Written Answers Nos. 162-185
162. Deputy Matt Carthy asked the Tánaiste and Minister for Defence the number of Defence Forces personnel of each rank who have signed up to participate in the EU Battlegroup; and if he will make a statement on the matter. [51694/23]
Amharc ar fhreagraIn January of this year, the Government approved the participation by the Defence Forces in the German-led EU Battlegroup in 2024/2025. This will be the eighth occasion on which the Defence Forces have been part of an EU Battlegroup and the first since 2020. The Battlegroup will be stood-up during 2024 and will be on standby throughout 2025. It is currently foreseen that the total number of the proposed Defence Forces contribution to the Battlegroup will be approximately 182 personnel. This will be comprised of a Mechanised Infantry Company (with a Company HQ, Infantry platoons and a weapons platoon consisting of 138 personnel) together with a National Support Element (consisting of 34 persons providing the necessary transport, medical, CIS, maintenance and ordnance support) and staff posts of 10 personnel to the Force Headquarters. The Operational Headquarters will be located in Ulm, Germany, while the Force Headquarters will be based in Strasbourg, France.As of now, all of the staff posts in the Force Headquarters have been filled. With regard to the remaining approximately 172 posts, the Defence Forces are currently finalising the terms and conditions that will apply to those personnel participating in the EUBG. The most recent information available to me is that there thirty-five personnel have volunteered to participate in the Mechanised Infantry Company/National Support Element. This is an increase of ten on the numbers last week and I expect to see that number continuing to rise.The Defence Forces’ contingent will be stood-up on a phased basis through the first months of 2024, beginning with a relatively modest number from 1 January. It is anticipated that, as the terms and conditions relating to those participating in the Battlegroup are finalised in the coming weeks, there will be an appreciable increase in the numbers volunteering to participate.
163. Deputy Matt Carthy asked the Tánaiste and Minister for Defence if he will review the decision to withdraw Defence Forces troops from the UNDOF UN peace keeping mission in Golan Heights, considering the increased tensions in that region and the poor sign-up of Defence Forces personnel in the EU Battlegroup; and if he will make a statement on the matter. [51695/23]
Amharc ar fhreagraThere is no plan to review the decision to withdraw the Defence Forces' Infantry Group from the UNDOF mission next year .The placement Troop Contributing Country (TCC) has been selected to take over the role of the Force Reserve Company, following the scheduled Irish departure in April 2024. Planning for the withdrawal of the Defence Forces' contingent and their replacement is well advanced, involving the United Nations, the Force Headquarters, the current Irish contingent and the replacement TCC to ensure a smooth handover that in no way compromises the mission.
Notwithstanding the withdrawal of the Defence Forces' Infantry Group, it is likely that the DF will continue to occupy a small number of staff officer posts at the UNDOF mission HQ.
Battlegroups are a key component of the capabilities that the EU can make available in support of UN-authorised crisis management operations. Within the EU Battlegroup concept, the purpose of the Battlegroup, as a rapid response capability, includes the role of acting as an initial entry force to stabilise a situation pending the deployment of a follow-on force, to support an established peace support operation which is running into difficulties, and to respond to humanitarian crises.
The decision to withdraw personnel from the UNDOF mission was made following the receipt of military advice which stated that this would allow the Defence Forces to undertake a process of consolidation with regard to their overseas commitments and to prepare for future peace-keeping missions as well as to ensure that the Defence Forces have the capacity available to fulfil their commitment to the EU Battlegroup 2024/2025.
164. Deputy Willie O'Dea asked the Minister for Transport if he plans to ban sulky races, particularly in light of the recent sulky races which took place on a public road in Limerick, which caused significant danger to other road users and resulted in cruelty to the horses involved; and if he will make a statement on the matter. [51658/23]
Amharc ar fhreagraUnder section 74 of the Roads Act 1993, it is possible to prescribe classes of road races for which local authority approval must be sought in advance, and for which there can then be road closures. A race which falls within prescribed classes and is not licensed is illegal, with penalties for the organiser. I understand that no classes of race have ever been prescribed under this section. I am aware, though, that the offence applies only to the organiser, and I understand that in many cases of sulky races there is no identifiable organiser.
