Written Answers Nos. 186-199
187. Deputy Éamon Ó Cuív asked the Minister for Transport if it is intended to provide funding through his Department to ensure the CIÉ 1951 Pension Scheme has sufficient funds to pay pension increases to CIÉ pensioners (details supplied); if not, if the pension scheme will be incorporated into the general public service scheme; and if he will make a statement on the matter. [53913/23]
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 on the 24th of 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.
188. Deputy Fergus O'Dowd asked the Minister for Transport if he will outline the increased investment being made on LocalLink services in counties Louth and Meath, including future plans for such extension; and if he will make a statement on the matter. [53914/23]
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 statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including TFI Local Link services, delivering the Connecting Ireland Rural Mobility Plan and New Town Services.
In light of the NTA's responsibilities for the roll-out of new services, including in Counties Louth and Meath, I have referred your question to the NTA for direct reply to you regarding the roll-out of routes in those counties . Please advise my private office if you do not receive a reply within ten working days.
189. Deputy Fergus O'Dowd asked the Minister for Transport if any further consideration has been given since the publication of the draft all-island rail strategy to extending services to include passenger services along the existing Navan-Drogheda rail line, thereby providing a rail link to Dublin from Navan in a relatively inexpensive and fast manner; and if he will make a statement on the matter. [53915/23]
Amharc ar fhreagraThe All-Island Strategic Rail Review is being undertaken by the Department of Transport in cooperation with the Department for Infrastructure in Northern Ireland. It will inform the development of the railway sector on the Island of Ireland over the coming decades.
The Review is considering the future of the rail network with regard to the following ambitions: improving sustainable connectivity between the major cities (including the potential for higher/high-speed rail), enhancing regional accessibility, supporting balanced regional development, and rail connectivity to our international gateways. This includes the role of rail freight and consideration of the growth potential of the rail freight market.
Work on the Review is now at an advanced stage and a draft report was published for the purposes of Strategic Environmental Assessment (SEA) public consultation in July. Extending services to include passenger services along the existing Navan-Drogheda rail line is not included in the recommendations in the draft Review. The public consultation phase of the SEA process concluded on 29th September and submissions are now under review by the Project Team and officials from both jurisdictions.
Following the SEA process and finalisation of the report, it is expected that it will be submitted for the approval of the Minister for Transport and Government, as well as to the Minister for Infrastructure in Northern Ireland. Should there continue to be an absence of Ministers in the NI Executive, approval will be considered taking into account the decision-making framework set out in the Northern Ireland (Executive Formation etc.) Act 2022 or relevant legislation in place at the time.
The issue of a rail link to Navan was examined as part of the National Transport Authority’s (NTA) review of the Transport Strategy for the Greater Dublin Area (GDA). The Transport Strategy for the GDA 2022-2042 was published by the NTA in January 2023, following my approval. It is a multi-modal long-term transport strategy for the region and one that must be reflected in relevant land-use strategies across the GDA.
A Navan rail link is included in the GDA Transport Strategy as one of the proposed projects to be delivered. As it stands, the Strategy proposes delivery of the Navan rail line in the medium term, from 2031-2036. A project of this scale will require significant planning and design before construction can commence. It is expected that this planning and design will commence in the second half of this decade under the National Development Plan funding envelope out to 2030.
Noting the NTA's role 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.
190. Deputy Darren O'Rourke asked the Minister for Finance the estimated full-year yield that would be generated if the electricity tax on large energy users increased to €3 per MW hour, in tabular form. [53222/23]
Amharc ar fhreagraI am advised by Revenue that it does not have the necessary data to model the potential impact of changes in the rate of Electricity Tax charged to any particular cohort of energy users. The annual Electricity Tax Return does not include any breakdown of supply by customer size.
I am further advised by Revenue that the full-year yield that would arise from increasing the current Electricity Tax rate from €1 to €3 per Megawatt hour for all users is estimated at €12.7m.
191. Deputy Darren O'Rourke asked the Minister for Finance about Ireland's special drawing rights and their reallocation; how have they been reallocated; if they can be used as a means of debt cancellation and funding for loss and damage; and if he will make a statement on the matter. [53268/23]
Amharc ar fhreagraSpecial Drawing Rights (SDRs) are an international reserve asset that was created by the International Monetary Fund (the IMF) in 1969. SDRs are not a currency but their value is based on a basket of five currencies with one SDR currently equivalent to approximately €1.22.
