adequacy of access to taxi services for disabled persons in Dublin; if he will consider introducing measures to prevent taxi owners who have received State funding to convert their vehicles for wheelchair access, from not turning up after taking a booking from a disabled person; and if he will make a statement on the matter. [52329/22]
Amharc ar fhreagra67. Deputy Pauline Tully asked the Minister for Transport if he will detail the membership of the advisory committee on SPSVs; if this committee has any members who are representing disabled persons’ organisations; if this committee has consulted with any disabled persons’ organisations; the names of the disabled persons’ organisations that the committee has consulted with; if the issue of taxis not turning up after taking bookings from disabled persons has been discussed by this committee; and if he will make a statement on the matter. [52330/22]
Amharc ar fhreagraI propose to take Questions Nos. 66 and 67 together.
The regulation of the small public service vehicle (SPSV) industry, including SPSV licensing, as well as matters of enforcement and compliance in the SPSV sector, is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the consolidated Taxi Regulation Acts 2013 and 2016. I am not involved in the day-to-day operations of the SPSV sector.
As the Deputy may be aware, the NTA held a public consultation recently on the proposed Small Public Service Vehicle (Fixed Payment Offences and Driver Licence Period) Regulations. The main purpose of the Regulations is to amend Schedule 8 of the Taxi Regulation (Small Public Service Vehicle) Regulations 2015 (SI. No. 33 of 2015) in relation to the prescribed amounts for fixed payment offences, and the addition of a prescribed amount for offences in relation to unreasonable refusal to provide services to a passenger seated in their wheelchair. 47 submissions were received which the NTA will evaluate before the Regulations are made.
Regarding the Advisory Committee on SPSVs, Section 72 (4) (e) of the Taxi Regulation Act 2013 stipulates that membership of the Commitee will include at least one person representing the interests of persons with disabilities. At present, the National Advocacy Manager for the Irish Wheelchair Association represents the interests of persons with disabilities on the Committee.
The Advisory Committee has been and will remain the central focus of engagement with the SPSV sector in relation to issues affecting the sector. The Committee's function is to provide advice to the NTA and myself, as Minister for Transport, on issues relating to the sector. The Committee's membership represents a broad range of interests and stakeholders, including four positions for SPSV drivers. The Committee is the primary forum for dealing with issues affecting the sector and many of the measures taken to date have originated as recommendations from the Committee.
The table below outlines the current membership of the Taxi Advisory Committee:
|
Mr. Cornelius O’Donohoe |
Chairperson |
|
Mr. Alan Cooley |
representing small public service vehicle and driver interests |
|
Mr. Francis Doheny |
representing small public service vehicle and driver interests |
|
Mr. John Murphy |
representing small public service vehicle and driver interests |
|
Mr. Paul Gregan |
representing small public service vehicle and driver interests |
|
Mr. Brendan O'Brien |
representing local authorities |
|
Superintendent Thomas Murphy |
An Garda Síochána representative |
|
Mr. James Cawley |
representing the interests of consumers |
|
Ms. Michelle Reid |
representing the interests of consumers |
|
Ms. Joan Carthy |
representing the interests of persons with disabilities |
|
Ms. Ann Campbell |
representing the interests of business |
|
Ms. Mai Quaid |
representing the interests of older persons |
|
Mr. Al Ryan |
representing the interests of tourism |
|
Mr. James O’Brien |
representing special interest or expertise |
|
Mr. Noel Ebbs |
representing special interest or expertise |
|
Ms. Fiona Brady |
representing special interest or expertise |
|
Mr.Shajedul Chowdhury |
representing small public service vehicle and driver interests |
68. Deputy Carol Nolan asked the Minister for Transport if he will consider amending regulations or relevant legislation to enable Irish citizens in possession of full driving licence in a foreign country but whose licence has expired by more than 12 months, to be able to obtain an Irish driving licence or a provisional driving licence without the need to fulfil all the conditions including retaking lessons and a driving test in Ireland; and if he will make a statement on the matter. [52363/22]
Amharc ar fhreagraIrish driver licensing law operates within EU law and is intended to ensure drivers on our roads meet high safety standards. The format of driving licences, categories of vehicles, and the standards to be met in driving tests to qualify for a licence are all set out at EU level. A person resident in Ireland must have an Irish/EU driving licence to drive here.
For non-EU jurisdictions, Ireland may make bilateral agreements on licence exchange. A person must be in possession of a valid licence in order to exchange it. The concession that the foreign licence has expired by no more than 12 months is considered ample time to allow for the licence exchange to be made. When people come to Ireland with a non-exchangeable licence, we have no option but to require them to go through the full process of obtaining an Irish licence.
