Written Answers Nos. 208-232
208. Deputy Alan Kelly asked the Minister for Transport the number of times the Irish Aviation Authority was informed of military exercises by foreign military or naval services affecting Irish-controlled airspace in the past three years; and the countries involved. [11223/23]
Amharc ar fhreagraThe Irish Aviation Authority (IAA), as the State's Air Navigation Service Provider (ANSP), is the body responsible for the provision of air navigation and air traffic management services in Irish controlled airspace. This includes airspace designated to the Irish State by the International Civil Aviation Organisation, known as the Shannon Flight Information Region, and also an area of the North Atlantic which the IAA administers jointly with the United Kingdom, known as the Shanwick Oceanic Region.
When military activities are planned that have an aviation element, the State carrying out the exercise must follow the agreed international procedure, as set down by the International Civil Aviation Organisation. This involves notifying the State responsible for the portion of airspace that will be affected, with the ANSP, in this instance the IAA, then following the agreed procedure to notify aircraft and restrict access to the area in question, in order to ensure the safety of civilian aircraft.
Accordingly, I have referred this question to the IAA for direct reply. The Deputy should inform my private office if he does not receive a reply within ten working days.
209. Deputy Alan Kelly asked the Minister for Transport the estimated cost in 2023 of doubling the number of revenue protection officers within Iarnród Éireann. [11224/23]
Amharc ar fhreagraAs the 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 of the cost in 2023 of doubling the number of revenue protection officers within Iarnród Éireann is an operational matter for Iarnród Éireann and I have therefore forwarded the Deputy's question to the company for direct reply. The Deputy should advise my private office if he does not receive a response within ten working days.
A referred reply was forwarded to the Deputy under Standing Order 51.
211. Deputy Carol Nolan asked the Minister for Transport if his Department supports the use of gender-neutral pronouns in the drafting of legislation or policies initiated by or originating in his Department; and if he will make a statement on the matter. [11281/23]
Amharc ar fhreagraI understand that my colleague Minister O’ Gorman, Minister for Disability, Children, Equality, Integration and Youth, is currently engaged in a review of the Equality Acts and he will consider proposals that emerge from that process, including in relation to gender-related language. The Government will, in due course, consider and decide on the output from that review.
212. Deputy Alan Dillon asked the Minister for Transport the reason a bypass (details supplied) was not included in this year's grant allocation for national roads; when this project will be considered again for a funding allocation; and if he will make a statement on the matter. [11285/23]
Amharc ar fhreagraAs 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 the Deputy on the status of this project.
Noting the above position, I have referred this question to TII for a direct reply. The Deputy should advise my private office if he does not receive a reply within 10 working days.
A referred reply was forwarded to the Deputy under Standing Order 51.
213. Deputy Noel Grealish asked the Minister for Transport the current status of a pedestrian footbridge over the Owenriff River in Oughterard, County Galway; the latest correspondence between TII and Galway County Council in relation to same; and if he will make a statement on the matter. [11315/23]
Amharc ar fhreagraAs 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. In this context, TII is best placed to advise the Deputy.
Noting the above position, I have referred this question to TII for a direct reply. The Deputy should advise my private office if he does not receive a reply within 10 working days.
214. Deputy Pádraig Mac Lochlainn asked the Minister for Transport when a discharge book will issue to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [11378/23]
Amharc ar fhreagraThe Mercantile Marine Office (MMO) of my Department has the referenced application in hand and is processing it. It is suggested that the applicant should liaise directly with the MMO in this regard.
215. Deputy Christopher O'Sullivan asked the Minister for Transport if he will confirm that the transfer of patients by the coastguard contractor (details supplied) falls outside its contract; if the contractor is charging separately for these transfers; if so, the cost per transfer and or the cost per hour; and if he will make a statement on the matter. [11428/23]
Amharc ar fhreagraCoast Guard helicopter services are provided under contract by CHC Ireland. The contract provides for the provision of four helicopters, delivering a 24 hour service out of four bases, at Sligo, Shannon, Waterford and Dublin.
In addition to provision of Maritime and Inland Search and Rescue services, Coast Guard Helicopters also provides a day and night air ambulance service to offshore island communities, as well as HEMS (Helicopter Emergency Medical Service), inter-hospital patient transfer services and UK time critical paediatric transfers for the HSE (when other options are not available).
