Written Answers Nos. 186-205
187. Deputy Bernard J. Durkan asked the Minister for Transport the total receipts from public road-side parking in Dublin city in a single year; the extent to which such receipts have varied over the past five years; and if he will make a statement on the matter. [2577/23]
Amharc ar fhreagraI wish to advise the Deputy that receipts from public road-side parking in Dublin city do not fall under the remit of the Department of Transport. The issue is a matter for Dublin City Council. Information on parking in Dublin city, and associated bye-laws and charges can be found at the following web address:
www.dublincity.ie/residential/parking-dublin-city-centre/dublin-city-parking-control-bye-laws-2020
188. Deputy Bernard J. Durkan asked the Minister for Transport the extent to which it might be possible to improve safety factors on the M50 and M4 given the level of traffic congestion on these routes; and if he will make a statement on the matter. [2578/23]
Amharc ar fhreagra189. Deputy Bernard J. Durkan asked the Minister for Transport the degree to which safety factors continue to be a feature of major roads such as M9, M7, M1 and the main route to Derry and the north west; the extent to which the plans are in place to address such issues; and if he will make a statement on the matter. [2579/23]
Amharc ar fhreagraI propose to take Questions Nos. 188 and 189 together.
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 operation and management 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. This includes the provision of a safe national road network. In this context, TII is best placed to advise you.
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.
190. Deputy Jennifer Murnane O'Connor asked the Minister for Transport the steps being taken to alleviate the current long waiting lists for applicants who apply for a driving test; the status or success of the online portal service; and if he will make a statement on the matter. [2640/23]
Amharc ar fhreagraThe Road Safety Authority (RSA) has statutory responsibility for the operation of the national driving test.
I am informed that the current increase in demand for driving tests and the time to invitation for learner drivers has a number of contributing factors which include: an increase in learner permits in circulation which has grown by about 30% since Q3 2019; increased capacity in the Driver Theory Test when the service resumed post Covid-19 pandemic and an increase in Advanced Driving Instructors capacity to deliver lessons to learner drivers which has increased the volume of learners becoming eligible and ready to take their actual test.
I would like to assure the Deputy that the RSA is making every effort to address this issue. The Authority conducted a review of the current and evolving needs of the driver testing service in 2022, following which my Department sanctioned an increase in the permanent driver tester headcount from 100 to 130. I am informed that the RSA is currently deploying a number of successful candidates across the driver testing service, with a focus on geographical areas with the longest waiting lists. It is expected that the remainder will be deployed by Q1 2023.The RSA has assured me that they are keeping the situation under constant review and the Authority will report back to my Department on the steps being taken to continue to reduce waiting times. If sanction requests for further increases in driver testers are received, my Department will evaluate them promptly.
Regarding the online portal service, I understand that the current MyRoadSafety portal was introduced in December 2020 as a response to the COVID 19 pandemic in order to provide improved service for customers. I am informed that in 2022, 96% of the driving test applications were made via the portal.
191. Deputy Jennifer Murnane O'Connor asked the Minister for Transport if a review is currently being undertaken of the disabled drivers and disabled passengers (tax concessions) scheme; if so, the status of that review; and if he will make a statement on the matter. [2641/23]
Amharc ar fhreagraMy Department has no function with regard to the Disabled Drivers and Passengers Tax Relief Scheme. The Minister for Children, Equality, Disability, Integration and Youth has responsibility for this scheme.
I have been advised by officials in that department that action 104 of the National Disability Inclusion Strategy contains an important cross-Government action to review transport and mobility supports for people with disabilities and to advance proposals for the enhancement of these supports going forward. The Action 104 Transport Working Group was established in 2020 to make progress in this regard.
Minister Rabbitte has chaired meetings of the Transport Working Group since January 2022, from which point the participation of the Department of Finance in the work of the Group was facilitated for the purposes of including the Disabled Drivers and Disabled Passengers Scheme in the Group's holistic considerations. This was arranged following correspondence between Minister Donohoe and Minister O'Gorman on the matter.
