Written Answers Nos. 37-46
37. Deputy Michael Creed asked the Minister for Finance if he will clarify the situation as it applies to separated couples in respect of the standard tax rate cut-off point where there is a legal separation and shared custody of children; and if he will make a statement on the matter. [55776/22]
Amharc ar fhreagraThe position is that married persons or civil partners who are legally separated are generally taxed as single persons from the date of their separation. A formal separation for this purpose means a separation under an Order of Court or Deed of Separation, or other circumstances in which the couple are in fact separated and the separation is likely to be permanent.
As single persons, each party is assessed to tax on his or her own income and is entitled to his or her own standard rate tax band and basic personal tax credit, which are valued at €36,800 and €1,700 respectively for the 2022 year of assessment.
Where the couple have qualifying children, the single person child carer tax credit may also be available. A qualifying child for this purpose means:
- a child born during the year of assessment;
- a child who was under the age of 18 at the start of the year of assessment; or
- a child who was over the age of 18 at the start of the year of assessment if he or she is either in full-time education or, is permanently incapacitated by reason of mental or physical infirmity from maintaining themselves and had become so incapacitated before reaching the age of 21 or whilst in full-time education.
This credit is valued at €1,650 for the 2022 year of assessment and is granted to the primary claimant in the first instance. The primary claimant is the party with whom the child resides for the whole or greater part of a year of assessment, being a total period of 6 months. Where a child resides with both parents for an equal amount of time in a year of assessment, the primary claimant will be the party who receives a child benefit payment in respect of the child.
The primary claimant may relinquish his or her entitlement to the tax credit in a year of assessment to a secondary claimant if he or she wishes. A secondary claimant may be a person with whom the child resides for a period of at least 100 days in a year of assessment.
Only one tax credit is available per claimant in a year of assessment, irrespective of the number of qualifying children residing with him or her. Where an individual is in receipt of the single person child carer tax credit for a year of assessment he or she will be entitled to an additional €4,000 in their standard rate tax band in that year also. The increased standard rate tax band for an individual in receipt of the single person child carer tax credit is valued at €40,800 for the 2022 year of assessment.
I am advised by Revenue that in certain circumstances formally separated couples may make an election for ‘separate assessment within joint assessment’. Under this basis of assessment, each party is assessed to tax as a single person during the course of the year of assessment, with each party being entitled to his or her own standard rate tax band. The increased basic personal tax credit, which is valued at €3,400 for the 2022 year of assessment, will be split equally between both parties, as will any age tax credit, blind person's tax credit and incapacitated child tax credit due to the couple.
Following the year of assessment, it may be possible for some of the unused tax credits, reliefs and standard rate bands of one party to be transferred to the other party in the same manner which usually applies in joint assessment cases. Ultimately, this means that the aggregate tax payable by each party under this basis of assessment cannot exceed the tax which would be payable had the parties been jointly assessed.
This option is only available where both parties to the couple are resident in the State and legally enforceable maintenance payments are being made by either party to the couple in that year of assessment. Where a couple opts to make an election for ‘separate assessment within joint assessment’ in a year of assessment, neither party to the couple will be entitled to the single person child carer tax credit or associated increase in the standard rate tax band in that year.
38. Deputy Catherine Connolly asked the Minister for Finance if he will provide an update on the recruitment of members of the disabled drivers medical board of appeal; when he expects the new board to be up and running; and if he will make a statement on the matter. [55831/22]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the six medical criteria.
I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
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. From these, three suitable candidates have been identified and are being Garda vetted. Five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. Two other candidates have been interviewed and if deemed suitable will complete Garda vetting.
Once these processes have been completed for all candidates I 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.
Applicants deemed not to have met one of the six eligibility criteria required for a PMC can request another PMC assessment six months after an unsuccessful PMC assessment.
39. Deputy Éamon Ó Cuív asked the Minister for Finance if he has had discussions with the insurance industry in relation to the large difference in insurance premiums being charged by the sector to new entrants to the taxi industry compared to existing operators, which is a major disincentive to new persons in getting involved in the industry; and if he will make a statement on the matter. [55880/22]
Amharc ar fhreagraFirstly, it is important to note that neither I, nor the Central Bank, have the power to direct insurers to sell any specific product, or to make it available at a particular price. This stance is reinforced by the EU Solvency II directive which expressly prohibits Government from doing so.
Notwithstanding this, insurance reform is a key priority for this Government. As the Deputy is aware, we have established the Cabinet Committee Sub-Group on Insurance Reform, chaired by the Tánaiste, which is overseeing the implementation of the Action Plan for Insurance Reform. This ambitious strategy sets out 66 actions to help bring down the cost of insurance; encourage more competition in the market; and prevent fraud, thus benefitting consumers, the business community and voluntary organisations. The latest implementation report shows that approximately 90 per cent of key deliverables are now completed or ongoing, bringing tangible benefits to insurance customers across society as a whole.
