Gino Kenny
Ceist:202. Deputy Gino Kenny asked the Minister for Transport when Kishoge rail station will be opened and operational; and if he will make a statement on the matter. [10610/24]
Amharc ar fhreagraRail Network
Ceisteanna (202)
Freagraí scríofa
As 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 the planning and development of public transport infrastructure, including the works at Kishoge train station.
My understanding is that Kishoge train station will open this year. Noting the NTA's responsibility in this matter, I have referred the Deputies' questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
A referred reply was forwarded to the Deputy under Standing Order 51.
Rail Network
Ceisteanna (203)
Thomas Gould
Ceist:203. Deputy Thomas Gould asked the Minister for Transport under the Cork Area Commuter Rail Programme when work will begin in relation to each of the new rail stations of Blarney/Stoneview, Monard, Blackpool/Kilbarry, Tivoli, Dunkettle, Carrigtwohill West, Water-Rock, Ballynoe, when each will be opened and operational, in tabular form; and if he will make a statement on the matter. [10632/24]
Amharc ar fhreagraFreagraí scríofa
The Cork Area Commuter Rail Programme represents the largest investment in the rail network in Cork undertaken by the State. Phase 1 of the Cork Area Commuter Rail Programme, ‘Enable future electrification of Cork Commuter Rail’, was included in Ireland’s National Recovery & Resilience Plan (NRRP) as submitted to the European Commission in 2021. All works associated with Phase 1 will be completed by Quarter 3 2026 as required by the European Commission.
This will see a €185 million investment, €164m of which is EU funds, in Cork’s rail infrastructure. This will facilitate the longer-term electrification of the network through construction of a new ‘through’ platform at Kent Station to create an integrated suburban network, re-signalling of the network, and double-tracking from Glounthaune to Midleton. All works included in the NRRP should be completed by mid-2026 as required by the European Commission.
Following approval from Cork City Council, the construction contract for the additional platform at Kent Station was awarded in early 2023 and enabling works have begun on site, with construction expected to be completed by 2025.
An Bord Pleanála granted a Railway Order with conditions to Córas Iompair Éireann for the double-tracking of the Glounthaune to Midleton line in October 2023. Procurement preparations have started following this approval and a contract award is expected later this year prior to construction commencing.
In addition to the Kent Station and double-tracking works above, Iarnród Éireann awarded a contract to Alstom for a major signalling upgrade project on the Cork commuter rail network in June 2023. This signalling upgrade is required to increase the number of trains which can operate between Cork and Cobh, Midleton and Mallow.
As 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 Cork Area Commuter Rail programme.
Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
A referred reply was forwarded to the Deputy under Standing Order 51.
Bus Services
Ceisteanna (204)
Ivana Bacik
Ceist:204. Deputy Ivana Bacik asked the Minister for Transport the timeline for the implementation of the next phase of the Dublin Network Redesign; and if he will make a statement on the matter. [10637/24]
Amharc ar fhreagraFreagraí scríofa
BusConnects Dublin is a transformative programme of investment in the existing bus system, providing better bus services to more people. It is part of the biggest ever investment in our bus system in the history of the State. Five phases of the Network Redesign have rolled out in recent years and this roll-out will continue in the coming years, subject to funding and human resource availability.
As 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 BusConnects Dublin.
Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
Bus Services
Ceisteanna (205)
Niamh Smyth
Ceist:205. Deputy Niamh Smyth asked the Minister for Transport if a bus stop and timetable will be erected at the 170 Bus Éireann bus stop in a location (details supplied); and if he will make a statement on the matter. [10662/24]
Amharc ar fhreagraFreagraí scríofa
As 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 provision of bus stops/shelters nationally.
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.
Question No. 206 answered with Question No. 150.
