Willie O'Dea
Ceist:38. Deputy Willie O'Dea asked the Minister for Transport the up-to-date position on the M/N20 Limerick to Cork road scheme; and if he will make a statement on the matter. [62401/22]
Amharc ar fhreagraRoad Projects
Ceisteanna (38)
Freagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of the M/N20 project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
EU Data
Ceisteanna (39)
Thomas Pringle
Ceist:39. Deputy Thomas Pringle asked the Minister for Transport if he will provide details of all fines, including the amounts, that his Department or agencies under the remit of his Department, have paid since the start of the 33rd Dáil term to the European Commission relating to cases for infringements of European Union law or failure to transpose EU law in tabular form; and if he will make a statement on the matter. [62431/22]
Amharc ar fhreagraFreagraí scríofa
My Department and agencies under the remit of my Department have not paid any fines relating to cases for infringements of European Union law or failure to transpose EU law since the start of the 33rd Dáil term.
An EU Coordination Unit within my Department is responsible for engaging with the EU Commission on issues relating to transposition of EU law where the Department of Transport has lead responsibility. This Unit reports on a regular basis to the Management Board and Ministerial Management Board of the Department on matters related to EU legislation, including infringement cases initiated by the European Commission and transpositions of adopted Directives.
My Department continues to put in place the necessary measures to improve the transposition, implementation and enforcement of EU transport law in Ireland.
Transport Infrastructure Ireland
Ceisteanna (40)
Patricia Ryan
Ceist:40. Deputy Patricia Ryan asked the Minister for Transport when the next TII funding will be announced; and if he will make a statement on the matter. [62608/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals.
The Government earmarked €5.1bn for capital spending on new national roads projects from 2021 to 2030 as part of the NDP. The greater portion of this funding becomes available in the second half of the decade which means that there is a constraint on the funding available for new projects in the period to 2025.
In addition, a major priority in the NDP, in line with the Department’s investment hierarchy, is to maintain the quality and safety of the existing national road network. The NDP foresees an exchequer allocation of circa €2.9 billion for the Protection and Renewal of existing national roads over the 10-year period to 2030, allocated fairly evenly across the decade.
The funding allocations for national road projects in 2023 are in the process of being finalised and will be announced in the near future.
Departmental Policies
Ceisteanna (41)
Joe O'Brien
Ceist:41. Deputy Joe O'Brien asked the Minister for Transport if he will provide an update on the planned introduction of a policy framework for unmanned aircraft systems; and if he will make a statement on the matter. [62625/22]
Amharc ar fhreagraFreagraí scríofa
The development of the national policy framework for unmanned aircraft systems (UAS Drones) is at an advanced stage. The framework will guide high-level strategic planning and development of the UAS sector with the aim of supporting growth and innovation while managing safety, security, privacy and other aspects. My Department has engaged extensively with primary stakeholders from relevant Government Departments and agencies to facilitate the development of a comprehensive and integrated policy.
My Department is currently collating the findings of three working groups established to explore key areas of focus of the policy and submissions received from a targeted stakeholder consultation that was held March 2022. The draft policy framework document will also take into account the latest developments at EU level on the creation of a smart sustainable unmanned aircraft ecosystem. The EU Drone Strategy 2.0 was published by the European Commission on 29 November 2022.
A public consultation on our national draft policy framework is planned for early 2023, with the aim of a finalised policy framework for unmanned aircraft systems being published by the first quarter.
Road Projects
Ceisteanna (42)
Thomas Gould
Ceist:42. Deputy Thomas Gould asked the Minister for Transport if he will provide an update on the M20. [62682/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Road Projects
Ceisteanna (43)
Thomas Gould
Ceist:43. Deputy Thomas Gould asked the Minister for Transport if he will provide an update on the Northern Distributor Road. [62683/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including BusConnects Cork.
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.
