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Thursday, 19 Oct 2023

Written Answers Nos. 173-182

Budget 2024

Ceisteanna (173)

Violet-Anne Wynne

Ceist:

173. Deputy Violet-Anne Wynne asked the Minister for Transport how the people of Clare will benefit from his Department's allocations in Budget 2024; and if he will make a statement on the matter. [46038/23]

Amharc ar fhreagra

Freagraí scríofa

Deputy,

The Department of Transports Budget 2024 allocation will benefit the people of Clare in various programmes such as National Roads, Regional and Local Roads, EV Infrastructure and Active Travel investment, details of which are outlined below.

National Roads

As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design, construction, 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 2023, TII allocated the following to Clare County Council in respect of National Roads –

• Protection & Renewal (Capital): €3,137,800

• Protection & Renewal (Current): €602,040

This funding is used by Clare County Council for projects such as those outlined in the table below, as well as for other safety and maintenance programmes in Co. Clare:

Project

Allocation

N19 Shannon Airport Access

€500,000

N67/N85 Blake’s Corner

€50,000

N67 Cloonbony to Rinneen Pavement

€878,200

N67 Doonbeg Pavement

€820,800

N67 Lisdoonvarna Pavement

€388,800

The National Roads allocations for 2024 are expected to be announced by the end of this year.

Regional and Local Roads

The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources supplemented by State road grants, where applicable.

Under the 2024 Regional and Local Road Grant Programme, any funds allocated to Clare County Council next year will be employed to support a range of potential programmes including road pavement resealing and strengthening works, bridge rehabilitation projects, climate adaptation and safety measures, drainage works together with community involvement schemes on less trafficked roads.

In addition, funding will also provide for the implementation of the strategic regional and local road improvement scheme Shannon Crossing, Killaloe Bypass and R494 Upgrade Scheme which is being undertaken under the National Development Plan and is currently at construction stage.

Grant allocations for 2024 will be notified to local authorities early next year.

Zero Emissions Vehicles

Starting in 2024, Zero Emission Vehicles Ireland (ZEVI) plan to roll out schemes for En-Route charging on the National Road Network.  This will start at the motorways and will then expand to remaining single carriage national road network. 

The people of Clare will benefit from this infrastructure by enabling them to have confidence to make the decision to transition to a zero-emission electric vehicle as they know they will have charging capacity available when needed. From a Destination and residential Neighbourhood charger perspective, ZEVI is currently developing the National Destination and Residential Neighbourhood EV Charging Network Plan. Part of this plan will include for a regional approach to delivering EV Infrastructure across Ireland. Clare has agreed to join with Donegal, Sligo, Galway County and Mayo in developing their EV Infrastructure Strategies and from these Strategies, Implementation plans will be developed, and the funding needs identified for projects. The installation of EV Infrastructure at Destination and Residential Neighbourhood Locations will facilitate the transition to EVs to 2030 and beyond.

Active Travel

While the Department has responsibility for overall funding relating to Active Travel, the National Transport Authority (NTA) has responsibility for allocating funding under their Active Travel Programme to local authorities for walking and cycling projects. During Q4 2023, the NTA will work with local authorities including Clare County Council to identify projects which will benefit from funding under the 2024 Programme. Funding allocations will be announced early next year.

Part of this allocation will fund projects under the Safe Routes to School programme in 2024. Round 1 and 2 schools are progressing through the Programme, and more schools will enter it as part of Round 3 next year. In Clare, five schools were selected for inclusion in Round 1 and an additional two schools were included in Round 2, the majority of which are at project design stage.

Continued funding will be allocated to behavioural change programmes such as Smarter Travel, Green Schools Travel, Bike Week and Cycle Right training. These operate on a national level, and the extent of specific allocations to or engagement with the local authority, schools or organisations in Clare will be determined early in 2024.

I look forward to working with our state agencies and the local authorities in Clare to deliver the above planned investments, which will be funded via the 2024 transport budget.

National Vehicle and Driver File

Ceisteanna (174)

Robert Troy

Ceist:

174. Deputy Robert Troy asked the Minister for Finance if he will address an anomaly in vehicle registration system (details supplied). [45877/23]

Amharc ar fhreagra

Freagraí scríofa

Under the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of its registration, and the way the tax is computed depends on the category of vehicle involved.

VRT on Category A vehicles (generally passenger vehicles) is assessed based on the value of the vehicle and its emissions levels for carbon dioxide (CO2) and nitrogen oxide (NOx). The VRT on Category B vehicles (generally light commercial vehicles and motor caravans) is assessed at 13.3% of the Open Market Selling Price of the vehicle.  Certain commercial vehicles, including many commercial vans, qualify for Category C, charged at a flat rate of €200.

The legislation provides that the appropriate category for a particular vehicle is determined at the time of its registration based on the vehicle’s technical categorisation under EU type approval law, taking account of the documentation presented at the time of registration including its EU Classification. Category B vehicles either have three seats or less, or have more than three seats, but a distinct cargo compartment that is part of a separate unit.