Road Projects
Ceisteanna (207, 208, 210, 211)
David Cullinane
Ceist:207. Deputy David Cullinane asked the Minister for Transport the extent and level of funding for roads, including maintenance, restoration, and other works from Transport Infrastructure Ireland to Waterford City and County Council in the years 2019-2024, inclusive, by year and by funding stream, in tabular form. [10741/24]
Amharc ar fhreagraDavid Cullinane
Ceist:208. Deputy David Cullinane asked the Minister for Transport the extent and level of funding for roads, including maintenance, restoration, and other works from the National Transport Authority to Waterford City and County Council in the years 2019-2024, inclusive, by year and by funding stream, in tabular form. [10742/24]
Amharc ar fhreagraDavid Cullinane
Ceist:210. Deputy David Cullinane asked the Minister for Transport the extent and level of funding for roads, including maintenance, restoration, and other works from Transport Infrastructure Ireland to each local authority in the years 2019-2024, inclusive, by year and by funding stream, in tabular form. [10744/24]
Amharc ar fhreagraDavid Cullinane
Ceist:211. Deputy David Cullinane asked the Minister for Transport the extent and level of funding for roads, including maintenance, restoration, and other works from the National Transport Authority to each local authority in the years 2019-2024, inclusive, by year and by funding stream, in tabular form. [10745/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 207, 208, 210 and 211 together.
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 this context, TII is best placed to advise you on the funding to each local authority in the years 2019-2024.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
Question No. 208 answered with Question No. 207.
Question No. 209 answered with Question No. 150.
Question No. 210 answered with Question No. 207.
Question No. 211 answered with Question No. 207.
A referred reply was forwarded to the Deputy under Standing Order 51.
Dublin Bus
Ceisteanna (212)
Paul McAuliffe
Ceist:212. Deputy Paul McAuliffe asked the Minister for Transport to provide an update on the transfer of the Dublin Bus fleet to electric buses; if there are any issues with the roll out; and if he will make a statement on the matter. [10763/24]
Amharc ar fhreagraFreagraí scríofa
The Government is committed to the decarbonisation of the public transport sector in line with the Climate Action Plan. No new diesel-only buses have been purchased for urban public service obligation bus fleets since July 2019, as set out in the National Development Plan 2018-2027. The transition to a zero-emission urban bus fleet is currently programmed to take up until 2035, based on replacement of non-zero-emission buses as they reach the end of their efficient service lives.
Electric buses produce no emissions and offer reduced interior and exterior noise levels compared to diesel buses. This transition to electric buses will result in cleaner air and less noise pollution in areas where the buses are operating, while also providing a quieter journey for passengers.
The first order of 100 double deck electric buses for the Dublin network was placed in 2022 and all were delivered by the end of last year. These buses are in the process of entering service and all are scheduled to go into operation over the coming months.
As 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 electric bus fleet. Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
Taxi Licences
Ceisteanna (213)
Michael Healy-Rae
Ceist:213. Deputy Michael Healy-Rae asked the Minister for Transport if he will address a matter in relation to taxi and hackney licences (details supplied); and if he will make a statement on the matter. [10770/24]
Amharc ar fhreagraFreagraí scríofa
The regulation of the small public service vehicle (SPSV) industry, including SPSV licensing, is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Consolidated Taxi Regulation Acts 2013 and 2016. I am not involved in the day-to-day operations of the SPSV industry.
In June 2010, the NTA introduced S.I. No. 250 of 2010 - Taxi Regulation Act 2003 (Grant of Taxi Licences) (Amendment) Regulations 2010 to only issue new taxi and hackney licences for wheelchair accessible taxis and hackneys. This was introduced in order to increase the number of wheelchair accessible vehicles (WAVs) in the SPSV fleet nationwide (taxis, hackneys, and limousines). To support the wider availability of WAVs, the Department has funded the WAV grant scheme annually since 2014, to provide financial support towards the acquisition or conversion of suitable vehicles to operate as WAVs in the SPSV fleet.
Where there is a demonstrated lack of SPSV services, applications are open to any person who wishes to provide a local area hackney service, subject to the regulations. To operate a local area hackney service, two licences are required. These are (1) a local area hackney licence for the vehicle and this three-year licence is obtainable from the NTA; and (2) a licence to drive a local area hackney - this licence is obtainable from An Garda Síochána. It is not required if a person already holds a valid licence to drive small public service vehicles.
A resident of the area in respect of which the local area hackney licence is sought, is not required to undertake the Industry Knowledge or Area Knowledge tests as would normally be the case when applying for SPSV driver licences. Local area hackney drivers nevertheless must be licensed and their vehicles must be licensed and insured. There are currently 27 local area hackney operators active nationwide.
