Written Answers Nos. 214-233
214. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by introducing a 4% levy on profits of pharmaceutical companies and private health companies; and if he will make a statement on the matter. [30997/23]
Amharc ar fhreagraAs the Deputy will be aware, the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Some of the main features of the current regime are its simplicity and that it applies to a broad base.
Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, there is a risk of such taxes leading to lower levels of economic activity and to companies passing the additional tax burden onto their suppliers or consumers.
I am advised by Revenue that, based on information included in Corporation Tax returns filed for the tax year 2021, the potential yield from imposing a 4% levy on the profits of private health and pharmaceutical companies is tentatively estimated to be in the region of €1 billion, with over 97% of this from pharmaceutical companies. I understand private health companies to include medical and dental private practices and exclude private nursing homes and retail pharmacies.
This yield is based on the economic sector of companies on Revenue records based on NACE codes and does not include any yield associated with subsidiaries of these companies not primarily involved in the sectors mentioned in the question. The potential yield estimate assumes no behavioural change on the part of these companies.
It should be noted that Ireland’s corporation tax regime has been undergoing a process of significant reform in recent years. The Deputy will be aware that Ireland signed up to the OECD Two Pillar agreement in October 2021, Pillar Two of which provides for a global minimum effective rate of 15%, on a jurisdictional basis, for in-scope entities. In-scope entities are groups with turnover in excess of €750 million per annum. An EU Directive has been agreed to provide a foundation for a coordinated implementation of Pillar Two, in accordance with EU law, by EU Member States. Extensive progress has already been made towards transposition, with some preparatory legislative changes introduced in Finance Bill 2022, and a Feedback Statement published in March this year containing draft approaches to a large proportion of the complex legislation that will be required to transpose the Directive in Finance Bill 2023.
In consideration of the need for certainty regarding our corporation tax regime, and of the significant international corporate tax developments already underway, I do not believe it is appropriate to introduce any additional taxes or levies on companies at this time.
215. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by abolishing the SARP; and if he will make a statement on the matter. [30998/23]
Amharc ar fhreagraUnder section 825C to the Taxes Consolidation Act 1997, the Special Assignee Relief Programme (SARP) provides Income Tax relief for certain individuals assigned to work in the State during any of the tax years 2012 to 2025.
The aim of the relief is to reduce the cost to employers of assigning skilled individuals from foreign-based operations to take up positions in the Irish-based operations of their employer or an associated company, thereby facilitating the creation of jobs and the development and expansion of businesses in Ireland.
The latest annual costs available for SARP can be found in the 'Statistics on Special Assignee Relief Programme 2020' report which is published on the Revenue website at: www.revenue.ie/en/corporate/documents/research/sarp-report-2020.pdf
According to that report, the annual cost of SARP for 2012 to 2020 (the most recent year for which data are available) is as follows.
|
Year |
€m |
|
2012 |
0.1 |
|
2013 |
1.9 |
|
2014 |
5.9 |
|
2015 |
9.5 |
|
2016 |
18.1 |
|
2017 |
28.1 |
|
2018 |
42.4 |
|
2019 |
38.2 |
|
2020 |
36.6 |
As the Deputy may be aware, following on from concerns regarding the increasing cost of the incentive, SARP was amended in Finance Bill 2018 to reinstate an upper salary threshold at the level of €1 million. This change came into effect for new entrants to the programme from 1 January 2019 and for existing beneficiaries from 1 January 2020 and, as a result, the 2019 and 2020 annual costs indicate a reversal in the growth in the overall cost of the scheme.
I am advised that Revenue does not maintain a projected future cost for SARP given the number of variables that would be involved in estimating with any degree of reliability. While abolishing SARP-related costs can be viewed as a saving to the Exchequer, likely losses resulting from lower employment levels (and related tax receipts) and other indirect effects within the activities that are supported by the Programme would also need to be factored into the equation. As such, it is not possible to estimate the likely savings which would accrue to the Exchequer in 2024 or in the years beyond that if SARP were abolished.
216. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing four new income tax bands of 50% on earnings between €100,000 and €150,000; 55% on earnings between €150,000 and €200,000; 60% on earnings between €200,000 and €275,000; 65% on earnings between over €275,000; and if he will make a statement on the matter. [30999/23]
Amharc ar fhreagraI am advised by Revenue that the estimated first and full year yield to the Exchequer of introducing the additional income tax rates and bands as outlined by the Deputy would be of the order of €2,350 million and €3,015 million respectively. The estimated yields are calculated on a taxpayer unit basis.