Under legislation, a ‘crew cab’ could only qualify as a category A or Category B vehicle, and in most cases will qualify for Category B, due to the distinct cargo compartment. It is worth noting that the Category B VRT rate of 13.3%, for which crew cabs normally qualify, will typically result in a lower VRT charge than the vehicle would otherwise attract as a Category A passenger vehicle. Crew cabs were specifically identified and moved into the typically lower VRT rate, Category B, with a view to enabling small businesses, mainly in the construction sector, to carry workers safely to and from sites while still having room to carry tools and other equipment. The definition specifically allows up to 6 passengers to travel in up to two rows of seats (which must be separated from the cargo area).

The rationale for the classification is that crew cabs are dual-purpose vehicles combining the passenger carrying capacity of a family car with the goods carrying capacity of a commercial vehicle. Given the vehicle sits somewhere between a Category A (passenger) vehicle and a Category B (commercial) vehicle, classifying the vehicle in the €200 Category C is not consistent with the broader VRT system and may encourage non-commercial use of the vehicles.

There are no plans at present to re-examine this rate or categorisation.

Tax Code

Ceisteanna (175)

James Lawless

Ceist:

175. Deputy James Lawless asked the Minister for Finance to examine a matter (details supplied); and if he will make a statement on the matter. [45878/23]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, taxes on capital including CGT ensure that taxation is not focused solely on income and that those who benefit from gains in the value of their assets are included within the tax net on an equitable basis. It is important that burden of taxation is shared appropriately across the range of different taxes.

While preparing this year’s Budget a range of options were considered when deciding on the appropriate actions to support the rental market. The policy intention is to encourage landlords to remain in the market, and income supports were considered the most appropriate way to achieve this as reductions in capital gains tax will only be available at the time of sale and would be unlikely to encourage landlords to remain in the market.

A reduction in CGT for landlords such as the one suggested by the Deputy will essentially increase the cost to the State of every property purchased by a local authority or approved housing body, by the amount of capital gains taxes foregone. This increased cost directly benefits the landlord, who may be leaving the rental sector completely, and has the potential for deadweight costs as landlords who intend to sell the property in any case would benefit from the relief. It could also reduce further the housing stock available for other purchasers and ultimately increase prices for all purchasers.

I would also note that there are already non-tax measures in place to support sales to tenants and to local authorities.

Housing Schemes

Ceisteanna (176)

Alan Dillon

Ceist:

176. Deputy Alan Dillon asked the Minister for Finance to outline the supports in place for a person who has been approved a mortgage but refused mortgage protection based on medical grounds (details supplied); and if he will make a statement on the matter. [45947/23]

Amharc ar fhreagra

Freagraí scríofa

At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance companies (the Solvency II Directive). As the Deputy will appreciate, I am also unable to comment on individual cases.

Notwithstanding this, I am aware of the issue of access to mortgage protection insurance for individuals with historic or underlying health conditions in the context of buying a home, which is an extremely sensitive matter. In order to be as helpful as possible, my officials contacted Insurance Ireland regarding the circumstances of this case.

It has advised that when consumers are taking out a life assurance policy, companies will have to take the existence or potential of medical conditions into consideration, and assess each case individually. Consequently, consumers will generally be asked questions about various of conditions. However, different insurers can use slightly different criteria to assess this risk.

I understand that in some instances, the risk presented by the applicant outweighs the risk appetite of the insurer, and the application may be declined. In such situations, Insurance Ireland has advised that applicants should request a detailed breakdown from the insurer as to why their medical history has led to a decline for cover, if they have not already received this.

In more general terms, I understand that there are financial brokers working on behalf of consumers who have specific conditions which may affect their applications for life cover, as they would be better placed to understand which insurer might be more likely to provide cover in these circumstances. Brokers Ireland has established a register of advisors/brokers who specialise in sourcing cover for individuals who have difficulty in obtaining life cover due to a pre-existing illness, which therefore may be useful. This is available at: brokersireland.ie/life-cover-pre-existing-illnesses/.

In addition, there is a provision under Section 126 of the Consumer Credit Act 1995 whereby lenders can provide a mortgage in situations where a borrower may be unable to obtain life insurance, or where such insurance is unduly costly compared to that payable by borrowers generally. According to Insurance Ireland, the lender could also accept an occupational Death in Service cover, if appropriately assigned to the mortgage. These are important options for individuals, including those with historical health conditions, to be aware of and to discuss with their lender if experiencing difficulties acquiring mortgage protection insurance.

Finally, Insurance Ireland operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover. This service can be accessed by constituents by calling 01-676-1820 or by emailing feedback@insuranceireland.eu.

State Claims Agency

Ceisteanna (177)

Alan Kelly

Ceist:

177. Deputy Alan Kelly asked the Minister for Finance if his Department and all the agencies that report to his Department fully respect a judgment (details supplied) that was ruled on in March 2020. [45957/23]

Amharc ar fhreagra

Freagraí scríofa

The matters that the Deputy is referring to are appropriate to my colleague Mr. Stephen Donnelly TD Minister for Health. 