The discussions at the Transport Working Group have been particularly enriched by the contributions of Disability Stakeholder Group representatives, and other disability organisations, who have ensured that the lived experience of people with disabilities remains at the centre of considerations.
The Group's work has now concluded, and the final report which synthesises submissions made by members of the Transport Working Group, including submissions related to the Disabled Drivers and Disabled Passengers Scheme, is presently being finalised.
It will be incumbent on colleagues across Government with responsibility for transport and mobility supports to carefully consider how the recommendations of the Transport Working Group ought to be advanced.
192. Deputy Michael Lowry asked the Minister for Transport the waiting times for B category vehicle driving tests at all testing centres in County Tipperary, in tabular form; and if he will make a statement on the matter. [2667/23]
Amharc ar fhreagra193. Deputy Michael Lowry asked the Minister for Transport the number of persons awaiting B category driving test in each testing centre in County Tipperary, in tabular form; and if he will make a statement on the matter. [2668/23]
Amharc ar fhreagra194. Deputy Michael Lowry asked the Minister for Transport if his attention has been drawn to delays in obtaining a driving test for B category vehicles in County Tipperary; if additional driver testers resources will be allocated to each driving test centre in County Tipperary in order to clear the backlog of those waiting for B category driving tests; and if he will make a statement on the matter. [2669/23]
Amharc ar fhreagra195. Deputy Michael Lowry asked the Minister for Transport the number of full-time equivalent and part-time driver testers available in each testing centre in County Tipperary who are available to test those completing B category driving tests, in tabular form; and if he will make a statement on the matter. [2670/23]
Amharc ar fhreagraI propose to take Questions Nos. 192 to 195, inclusive, together.
The Road Safety Authority (RSA) has statutory responsibility for the operation of the national driving test and deals with all application and scheduling matters. I have therefore referred the specific parts of the questions related to category B tests in Tipperary to the Authority for direct reply. I would ask the Deputy to contact my office if a reply is not received within 10 days.
On the broader issue of driver testing delays, I am informed that the current increase in demand for driving tests and the time to invitation for learner drivers has a number of contributing factors which include: an increase in learner permits in circulation which has grown by about 30% since Q3 2019; increased capacity in the Driver Theory Test when the service resumed post Covid-19 pandemic and an increase in Advanced Driving Instructors capacity to deliver lessons to learner drivers which has increased the volume of learners becoming eligible and ready to take their actual test.
I would like to assure the Deputy that the RSA is making every effort to address this issue. The Authority conducted a review of the current and evolving needs of the driver testing service in 2022, following which my Department sanctioned an increase in the permanent driver tester headcount from 100 to 130. I am informed that the RSA is currently deploying a number of successful candidates across the driver testing service, with a focus on geographical areas with the longest waiting lists. It is expected that the remainder will be deployed by Q1 2023. The RSA has assured me that they are keeping the situation under constant review and the Authority will report back to my Department on the steps being taken to continue to reduce waiting times. If sanction requests for further increases in driver testers are received, my Department will evaluate them promptly.
196. Deputy Marc MacSharry asked the Minister for Transport if he will provide a status update in relation to the proposed greenway Collooney to Bellaghy, given that Transport Infrastructure Ireland has assumed responsibility for the development of all greenways. [2674/23]
Amharc ar fhreagra197. Deputy Marc MacSharry asked the Minister for Transport if work by his Department has been lost with the transfer of responsibility to TII or if his Department intends to progress the project using this knowledge gather to advance the project, given that over €350,000 in public money has already been spent on feasibility, preliminary works, public consultation and landowner consultation for the Collooney-Bellaghy Greenway. [2675/23]
Amharc ar fhreagra198. Deputy Marc MacSharry asked the Minister for Transport the timeline TII is working towards for the delivery of the Collooney-Bellaghy Greenway. [2676/23]
Amharc ar fhreagraI propose to take Questions Nos. 196 to 198, inclusive, together.