217. Deputy Richard Boyd Barrett asked the Minister for Finance how many property owners are paying LPT on one property; two properties; three properties; four properties; between five and ten; between ten and 20; between 20 and 50, between 50 and 100, and 100 or more, excluding local authorities and AHDs; and if he will make a statement on the matter. [31003/23]
Amharc ar fhreagra218. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of abolishing the LPT and introducing a tax on NPPRs as follows: Single NPPR - €1,000; ten or less NPPRs - €1,500 per property; 11 or more NPPRs - €2,500 per property; and if he will make a statement on the matter. [31004/23]
Amharc ar fhreagraI propose to take Questions Nos. 217 and 218 together.
Regarding Question No. 217, I am advised by Revenue that the distribution of residential property owners, as indicated in respect of Local Property Tax records for the valuation period 2022-2025, is set out in the table below. This breakdown of property owners excludes Local Authorities and Approved Housing Bodies and exempt properties. It should be noted these figures are provisional and may change.
|
Ownership Count |
Number of Property Owners |
|
1 |
1,287,341 |
|
2 |
125,486 |
|
3 |
27,841 |
|
4 |
10,414 |
|
5 to 10 |
11,702 |
|
11 to 20 |
1,815 |
|
21 to 50 |
654 |
|
51 to 100 |
179 |
|
>100 |
146 |
|
Total |
1,465,578 |
Regarding Question No. 218, the potential yield from abolishing the existing Local Property Tax and imposing charges on Non-Principal Private Residences (NPPRs) as outlined in the Deputy’s question is estimated to be in the region of €500 million in a full year. This estimate does not take account of any behavioural change that might arise from a change in the tax.
219. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a full-year estimate of the revenue that would be generated by introducing a levy of 33% on commercial aviation fuel; and if he will make a statement on the matter. [31005/23]
Amharc ar fhreagra220. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a full-year estimate of the revenue that would be generated if Ireland imposed the European Commission’s proposed tax on aviation fuel in Budget 2023; where that tax will be imposed on all flights, including executive and corporate flights; and if he will make a statement on the matter. [31006/23]
Amharc ar fhreagraI propose to take Questions Nos. 219 and 220 together.
Ireland’s excise duty treatment of fuel used for air navigation is governed by European Union (EU) law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive (ETD). The provisions of the current ETD relating to aviation fuels are transposed into national law in Finance Act 1999 (as amended), which provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels used for motor and heating purposes.
Under the current ETD, Member States must tax all fuels used for non-commercial aviation purposes. In line with EU law, MOT is applied to light oil (aviation gasoline) and heavy oil (jet fuel/Jet A1/jet kerosene) used for private pleasure flying. Private pleasure flying is defined as the use of an aircraft by its owner or the natural or legal person who enjoys the use either through hire or through any other means, for other than commercial purposes and, in particular, other than for the carriage of passengers or goods or for the supply of services for consideration or for the purposes of public authorities. The current rate of MOT for light oil used for private pleasure flying is €532.12 per 1,000 litres and for heavy oil is €466.10 per 1,000 litres.
With regard to light oil used for commercial air navigation, the current ETD gives Member States the option to fully or partially relieve the relevant excise duty. MOT law currently provides for a partial exemption for aviation gasoline used for all commercial air navigation and an effective rate of €299.85 per 1,000 litres applies.
Heavy oil is the most commonly used fuel type in commercial air navigation and the ETD currently obliges all Member States to exempt heavy oil used for intra-Community and international air transport purposes. A Member State may waive this exemption for intra-community flights but only where it has entered into a bilateral agreement with another Member State to tax fuel. No such agreements are currently in place across the EU. Regarding heavy oil used for commercial domestic air navigation, the ETD allows Member States to exempt such fuel use fully or partially. Currently, Ireland’s MOT law provides for a full MOT relief for heavy oil used for all commercial air navigation, including domestic, intra-community, and international.
With regard to the estimates the Deputy has requested, Revenue does not have the data required to provide these. The EU Commission proposal to revise the ETD proposes a phased introduction of mandatory fuel taxation for commercial aviation for intra EU flights. It is currently not possible to disaggregate fuel volumes data by use for domestic, intra EU or international flights. Furthermore, Revenue does not have the necessary price data relating to commercial aviation fuels that would enable it to generate an estimate for the amount of revenue that would accrue from the introduction of a 33% ad valorem levy on aviation fuel.
221. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing a new levy of 5% on the profits of all airlines and aircraft leasing companies; and if he will make a statement on the matter. [31007/23]
Amharc ar fhreagraI am advised by Revenue that the gross additional yield from imposing a 5% levy on the taxable profits of all airlines and aircraft leasing companies is tentatively estimated to be in the region of €44 million, for a full year. These estimates are based on the 2021 Corporation tax returns of these companies, the latest year for which fully analysed data are available.
These estimates do not take account of any potential change in behaviour by the entities concerned in response to the suggested levy.
Currently the trading profits of companies in Ireland are generally taxed at the standard corporation tax rate of 12.5%. Imposing additional taxes on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing such taxes could lead to theoretical gains, there is a risk of such taxes leading to lower levels of economic activity and to companies passing the additional tax burden onto their investors, suppliers and, ultimately, consumers.
As the Deputy will be aware Ireland signed up to the OECD Two Pillar agreement in October 2021, including the agreement of a global minimum effective rate of 15%, on a jurisdictional basis, for in-scope entities.
In consideration of the need for certainty regarding our corporation tax regime, and acknowledgment of the significant international corporate tax developments underway, I do not believe it is appropriate to introduce additional taxes or levies on companies at this time.
222. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by increasing the zoned land tax to 25% of market value of the land and where the levy will also be imposed if the planning permission is not commenced within 12 months of its granting or where the development is not completed within 36 months of the planning permission being granted; and if he will make a statement on the matter. [31008/23]
Amharc ar fhreagraRZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax will be due and payable from 2024 onwards in respect of land which fell within the scope of the tax on or before 1 January 2022. Where land is zoned or serviced after 1 January 2022, the tax will be first due in the third year after the year in which it comes within scope.
The aim of the tax is to ensure that zoned serviced land which is ready to deliver housing is activated and the process of seeking, gaining and activating planning permissions is encouraged. The RZLT is a part of the process of ensuring that zoned serviced land is used in an effective and timely manner. The aim of the tax is not to raise significant revenue.
A draft RZLT map was published by local authorities on 1 November 2022. The purpose of the draft map was to allow landowners to see if their land is within the scope of the tax. If a landowner had seen that their land is included on the draft map and believes that it should not be, they had the opportunity to make a submission to the local authority by 1 January 2023 seeking to have the map updated and their land removed from the map, or they could have sought to have their land rezoned.
Local authorities considered the submissions received and made written determinations on whether the land should stay on the map or be removed from it. If a landowner requested a rezoning of their land, the local authority would consider the request and, if appropriate, they would commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process. If the landowner disagrees with the determination, they can appeal to An Bord Pleanála. Local authorities will publish a final residential zoned land map in December 2023.
The rate of 3% was set to achieve a balance between achieving the measure's essential purpose of encouraging the release of land for housebuilding purposes, but at the same time not being too penal.
In relation to the Deputy's question regarding the estimated revenue yield from an increase in the residential zoned land tax from 3% to 25% in a full year, where the levy will also be imposed if the planning permission is not commenced within 12 months of its granting or where the development is not completed within 36 months of the planning permission being granted, at this time it is not possible to estimate a projected yield increase as the mapping process by local authorities has not yet concluded.
223. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing a 10% levy on vacant or derelict residential property as per the number of vacant properties identified in the recent census but where properties tied up in probate, the fair deal scheme or holiday homes are excluded; and if he will make a statement on the matter. [31009/23]
Amharc ar fhreagraAccording to the preliminary Census figures released in June 2022, 166,752 vacant dwellings were recorded in Census 2022. The preliminary information also provided a breakdown by reason, this is available at:
www.cso.ie/en/releasesandpublications/ep/p-cpr/censusofpopulation2022-preliminaryresults/housing/
It should be noted that the Census measure of vacancy is a point in time indicator taken on Census night as to whether the property was inhabited or not on Sunday 3 April 2022, and is not intended to be a measure of long term vacancy or that these properties are available for re-use. A dwelling is classed as vacant by Census enumerators if it is unoccupied on Census night, is not used as a holiday home and is not usually inhabited by occupants who are temporarily absent at the time of census. Dwellings under construction and derelict properties are also not included in the Census count of vacant dwellings. The Census information does not include information on the valuation of properties.
Therefore, my Department or Revenue do not have the necessary information to calculate an estimate of the revenue effects sought by the Deputy.
224. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of abolishing the help-to-buy scheme; and if he will make a statement on the matter. [31010/23]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. I am advised by Revenue that the total value of claims under the HTB scheme for 2022, including both approved and pending claims is €180.2m, based on the claim-stage start date of the application.