A Service Level Agreement with HSE provides for the recovery of marginal costs from HSE where the total number of HEMS and inter-hospital missions exceeds twelve missions per month, and for all UK transfers.
I consider the support to the island communities and HSE to be a valuable service and a prudent utilisation of the contract that augments the skill set of pilots and paramedic level technical crews.
216. Deputy Michael Collins asked the Minister for Transport his views on a matter in relation to incentivising the private bus sector to involve itself in taking up potential routes (details supplied); and if he will make a statement on the matter. [11531/23]
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 National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts. However, unlike with PSO services, the National Transport Authority (NTA) do not set, monitor or regulate fares on services run by commercial operators.
The Leap+1 initiative was a once-off campaign by the NTA to encourage increased usage of public transport services by Leap card holders. I had no role in this initiative nor was it subsidised by any public/Exchequer funds.
Therefore, in light of the NTA's responsibility in this matter, I have forwarded the Deputy's question to the NTA for direct reply. The Deputy should advise my private office if he does not receive a response within ten working days.
A referred reply was forwarded to the Deputy under Standing Order 51.
217. Deputy Cathal Crowe asked the Minister for Transport when a company (details supplied) will resume the operation of its battery-powered ebikes; and if he will make a statement on the matter. [11560/23]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to cycling and public transport infrastructure; however, I am not involved in the day-to-day operations of the management of public bike schemes. Details regarding operation of existing and proposed bike schemes fall under the remit of the National Transport Authority (NTA) working in conjunction with the relevant local authorities.
Noting the NTA's responsibilities in the matter, I have referred this question to the NTA for a more detailed reply. If the Deputy does not receive a reply within 10 working days, he should contact my private office.
218. Deputy Eoin Ó Broin asked the Minister for Finance if he will provide an update on progress towards complying with section two of the Glasgow Statement on International Public Support for the Clean Energy Transition to end new direct public support for the international unabated fossil-fuel energy sector within one year of signing this statement. [11141/23]
Amharc ar fhreagra219. Deputy Eoin Ó Broin asked the Minister for Finance if he will outline the amount of direct public support for the international unabated fossil fuel energy sector for each of the years 2019 to 2022, and to date in 2023, in tabular form. [11142/23]
Amharc ar fhreagra234. Deputy Eoin Ó Broin asked the Minister for Finance if he plans to table a proposal for the OECD meeting in Paris on 6-9 March to enact restrictions on oil and gas export finance under the OECD Arrangement of Officially Supported Export Credits, in line with the Government's commitment to section 3 of the Glasgow Statement on International Public Support for the Clean Energy Transition. [11143/23]
Amharc ar fhreagraI propose to take Questions Nos. 218, 219 and 234 together.
I am responding to these questions as my Department monitors actions related to the Government’s commitment to the Glasgow Statement on International Public Support for the Clean Energy Transition. My Department has not provided direct public support for the international unabated fossil fuel energy sector for the years 2019 to date and, in the discharge of our monitoring role, the Department has not been informed of such direct support by other Departments.
I am informed by the Department of Enterprise, Trade and Employment that Ireland does not operate any type of Export Credit supports. This has been the case since 1998 when, following a review, the Government decided to cease providing supports. However, Ireland is party to the OECD Arrangement on Officially Supported Export Credits, through the European Commission. The main purpose of the Arrangement is to provide a framework for the orderly use of officially supported export credits by fostering a level playing field in order to encourage competition among exporters based on quality and prices of goods and services exported rather than by way of export credits.
There are currently five Sector Understandings that cover export credits in the area of:
1. Ships
2. Nuclear power plants
3. Civil aircraft
4. Renewable energy, climate change mitigation and adaptation, and water projects, and
5. Rail infrastructure.
On 22 October 2021, the Participants agreed to end support for unabated coal-fired power plants.
As the Deputy may be aware, the Fossil Fuel Divestment Act 2018 required the National Treasury Management Agency to divest the Ireland Strategic Investment Fund’s investments from all fossil fuel undertakings. Furthermore, Ireland is a member of a Paris Alignment like-minded group of shareholders in Multilateral Development Banks, which works to encourage those institutions align with the Paris Agreement, including phasing out support for fossil fuels.