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to Greenways. As the Deputy is aware, since 20 September 2021 and in line with Section 32 (2) of the Roads Act 1993, the planning, design, and construction of individual Greenways is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. In this context, TII is best placed to advise you on the status of the proposed Collooney to Bellaghy greenway.
Noting the above position, I have referred your questions to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
199. Deputy Marc MacSharry asked the Minister for Transport the methodology being used by TII to prioritise the chronology of the delivery of greenways. [2677/23]
Amharc ar fhreagra200. Deputy Marc MacSharry asked the Minister for Transport if there is a ring-fenced multi-annual budget within TII for the development of greenways; and, if so, the amount that it is. [2678/23]
Amharc ar fhreagraI propose to take Questions Nos. 199 and 200 together.
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to Greenways. As of 20 September 2021 and in line with Section 32 (2) of the Roads Act 1993, the planning, design, and construction of individual Greenways is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Investment in Greenway projects is also subject to the requirements of the Public Spending Code and necessary statutory approvals.
Noting the above position, I have referred your questions, on this occasion, to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
202. Deputy Fergus O'Dowd asked the Minister for Finance the way in which he and his Department are managing the taxation of biofuels; if he is planning on changing policy in this regard going forward; and if he will make a statement on the matter. [56966/22]
Amharc ar fhreagraFinance Act 1999 provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels. MOT is comprised of a non-carbon component and a carbon component with the carbon component being commonly referred to as carbon tax. The non-carbon component of MOT is often referred to as “excise”, “fuel excise”, “fuel tax” or “fuel duty” but it is important to note that both components are part of MOT which is an excise duty.
As outlined in my predecessor Minister Donohoe’s recent responses to questions about biofuels and Hydrogenated/Hydrotreated Vegetable Oil (HVO), the State’s MOT law - as governed by Council Directive 2003/96/EC of 27 October 2003, commonly known as the Energy Tax Directive (ETD) - relieves biofuels from the carbon component of MOT. This relief has been in place since 2012 and is set out in section 100(5)(a) of Finance Act 1999. Where a fuel meets the criteria of being produced entirely from biomass no carbon taxation currently applies under MOT law.
In addition to the biofuel relief from carbon taxation, Finance Act 1999 provides for differentiated MOT rates for propellant fuels and fuels used for other purposes. This means that fuels used for heating are not subject to the significantly higher rates of MOT that apply to road vehicle propellants. Liquid fuels such as HVO, which are not specified mineral oils, are defined in MOT legislation as substitute fuels. A substitute fuel used for heating purposes is chargeable, under section 96(2A)(c) of Finance Act 1999, at the MOT rate that applies to Marked Gas Oil (MGO). This rate is currently €111.14 per 1,000 litres and is comprised entirely of carbon tax. As the carbon tax is fully relieved for biofuels no MOT currently applies to biofuels used for heating purposes. With regard to blended fuels produced partially from biomass, the relief applies to the biofuel portion. Full details on MOT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf
The relief from the carbon component of MOT for biofuels reflects a clear policy to incentivise the use of such fuels. As the ten-year trajectory of carbon tax increases introduced in Finance Act 2020 are implemented, the tax differential between biofuels and fossil fuels will continue to widen, further incentivising the uptake of biofuels.
In relation to Value-Added Tax (VAT), the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. Motor fuels such as petrol including bio-ethanol petrol blends and auto-diesel are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate, currently 23%. Biofuel and non-food vegetable oils, such as HVO, used to fuel vehicles also attract the standard rate of VAT. HVO used as heating fuel is liable for the reduced VAT rate of 13.5%.
203. Deputy David Stanton asked the Minister for Finance the impact of the change in the benefit-in-kind regime for company cars from 1 January 2023; and if he will make a statement on the matter. [2486/23]
Amharc ar fhreagraRecent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes 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, a CO2-based BIK regime for company cars was legislated for from 1 January 2023. From the beginning of this year, the amount taxable as BIK is determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands determines whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands has reduced from five to four.