A referred reply was forwarded to the Deputy under Standing Order 51
Departmental Funding
Ceisteanna (44)
Thomas Gould
Ceist:44. Deputy Thomas Gould asked the Minister for Transport if he will provide an update on the allocation of active travel funds in Cork city with a status on each project allocated funding in 2022, in tabular form. [62684/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for the development of policy and provision of funding in relation to Active Travel. The National Transport Authority (NTA), meanwhile, has responsibility for the allocation of funding to specific projects and oversight of their development, in cooperation with the local authorities themselves. Given their responsibility in this area, I have referred your question about the Active Travel Programme in Cork City to the NTA for a more detailed reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Local Authorities
Ceisteanna (45)
Thomas Gould
Ceist:45. Deputy Thomas Gould asked the Minister for Transport the local authorities that have utilised the NTA walkability audit tool. [62685/22]
Amharc ar fhreagraFreagraí scríofa
The purpose of the Audit Tool is to assist with the capture of the existing conditions of a specified walking route in relation to its walkability. Walkability is the extent to which the built environment is friendly to the presence of people walking, living, shopping, visiting, engaging or spending time in an area. The Audit Tool will enable the identification of a priority list of recommendations for a route to be taken into account when local authorities are planning improvements to roads and streets in the future.
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including active travel infrastructure.
Details of individual projects, including the funding available, are matters for the NTA and the relevant local authorities, accordingly I have referred your question to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
A referred reply was forwarded to the Deputy under Standing Order 51
Road Network
Ceisteanna (46)
Thomas Gould
Ceist:46. Deputy Thomas Gould asked the Minister for Transport his views on shared spaces for cyclists and pedestrians; and his views on whether these represent the optimum in the public realm design. [62687/22]
Amharc ar fhreagraFreagraí scríofa
The shared space approach to urban design is addressed in the Design Manual for Urban Roads and Streets (DMURS) which is available on my Department’s website and on www.dmurs.ie. The Manual sets out design guidance and standards for constructing new and reconfiguring existing urban roads and streets in Ireland. It aims to end the practice of designing streets as traffic corridors and instead focuses on the needs of pedestrians, cyclists and public transport users.
DMURS emphasises the role of streets as social spaces, where people come first and uses practical examples from Irish cities and towns to show how these issues can be designed for and managed successfully. Among other things, the Manual acknowledges issues that can arise for impaired users, in particular visually impaired users, where shared spaces are involved and suggests some remedial measures in that regard. Supplementary material is currently being prepared for the Manual in support of this.
In addition to the above my Department published a Traffic Sign Advice Note in November 2021 on a ‘Shared Space Sign’ which is for use for such locations. This advice note is supplemental to the Traffic Signs Manual (TSM) and provides detailed advice on signage for shared space that accompanies DMURS.
Road Projects
Ceisteanna (47)
Thomas Gould
Ceist:47. Deputy Thomas Gould asked the Minister for Transport if he will provide an update on the Northern Ring Road in Cork. [62688/22]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51
Road Projects
Ceisteanna (48)
Thomas Gould
Ceist:48. Deputy Thomas Gould asked the Minister for Transport if he will provide an update on discussion with his Department regarding the John F. Connolly Road, Cork. [62689/22]
Amharc ar fhreagraFreagraí scríofa
The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Councils' own resources supplemented by State grants, where applicable.
Under the Regional and Local Road Grant Programme, my Department provides funding for road rehabilitation works under the Restoration Improvement Grant and each Council is required to submit a 3-year programme of works. As indicated previously to the Deputy, Cork City Council has included road pavement improvement works on the John F Connolly road in its 2023 Restoration Improvement Grant work programme. It is the Council's responsibility for scheduling and prioritising projects within this programme.
Departmental Schemes
Ceisteanna (49)
Pádraig O'Sullivan
Ceist:49. Deputy Pádraig O'Sullivan asked the Minister for Transport if the licensed hauliers emergency support scheme will be reintroduced from November 2022 until April 2023 (details supplied); and if he will make a statement on the matter. [62783/22]
Amharc ar fhreagraFreagraí scríofa
The Ukraine crisis and matters arising from it continue to adversely affect European and Global oil markets, causing a sustained increase in the price of crude and in the price of refined products on the retail market.
The Government recognises the important role the haulage sector plays in supporting the economy and is fully aware of cost pressures on haulage businesses arising from high fuel prices, in particular since the outbreak of the conflict in Ukraine.
Since March 2022, the Government has put in place several measures to help ease these cost pressures:
- On 10 March 2022, to alleviate the impact of rising fuel prices, the Government introduced VAT inclusive excise duty reductions of 15 cent per litre of diesel and 20 cent per litre on petrol. A further reduction of 1 cent per litre (VAT inclusive) applied from 1 April 2022 to offset the impact of anticipated increased prices as a result of the increase in the Biofuel Obligation Scheme administered by Minister for Transport and Environment, Climate and Communications. These reductions were due to expire on 12 October 2022 but in recognition of continuing elevated costs these measures were extended out in Budget 2023 to 28 February 2023.