In the meantime, participants in such races are liable for any road traffic offences they may commit during the races. As the Deputy will know, in many cases of sulky racing there is also considerable danger caused by vehicles following the race and in some cases driving alongside on the other side of the road. In these cases too the drivers can be help liable under the Road Traffic Acts.
Animal welfare issues are a matter for my colleague the Minister for Agriculture.
165. Deputy Ged Nash asked the Minister for Transport if his Department is aware of significant damage caused by recent flooding to the bridge over the river Flurry, Deerpark Road, Ravensdale, Dundalk, which provides public access to the Proleek Dolmen national monument; if the Office of Public Works will consider undertaking repair works to the bridge; if the agency has engaged with Louth County Council on the issue; and if he will make a statement on the matter. [51702/23]
Amharc ar fhreagraIreland has recently experienced several severe weather events which have caused significant damage to the regional and local road network. Prompt restoration of our roads and bridges is essential to maintain social/economic connectivity as well as enabling safer journeys.
It is important to highlight, in accordance with the provisions of Section 13 of the Roads Act 1993, each local authority has statutory responsibility for the improvement and maintenance of their regional and local roads. Works on those roads are funded from local authorities' own resources and are supplemented by State Road grants.
Every year the Department of Transport emphasises to all local authorities the importance of setting aside a contingency fund to manage events such as severe flooding. Where practical, the Department also works with local authorities to reprioritise grant funding following such incidences as severe weather events.
As the Deputy is aware, it takes time to fully assess the extent of damage to the road network and any associated potential costs. The Department is liaising with Louth County Council throughout this assessment process.
166. Deputy Michael Healy-Rae asked the Minister for Transport to investigate a matter (details supplied); and if he will make a statement on the matter. [51605/23]
Amharc ar fhreagraThe improvement and maintenance of regional and local road network is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on these roads are funded from local authorities’ own resources and are supplemented by State road grants.
There are an estimated 75,000 bridges on the Regional and Local Road network and bridge rehabilitation work is consistently required to maintain and renew this infrastructure. For this reason, the Department has a specific Bridge Rehabilitation Grant Scheme; applications for funding under the Department's Bridge Rehabilitation Scheme are invited on an annual basis. Local authorities are made aware of the conditions of the scheme and are asked to submit applications in order of priority.
It is my understanding that Kerry County Council has submitted funding applications for18 bridges and Foildarrig Bridge is one of these applications. The Department will examine applications from all local authorities and Councils will be notified of their respective allocations early in the New Year.
167. Deputy Robert Troy asked the Minister for Transport if he will comment on the current relevance of the CPC driver course; and if the teaching manuals for this course are out of date and not in line with current driving guidelines. [51615/23]
Amharc ar fhreagraThe driver certificate of professional competence (CPC) process is based on European Union Directive 2002/2561, on the initial qualifications and periodic training of drivers of certain road vehicles for the carriage of goods or passengers. The Directive was transposed into Irish law by the European Communities (Vehicle Drivers Certificate of Professional Competence) (No. 2) Regulations 2008 (SI 359 of 2008), as amended.
CPC modules are reviewed on a continuous basis. The latest review on Module 2 is complete and will be rolled out before the end of this year. The review of Module 1 is due to start early next year.
The Government's Road Safety Strategy 2021-2030 includes an action to review accessibility of driver CPC. This action is being led by the Road Safety Authority (RSA).
In addition to a general review of the training syllabus, the RSA is introducing QR codes in the training manuals and presentations, which will be included in Module 2 when it is rolled out this year. The incorporation of QR codes in the training material will act as a redirection tool for drivers and trainers to ensure that the most up to date content is shared with the classroom.
168. Deputy James Lawless asked the Minister for Transport for further details on a cab system (details supplied); if they will have insurance; the type of licence required to operate same, given it is for hire and reward; the person or body that sets the fare charged to customers; the type of industry, area knowledge tests and Garda clearance the driver has to undergo to be allowed to operate same; and if he will make a statement on the matter. [51621/23]
Amharc ar fhreagraThe regulation of the small public service vehicles (SPSVs) industry is a matter for the independent transport regulator, the National Transport Authority (NTA) under the Consolidated Taxi Regulation Acts 2013-2016. I have no role in the day-to-day operations of the sector.