As regards the role of the State Claims Agency (SCA) I should say that across all the Departments and the many related bodies and agencies that the SCA is delegated to handle cases for, the relevant Minister with the policy responsibility for the area in which cases arises answers to the Oireachtas on them and not I as Minister for Finance.  

Section 9., (3), (f) of the NTMA (Amendment) Act 2000 which established the SCA provides:

“(f) the delegation or declaration shall not remove or derogate from the responsibility of any Minister of the Government to Dáil Éireann or as a member of the Government for the performance of functions of that Minister of the Government thereby delegated or to which the declaration relates.”

Prior to the establishment of the SCA each Department managed their own claims and accounted for them to the Dáil themselves. The motive behind the establishment of the SCA was to centralise the management of claims against the State. Each entity delegated to the SCA continues to deal with the SCA bilaterally on the cases concerned.

Departmental Reviews

Ceisteanna (178)

Rose Conway-Walsh

Ceist:

178. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the ESRI review of the NDP was commissioned, completed, or will be complete and when it will be published; and if he will make a statement on the matter. [45863/23]

Amharc ar fhreagra

Freagraí scríofa

In March 2023, I presented to Government a package of significant actions aimed at enhancing project delivery for the NDP. Among these actions, I committed to an independent mid-term evaluation of investment priorities and capacity of the NDP, focusing on the capacity to deliver current Government priorities, to utilise sectoral capital allocations and to estimate the impact of the NDP on key economic indicators. The ESRI was commissioned to carry out this evaluation in April 2023. It is anticipated that the report will received by my Department in the next number of weeks and will be published during Q4 this year. 

On foot of the report, my Department will communicate with relevant Departments during November to commence the process of agreeing sectoral NDP allocations out to 2028, with a view to the publication of the revised NDP sectoral allocations during Q1 2024.

Capital Expenditure Programme

Ceisteanna (179, 180, 181)

Rose Conway-Walsh

Ceist:

179. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the total projected capital spend in 2023, broken down by core and non-core and what it represents as a percentage share of Total Government spending and core spending; and if he will make a statement on the matter. [45864/23]

Amharc ar fhreagra

Rose Conway-Walsh

Ceist:

180. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the total projected capital spend in 2024, broken down by core and non-core and what it represents as a percentage share of total Government spending and core spending; and if he will make a statement on the matter. [45871/23]

Amharc ar fhreagra

Rose Conway-Walsh

Ceist:

181. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the total projected capital spend in 2025; what it is projected to represent as a percentage share of total Government spending and core spending; and if he will make a statement on the matter. [45865/23]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 179 to 181, inclusive, together.

As Minister for Public Expenditure, NDP Delivery, and Reform I am responsible for setting the overall capital allocations across Departments.  Over the lifetime of this NDP out to 2030, the government is investing €165 billion in new and upgraded infrastructure that will meet the needs of our growing population.  This year alone over €12 billion will be invested from the Exchequer in vital infrastructure projects.  The NDP includes agreed Exchequer allocations for each Department for a five year period (2021 to 2025) and the overall capital expenditure ceilings out to 2030.

The following table sets out total allocated capital expenditure as a percentage of total current and capital expenditure for the period 2023 – 2025. Total allocated capital expenditure is as set out in the National Development Plan 2021-30. Additional capital expenditure of €0.25 billion is also included for 2024 along with an additional €0.75 billion in 2025 from windfall exchequer receipts, to be allocated to critical infrastructure projects that are at an advanced stage.

Year

Total Capital

€,m

Of which Core

€,m

Of which non-Core

€,m

Capital  as % of Total Current and Capital Spending

2023

12,100

11,566

534

13.0%

2024

13,103

12,560

543

13.6%

2025

14,352

13,442

910

14.8%

Question No. 180 answered with Question No. 179.
Question No. 181 answered with Question No. 179.

State Pensions

Ceisteanna (182)

Éamon Ó Cuív

Ceist:

182. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when arrears of pension owing since 2021 will be paid to retired general operatives and supervisors that worked for the Office of Public Works; the reason for the delay in making these payments; and if he will make a statement on the matter. [45965/23]

Amharc ar fhreagra

Freagraí scríofa

There are outstanding arrears due to a small number of retired staff and staff who died in service in relation to a WRC settlement which was made in September 2022 regarding the Ganger & Excavator Driver Travel Time Allowance.

Active OPW members of staff were paid the arrears owed in February 2023. The process to pay the arrears to retired OPW staff and those who died in service is ongoing and it is hoped this will be completed in November 2023. 

OPW does not have access to the bank account details of these retired staff to ensure they are correct as the Paymaster General in NSSO pays all OPW State Industrial pensions.  NSSO have agreed to provide this information following permission received from the Department of Public Expenditure, NDP Delivery and Reform. NSSO have indicated in mid-October that once final checks are complete, the bank account details are ready to send and once received OPW will process the payment of these arrears. 

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