In 2023, the NTA launched the Local Hackney Pilot, a grant-aided pilot to support rural transport needs where existing transport services were found to be lacking. Applications for the scheme closed on 28/02/2023, and despite significant work undertaken by the NTA to support the provision of local hackney services nationwide, only two operators chose to become licensed under the grant supported Pilot (Roundwood and Castlepollard).
I have referred your question to the NTA for further consideration and direct reply to you. Please advise my private office if you do not receive a reply within 10 days.
A referred reply was forwarded to the Deputy under Standing Order 51.
Rail Network
Ceisteanna (214)
Mick Barry
Ceist:214. Deputy Mick Barry asked the Minister for Transport in respect of the Cork Area Commuter Rail Programme, when works will begin in relation to each of the new rail stations of Blarney/Stoneview, Monard, Blackpool/Kilbarry, Tivoli, Dunkettle, Carrigtwohill West, Water-Rock, Ballynoe; when each will be opened and operational; and if he will make a statement on the matter. [10833/24]
Amharc ar fhreagraFreagraí scríofa
The Cork Area Commuter Rail Programme represents the largest investment in the rail network in Cork undertaken by the State. Phase 1 of the Cork Area Commuter Rail Programme, ‘Enable future electrification of Cork Commuter Rail’, was included in Ireland’s National Recovery & Resilience Plan (NRRP) as submitted to the European Commission in 2021. All works associated with Phase 1 will be completed by Quarter 3 2026 as required by the European Commission.
This will see a €185 million investment, €164m of which is EU funds, in Cork’s rail infrastructure. This will facilitate the longer-term electrification of the network through construction of a new ‘through’ platform at Kent Station to create an integrated suburban network, re-signalling of the network, and double-tracking from Glounthaune to Midleton. All works included in the NRRP should be completed by mid-2026 as required by the European Commission.
Following approval from Cork City Council, the construction contract for the additional platform at Kent Station was awarded in early 2023 and enabling works have begun on site, with construction expected to be completed by 2025.
An Bord Pleanála granted a Railway Order with conditions to Córas Iompair Éireann for the double-tracking of the Glounthaune to Midleton line in October 2023. Procurement preparations have started following this approval and a contract award is expected later this year, prior to construction commencing.
In addition to the Kent Station and double-tracking works above, Iarnród Éireann awarded a contract to Alstom for a major signalling upgrade project on the Cork commuter rail network in June 2023. This signalling upgrade is required to increase the number of trains which can operate between Cork and Cobh, Midleton and Mallow.
As 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 Cork Area Commuter Rail programme.
Noting the NTA's responsibility in the matter, I have referred the Deputy's questions to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
A referred reply was forwarded to the Deputy under Standing Order 51.
Tax Reliefs
Ceisteanna (215)
Colm Burke
Ceist:215. Deputy Colm Burke asked the Minister for Finance if consideration will be given to providing tax relief to parents of children studying in third level education in the UK for both their fees and the cost of their rent in the form of accommodation relief, with appropriate limits; and if he will make a statement on the matter. [10092/24]
Amharc ar fhreagraFreagraí scríofa
In relation to the Deputy’s question regarding tax reliefs in respect of student fees and rent paid for third level education in the UK, the following matters are relevant.
Section 473A of the Taxes Consolidation Act 1997 provides for tax relief on third-level tuition fees where an individual incurs “qualifying fees” in respect of an “approved course”.
Qualifying fees mean tuition fees, but do not include administration fees or examination fees, student centre or union levies or accommodation costs.
A list of approved colleges and courses is published on Revenue’s website each year and can be found at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/approved-colleges-and-courses.aspx .
All approved courses provided by publicly funded or duly accredited universities and institutions in other European Union Member States or in the United Kingdom are approved for the purposes of this relief.
The maximum amount which can qualify for relief is €7,000 per course per academic year, and when determining the amount eligible for relief the following amounts must be deducted:
• any portion of tuition fees that are or will be met directly or indirectly by grant, scholarship, employer contribution or other similar means; and
• the first €3,000 paid in respect of a full-time course or €1,500 paid in respect of a part-time course.
To qualify for tax relief an undergraduate course must:
• be carried out in an approved college, and
• last a minimum of two academic years.