The IMF has allocated SDRs to its member countries in the 1970s (in response to a marked decline in world reserves, concern about increasing trade restrictions and to deal with changes in the international monetary system), in 2009 (in the context of the global financial crisis) and in 2021 (in response to the unprecedented global health and economic crisis). In total SDR 660 billion (equivalent to circa €800 billion) has been allocated of which circa 70% was allocated in 2021.
Ireland has been allocated SDR 4.1 billion (equivalent to circa €5 billion) of which SDR 3.3 billion (equivalent to circa €4 billion) was allocated in 2021. These SDRs are held by the Central Bank of Ireland, where they form part of our external reserves.
Countries can lend (or "channel") SDRs to IMF funds (such as the Resilience and Sustainability Trust or the Poverty Reduction and Growth Trust). This allows the IMF funds to provide low-interest/longer-term loans to countries in need. Under EU law, Ireland cannot channel SDRs to other entities such as multilateral development banks.
The loans provided by the IMF funds could be used by recipient countries to service debt obligations, fund climate measures etc. While of significant benefit, these loans are not considered a means of debt cancellation or funding for loss and damage.
My Department is currently appraising the potential for Ireland to channel SDRs to IMF funds.
192. Deputy Cian O'Callaghan asked the Minister for Finance if, with regard the amendments to the Finance (No.2) Bill in support of the recommendations in the report of the Committee on Budgetary Oversight on the section 481 film tax credit, he will consult and engage with a union (details supplied) on this matter and reconsider the decision to refuse this recommendation; and if he will make a statement on the matter. [53524/23]
Amharc ar fhreagraI am aware of the contents of the Committee on Budgetary Oversight’s Report on Section 481 Film Tax Credit. In relation to Recommendation 7 regarding intellectual property rights, and indeed Recommendation 8 regarding compliance with relevant copyright legislation, I would note that copyright law falls within the remit of the Department of Enterprise, Trade and Employment. It is worth noting that copyright legislation applies regardless of whether it is referenced as part of the application process for section 481.
Copyright is relevant for many workers in the film sector, including authors, producers, broadcasters and performers. I am aware that an independent facilitator has been retained by Screen Ireland to meet with key stakeholders to understand and discuss issues raised through the implementation of the Digital Single Market Directive (Copyright Directive). I understand that stakeholders on all sides of this issue are actively engaging in the process. It is critical that any potential amendments to section 481 do not front-run this important piece of work, and the outputs from it will inform future policy considerations.
The Digital Single Market Directive (Copyright Directive) and related legislation establish overarching principles – in this case, the right to appropriate and proportionate remuneration. The details of what exactly this entails – for example the balance of remuneration between upfront daily rates and potential profit-share post-release – need to be agreed between representative bodies in the industry, with the over-arching protection of the legislative principles.
I would also note that my officials have directly engaged with all relevant representative bodies in the sector, including those representing crew, cast and producers, with a view to understanding the issues affecting the audio-visual sector. I would also like to advise that there is an intention to do so again in the coming weeks.
193. Deputy Carol Nolan asked the Minister for Finance if his Department operates an X account (formerly Twitter) or any other social media account, and if such accounts are verified through a subscription fee; the policy in place that guides when any of these accounts can ‘like’, endorse or support a posting on X or other social media platforms; and if he will make a statement on the matter. [53654/23]
Amharc ar fhreagraThe Department of Finance has active accounts for both LinkedIn and X which are used for official Department publications and press releases. No subscription fees are paid for these accounts and the policy for their use is purely for amplifying official Department of Finance messaging and not endorsing other users activity on social media.
194. Deputy Pauline Tully asked the Minister for Finance the reason VAT is charged on medicines for family pets; and if he has plans or will consider reducing or removing VAT on medicines for family pets. [53672/23]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Currently, Ireland has two reduced rates of 13.5% and 9%. Member States can also apply a reduced rate lower than the 5% minimum and a zero-rate to certain categories in Annex III, including medicine.