- On 15 March 2022, the Government introduced the Licensed Haulage Emergency Support Scheme. The Scheme was administered by the Department of Transport and provided a temporary financial support of €100 per week, for eight weeks, for each eligible heavy goods vehicle authorised on the licence of a road haulage operator as of 11 March 2022. There was good uptake of the scheme, with over €15.6 million paid out to c. 3,080 operators (approx. 80% of licensed haulage operators.).
- As part of Budget 2023, and in further recognition of the rising cost of fuel, the Government announced a reduction of the National Oil Reserves Agency (NORA) Levy to €0.001. The reduction of the NORA levy, which had been collected at a rate of 2 cent per litre, will help offset the carbon tax increase of just over 2 cent which took effect on 12 October, meaning that the price of fuel will not go up as a result of taxes or levies.
In addition to above measures, the Diesel Rebate Scheme (‘DRS’), which is administered by Revenue, has been in place since 2013 and remains available to licensed road transport operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided. It has always been the case that some operators do not avail of this support – I would encourage all those eligible to do so.
However, it should be noted that the causes of the current fuel price pressures are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis. Unfortunately, it is not possible to fully insulate citizens and businesses from the impact of these fuel price increases.
With the benefit of the Excise reduction, the 8 weeks support under the Licensed Haulage Support Scheme and the ongoing Diesel Rebate relief and NORA levy reduction, haulage businesses have had the opportunity to revise and renegotiate contracts with their clients in order to reflect increased prices, as is an unfortunate reality in all sectors across the economy.
It is important that all businesses, large and small, across the economy share the pain of these cost increases and where it is possible review contractual arrangements to provide for such sharing in these difficult times. I would encourage all businesses to adopt a fair and reasonable approach. I understand that smaller businesses, in particular, have had some difficulties in this space.
My Department, Minister Ryan and I continue to monitor the evolution of fuel prices and as I indicated at the Committee on Transport and Communications on 23 November 2022 the Department is currently engaged with the Department of Public Expenditure and Reform regarding the potential to fund further supports in 2023.
Social Media
Ceisteanna (50)
Seán Sherlock
Ceist:50. Deputy Sean Sherlock asked the Minister for Transport the amount spent on social media advertising in 2021 and to date in 2022, in tabular form; and the amount spent per platform. [62814/22]
Amharc ar fhreagraFreagraí scríofa
|
Year |
Platform |
Total Amount |
|
2021 |
n/a |
No social media advertising spend |
|
2022 |
|
€12709 |
|
2022 |
|
€9455 |
|
2022 |
|
€9449 |
|
2022 |
Total Spend |
€31,613 |
Aviation Industry
Ceisteanna (51)
Cathal Crowe
Ceist:51. Deputy Cathal Crowe asked the Minister for Transport the actions that have been taken to support and strengthen the aviation sector since 27 June 2020; the priorities for 2023; and if he will make a statement on the matter. [62817/22]
Amharc ar fhreagraFreagraí scríofa
Since 27 June 2020, focus has been on supporting the aviation sector through what has been its greatest crisis to date. The COVID-19 Pandemic had a very significant adverse effect on aviation worldwide and the sector is still recovering from it impacts.
Government implemented a broad range of cross-economy supports that the aviation industry was able to avail of, the most important being the wage subsidy schemes to ensure as many people as possible were retained in employment. In 2020 and 2021 my department estimated that the value of these supports to Irish air carriers and airports was in the region of €360 million. The Pandemic Stabilisation and Recovery Fund also provided €390 million to aviation market actors.
Alleviation and indirect support for air carriers was also provided at EU level, firstly with the approval of the provision of State Aid and secondly through various measures adopted, such as exemptions from the airport slot usage obligations. My officials worked with colleagues in the EU to consider and adopt regulations relaxing the requisite rules in this area for a significant time, which gave air carriers breathing room to reconfigure their operations in the changed market yet providing a level of security for their future operations.
Throughout the pandemic there was regular engagement with industry through various fora. Through the National Air Transport Facilitation Committee (NATFaC), which includes representatives of the aviation industry, regulators, border control and public health authorities in Ireland, the department developed the National Air Travel Protocol to coordinate the public health safety measures that were put in place in air passenger transport during height of the Covid-19 pandemic. This was continually reviewed and evolved in response to any changes and followed national and international guidance.