For the purposes of the Budget 2023 documentation, a figure of €175 million was estimated as the cost of the scheme for 2023 and again for 2024. This estimate was derived by my Department using published Revenue annual statistics for the scheme for 2021 and the end-August 2022 monthly statistics. Bearing in mind that HTB is a demand-led scheme which is subject to a broad range of variables, including housing completion rates and prices, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme. However, although it does not take account of any potential changes in taxpayer behaviour, the above latest actual costs to-date and the above estimated costs can be assumed to be broadly indicative of the annual saving if the HTB scheme was abolished. At present, HTB is subject to a sunset clause with an associated date of 31 December 2024.
225. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by increasing stamp duty on non-residential property to 10%; and if he will make a statement on the matter. [31011/23]
Amharc ar fhreagraI am advised by Revenue that the estimated yield from increasing the rate of stamp duty on non- residential property is published on page 19 of the Revenue Ready Reckoner, available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
While the exact changes sought by the Deputy are not provided, they can be estimated on a straight-line or pro-rata basis. These estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
226. Deputy Richard Boyd Barrett asked the Minister for Finance to provide details of the latest figures of the net worth of Irish households, including the net worth of the top 1%, the top 5% and the top 10% of these households; to estimate the revenue that would be generated by levying a tax of 2% on the top 5% allowing for a tax-free allowance for each household of €1 million; and if he will make a statement on the matter. [31012/23]
Amharc ar fhreagraIn order to estimate the potential revenue from a tax of the nature outlined in this question it would first be necessary to identify the net worth of Irish households at an individual level. I am informed by the Revenue Commissioners that they currently have no statistical basis for compiling estimates in relation to such a tax. Although an individual's assets and liabilities are declared to the Revenue in a number of specific circumstances (for example, after a death), this information is not a complete measure of financial assets in the State, nor is it recorded in a manner that would allow analysis of the implications of an overarching wealth based tax.
The Central Bank’s Quarterly Financial Accounts for Q4 2022 (published 5 May 2023) does contain an overall household net wealth figure, but not the breakdowns requested by the Deputy.
The CSO published their Household Finance and Consumption Survey 2020 in May 2022 (this survey has been carried out three times, with 2020 being the most recent of those). It has a median household net wealth figure and also provides a breakdown by income deciles, though again not the breakdown requested by the Deputy.
Therefore I cannot provide the estimated yield from a tax of the nature outlined in this question.
227. Deputy Richard Boyd Barrett asked the Minister for Finance to give a full-year cost of lost VAT to the Exchequer by introducing price controls that cap petrol/diesel at €1.30 and 1.40 per litre; electricity at 25c per kilowatt hour; natural gas at 8c per kilowatt hour and oil (kerosene) at €1 per litre; and if he will make a statement on the matter. [31013/23]
Amharc ar fhreagraI am advised by Revenue that the theoretical estimated full year cost of introducing these measures is provided in the table below. The Deputy should note, however, that a price cap of this nature would result in operators selling fuel at below cost which is not sustainable in any business. The estimates are based on the most recently available price information and do not take account of any behavioural change by either vendors or purchasers.
|
Commodity |
Price € |
Full Year VAT Loss (€m) |
|
Petrol (l) |
1.30 |
316 |
|
Diesel (l) |
1.40 |
267 |
|
Kerosene (l) |
1.00 |
45 |
|
Electricity (KWh) |
0.25 |
217 |
|
Gas (KWh) |
0.08 |
45 |
|
Total |
890 |
228. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of reducing the pension earnings limit from €115,000 to €60,000; and if he will make a statement on the matter. [31014/23]
Amharc ar fhreagraI am advised by Revenue that the estimated full year yield for the proposed decrease in the earnings limit for occupational pension schemes, RACs and PRSAs can be found by consulting page 10 of the Revenue Ready Reckoner, published on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
229. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by increasing CGT to 40%; and if he will make a statement on the matter. [31015/23]
Amharc ar fhreagraI am advised by Revenue that the estimated yield from increasing the rate of Capital Gains Tax (CGT) is published on page 14 of the Revenue Ready Reckoner, available on the Revenue website at: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
While the exact changes sought by the Deputy are not provided, they can be estimated on a straight-line or pro-rata basis. These estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
230. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year revenue that would be generated by establishing a new rate of corporate tax of 50% on the profits of all energy companies; and if he will make a statement on the matter. [31016/23]
Amharc ar fhreagraWhile wholesale energy prices have fallen from the exceptional peaks in late 2021 and in 2022, energy policy, including increasing costs of energy supply and the taxation of profits, remains a matter of key concern to the Government.