As your question relates to a specific company, I have referred it to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
169. Deputy James Lawless asked the Minister for Transport to reinstate a bus stop that had previously been in service (details supplied); if there are no plans to reinstate this, if an alternative service can be offered for this location; and if he will make a statement on the matter. [51624/23]
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 statutory responsibility for securing the provision of public passenger transport services nationally, for decisions in relation to the routes of these services in conjunction with the relevant transport operators, and for the planning and development of public transport infrastructure, including the national provision of bus stops and bus shelters.
In light of the Authority's responsibility in this area, I have forwarded the Deputy's queries in relation to the possible reinstating of a bus stop at North Kildare Rugby Club and the possible provision of an alternative service for this location, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
170. Deputy Sean Sherlock asked the Minister for Transport what applications for expansion of a bike scheme (details supplied) have been received; and the costs involved for an expansion. [51669/23]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to cycling and public transport infrastructure, including the provision of funding to the National Transport Authority (NTA) for bike-sharing schemes like the Regional Bikes Scheme in Cork, Waterford, Limerick and Galway.
However, matters related to the day-to-day operations, management or expansion of public bike schemes is a matter for relevant local authorities, in conjunction with the NTA.
As such, I have referred your question to the NTA for a more detailed reply. If you do not receive a reply within 10 working days, please contact my private office.
171. Deputy Thomas Pringle asked the Minister for Transport when a substantive response to correspondence (details supplied) of 8 October 2023 can be expected; and if he will make a statement on the matter. [51673/23]
Amharc ar fhreagraI have directed my officials to prioritise your correspondence.
If you do not receive a reply within ten working days, please contact my private office.
172. Deputy Eoin Ó Broin asked the Minister for Transport to provide an update in relation to changes to the pension scheme for CIÉ pensioners; and the timeline for when an increase in the pension will be sanctioned. [51733/23]
Amharc ar fhreagraAs the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard (MFS) required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.
As of end December 2022, the Balance Sheet deficit for the two defined benefit pension schemes operated by CIÉ, namely the Regular Wages Scheme (“RWS”) and 1951 superannuation scheme (“1951 Scheme”), was €396.5m. While the funding position improved during 2022, and the 1951 scheme now meets the MFS, the RWS currently does not meet the MFS and the funding level is marginal and subject to future market volatility.
In relation to RWS, I signed three Statutory Instruments related to the RWS on 6th July 2022, with an operative date of 18th July 2022.
Regarding the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of trade union members in May 2021. This is being considered by the Department in conjunction with NewERA. The Deputy may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days and the outcome from the Hearing is expected in the coming months. The proceedings are next due for mention 24th January 2024.
Concerning pension increases for CIÉ pensioners, I understand that an increase for pensioners would only be possible when the Schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the Scheme Actuary at the time an increase is proposed, and is done in agreement with the Trustees of the Schemes.
Accordingly, I have forwarded the Deputy's question to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days
173. Deputy Thomas Gould asked the Minister for Transport the bus stops for the 203 bus under proposed changes. [51769/23]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including the national provision of bus stops and bus shelters.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
174. Deputy Brendan Griffin asked the Minister for Transport the up-to-date position regarding progressing the N86 Tralee to Dingle Road upgrade; and if he will make a statement on the matter. [51788/23]
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, management and upgrading 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.
However, I can confirm that €300,000 has been allocated for the Tralee to An Daingean scheme in 2023. The funding for this scheme, as with all schemes, will be kept under review and considered in terms of the overall funding envelope available to TII in 2024. The allocations for 2024 are expected to be announced by the end of the year.
Noting the above position, I have referred your question to TII for a direct update as to the latest status of this project. Please advise my private office if you do not receive a reply within 10 working days.
175. Deputy Joe Flaherty asked the Minister for Finance if he will address an inequality in the fuel rebate scheme for disabled drivers (details supplied). [51765/23]
Amharc ar fhreagraThe Disabled Drivers & Disabled Passengers Scheme (DDS) provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
Under DDS provisions, the reliefs from VRT and VAT are generous in nature amounting to up to €10,000, €16,000, €22,000, €32,000 or €48,000 depending on the level of adaption required for the vehicle. There is no differentiation between electric and other vehicles in terms of available VRT/VAT relief.