To qualify for tax relief a postgraduate course must:
• be carried out in an approved college,
• last a minimum of one academic year but no longer than four academic years, and
• lead to a postgraduate award based on either a thesis or an examination.
Provided all the conditions set out above are met, parents of children studying in third level education in the UK would be eligible for tax relief.
Taxpayers have four years in which they can claim for an expense and receive a tax refund. For example, claims for the 2020 tax year must be made by 31 December 2024.
A claim for tax relief on tuition fees is made by filing an Income Tax Return. For all taxpayers Revenue provides a free, quick and easy to use facility to file an Income Tax Return. For PAYE taxpayers this is done through myAccount with self-assessed taxpayers using ROS.
Further information on filing an Income Tax Return can be found on Revenue’s website as follows:
• for PAYE taxpayers: www.revenue.ie/en/jobs-and-pensions/end-of-year-process/index.aspx
• for self-assessed taxpayers: www.revenue.ie/en/online-services/services/common/file-an-income-tax-return.aspx
Further information and guidance on tax relief for tuition fees can be found on Revenue’s website, available at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx .
The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997, is an income tax credit which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
The purpose behind the rent tax credit, introduced as a temporary measure, is to assist as part of the overall response to the accommodation shortage in the private rented residential sector in the Republic of Ireland. More specifically, the aim is to provide some financial assistance to renters in that particular sector who may face high rental costs and who do not receive any other housing supports from the State. Owing to this, the eligibility criteria for the credit specify that the rental property concerned must be a residential property located in the State.
As such, neither students attending university outside the State nor their parents are currently entitled to the Rent Tax Credit in respect of rent which they have paid for accommodation outside the State. I have no plans, at present, to change this.
As the Deputy will appreciate, in designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind the measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
Financial Services
Ceisteanna (216)
Mairéad Farrell
Ceist:216. Deputy Mairéad Farrell asked the Minister for Finance if he is aware of a particular investment product (details supplied) and if he has had any correspondence with the Central Bank in relation to the number of Irish investors which could have been impacted; and if he will make a statement on the matter. [10145/24]
Amharc ar fhreagraFreagraí scríofa
I am aware of the matter that the Deputy has raised. I have not received any correspondence from the Central Bank on this matter. I have been informed by the Central Bank that it does not have any details of the number of Irish investors in this fund.
Investors should be aware that the value of their investments may go down as well as up and the Investor Compensation Scheme - which deals with compensation claims by eligible investors - does not pay compensation in relation to any investment products which fall outside the definition of investment instrument, nor does it pay compensation for any losses incurred due to receiving bad investment advice, if client investments are poorly managed or if the investment performed poorly due to market conditions or other economic forces.
While capital loss is an inherent risk in most investment products, it is important to note that there is a strong legislative framework in place to protect retail investors in Ireland. This includes the following:
Product governance rules under the European Union (Markets in Financial Instruments) Regulations 2017 (‘MiFID Regulations’) apply to distributors of financial instruments as well as their manufacturers. Under these regulations, firms (which are regulated by the Central Bank in Ireland to provide investment advice, sell investment products, and make decisions on clients behalf) are required to meet specific requirements when providing investment advice and selling investment products (being financial instruments, as defined under Annex 1 Section C of the Markets in Financial Instruments Directive). When a regulated firm provides a client with investment advice or makes investment decisions on their behalf, they must:
• Complete a suitability assessment considering the nature and complexity of the product and whether it is suitable for them.
• Ensure the product is in their best interest and they fully understand it.
• Carry out an assessment of clients individual circumstances (knowledge/experience, risk appetite, financial situation) when making a determination about whether the product is suitable for them.
• Provide detailed risk disclosures/warnings in the product brochure and investor documentation.
If a consumer wishes to pursue a complaint against a regulated financial services provider, they must firstly make a complaint to the provider. If the complaint is not resolved, they can then make a complaint to the Financial Services and Pensions Ombudsman (FSPO), the statutory body tasked with the investigation, mediation and adjudication of complaints about the conduct of financial or pension service providers. When the FSPO receives a complaint, it is assessed to determine whether the FSPO can proceed to investigate the complaint. The FSPO has the power to direct a financial service provider to pay compensation of up to €500,000 to a complainant. The FSPO can also direct that a financial service provider rectify the conduct that is the subject of the complaint. There is no limit to the value of rectification he can direct.