Up until the amendments to Annex III of the Vat Directive in April 2022, medicines for animals could not be subject to a zero-rate. However because of a historical derogation, Ireland has been able to apply such a zero-rate to the supply of oral medicines for farm animals. This measure has always excluded medicines which are packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets which remains liable at the standard rate.
With the aforementioned Annex III amendments, which now allow for a zero-rate for animal medicines, we have maintained our existing zero-rate for oral medicines for farm animals. In this regard, Revenue have published guidance on the VAT treatment of animal medicine which is available on the Revenue website www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/vat-treatment-of-animal-medicines.pdf
While, it is now possible to zero rate medicines for family pets under the Annex III of the VAT Directive, no decision was made in Budget 2024 to do so. If such a measure was proposed it would form part of the normal Budget and Finance Bill process where the cost and impact could be considered.
The Deputy should note that as with other VAT rate reductions, while the VAT charged must always be correct a company can increase the base price of a product service so that the final consumer does not benefit from the VAT reduction. Consequently, therefore if such medicines were zero rated, there is no guarantee that this reduction would be passed onto consumers.
195. Deputy Rose Conway-Walsh asked the Minister for Finance the total rental income declared by non-tax residents as part of their form 11 tax return in each year since 2020; and if he will make a statement on the matter. [53742/23]
Amharc ar fhreagraI am advised by Revenue that the total amounts of rental income, from residential and commercial properties, as declared on Form 11 Income Tax returns by non tax-resident persons, is set out in the table below for the years 2020 and 2021 (the latest year for which data are currently available).
|
- |
Commercial Rental Income €m |
Residential Rental Income €m |
|
2021 |
63.54 |
333.67 |
|
2020 |
64.33 |
326.54 |
196. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if books bought online from outside of Ireland are subject to the new reduced VAT rate; and if he will make a statement on the matter. [53776/23]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. The Directive also permits Member States to apply a zero-rate to particular categories of the goods and services specified in Annex III, and these include books and electronic publications.
In accordance with the Directive, Ireland has applied the zero rate of VAT to physical books for many years. In Budget 2024, I announced that electronic books and audiobooks will also move to the zero rate with effect from 1 January 2024; the legislative provision to enable this is in Finance (No.2) Bill, which is currently moving through the Oireachtas.
Under the VAT Directive, where goods or services are purchased from another country, the “place of supply rules” are used to determine where the supply is liable to VAT. A number of factors may need to be taken into account when determining the place of supply, including whether the purchase relates to goods or to services, whether or not the purchaser is VAT-registered, and whether the supplier is based in another EU Member State or in a third (i.e. non-EU) country. Further considerations may apply if a supply is made online or via distance sales. Ultimately, if the place of supply is determined to be Ireland, then it is generally the Irish VAT rules (including rates) which apply to the transaction. The measure I announced in the Budget does not involve any change to the application of the place of supply rules.
In relation to online purchases by an Irish consumer from a business in another country, in general, if the purchases are physical books, then the matter is treated as a supply of goods and the 0% rate will generally apply. If the purchases are electronic books, then the situation is regarded as the supply of services and, in the given circumstances, in general the place of supply would be Ireland and the transaction will generally come within the scope of Irish VAT which, from 1 January 2024, will apply the 0% rate to the supply of ebooks. In both cases, if the supplier is an EU business that makes less than €10,000 of intra-EU supplies to private individuals annually, then the rate in the supplier’s Member State may apply instead.
Revenue have published extensive guidance on the existing rules in relation to printed matter, books and electronic publications; this guidance will be updated very shortly to take account of the VAT rate change for audiobooks and e-books when the legislation is enacted. Revenue also provide guidance on place of supply rules. There is a short guide for consumers buying goods online available from Revenue at www.revenue.ie/en/customs/individuals/buying-online-personal/index.aspx .
197. Deputy Louise O'Reilly asked the Minister for Finance how much his Department has spent on advertising on a website (details supplied) for each of the years 2019 to 2022 and to date 2023, in tabular form; and whether his Department will still run advertisements on the platform going forward due to issues. [53799/23]
Amharc ar fhreagraI wish to advise the Deputy that my Department did not advertise on X, formally known as Twitter, from 2019 to-date 2023.