Section 135C(3)(b) of the Finance Act 1992 separately provides that a Category A series production electric vehicle can avail of relief of up to €5,000 on the VRT due. Thus the amount of VRT due or paid on an electric vehicle may be lower than the maximum DDS relief permitted. In such cases the VRT relief provided through the DDS will equate to the actual VRT due or paid. VAT refunds are provided regardless of the type of vehicle.
DDS Scheme recipients with a petrol or diesel vehicle may claim payment of a fuel grant. The fuel grant covers the excise tax elements of petrol, diesel and liquefied petroleum gas (LPG) . It is based on a per litre rate in respect of the mineral oil taxes applying to these products. An annual maximum of 2,730 litres applies in respect of a driver or passenger, and 4,100 litres in respect of an organisation.
As electricity supplied for household use is not subject to excise tax , there is no provision under the DDS to cover electricity used to recharge electric vehicles.
176. Deputy Denis Naughten asked the Minister for Finance the plans, if any, he has to amend the disabled drivers and disabled passenger's scheme; and if he will make a statement on the matter. [51473/23]
Amharc ar fhreagraThe National Disability Inclusion Strategy Transport Working Group (NDIS TWG), comprising members from a range of Departments, agencies and Disabled Persons Organisations, was tasked to review all Government-funded transport and mobility supports for those with a disability, including the Disabled Drivers and Disabled Passengers Scheme (DDS). Officials from the Department of Children, Children, Equality, Disability, Integration and Youth (DCEDIY) led the work of the group.
The NDIS TWG final report was published on 24 February 2023, and welcomed the proposal put forward by the Department of Finance and the Criteria Sub-Group that the Disabled Drivers Scheme is replaced with a needs-based, grant-aided vehicular adaptation and indicated that the proposal was a clear deliverable on which work could begin in the relatively near future.
The NDIS TWG final report also notes in its conclusion that the Disabled Drivers Scheme is outdated and that the scheme needs to be addressed as a matter of priority. However, the final report does not set out next steps. It will be a matter for Government as to how to take this matter forward.
Access to transport for people with disabilities is a multifaceted issue that involves work carried out by multiple Government departments and agencies. Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report and to map a way forward. Department of Finance officials are proactively engaging with this Senior Officials Group work as an important step in considering ways to replace the Disabled Drivers Scheme, as one specific personal transport response, in the context of broader Government consideration of holistic, multifaceted and integrated transport and mobility supports for those with a disability. Two meetings have been held, the first in July and the second more recently at the beginning of November. Department of Taoiseach officials are currently considering material supplied after these meetings.
In that context, any further changes to the existing Disabled Drivers Scheme would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
178. Deputy Eoin Ó Broin asked the Minister for Finance the total number of units of renewable electricity that are determined by reference to data on the fuel mix in respect of the suppliers concerned, as published by the Commission for Regulation of Utilities, for which relief is claimed from the electricity tax for 2022, in tabular form. [51628/23]
Amharc ar fhreagraThe Deputy has asked about relief from Electricity Tax in the context of electricity supplier data on fuel mix as published by the Commission for Regulation of Utilities (CRU). The requirement for electricity suppliers to show the sources of electricity on consumer bills, and to report Fuel Mix Disclosures to the CRU, is governed by the State’s electricity market regulatory framework which operates entirely independently of tax law. Policy and legislation with regard to the market regulatory framework comes within the remit of my colleague the Minister for the Environment, Climate and Communications. That regulatory framework provides for a certification scheme whereby the State’s Single Electricity Market Operator (SEMO) issues Guarantees of Origin to verify that electricity has been produced from renewable sources. Guarantees of Origin are tradable across the EU which allows Irish suppliers buy additional Guarantees of Origin to certify that a greater share of their electricity demand is covered by renewable sources. This means that Guarantees of Origin do not necessarily follow the flow of electricity and the fuel mix reported by electricity suppliers can have a higher share of renewable energy sources than exists in the actual physical generation distributed to consumers.
With regard to Electricity Tax, Ireland’s taxation of fuel and electricity is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel and electricity with which all Member States must comply. The ETD provisions on taxation of electricity are transposed into national law in Chapter 1 of Part 2 of Finance Act 2008 (as amended). This provides for the application of an excise duty, in the form of Electricity Tax, on electricity supplied to consumers in the State. Liability rests with the supplier and returns are filed annually. The current rate of Electricity Tax is €1.00 per megawatt hour which is one of the lowest excise rates on electricity in the EU.