From a wider perspective the national vaccination programme, passenger locator form, EU COVID Certificate, the air travel protocol, and other public health measures sought to balance the public health and safety obligations aimed at preventing the spread of COVID-19, as best as possible, while also enabling the sector to return to operations at the appropriate time.
The formal and informal structures established in my department ensured that the industry was kept informed on the development of these national and international measures.
In 2021 Government allocated €161 million in aviation specific supports to Irish airports to address the damage of COVID-19 while also putting them in funds to provide route and other incentives to stimulate the return of air services.
The Regional Airports Programme provided for capital and operational supports, and in 2022 this programme has included both Cork and Shannon Airports. This programme provided over €44 million in capital and operational supports to airports and PSO air services in 2022 alone.
While some air carriers were lost during the pandemic, we welcomed a new airline, Emerald Airlines, which commenced services in 2022 and was awarded the contract to operate the Dublin to Donegal PSO route.
There are several priorities heading into 2023, which include:
- A review of the National Aviation Policy,
- A mid-term review of the Regional Airports Programme,
- Publishing a National Policy Framework for Unmanned Aircraft Systems, and
- Implementation of the recently enacted Air Navigation and Transport Act 2022.
At European and international level, my department continues to work in many important areas, for example, encouraging progress on the Single European Sky regulations and finalising the work on the various environmental proposals arising from the Fit for 55 package which will ensure our aviation sector works towards a green transition.
The EU Air Services Regulation is also due to reviewed in 2023. This is a significant regulation that underpins the operation of intra-community air services and its revision will determine the basis for the development of the air services market in the coming years.
The above, while not exhaustive, clearly shows our commitment to the aviation sector, which is a key enabler of our economy. It also serves to highlight that 2023 will be busy in an aviation context.
EU Data
Ceisteanna (52)
Thomas Pringle
Ceist:52. Deputy Thomas Pringle asked the Minister for Finance if he will provide details of all fines, including the amounts, that his Department or agencies under the remit of his Department, have paid since the start of the 33rd Dáil term to the European Commission relating to cases for infringements of European Union law or failure to transpose EU law in tabular form; and if he will make a statement on the matter. [62420/22]
Amharc ar fhreagraFreagraí scríofa
A search of official records, in response to the Deputy’s question, indicates that there has been no cost related to my Department since the start of the 33rd Dáil term to date for fines relating to cases for infringements of European Union law or for failure to transpose EU law. Similar information from other Departments needs to be sourced directly.
For background, the European Commission, in 2017 – “EU law: Better results through better application (2017/C 18/02)” - set out its revised approach to seeking fines in cases of non-transposition of an EU Directives. Staff in the Department are aware of this altered approach. Our objective, when dealing with the often complex and time pressurised work of transpositions, is to avoid a situation whereby the imposition of fines may become a consideration.
Furthermore, my Department is represented on an inter-departmental committee (chaired by the Department of Foreign Affairs and Trade) where these and related EU matters are monitored and discussed.
Tax Code
Ceisteanna (53)
Robert Troy
Ceist:53. Deputy Robert Troy asked the Minister for Finance if his Department carried out an impact assessment on the change to benefit-in-kind (details supplied). [62445/22]
Amharc ar fhreagraFreagraí scríofa
Recent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes I brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).
In Finance Act 2019, I legislated for a CO2-based BIK regime for company cars from 1 January 2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four.
In certain instances, the new regime from 2023 will provide for higher BIK rates, for example in relation to above average emissions and high mileage cars. It should be noted, however, that the rates remain largely the same in the lower to mid mileage ranges for the average lower emission car. Additionally, EVs will benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
I am aware there have been arguments surrounding the mileage bands in the new 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 that are more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the amount of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). 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 to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its implementation in 2023.
Enterprise Support Services
Ceisteanna (54, 59)
Brendan Griffin
Ceist:54. Deputy Brendan Griffin asked the Minister for Finance if the temporary business energy support scheme will be extended to cover businesses that use LPG in areas not served by piped gas (details supplied); and if he will make a statement on the matter. [62508/22]
Amharc ar fhreagra
Richard O'Donoghue
Ceist:59. Deputy Richard O'Donoghue asked the Minister for Finance his views on the rising energy costs and the sustainability of small businesses that have no access to the natural gas grid and are using LPG and BioLPG as an alternative (details supplied); and if he will re-examine the support scheme and amend it to include these businesses. [62319/22]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 54 and 59 together.
Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The TBESS will be available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria and to certain sporting bodies and charities. The scheme will operate on a self-assessment basis.
The TBESS only applies to the metered supply of natural gas and electricity and there are no plans to extend it beyond these energy sources. The scheme is designed around determining increases in unit prices and actual consumption for the period of the scheme based on information made available through electricity and gas meters.
For energy sources such as oil and LPG, it would not be possible to accurately determine the actual usage for each claim period (month), the relevant unit price for each claim period, or the actual increase in that unit price and usage over the same period in the reference period. For instance, an oil tank could be filled during the summer, with the oil being used in the winter months, or in February 2023 with the oil being used in the months that follow.
Tax Code
Ceisteanna (55)
Neale Richmond
Ceist:55. Deputy Neale Richmond asked the Minister for Finance his views on whether spousal maintenance should be tax deductible as is child maintenance; and if he will make a statement on the matter. [62577/22]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that the tax treatment of maintenance payments varies depending on:
1. whether the maintenance arrangement in place is legally enforceable or voluntary,
2. whether the maintenance payment is made for the benefit of the other party to the relationship or a child, and
3. the basis of assessment applicable to the couple.
Where the payment is legally enforceable and is made for the benefit of the other party to the relationship, the recipient is subject to income tax, USC and PRSI on the amount received and the paying spouse or civil partner is entitled to an income tax deduction for the amount paid. Where a legally enforceable payment is made for the benefit of a child, the payment is disregarded. In such cases, the recipient will not be subject to income tax, USC or PRSI on the amount received and the payer will not be entitled to a deduction for the payment made. Therefore, spousal maintenance payments that are legally enforceable are tax deductible for the payer, however, child maintenance payments are not tax deductible for the payer.
A maintenance payment will be legally enforceable if it is made pursuant to an order or rule of court, deed of separation, trust, covenant, agreement, arrangement or any other act giving rise to a legally enforceable obligation arising on foot of:
1. the dissolution or annulment of a marriage or civil partnership, or
2. the separation of the parties to a marriage or civil partnership where such separation is expected to be permanent and there is no possibility of reconciliation between the parties.
Where the payment does not meet the above criteria it will be treated as a voluntary maintenance payment. Voluntary maintenance payments are disregarded for income tax purposes. This means that the recipient will not be subject to income tax, USC or PRSI on the amount received and the payer will not be entitled to any deduction for the amount paid. As such, for voluntary maintenance payments, the payer is not entitled to a tax deduction in respect of such payments.
The tax treatment outlined above, relating to legally enforceable or voluntary payments, applies where the parties are assessed to tax as single persons at the time the payments are made.
In summary, legally enforceable spousal maintenance payments are tax deductible for the payer, while voluntary spousal maintenance payments are not. Any maintenance payments in respect of children are not tax deductible for the payer. Such payments are treated the same way as if the taxpayer was providing for the child or children out of his or her after-tax income, which is in line with the tax treatment for all other parents, where the cost of maintaining their child or children is not tax deductible.
I have no current plans to amend or review the position.
Further information on the tax treatment of maintenance payments made between married persons or civil partners and qualifying co-habitants can be found in Tax and Duty Manual Parts 44-01-01 and 44B-01-01 respectively, both of which can be located using the links below:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44/44-01-01.pdf.
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-44b/44b-01-01.pdf.
Tax Credits
Ceisteanna (56)
Neale Richmond
Ceist:56. Deputy Neale Richmond asked the Minister for Finance his views on whether both single parents should be able to avail of the single parent tax credit in a situation in which one parent has primary custody but the other is paying maintenance costs; and if he will make a statement on the matter. [62578/22]
Amharc ar fhreagraFreagraí scríofa
By way of background, the 2009 Commission on Taxation reviewed the One-Parent Family Tax Credit. It acknowledged that the credit played a role in supporting and incentivising the labour market participation of single and widowed parents but recommended that the credit should be allocated to the principal carer of the child only. A feature of the One-Parent Family Tax Credit was that it could be claimed by multiple individuals in respect of the same child, resulting in an unsustainable position.