In terms of powers available to the Central Bank, the Consumer Protection Code applies to regulated activities of regulated entities operating in the State, including retail intermediaries. The general principles of the Consumer Protection Code note that a regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market, act with due skill, care and diligence in the best interests of its customers, and does not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service.
Tax Credits
Ceisteanna (217)
Niamh Smyth
Ceist:217. Deputy Niamh Smyth asked the Minister for Finance to review a case (details supplied); if he will outline why this tax credit is not open to him; and if he will make a statement on the matter. [10211/24]
Amharc ar fhreagraFreagraí scríofa
The rent tax credit was introduced by Finance Act 2022 and will be available in respect of qualifying payments made during the 2022 to 2025 years of assessment inclusive.
There is nothing in the arrangements in place for the rent tax credit that seeks to expressly exclude those in receipt of State Pensions from qualifying for the relief.
While it is not possible to determine why this the person concerned is unable to claim the rent tax credit from the the information supplied by the Deputy, the following considerations may be relevant.
In order for a person to be in a position to claim the rent tax credit in a year:
• the rent paid must be in respect of the person’s principal private residence;
• the person living in the rented property themselves, or their spouse/civil partner, must have paid sufficient rent and sufficient income tax to avail of the credit;
• the tenancy must be registered with the Residential Tenancies Board (RTB), but only where this is already a legal requirement.
In the case of a single person, "sufficient rent" as mentioned above amounts to €2,500 for the tax years 2022 and 2023 and €3,750 for the tax years 2024 and 2025. For 2022, "sufficient income tax" amounts to €3,900 (equivalent to the aggregate 2022 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit). For 2023, "sufficient income tax" amounts to €4,050 (equivalent to the aggregate 2023 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit). For 2024, "sufficient income tax" amounts to €4,500 (equivalent to the aggregate 2024 value of the Personal Tax Credit, the Employee/Earned Income Tax Credit and the Rent Tax Credit).
The credit is specifically targeted to assist renters who do not receive other State housing supports. Renters who are in receipt of State housing support, such as the Housing Assistance Payment, the Rental Supplement or who are availing of the Rental Accommodation Scheme or cost rental arrangements, will not be eligible for the credit.
I am advised by Revenue that a comprehensive manual on the rent tax credit was published by Revenue in December 2022. This guidance sets out the full range of conditions which must be met in order for the credit to be claimed and includes a number of helpful examples. The guidance also contains step-by-step details on how to claim the credit for 2022, being the first year the credit is available. This information can be found in Tax and Duty Manual Part 15-01-11A at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11A.pdf.
Information on the rent tax credit is also prominently displayed on the homepage of the Revenue website under the heading ‘Popular Topics’ and the relevant link provides potential claimants with detailed information on how to claim the tax credit.
Revenue has engaged with the Residential Tenancy Board (RTB) and the Department of Housing, Local Government and Heritage to ensure that information on eligibility for the credit is widely available and understood.
I am satisfied that the steps taken to-date are appropriate in terms of ensuring that adequate information on the eligibility criteria attached to the rent tax credit has been made available and that the claim process is accessible for all potential claimants.
Tax Data
Ceisteanna (218)
Carol Nolan
Ceist:218. Deputy Carol Nolan asked the Minister for Finance if, using data available from the Revenue Commissioners through annual income declarations, he will provide the number of taxi drivers who declared an annual income of less than €10,000 and the number of taxi drivers who declared an income above €10,000 in each of the years 2019, 2022 and 2023, in tabular form; and if he will make a statement on the matter. [10230/24]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that the Form 11 tax returns capture information on self-declared incomes from a trade, profession, or vocation. This activity is described by the taxpayer on their return in a free-text manner, and as such there is a huge variance in the way activities are described by taxpayers. It is therefore not possible to produce exact figures on those taxpayers who are operating as taxi drivers.
Primary Medical Certificates
Ceisteanna (219)
Paul Kehoe
Ceist:219. Deputy Paul Kehoe asked the Minister for Finance whether he is giving consideration to widening of the criteria and eligibility for a primary medical certificate; and if he will make a statement on the matter. [10249/24]
Amharc ar fhreagraFreagraí scríofa
The Deputy will be aware that the final report of the National Disability Inclusion Strategy (NDIS) Transport Working Group's review of mobility and transport supports including the Disabled Drivers and Disabled Passenger’s Scheme (DDS), endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS.