The cost of energy supply is complex and there are many factors which must be considered including energy security, rising input costs, costs to consumers and the need to reduce dependence on fossil fuels. The complexities of the energy market and the range of producers and contracts must also be acknowledged - for example, the Renewable Energy Support Scheme (RESS) contains strong consumer protection measures, with wholesale market revenues above the auction price returned to electricity consumers through the Public Service Obligation Levy.
I am advised by Revenue, the gross additional yield from increasing the corporation tax rate from 12.5% to 50% on the taxable profits of all energy providers is tentatively estimated to be in the region of €460 million. This estimate is based on the 2021 Corporation Tax returns of energy providers, the latest year for which fully analysed data are available and assumes no behavioural change in response to the proposed increase in rate.
However, the Deputy will be aware that, in response the increase in energy prices last year, mainly as a result of the war in Ukraine, on 30th September 2022 the EU Energy Council agreed an Energy Windfall Regulation (Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices). In addition to electricity demand reduction measures, the Regulation contains two measures targeted at windfall gains in the energy sector as follows:
(i) A Temporary Solidarity Contribution (TSC) on a measure of “excess” taxable profits for the fossil fuel production and oil refining sector for the years 2022 and/or 2023, and
(ii) An electricity market price cap for non-gas electricity generators, for the period 01 December 2022 to 30 June 2023, that have not seen significant increases in their generation costs (i.e. primarily renewables).
The Department of the Environment, Climate and Communications (DECC) have responsibility for implementation of the Regulation, with support from the Department of Finance, and other departments and agencies. DECC last week published a Bill to implement the TSC, with the aim of having the legislation passed before the summer recess. DECC also state their intention to bring a separate Bill to implement the electricity market price cap to Government in July, with the aim of having it passed when the Oireachtas resumes after the summer recess.
The Regulation allows proceeds from these revenue raising measures to be used for purposes including support for households and businesses affected by high energy prices, and support for investment in renewable energy. A future Government decision will be required to decide on how best to distribute the proceeds.
It is worth noting that the Government has taken a number of measures to reduce the burden on consumers in relation to the cost of energy. This includes providing a series of €200 energy credits to every household in the country; reductions in fuel excise duty; and a reduction in the VAT rate for electricity and gas.
231. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost for index linking the existing tax bands to inflation in Budget 2024; and if he will make a statement on the matter. [31017/23]
Amharc ar fhreagraAs the Deputy will be aware, the Programme for Government, “Our Shared Future”, states that “From Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be index linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates.”
In relation to inflation, the basis for the Department’s outlook are forecasts published annually in the Budget and Stability Programme Update (SPU). Both publications set out point-in-time projections for inflation. At the time of SPU 2023 in April, the Department projected headline and core inflation of 4.9 per cent and 4.4 per cent respectively for this year as a whole. For next year, headline and core inflation are projected at 2.5 per cent and 3.2 per cent, respectively.
The Budget 2024 Economic and Fiscal Outlook will set out the Department’s updated projections for inflation.
In relation to the Deputy’s request, I would point out that, page 9 of Revenue’s Post-Budget 2023 Ready Reckoner (dated October 2022) includes the estimated cost of indexation at 1 per cent, across the main tax credits and bands, as well as USC band rates and exemption limits. This information is available at the following link –
www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf
Based on Revenue’s latest Ready Reckoner (Post-Budget 2023), it is estimated that the cost of indexing only the income tax bands by 1 percentage point would be in the region of €85 million in 2024 and €100 million in a full year.
232. Deputy Michael Creed asked the Minister for Finance the situation regarding the appointment of board members to the Disabled Drivers Medical Board of Appeal; and if he will make a statement on the matter. [31079/23]
Amharc ar fhreagraFollowing the resignation of all previous DDMBA members in November 2021, I had hoped that a new DDMBA would have been established by now and that the appeals process would have recommenced.
You should note that five members are legislatively required for a functional Board, however the recruitment of these members has proved to be challenging. In this regard, four expressions of interest campaigns have been organised by the Department of Health – 3 of them in 2022, and one in April to replace a previously nominated person. The necessary 5 members have been nominated by the Minister for Health, with Garda vetting currently being undertaken for the most recently nominated candidate – this process was completed for the other four candidates at the start of the year.