198. Deputy Pearse Doherty asked the Minister for Finance the total value of unclaimed tax, through the Revenue Commissioners for overpaid tax; the number of persons to whom this applies, for each of the years 2016 to 2022, inclusive; and if he will make a statement on the matter. [53838/23]
Amharc ar fhreagraI understand the Deputy’s office has confirmed this question relates to PAYE taxpayers.
I am advised by Revenue that, where an income tax return is not completed, it is not possible for Revenue to know if a taxpayer may be due additional credits or reliefs. Therefore, it is not possible to provide the Deputy with final figures on the amount of overpaid tax as individual taxpayer circumstances differ. Some taxpayers may have overpaid tax in some years and underpaid in others and some may be entitled to additional credits or reliefs which they have not yet claimed while others may have additional income on which tax may be due.
Since 2019, Revenue makes an Employment Detail Summary (EDS) and a Preliminary End of Year Statement (PEOYS) available to all PAYE taxpayers through the myAccount service after the end of each tax year. The PEOYS sets out each PAYE taxpayer's provisional tax position for that tax year, based on information available on Revenue records. The PEOYS provides employees with a preliminary calculation of their Income Tax and USC position, and will indicate whether their tax position is balanced, underpaid, or overpaid for the year.
To assist taxpayers to balance their tax, Revenue regularly issues letters to taxpayers who according to their Preliminary End of Year Statement, may have either overpaid or underpaid tax in a particular tax year. These letters advise the recipients to submit an Income Tax return to claim any additional tax credits or reliefs that they may be due and/or to declare any additional income they may have received. These letters also remind taxpayers of a four-year time limit in respect of submitting such claims.
I am further advised that, to date, Revenue has refunded €487 million to over 825,000 taxpayers in respect of the 2019 tax year while, €441 million has been refunded to 695,000 taxpayers for 2020, €567 million has been refunded to 830,00 taxpayers for 2021, and €567 million has been refunded to 760,000 taxpayers for 2022.
To claim a refund of overpaid tax, taxpayers are required to complete an income tax return. The quickest and easiest way to do this is online through Revenue’s myAccount facility. MyAccount allows taxpayers to claim their entitlements, declare any additional income and ensure that they pay the right amount of tax at the right time.
Based on the provisional end of year position for PAYE taxpayers who have yet to submit an Income Tax return, Revenue records indicate that for 2019, €108 million is overpaid by 212,661 customers; for 2020, €93 million is overpaid by 186,000 customers; for 2021, €147 million is overpaid by 257,790 customers and for 2022, €176 million is overpaid by 308,560 customers. Equivalent figures for 2016 to 2018 are not available as these years precede the introduction of PAYE Modernisation.
It should be noted, however, that Revenue has advised that the above figures are correct as of today’s date – they are a snapshot at a point in time, however the figures will change depending on when the data is collated. Revenue further advises that the overall numbers of taxpayers may be less than the total of the above figures as some taxpayers may have overpaid tax in one or more of the years shown. Similarly, the net amount of tax overpaid may be less than the total of the figures shown as some taxpayers may have overpaid in some years and underpaid in others.
199. Deputy Pearse Doherty asked the Minister for Finance the number of meetings he has held with retail banks, regarding the mortgage treatment of homes affected by defective blocks or their status following remediation, in each of the years 2021, 2022 and 2023, respectively. [53850/23]
Amharc ar fhreagraThe overall Government response on the problems associated with defective concrete blocks is led by my colleague the Minister for Housing, Local Government and Heritage. His Department is engaging with impacted householders and relevant stakeholders and has put in place a scheme of financial support to help affected homeowners.
Some homeowners have identified potential challenges with funding the commencement of remediation works in circumstances where advance payment is required by building professionals prior to receipt of the first grant payment and I have asked my officials to engage with the Banking and Payments Federation Ireland (BPFI), in association with officials from the Department of Housing, to explore their funding mechanism proposal to assist on that particular issue.
I and my Department have communicated with the BPFI, as representative body for the banking industry, on this and also on the more general banking related problems arising for impacted homeowners but I have not had meetings with individual retail banks on this matter.