220. Deputy Mairéad Farrell asked the Minister for Finance in a situation where a Minister had responsibility for an area such as consumer mortgage arrears, if his or her own credit history would be relevant and hence should be declared if he or she were currently or previously in significant arrears, given that the ministerial code of conduct requires Ministers to "avoid any real or apparent conflict of interest"; and if he will make a statement on the matter. [11313/23]
Amharc ar fhreagraIn general, issues of conflicts of interest that can arise for Oireachtas members and office holders fall under the statutory framework for Ethics, which consists of the Ethics in Public Office Act 1995 as amended by the Standards in Public Office Act 2001 - collectively called the ‘Ethics Acts’ and currently under the auspices of my Department.
For example, the Ethics Acts provide inter alia that a Minister or Minister of State who proposes to perform a function of his or her office and who has actual knowledge that they or a connected person has a material interest in a matter to which the function relates shall furnish the Taoiseach and the Standards in Public Office Commission with a statement in writing of those facts and of the nature of the interest.
In such cases, a “material interest” is deemed to exist if the consequence or effect of the performance by the person of a function or any decision made in relation to a function, may be to confer on or withhold from them (or a connected person) a significant benefit or impose on them a significant loss, liability, or other disadvantage without also conferring it on, withholding it from or imposing it on persons in general or a class of persons.
Ministers and Ministers of State are made aware of their obligations under the Ethics Acts when taking up office and they are responsible for making the written statements referred to above should the circumstances described arise.
The Ethics Acts also provide that the Government shall from time to time draw up codes of conduct for the guidance of office holders, and, as the Deputy’s question suggests, such a code has issued (The Code of Conduct for Office Holders). This seeks to ensure that office holders must at all times observe, and be seen to observe, the highest standards of ethical behaviour in carrying out their functions. Office holders are required to have regard to and be guided by this Code in the performance of their functions and in relation to any other matters specified in the Code.
221. Deputy Mairéad Farrell asked the Minister for Finance in light of his review of the ethics framework, the measures he is considering to improve the oversight of potential conflicts of interest, and sanctions for having failed to declare a conflict of interest when a Minister has authority or jurisdiction over the relevant area; and if he will make a statement on the matter. [11314/23]
Amharc ar fhreagraAs the Deputy notes, the recently published Review of the statutory framework for Ethics made a number of recommendations on the statutory framework that broadly focus on five key themes:
- A legislative framework for Ethics to be underpinned by a set of overarching integrity principles.
- New specific statutory prohibitions, including on the use of insider information.
- Strengthening disclosures requirements to improve transparency and examining whether the regime should encompass more office-holders.
- Strengthening the Standards in Public Office Commission (SIPO).
- Post-term employment restrictions for elected officials/public servants that address matters not already covered by lobbying regulation and should align closely with that legislation.
My Department is now preparing a General Scheme for reform the statutory framework informed inter alia by the outcome of the Review.
In the matter of conflicts of interest, the approach will be to strengthen significantly the obligations on public officials to disclose, as a matter of routine, any actual and potential conflicts of interest. On the matter of sanctions, the draft scheme will address necessary powers of enforcement and sanction for non-disclosure and non-compliance.
In this, the Government’s ultimate goal is to create a fit-for-purpose, easy to understand and user-friendly ethical framework that contributes to the quality and efficacy of our public administration.
223. Deputy Matt Shanahan asked the Minister for Finance how long the Government expects to be in a position to maintain some level of cost-of-living supports; to what level he envisages inflation rates would need to be reduced to before these supports will no longer be necessary; and if he will make a statement on the matter. [11666/23]
Amharc ar fhreagraThe Government is acutely aware of the cost of living pressures facing households and businesses and has acted swiftly and frequently to help ease the burden.
In advance of Budget 2023, Government provided some €3 billion in direct relief, including the first energy credit for every household, lump sum payments in respect of the fuel allowance, and a reduction in the tax levied on fuel, electricity and gas.
Budget 2023 was a ‘Cost of Living Budget’, with over €3 billon of the overall package of €6.9 billion composed of direct measures to address the cost of living challenge, including adjustments to income tax bands for all workers and increases in social welfare and pension rates.
Budget 2023 also included a sizable package of temporary cost of living supports, amounting to over €4 billion, which took effect from the final quarter of last year. This included three €200 electricity credits for every household amounting to €1.2 billion.
In February, in recognition of ongoing cost of living pressures, Government acted once more, announcing a further package of cost of living supports amounting to around €1¼ billion. This includes a temporary extension of the reduced rate of VAT for the hospitality sector until end-August this year, an extension of the reduction in VAT on electricity and gas to end-October and an expansion of the eligibility criteria and application period for the Temporary Business Energy Subsidy Scheme, and lump sum payments in respect of the child benefit and for social welfare recipients.