69. Deputy Róisín Shortall asked the Minister for Finance if private nursing homes will be eligible to apply for the €1.25 billion temporary business energy support scheme, announced in Budget 2023; and if he will make a statement on the matter. [52441/22]
Amharc ar fhreagra75. Deputy Jim O'Callaghan asked the Minister for Finance if he will revisit his decision not to extend financial support to general practitioners' place of work, in view of the financial support provided to data centres in regard to the business energy support scheme; and if he will make a statement on the matter. [52316/22]
Amharc ar fhreagraI propose to take Questions Nos. 69 and 75 together.
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 scheme will be administered by the Revenue Commissioners and will operate on a self-assessment basis. The operational details of the scheme are being worked through by officials and will be available soon.
As the Deputies will be aware, it is my intention to publish the Finance Bill later this week. I do not consider it appropriate to comment further on the Bill until after publication.
70. Deputy Robert Troy asked the Minister for Finance if he will outline any supports or tax reliefs available to assist patients who have to avail of hearing aids. [52088/22]
Amharc ar fhreagraSection 469 of the Taxes Consolidation Act 1997 (TCA 1997) provides for relief at the standard rate of income tax (currently 20%) on qualifying health expenses incurred in the provision of health care.
I am advised by Revenue that for the purposes of the section “health care” is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability” but excludes routine ophthalmic treatment, routine dental treatment and unnecessary cosmetic surgery.
Health expenses is defined as “expenses in respect of the provision of health care and includes, but is not limited to:
- the services of a practitioner,
- diagnostic procedures carried out on the advice of a practitioner,
- maintenance or treatment necessarily incurred in connection with the services or procedures referred to above, and
- the supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner.
A practitioner is defined as a person who is registered in the register established under section 43 of the Medical Practitioners Act 2007 or section 26 of the Dentists Act 1985 or, in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there.
Therefore, costs incurred in relation to audiological procedures such as testing, and the supply, maintenance and repair of hearing devices may qualify for relief if the criteria referred to above are met.
Further guidance on claiming tax relief for qualifying health expenses can be found in section 13 of Tax and Duty Manual Part 15-01-12, which can be accessed using the following link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.
71. Deputy Michael Lowry asked the Minister for Finance the engagements that he has had with his counterparts in fellow EU Member States about the possibility of the implementation in the European Union of Pillar Two of the OECD agreement on international taxation by means other than a directive which has been agreed unanimously by all Member States. [52091/22]
Amharc ar fhreagra72. Deputy Michael Lowry asked the Minister for Finance if his Department has conducted analysis of the potential impact on investment and Exchequer receipts of the minimum global rate of tax being adopted in Ireland, but not in one or more EU Member States; and if he will make a statement on the matter. [52092/22]
Amharc ar fhreagra73. Deputy Michael Lowry asked the Minister for Finance if he will rule out Ireland adopting the minimum global tax rate if an implementing directive is not agreed unanimously by all EU Member States; and if he will make a statement on the matter. [52093/22]
Amharc ar fhreagraI propose to take Questions Nos. 71 to 73, inclusive, together.
Last October a two-pillar solution to address the tax challenges arising from the digitalisation of the economy was agreed at the OECD. It is expected that the Agreement will bring long-term stability and certainty to the international tax framework arising from discussions which have taken place.
Pillar Two of the agreement provides for a minimum effective tax rate of 15% for in-scope businesses (MNEs with annual turnover in excess of €750m). In the EU, this Pillar of the agreement will be implemented through the EU Minimum Tax Directive.
Although political agreement has not yet been achieved on this proposal, I am fully supportive of the Czech Presidency's efforts to resolve this and it remains my belief that the Directive will be agreed by all Member States in the near term. The EU Minimum Tax Directive will ultimately bring long-term stability and certainty to the international tax framework by ensuring there is a consistent and co-ordinated application of the minimum tax rules across EU Member States.
Domestically, I have recently held a public consultation on the implementation of this Directive in Ireland. We are progressing with our preparations for domestic implementation by the proposed deadline of end-2023.
I am aware that some are frustrated at the pace of progress and would prefer to proceed with this legislation using the enhanced cooperation provision of the EU treaties. I have made it known that I do not see the merit of pursuing such an option and it is my strong preference to have the EU Minimum Tax Directive agreed by all Member States. I believe that all EU Member States can come on board and agree this file and I am happy to continue to work towards this achievable goal.
Furthermore, Ireland's position on tax is well known and clear. Direct tax is a Member State competence and tax decisions are taken by unanimity.
In respect of the potential economic impact of the agreement, my officials continue to assess all potential implications for investment and tax receipts. There remain, as of yet, a number of key undecided aspects of both Pillars of the OECD agreement which will have a material impact on the likely cost of the agreement in terms of reduced tax receipts. I can assure the Deputy that both my officials I and remain fully engaged in that process and are working to ensure that Ireland will continue to be an attractive location for both companies that have already chosen Ireland as their home and for future foreign direct investment.