Accordingly, the One-Parent Family Tax Credit was replaced by the Single Person Child Carer Credit (SPCCC) from 1 January 2014. The restructured credit has a nominal value of €1,650 per annum and also carries an entitlement to an additional €4,000 extended standard rate band. From 2023 that band will be €44,000 per annum, before liability to higher rate of income tax arises. However, the SPCCC is more strategically targeted, in that it will in the first instance only be available to the principal carer of the child, who has a qualifying child resident with him or her for the whole or greater part of the tax year and who satisfies the other conditions of the relief.
To qualify as a single person for the purposes of the SPCCC, the claimant must not be jointly assessed for income tax as a married person or civil partner, or be living with his or her spouse or civil partner, or cohabiting with a partner. An individual can only receive one SPCCC irrespective of the number of qualifying children residing with him or her. In addition, only one parent or guardian of a child can claim the SPCCC in a tax year.
It is possible for a qualifying primary claimant to relinquish his or her entitlement to the credit, in favour of a secondary claimant where the child resides with that secondary claimant for at least 100 days per year. However, it is not possible for the SPCCC to be split between two parties and where a child is the subject of an order and resides with each parent for an equal part of the year of assessment, the credit will be awarded to whichever parent received a child benefit payment under Part 4 of the Social Welfare Consolidation Act 2005 in respect of the child.
Maintenance payments are a matter for parents and if necessary, the courts to decide. It is not possible, and indeed would not be appropriate, for the tax code to take account of every possible variable.
I am satisfied that the tax credit in its current form is targeting State resources to where they are most needed. As such, I have no plans to review or amend the SPCCC at this time.
Banking Sector
Ceisteanna (57)
Thomas Gould
Ceist:57. Deputy Thomas Gould asked the Minister for Finance if he has discussed with the banks the issue of persons not being able to purchase homes because they are deemed too old to qualify for a mortgage. [62656/22]
Amharc ar fhreagraFreagraí scríofa
There are certain legal and regulatory requirements governing the provision of mortgage credit to consumers. For example, the Central Bank’s Consumer Protection Code 2012 (the Code) imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
A regulated entity must gather and record sufficient information from the consumer prior to offering, recommending, arranging or providing a product or service appropriate to that consumer. The level of information gathered should be appropriate to the nature and complexity of the product or service being sought by the consumer, but must be to a level that allows the regulated entity to provide a professional service. The information gathered must include details of the consumer’s needs and objectives, personal circumstances and their financial situation including, where relevant income, savings, financial products and other assets as well as debts and financial commitments.
The personal circumstances can include the following where relevant:
- age,
- health,
- knowledge and experience of financial products,
- dependents,
- employment status, and
- known future changes to his/her circumstances.
When assessing the suitability of a product or service for a consumer, the regulated entity must, at a minimum, consider and document whether, on the basis of the information gathered:
- the product or service meets that consumer’s needs and objectives,
- the consumer is likely to be able to meet the financial commitment associated with the product on an ongoing basis and is financially able to bear any risks attaching to the product or service,
- the consumer has the ability to repay the debt in the manner required under the credit agreement, on the basis of the outcome of the assessment of affordability, and
- the product or service is consistent with the consumer’s attitude to risk.
Furthermore, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.
Within this regulatory framework, individual lending decisions on whether or not to provide credit is a business and commercial matter for lenders. Neither the Central Bank nor I have a role in such matters. However, where a lender refuses a mortgage application, the CMCAR provides that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved and provide these reasons in writing if requested.
More generally, the Central Bank has advised that it expects that all regulated entities to take a consumer-focused approach in respect of any decision that affects their customers and to communicate clearly, effectively, and in a timely manner with all customers. If a consumer is not happy with the way a regulated entity is dealing with them, s/he should in the first instance make a formal complaint to that entity. If a consumer’s complaint is not resolved to their satisfaction through an internal complaints process, they can then seek recourse via the Financial Services and Pensions Ombudsman (FSPO). The FSPO will take on complaints once the bank's internal complaints process has been exhausted.
Contact details for the FSPO are as follows:
- Address: The Financial Services and Pensions Ombudsman, Lincoln House, Lincoln Place, Dublin 2, D02 VH29;
- Tel: 01-567 7000;
- Email: info@fspo.ie;
Website: www.fspo.ie/.