The temporary reduced rate of excise on fuel has also been extended in full until end-May. This will then be gradually phased out, in an incremental manner, from June until end-October.
In total, this brings the fiscal support provided by Government to around €12 billion, or some 4½ per cent of national income. This is an enormous sum, and demonstrates this Government’s commitment to acting, as and when appropriate, to help shield households and businesses from the impact of rising prices.
However, it is essential that Government strikes the appropriate balance between assisting where we can today and ensuring we are prepared to meet the challenges that we know are ahead. That is why the February package will be the last suite of cost of living supports until Budget 2024 , and why we have taken the decision to gradually phase out the reduced rate of excise on fuel.
In terms of the question of whether more could have been done, the Deputy has - in a separate question - also correctly raised the issue of high public debt and the need to reduce it. Government must balance the need to support households with the need to ensure fiscal sustainability - policy involves trade-offs.
Finally, I would point out that the rate of inflation is expected to ease from the second quarter of this year and this will help support real incomes.
224. Deputy Matt Shanahan asked the Minister for Finance the strategy and timeline his Department has in relation to reducing Ireland’s national debt given that, according to the Department’s own report on public finances, it currently has one of the highest per capita debt burdens in the world, being noted as €226 billion at the end of quarter 4, 2022; and if he will make a statement on the matter. [11668/23]
Amharc ar fhreagraAt the outset, I would highlight that it is not for the civil service - in this case my Department - to reduce national debt; policy is always the responsibility of Government.
At the end of last year, Ireland's public debt stood at an estimated €226 billion. To put this into perspective, it is the equivalent of €44,250 for every resident of our country, a figure that is amongst the highest in the world.
Recognising this, and the need for a broad understanding of the challenges this creates, my Department publishes an annual assessment - the Annual Report on Public Debt in Ireland - with the 2022 version published last month.
As outlined in the report, despite the increase in the stock of Irish debt throughout the pandemic period, the debt-to-GNI* ratio decreased from approximately 109 per cent in 2020 to 101 per cent in 2021 and further to 86 per cent in 2022. This was due to the rapid rebound in economic activity post-pandemic as well as the strong corporate tax revenue performance.
Furthermore, underlying structural aspects of the debt provide some short-term re-assurance - a relatively low debt service burden, for instance.
That being said, my Department's analysis highlights a number of risks and vulnerabilities, including the risks associated with an over-reliance on corporation tax revenues, as well as the recent increase in the regularity of unforeseeable economic shocks.
In order to maintain the ability to deal with such shocks, as well as tackle the medium-term challenges of the digital and climate transitions alongside the fiscal costs of an ageing population, sensible, stability-oriented budgetary policies are needed and that is what the Government intends to do.
225. Deputy Matt Shanahan asked the Minister for Finance if his Department is currently considering measures to reintroduce mortgage interest relief, given the sharp compounded rises in mortgage interest rates that many families are facing at the moment; and if he will make a statement on the matter. [11669/23]
Amharc ar fhreagraAs I have stated previously in the House, the position is that the formulation and implementation of monetary policy in the eurozone and the setting of official interest rates is an independent matter for the ECB. The Government has no role in setting official interest rates, nor in setting the retail interest rates that lenders may charge on their loans, including mortgages. That is a business and commercial matter for individual lenders.
In relation to mortgage interest relief, and as the Deputy will be aware, the relief for principal private residences was phased out on a gradual basis over the period 2009 to 2020. The decision to abolish it was taken in the wake of the financial crisis, with the cost of the relief being one of the influencing factors. It cost more than €700 million in 2008. Prior to its curtailment and eventual abolition, the top two income deciles in 2005 accounted for close to half of the tax forgone through tax relief. This issue was highlighted in the findings of the 2009 Commission on Taxation report. The relief cost approximately €280 million in 2005.
While I am acutely aware that there have been increases in certain mortgage rates by some lenders, it is important to point out that mortgage interest rates, in particular fixed interest rates, have fallen over the past number of years. For example, in December 2014, the average level of fixed interest rates for new lending was 4.11 per cent compared with 2.61 per cent in December 2022. The Irish average interest rate on new mortgages is now below the eurozone average. In December, Ireland had the third lowest mortgage rates in the eurozone. The differential between the Irish and average eurozone interest rates for new mortgages declined from 1.40 per cent at the end 2021 to -0.26 per cent in December 2022.