Article 15 of the ETD allows Member States to fully or partially relieve supplies of electricity generated from renewable sources. Ireland has opted to fully exempt electricity of solar, wind, wave, tidal or geothermal/hydraulic origin, along with electricity produced from biomass or from products produced from biomass. Ireland has opted to provide a full relief from Electricity Tax for electricity generated from renewable sources and the relevant legislative provisions are set out in section 63 of the Finance Act 2008 (as amended). Full details on Electricity Tax are available on the Revenue website at www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/electricity-tax/index.aspx.
I am advised by Revenue that the total number of terawatt hours of renewable electricity for which relief was claimed from Electricity Tax in 2022 was 15.6 TWh.
179. Deputy Brendan Smith asked the Minister for Finance when it is proposed to establish the Disabled Drivers Medical Board of Appeal; when the criteria for this scheme will be amended in view of the widespread dissatisfaction in relation to the workings of this scheme; and if he will make a statement on the matter. [51735/23]
Amharc ar fhreagraProgress has been made on efforts to convene a new Disabled Drivers Medical Board of Appeals (DDMBA), to secure new hosting arrangements for the DDMBA and to recommence the appeals process.
I have now formally appointed all five members to the new DDMBA. Funding arrangements between the Department of Finance and the Department of Health have been agreed. On this basis the National Rehabilitation Hospital has confirmed that they will again host the DDMBA. Preparatory work is underway, that will include due deliberation on how best to clear the backlog. In this regard, I have been advised that the appeal hearings will recommence in the first half of December 2023.
I appreciate that it has taken far longer than anticipated to get to this point. With the Department of Health we have had to run four Expression of Interest campaigns over 18 months to source the legislatively required five members. We have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.
In relation to your question regarding amendment of the criteria of the Disabled Drivers and Disabled Passengers Scheme (DDS) scheme, you should note that the final report of the NDIS Transport Working Group's review of mobility and transport supports including the DDS, endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS, as it is no longer fit-for-purpose on any and all aspects. The proposals note this was a clear deliverable for the near future.
The NDIS TWG was chaired by Minister Anne Rabbitte and led by the Department of Children, Equality, Disability, Integration and Youth (DCEDIY).
Access to transport for people with disabilities is a multifaceted issue that involves work carried out by multiple Government departments and agencies. Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report and to map a way forward. My officials are proactively engaging with this Senior Officials Group work as an important step in considering ways to replace the DDS, as one specific personal transport response, in the context of broader Government consideration of holistic, multifaceted and integrated transport and mobility supports for those with a disability. A first meeting was held in July 2023 and a second in November 2023. Department of Taoiseach officials are currently considering material supplied after that meeting.
In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
180. Deputy Pearse Doherty asked the Minister for Finance the total number of individuals charged excess tax under the standard fund threshold in each of the years from 2016 to 2022. [51744/23]
Amharc ar fhreagraI am advised by Revenue that if an individual’s pension fund is higher than the Standard Fund Threshold (SFT), which is currently €2 million, the excess over the threshold (the “chargeable excess”) is subject to an upfront, ring-fenced income tax charge (known as “chargeable excess tax”) at 40%, in the year of assessment in which the “benefit crystallisation event” (BCE) giving rise to the chargeable excess occurs. No reliefs, allowances or deductions may be set against the chargeable excess when computing the amount of tax due. In certain circumstances, however, standard rate lump sum tax – that is, tax due on the portion of a retirement lump sum in excess of €200,000 – may be offset against chargeable excess tax.
Part 30, Chapter 2C of the Taxes Consolidation Act 1997 (TCA) outlines the limits on tax-relieved pension funds and the taxation of amounts over that limit. The SFT is defined in section 787O TCA; the chargeable excess is detailed in section 787Q TCA; chargeable excess tax is set out in section 787R TCA; and credit for lump sum tax against chargeable excess tax is provided for in section 787RA TCA.