In certain instances, this new regime 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 benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles are 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 brings 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 recent implementation.
204. Deputy Marian Harkin asked the Minister for Finance if he will consider extending the renter's tax relief credit to other renters (details supplied). [2507/23]
Amharc ar fhreagra211. Deputy Holly Cairns asked the Minister for Finance if he will adjust the tax credit for renters to include students renting in a ‘rent-a-room’ or ‘digs’ type arrangement. [2683/23]
Amharc ar fhreagraI propose to take Questions Nos. 204 and 211 together.
Finance Act 2022 introduced the Rent Tax Credit, which is provided for in section 473B of the Taxes Consolidation Act 1997. This is an income tax credit of up to €500 per year (or up to €1,000 for jointly assessed couples) which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
The legislation defines a qualifying tenancy as follows:
"...any agreement, contract or lease which has been registered under Part 7 of the Residential Tenancies Act 2004 ... or any licence for the use, as a residence, of a room or rooms in an individual's principal private residence, where there is no obligation under Part 7 of the Residential Tenancies Act 2004 for such licence to be registered...".
Accordingly, those, whether students or otherwise, in "rent-a-room" or "digs" arrangements may qualify for the some or all of the relief depending on their own taxable income and compliance with the various other requirements of the measure.
It should also be noted that tenancies in purpose-built student accommodation and other arrangements where the landlord is not resident in the premises are generally required to be registered with the Residential Tenancies Board and so capable of qualifying for the relief.
However, where a parent is seeking to claim the tax credit in respect of rented accommodation used by his or her student child, the tenancy may only be of a type which is required to be registered with the Residential Tenancies Board (RTB) and in circumstances where the landlord has complied with any such registration requirement. This means that the credit will not be available where the tenancy is of a type which is exempt from RTB registration, such as a ‘Rent a Room’ or ‘digs’ type arrangement.
In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind the measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources. The current rules for the rent tax credit seek to achieve such a balance having regard to the more informal nature of rent-a-room or digs type arrangements as compared with those that must be registered with the Residential Tenancies Board.
The operation of the rent tax credit will be closely monitored by my department in conjunction with Revenue in the coming months and the question of whether any further adjustments are needed will be considered in the context of the Budget and Finance Bill process later this year.
205. Deputy Louise O'Reilly asked the Minister for Finance the responsibility a banking institution has in relaying to a customer that their mortgage-required home insurance premium is due to increase; and if he will make a statement on the matter. [2508/23]
Amharc ar fhreagraThe responsibility for providing renewal information to a consumer on a house insurance policy lies with the insurer under the Consumer Insurance Contracts Act 2019. The insurer shall, within a reasonable time before renewal of a contract of insurance (and in any event no later than 20 working days before renewal), notify the consumer on paper or on another durable medium of any alteration to the terms and conditions of the policy, using plain intelligible language in doing so.
Regarding home insurance, in September 2022 the Central Bank completed a review of the risk of under-insurance in the home insurance market. The Review was undertaken because consumers are currently facing increasing rebuild costs, which affects the level of insurance cover that a consumer should have on their property. The review found that under-insurance in the home insurance market has been steadily increasing over the last 5 years, from an average of 6.5% of paid claims being under-insured in 2017, up to 16.5% in 2021.
Following this review, the Central Bank wrote to insurance firms setting out a number of areas where further action was needed to lessen this risk and make consumers aware of the implications of under-insurance. For example, insurance firms providing home insurance are requested by the Central Bank to write to their customers to explain under-insurance, the consequences of being under-insured, the reasons why this is a heightened risk and, how policyholders can better estimate their sum insured value.
While the Review was undertaken specifically in relation to insurance undertakings, the Central Bank has advised that it expects insurance intermediaries to also take action, as appropriate, in ensuring customers’ best interests are protected, and the potential risks of under-insurance are effectively mitigated and communicated to customers. In that regard, the Central Bank has also said that these expectations would also apply to banking institutions when operating under an authorisation as an insurance intermediary.