The data also indicate that a significant portion of new mortgages, over 93 per cent in December 2022, are now fixed rate mortgages and this will protect borrowers in the event of a rise in official and market interest rates at least for the period that the interest rate is fixed.
The introduction or reintroduction of mortgage interest relief for principal private residences may not be the best course of action to assist home owners with rising interest rates. For example, there is additional scope for many borrowers, in particular variable rate mortgage borrowers who have built up equity in their home, to look at alternative mortgage options and to reduce their mortgage costs.
As the Deputy will appreciate, the reintroduction of the relief, or even the reintroduction of a more tailored or selective form of mortgage interest relief, is likely to involve very significant costs. Of course, the precise cost would depend on the form of the relief, but it would undoubtedly have a substantial cost.
Therefore, I have no plans to reintroduce mortgage interest relief at this time. It should also be noted that the recent report of the Commission on Taxation and Welfare put forward no case or recommendation for the reintroduction of relief for mortgage interest. Further, the OECD has recommended limiting or phasing out mortgage interest relief on owner-occupied housing.
Finally, as the Deputy will be aware, a tax package of over €1.1 billion was announced in Budget 2023, which included a significant income tax package. Budget 2023 also included a substantial cost of living package and a large range of one-off measures to assist households with cost of living pressures and Government has recently announced further supports to assist our citizens.
226. Deputy Peter Fitzpatrick asked the Minister for Finance if he will clarify the criteria in relation to the first-time buyers grant (details supplied); and if he will make a statement on the matter. [10921/23]
Amharc ar fhreagraHelp to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to certain limits.
Section 477C of the Taxes Consolidation Act 1997 requires that applicants for the HTB scheme must be first-time purchasers, which is defined as:"an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;" There are no exceptions to the HTB definition of first time purchaser. This includes circumstances where there is more than one person involved in the purchase or building of a new home.
The intention behind this is to target the tax relief on those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property and those who could not have availed of HTB relief previously.
227. Deputy Michael Collins asked the Minister for Finance if he will examine a series of matters (details supplied) in relation to the 9% VAT rate for hotels and restaurants. [10990/23]
Amharc ar fhreagra236. Deputy Peadar Tóibín asked the Minister for Finance if his Department has undertaken or intends to undertake a study to determine the impact that a return to a 13.5% VAT rate will have on the hospitality sector. [8411/23]
Amharc ar fhreagraI propose to take Questions Nos. 227 and 236 together.
In January of this year, officials from my Department compiled a ministerial briefing on a number of measures, including the temporary 9 per cent VAT rate. This briefing included an economic assessment of the measure.
The material outlined the macroeconomic backdrop to any extension of the 9 per cent rate, noting that the economy has rebounded strongly from the pandemic and that economic activity is now above pre-pandemic levels.
The briefing also contained an analysis of employment trends, reporting that employment in the sectors covered by the 9 per cent rate was near pre-pandemic levels last year. While job vacancies in the 9 per cent sectors were lower than the economy overall, they are still higher than the long-term average. Economy-wide employment could be classified as what economists term full-employment.
In addition, the briefing noted that the reduced rate is both regressive and very costly, and that this cost represents a transfer from taxpayers to the sectors which it covers.
The Government accepted the Department’s economic assessment, which found that there was no longer an economic case for the temporary 9 per cent rate, and, therefore, decided upon a reversion to the 13.5 per cent VAT rate. Specifically, the Government decided that the 9 per cent VAT rate for the tourism and hospitality sectors will only apply until 31 August 2023. This decision was made in recognition of the employment provided in the sectors to which the 9 per cent rate applies, as well as to give businesses a transition period to adapt to the changing economic and policy environment. Finally, the Government was cognisant of avoiding adding to upward pressure on prices while inflation remains so elevated.
This extension, therefore, strikes a balance between the estimated €300 million cost to the public finances and the provision of support for these sectors through the busy summer period, after which the reduced rate will cease.
In relation to the suggestion that a different VAT rate could apply to different regions I can confirm that this is not possible under the European VAT Directive with which Irish VAT law must comply. For reasons of fiscal neutrality a Member State must apply the same VAT rate to similar goods or services, regardless of their geographic location.