Revenue does not collect data on the number of pensions that exceed the SFT. However, the number of pensions which paid chargeable excess tax between 2017 and 2022 is set out in the table below. This does not include pensions which exceeded the SFT in those years but where the chargeable excess tax due was reduced to nil by being offset against tax on a retirement lump sum.
|
Tax Year |
No of Payments |
|
2017 |
45 |
|
2018 |
105 |
|
2019 |
123 |
|
2020 |
240 |
|
2021 |
288 |
|
2022 |
254 |
The precise number of payments made in 2016 cannot be provided. Given the small number involved, releasing the figure could lead to a taxpayer being directly or indirectly identified and therefore would not be consistent with Revenue’s obligation to maintain taxpayer confidentiality in accordance with section 851A TCA.
182. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the OECD sponsors’ proposals in respect of corporation profits tax in this country and across Europe remains notwithstanding the recent opinion of the ECJ’s advocate general; and if he will make a statement on the matter. [51756/23]
Amharc ar fhreagraI assume the Deputy is referring to the OECD's two-pillared solution to address the tax challenges associated with the digitalisation of the economy and the recent Opinion of the Advocate General in the Apple Case.
Ireland signed up to the OECD two-pillar agreement in October 2021 and we intend to follow through on that commitment. Our long-standing position is that the international tax system needs to keep pace with changes in how business is now being conducted globally.
With the introduction of domestic Pillar Two provisions in this year’s Finance Bill, we have followed through on that commitment in relation to the Minimum Tax element of the agreement. Transposition of the EU Minimum Tax Directive in Ireland is at an advanced stage with draft legislation included in this year’s Finance Bill making its way through the Houses of the Oireachtas currently.
The technical work on Pillar One is nearing completion at OECD level. A draft of the the Multilateral Convention and Explanatory Statement for Pillar One was recently published by the OECD that demonstrates the substantial progress that has been made on all aspects of the agreement over the two years. I look forward to finalising the publication of the MLC and its opening for signature in due course. For the benefits of the agreeement to be fully realised it will be important for all countries to move forward together to implement Pillar One globally.
Throughout the negotiations of the OECD Agreement, Ireland has sought to provide certainty for businesses and to protect our strategic interests and to ensure that we remain an attractive location when MNEs look to invest. Ireland continues to support the full implementation of the OECD agreement as a mechanism that will bring that long term stability and certainty to the international tax framework globally.
In 2016, the European Commission issued a Decision finding that Ireland had provided State aid to Apple. Ireland challenged this decision before the General Court of the European Union (GCEU).
In 2020, the GCEU issued its judgment which annulled the Commission’s State aid decision of 2016. The Commission appealed the GCEU judgment to the Court of Justice of the European Union (CJEU) and, on 23 May 2023, the CJEU heard the appeal.
The Advocate General’s Opinion on the Apple case was published on 9 November 2023. The Advocate General analyses the legal aspects of the case in detail and, separately from the deliberations of the Court, provides an Opinion regarding the issue being heard. It is however important to bear in mind that this Opinion does not form part of the Court of Justice of the European Union judgment but is considered by the Court when arriving at its final ruling. The timing of the judgment is at the discretion of the Court.
184. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he remains satisfied that this country’s finances are on a firm footing; and if he will make a statement on the matter. [51758/23]
Amharc ar fhreagraThe latest Exchequer returns, for end-October, presented a mixed picture of our public finances. The underlying resilience of our economy is reflected in the steady growth in income tax and VAT receipts, but, as the Deputy will be aware, corporation tax fell for a third consecutive month and now stands some €0.4 billion behind its end-October 2022 position.
I have long warned that "windfall" corporation tax receipts, while welcome, are an inherently volatile source of revenue and are not a suitable basis on which to build permanent spending commitments. Government’s fiscal strategy is predicated on the assumption that a large proportion of the significant rise in corporation tax seen in recent years is windfall in nature: in other words, these receipts are not linked to the domestic economy. This represents a clear vulnerability to the sustainability of our public finances.
Government has taken important steps to mitigate this vulnerability: on Budget Day, I announced the establishment of two new long-term funds, the Future Ireland Fund and the Infrastructure, Climate and Nature Fund , that will invest these windfall receipts to assist with capital and climate-related projects and to prepare for future structural fiscal challenges that we know are on the horizon.
Of course, the best way to ensure that our public finances remain on a positive trajectory over the medium-term is by continuing to pursue a balanced and sensible budgetary policy, as set out in Budget 2024 .
Question No. 185 answered with Question No. 127.