The market continues to show signs of responding to the Government reform agenda. Sectors such as delivery drivers, inflatable operators and equestrian activities, which had experienced capacity issues in the recent past, are now able to access insurance. Despite the current upward trend in inflation, motor insurance also continues to fall. CSO data for September 2022 shows that premium prices fell by 10 per cent year-on-year and are now over 40 per cent lower than the July 2016 peak. Government’s focus has shifted to delivering the remaining aspects of the Action Plan, particularly the overhaul of the duty of care and reform of PIAB, both of which should positively impact public-facing sectors, such as the taxi industry identified by the Deputy.
Officials in my Department have engaged regularly with both underwriters and brokers on issues relating to insurance availability and affordability. They have been informed that providers are obliged to assess the risk involved as part of any application for insurance, which will be specific to the individual applicant, and that the availability of cover depends on a number of factors which are assessed on a case-by-case basis. At the same time, Government has acted to deliver the changes that were sought by the insurance industry. It is critical that insurers, in turn, pass on savings achieved as a result of the reform agenda to customers, in the form of reduced premiums and expanded risk appetite.
I wish to assure the Deputy that I will continue working with my Government colleagues to ensure the timely implementation of the Action Plan, which will bring benefits to the wider economy and society, including the taxi industry which is the subject of this specific question.
40. Deputy Éamon Ó Cuív asked the Minister for Finance if he intends amending the help-to-buy scheme for persons building on their own site, in order that the minimum percentage borrowed would be 70% of the construction cost rather than 70% of the imputed cost including a value on the site (details supplied); and if he will make a statement on the matter. [55893/22]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.
As the Deputy has referenced, in order to avail of the HTB incentive, the loan-to-value ratio (LTV) for a property must be 70% or more. In the case of a self build residence, the lender will apply a valuation using the Central Bank of Ireland's macro prudential mortgage rules, which consists of the aggregate of the market value of the land and the estimated costs of construction. It should be noted that the Central Bank is independent in decisions it takes in relation to its macro prudential rules.
The HTB scheme, as announced in Budget 2017, was initially intended to be limited to persons who had mortgages with a minimum LTV of 80%. However, Central Bank data indicated that a sizeable number of first-time buyers take out a mortgage with a LTV of less than 80%. As such, it was decided to amend the scheme in the subsequent Finance Bill to set the minimum LTV at 70% so as to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.
According to Revenue statistics, from the inception of the scheme to end-June 2022 self-builds have represented 25.48% of approved claims. However, to end-2021, the proportion of claims in the 70% to 85% LTV bands is much higher for self-builds, accounting for more than 40% of all claims. The nature of self-builds is such that an applicant may already own the land on which the house is built which means that they are likely to need to borrow only in relation to construction costs.
Individuals who are in the fortunate position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to more than meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer.
As I advised the Deputy in my reply to a similar question on 14 July last, it is not at all clear that it would be fair or equitable to allow for different eligibility criteria with regard to LTV ratios in respect of self-build properties vis-á-vis that which applies to all other new build homes. As such, I do not plan to amend the scheme in the manner that has been suggested by the Deputy.
41. Deputy Mairéad Farrell asked the Minister for Public Expenditure and Reform the status of the review of public ethics legislation, ongoing since 2021; if he will make public the findings of the consultation initiated by his Department; if he will provide details of the timeline that he is working towards for same; and if he will make a statement on the matter. [55680/22]
Amharc ar fhreagraI am happy to inform the Deputy that my Department’s review of our statutory framework for ethics is at the point of being completed.
The Department has prepared a full draft of the Review Report and will now engage with major stakeholders within the public service to finalise the text. I will then consider the final report and bring it to Government for its approval and publication. It is intended that Government approval will also be sought to prepare a General Scheme of a Bill, to be drafted during Q1 2023.
As the Deputy’s question notes, the review process included a public consultation exercise which I launched last November. Eleven responses were received to this consultation from civil society organisations, political groups, political parties and members of the public. Some of the themes emerging from the responses that align with the Government’s main reason for reform, including:
- The urgency of reform in this area, support for the 2015 Public Sector Standards Bill approach and regret that that Bill did not complete the legislative process;
- Calls for the reinforcement of the obligation of public officials, as well as the investigative and enforcement powers of the Standards in Public Office Commission, and its resources;
- Suggestions for generalised ‘cooling off’ periods, while acknowledging that a balance is to be achieved between personal freedom and obligations placed on public officials to safeguard the integrity of public life;
- Concerns flagged regarding increased administrative burden and the potential for a chilling effect on those considering entering the public sector, in particular the commercial State sector.