In relation to treating hospitality and accommodation differently I can confirm that it is possible to change the VAT rate for hospitality or accommodation without reference to the other. The respective costs of extending the 9% VAT rate to the end of August this year would be €212m for hospitality, €61m for accommodation, and €27m for the remaining sectors. However, if accommodation reverted to 13.5% while hospitality was kept at 9% this change would have to apply to all accommodation including B&Bs and small hotels because of the principle of fiscal neutrality which requires universal application to a sector.
I am advised by Revenue that there would be significant practical operational concerns in having different VAT rates applying to hotel accommodation and meals given how the sector operates, with various packages ranging from bed and breakfast accommodation through to all-inclusive board and lodging packages.
This could lead to the underpayment of VAT because the charge for accommodation and meals would have to be apportioned. In the views of Revenue, it would undoubtedly provide opportunities for tax planning, which would be difficult to police. This would give rise to administrative and operational complexity as well as increased risk of avoidance and scope for manipulation of the VAT system.
228. Deputy Duncan Smith asked the Minister for Finance if he will provide an update on the implementation of the findings of the review of the flat rate expenses system conducted by the Office of the Revenue Commissioners in 2018 and 2019; if he has sought a further deferral while the matter is being considered by the Tax Strategy Group under the auspices of his Department; and if he will make a statement on the matter. [11041/23]
Amharc ar fhreagra230. Deputy Duncan Smith asked the Minister for Finance if he will provide an update on the implementation of the findings of the review of the flat rate expenses system conducted by the Office of the Revenue Commissioners in 2018 and 2019 (details supplied); and if he has sought a further deferral while the matter is being considered by the Tax Strategy Group under the auspices of his Department.; and if he will make a statement on the matter. [11053/23]
Amharc ar fhreagraI propose to take Questions Nos. 228 and 230 together.
Section 114 of the Taxes Consolidation Act 1997 (TCA) provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment.
I am advised by Revenue that the flat rate expense (FRE) regime it operates is done so on an administrative basis where both a specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 of the TCA 1997 is satisfied, namely, that the expenses are wholly, exclusively and necessarily incurred in the performance of the duties of the office or employment by the employee concerned and that such expenses are not reimbursed by his or her employer.
The FRE regime was established to apply a uniformity of approach to tax deductibility for expenses of large groups of employees and to facilitate ease of administration for both Revenue and employees. The expense should apply to all employees in that category and not be discretionary.
A review of the FRE regime was undertaken by Revenue in 2018 and 2019 and the implementation of those findings has been deferred a number of times, pending consideration by the Tax Strategy Group (TSG) of the tax deductibility of expenses in employment.
The matter was most recently considered by the TSG in 2022, with further details set out in the Income Tax TSG paper (TSG 22-02), that can be located at the following link on the Department’s website: www.gov.ie/en/collection/d5b41-budget-2023-tax-strategy-group-papers/
In February 2022, Revenue announced its decision to further defer the implementation of the findings of its review of the FRE regime to 1 January 2023. I am advised by Revenue that, in light of some changes in work practices for certain employments arising from the COVID-19 pandemic, together with other relevant factors and considerations, including the passage of time since the 2018/2019 review, it may be necessary for Revenue to further review a number of the FREs and therefore they propose to broadly postpone full implementation to allow for this work to be carried out.
Revenue also advises me that it remains committed to the FRE regime and encourages all taxpayers to avail of their full tax relief entitlements. It should be noted that all employees retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which such expenses are not reimbursed by the employer.
229. Deputy Seán Canney asked the Minister for Finance if he will include Parkinson's disease as a qualifying condition for the primary medical certificate; and if he will make a statement on the matter. [11048/23]
Amharc ar fhreagraMy predecessor Minister Donohoe committed to a comprehensive review of the Disabled Drivers and Passengers Scheme (DDS) as part of a broader review of mobility supports. In order to achieve this objective, Minister O’Gorman agreed in September 2021 that the DDS review should be incorporated into the work of the National Disability Inclusion Strategy (NDIS) Transport Working Group (TWG).
The NDIS TWG was tasked, under Action 104 of the NDIS, with reviewing all Government-funded transport and mobility supports for those with a disability and for making proposals for transport and mobility solutions for those with a disability.
The Working Group, under the Chairpersonship of Minister of State Anne Rabbitte, held a number of meetings across 2022 and a final report was published on 24 February.