An added complication to the recommencement of the appeals process is that in February 2023, the National Rehabilitation Hospital (NRH) (the body that has hosted the DDMBA since 2000) indicated their intention to withdraw their services with immediate effect. Finance and Health officials have been actively seeking to implement new arrangements since, including engaging with the NRH. Some progress has been made on this matter insofar as the NRH has indicated a willingness to once again host the DDMBA and the Department is working actively with it to ensure that issues in relation to the processing of funding are addressed so that the consideration of appeals can be quickly resumed. It is important to note that requests for appeal hearings can still be sent to the DDMBA secretary based in the NRH.
Assessments for the primary medical certificate, by the HSE, are continuing to take place. In this regard, an important point to make is that even though there has been no appeal mechanism since the previous Board resigned, applicants who have been deemed not to have met one of the six eligibility criteria required for a PMC are entitled to request another PMC assessment six months after an unsuccessful PMC assessment.
I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
233. Deputy Matt Carthy asked the Minister for Finance the guidance provided to the Ireland Strategic Investment Fund regarding industries, sectors or otherwise, which it is prohibited from investing in; and if he will make a statement on the matter. [31243/23]
Amharc ar fhreagra234. Deputy Matt Carthy asked the Minister for Finance if the Ireland Strategic Investment Fund has invested in companies which operate and derive income from the Occupied Palestinian Territories; if such is consistent with the Irish Government policy of distinguishing between the territory of the State of Israel and the territories of the State of Palestine occupied by the State of Israel since 1967; and if he will make a statement on the matter. [31244/23]
Amharc ar fhreagraI propose to take Questions Nos. 233 and 234 together.
The Ireland Strategic Investment Fund (ISIF) portfolio is constructed within the legislative framework set for it by the Oireachtas. ISIF endeavours to be a responsible investor, actively integrating ESG factors into its decision-making processes with a view to enhancing the overall outcomes for the Fund and ultimately its beneficial owner.
In this context ISIF operates an exclusion policy which is consistent with its statutory mandate, as amended from time to time. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation (such as the Fossil Fuel Divestment Act 2018 or the Cluster Munitions and Anti-Personnel Mines Act 2008) and, inter alia, exclusions on sustainable investment grounds including Tobacco and Nuclear Weapons.
The NTMA Annual Report for 2021 discloses ISIF’s shareholdings, as at end-2021, in 9 companies which appear on the UN Human Rights Council Database of business enterprises involved in certain activities related to the Israeli settlements in the Occupied Palestinian Territory (published by the UN Human Rights Council in February 2020, A/HRC/43/71). The NTMA will publish an updated list of all ISIF holdings as at year end 2022 in the NTMA Annual Report for 2022, which is due to be published shortly.
The Illegal Israeli Settlements Divestment (Private Members Bill), 2023 seeks to amend the National Treasury Management Agency (Amendment) Act 2014 to have ISIF divest from companies named in a UN Human Rights Council Database published by the UN Human Rights Council on 12 February 2020, A/HRC/43/71). The proposed Bill would have the effect of preventing ISIF from being able to invest in any company on that database and that NTMA/ISIF would not also be able invest indirectly in any company which is on the UN database.
It is important to understand the Government’s policy position with respect to Israel and the Occupied Territories. Ireland distinguishes between the territory of the State of Israel and the territories occupied since 1967, in line with international law. This approach is common across all Government Departments. As part of this approach, Ireland ensures that any bilateral agreements with Israel do not apply to territories occupied by Israel since 1967.
The Government's position on the proposed Private Member's Bill was outlined at the second stage debate. Specific concerns were raised at the debate about the use of the specific UN database as a method for determining investment or disinvestment by NTMA/ISIF in the territories occupied by Israel since 1967.
I am conscious that this is a difficult issue to resolve and that time needs to be devoted to it. It is also the case that any legislation passed by the Oireachtas has to be constitutional and legally sound. Therefore to allow appropriate time to consider implications of the Private Members Bill and explore possible ways to proceed the Government proposed a timed amendment to the Bill of nine months on Tuesday, 16 May and this was subsequently approved by Dáil Éireann.
The timed amendment approach allows time to consider the intent of the Bill further including consideration of other alternative non-legislative based approaches or a combination of legislative and non-legislative based approaches which could achieve a similar outcome.
In light of the Dáil’s approval of the timed amendment as part of the Government’s approach to considering how best to proceed I have written to both the Chair of the Oireachtas Committee on Foreign Affairs and Defence and to the NTMA’s CEO seeking their views on the most appropriate way to progress the broad intentions behind the Bill.