I foresee that all the responses to the public consultation will be published as part of the review report.
42. Deputy Richard Bruton asked the Minister for Public Expenditure and Reform if his attention has been drawn to a payroll issue of a person (details supplied). [55747/22]
Amharc ar fhreagraThe matter raised by the Deputy relates to a staff member in the Department of Agriculture, Food and the Marine. On the basis that the National Shared Service Office (NSSO) can only act on the instruction of HR Units in relevant departments, this question should be directed to the Minister for Agriculture, Food and the Marine.
43. Deputy Mick Barry asked the Minister for Public Expenditure and Reform the number of civil servants in his Department who are seconded to State agencies or other public bodies and in receipt of a higher duty or acting allowance; the number who have been seconded for more than ten, more than 20 and more than 30 years, respectively; if the higher duty allowance is not pensionable; and if he will make a statement on the matter. [55767/22]
Amharc ar fhreagraI wish to advise the Deputy that there are no members of staff seconded from my Department to State agencies or other public bodies in receipt of a higher duty/acting allowance.
44. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform when final flood maps and reports will be published by the Office of Public Works for the Carnmore and Claregalway area of Galway as these are required urgently in order that applicants have up to date data in relation to flood risk when making planning applications; and if he will make a statement on the matter. [55789/22]
Amharc ar fhreagraI am advised by my officials that the consultant appointed to design the Claregalway Flood Relief Scheme is currently producing updated flood maps that represent the flood hazard (post completion) of all flood relief scheme works undertaken in the Claregalway area. It is currently envisaged that this mapping will be completed and reported upon in the early part of next year.
45. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if the OPW intends providing funding for the cleaning of a channel (details supplied) in County Galway that was previously allocated funding that was never spent; if so, when it is likely to happen; and if he will make a statement on the matter. [55790/22]
Amharc ar fhreagraLocal Authorities may apply to the Office of Public Works for funding under the Minor Flood Mitigation Works & Coastal Protection Scheme. This scheme provides 90% funding for minor flood mitigation works or studies, costing up to €750,000 each, to address localised flooding and coastal protection problems.
Once approved by the Office of Public Works, it is a matter for the local authority to progress with the approved works and draw down its approved expenditure from the Office of Public Works. I have asked my officials to liaise with the relevant local authority in relation to this issue.
46. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if all pensioners who are getting occupational pensions from the Civil Service or wider public service and are not receiving the State pension (contributory) as they only paid a modified PRSI contribution while working and who are suffering like all pensioners from the effects of the increase in fuel prices and the cost-of-living, will receive a double payment of their pension this autumn; and if he will make a statement on the matter. [55811/22]
Amharc ar fhreagraAs the Deputy will be aware, I have primary responsibility for the civil service pension schemes, while I hold an overall policy role in relation to public service pension schemes.
No civil or public service occupational pension schemes will have a double pension payment, as they have separate terms to the State Pension (Contributory).
In respect of the civil service pre-existing (pre-2013) pension schemes for which I have responsibility, the requirement for civil and public servants to pay Class A PRSI was introduced from 6 April 1995 (“pre-95”).
An entitlement to the State Pension is generally not held by “pre-95” civil servants, as they pay a modified PRSI rate. This cadre of civil servants do not hold an entitlement to the State Pension. However their occupational pension benefits are higher than their “post-95” counterparts, because their occupational pension is not ‘integrated’ with the State Pension.
Civil servants appointed “post-95” who pay Class A PRSI have an entitlement to the State Pension, and their occupational pension benefits are ‘integrated’ with it. This means that their occupational pension benefits are lower than “pre-95” civil servants, to take account of benefits due under the State Pension.
While civil service pensioners who are in receipt of the State Pension will receive a double payment as advised by the Minister for Social Protection, this is based on an entitlement they built throughout their working life through payment of ‘full’ PRSI contributions.
However, pension increases are also due to all civil service occupational pensions this year. Under the Building Momentum Agreement 2021-2022 and the recently agreed extension to that agreement, eligible civil service pensioners will benefit from the pass-through of pay increases applied to their serving counterparts in their occupational civil service pensions.
The relevant pension increase rates are as follows:
- From the 2nd of February 2022, a 3% increase in annualised basic salaries (as per the recent extension).
- From the 1st of October 2022, a 1% increase or €500, whichever is greater as applied to the pay scale.
The application of the above increases will also result in the payment of a lump sum of pension arrears where appropriate.
Although not entitled to a double payment under the State Pension, a “pre-95” pensioner will receive a higher monetary increase in their civil service occupational pension this year than a “post-95” pensioner who retired on a similar final pensionable remuneration, as their occupational pension is not integrated with the State Pension.