As part of its engagement in this process, the Department of Finance established an information-gathering Criteria Sub-group (CSG) at the start of 2022. Its membership comprised of former members of the Disabled Drivers Medical Board of Appeal (DDMBA) and Principal Medical Officers (PMOs) in the HSE. Its purpose was to capture their experiences, expertise and perspectives in relation to the practical operational and administrative challenges of the DDS, as well as to explore what alternative vehicular arrangements were available for those with mobility issues based on international experience. The CSG work led to the production of five papers and a technical annex, submitted to the Department of Children, Equality, Disability, Integration and Youth in July 2022.
The main conclusion of the CSG is that the DDS needs to be replaced with a fit for purpose, needs-based vehicular adaptation scheme in line with best international practice.
This conclusion, together with design principles and parameters for the new scheme as based on international practice, were incorporated into a response by the Minister for Finance to three questions posed in September 2022 to members of the NDIS Transport Working Group, in respect of proposals for enhanced, new and/or reconfigured supports to meet the transport and mobility needs for those with a disability.
The final report of the NDIS Transport Working Group, published on 24th February, reflects my Department's views with respect to introducing a new vehicular adaptation scheme, but does not propose next steps in terms of implementing such a scheme. I will work with Government colleagues to seek ways to advance the new scheme.
231. Deputy Carol Nolan asked the Minister for Finance if he will outline the projected impact which the proposed rise in excise duty of a total of 21 cents on petrol and diesel over the coming months would have on overall revenues generated in a full year; and if he will make a statement on the matter. [11089/23]
Amharc ar fhreagraAs the Deputy will be aware, in 2022 my predecessor provided for a reduction in the rates of excise applied to petrol and diesel. These reduced rates were due to expire on 28 February 2023 but the Government decision of 21 February 2023 provided for a further extension of these reduced rates. On 1 June 2023 a phased restoration of these rates will begin with two further restoration dates in September and October 2023.
I am advised by Revenue that the estimated additional receipts accruing in a full year from the proposed changes to Mineral Oil Tax (MOT) on petrol and diesel are outlined in the following table. These are tentative estimates and do not assume any behavioural change.
|
Fuel Type |
MOT €m |
VAT €m |
Total €m |
|
Petrol |
159.0 |
36.6 |
195.6 |
|
Diesel |
478.6 |
35.2 |
513.8 |
232. Deputy Carol Nolan asked the Minister for Finance the revenue generated from VAT on the hospitality sector, both under the current 9% rate and under the previous 13.5% rate, for each year from 2007 to date; the amounts generated from hotels as a proportion of the total; and if he will make a statement on the matter. [11090/23]
Amharc ar fhreagraI am informed by Revenue that a breakdown of net tax receipts, including VAT, by economic sector is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-sector.aspx
The hospitality sector is approximately captured under Accommodation & Food Services in this breakdown.
I am further informed by Revenue that traders are not required to identify the VAT yield generated from the supply of specific services or specific VAT rates on their VAT returns. Therefore, it is not possible to provide an accurate estimate for the VAT yield generated from hotels specifically.
However, using a number of third-party data sources, a tentative estimate of the VAT yield for accommodation from 2007 to 2022 is presented in the table below. It is not possible in this estimate to separate out hotels from other forms of accommodation such as guesthouses. Further, there are some elements of hospitality included in the estimate, such as some meals not charged separately e.g. Breakfast. Furthermore, meals consumed in hotels will generate VAT, but it is not possible in the third-party data to distinguish this from meals consumed in other businesses such as restaurants.
The Deputy might also wish to note that the 13.5% rate of VAT applied to these services up to 1 July 2011, when the second reduced rate of VAT at 9% was introduced. This rate remained in place until 1 January 2019 when the VAT rate returned to 13.5% rate. In November 2020, the VAT rate on these services was reduced to 9% as a result of emergency measures introduced in response to the economic impact of the COVID-19 pandemic.
|
Year |
Estimate of Accommodation (comprising hotels and guesthouse accommodation)VAT €m |
|
2007 |
338 |
|
2008 |
456 |
|
2009 |
351 |
|
2010 |
176 |
|
2011 |
132 |
|
2012 |
100 |
|
2013 |
127 |
|
2014 |
145 |
|
2015 |
122 |
|
2016 |
153 |
|
2017 |
161 |
|
2018 |
172 |
|
2019 |
276 |
|
2020 |
100 |
|
2021 |
97 |
|
2022 |
203 |
Note: there will be an element of hospitality in these estimates e.g. meal not charged separately.