The Working Group 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. Consequently 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's (SOG) 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. Three meetings of the group have been held, in July, November and December 2023.
The Department of Finance has recently submitted a note to the group with my approval in mid-January 2024. This note outlines a proposal for a replacement scheme for the DDS which would be a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual. This proposal is in line with what the NDIS Transport Working Group Report endorsed.
It is expected that this note will be considered by the SOG at a forthcoming meeting of the group. In that context, the Deputy should note that 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.
Finally the Deputy should be aware that while my Department has oversight of the DDS, it does not have responsibility for disability policy, so any decision to put in place a new scheme to replace it will be a matter for Government.
Tax Exemptions
Ceisteanna (220)
Paul Kehoe
Ceist:220. Deputy Paul Kehoe asked the Minister for Finance if he will consider increasing the tax exemption limits for people aged 65 years and over, taking into account the recent increases to the State pension and many having to pay increased tax due to this; and if he will make a statement on the matter. [10299/24]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, the age exemption applies for any year of assessment where an individual is aged 65 years or over and his or her total income does not exceed €18,000 per annum. Where an individual is a married person or civil partner and is jointly assessed to tax, the age exemption will apply where either individual is aged 65 or over and where the couple’s total income does not exceed €36,000 per annum. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
It is important to note that marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40 per cent on all income above the exemption limit to a ceiling of twice the exemption limit. The system of marginal relief ensures that in cases where an individual's or couple’s income rises above the exemption threshold that their net income will not decline, as the 40 per cent income tax rate only applies to the proportion of income above the threshold. Once the income exceeds twice the exemption limit marginal relief is no longer available and the individual pays tax under the normal tax system.
It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is entitled to the benefit of the more favourable treatment as between the use of marginal relief or the normal tax system of credits and bands.
I have no plans to increase the age exemption limits. However, it should be noted that in circumstances where the individual or couple no longer benefits from the age exemption or marginal relief, they will benefit from the increases to the main personal tax credits in the recent Budgets.
For example, the increases to the main personal tax credits in Budget 2024 (€100 increase to the single, employee and earned income credits and a €200 increase to the credit for married couples / civil partnerships) means that the effective entry point to income tax has increased for all taxpayers, including those aged over 65. From 2024, the effective entry point to income tax for an individual in receipt of the single person credit, employee / earned income credit and the age credit has increased by €1,000 per annum from €18,975 to €19,975 per annum.
In addition, it is important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. For example, persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less. In addition, it is important to point out that social welfare income such as the State Contributory Pension and State Non-Contributory Pension are excluded from the calculation when determining if an individual’s income has exceeded the €60,000 income threshold. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
Finally, it should be noted that the Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to income tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, located at the following link -
www.gov.ie/en/publication/7fbeb-report-of-the-commission/
As part of the Personal Tax Review published on Budget Day, my Department set out further analysis of the recommendations of the Commission on Taxation and Welfare, including in respect of the age exemption limits. The Report is available at the following link -
www.gov.ie/pdf/?file=https://assets.gov.ie/273335/96f70eb1-64e1-4f02-9096-e36f306a048b.pdf#page=null.
Motor Fuels
Ceisteanna (221)
Michael Collins
Ceist:221. Deputy Michael Collins asked the Minister for Finance if he will consider a reversal of his decision to end the motor fuel subsidy shortly in view of cost of living increases and the potential for fuel tourism (details supplied); and if he will make a statement on the matter. [10332/24]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, in 2022 in light of the acute impact rising prices were having on households and business, Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, diesel and Marked Gas Oil (MGO) respectively. These temporary reductions were due to end initially on 31 August 2022 but following review and monitoring of fuel prices were extended until February 2023 with a phased restoration beginning in June 2023, followed by a second restoration in September 2023. A final restoration of excise rates was due to take place on 31 October 2023 but in Budget 2024, I provided for a further extension until 31 March 2024 with a phased restoration legislated to occur in two final stages on 1 April 2024 and 1 August 2024.
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends.
To note national average prices have eased considerably from highs of over €2.00 per litre which we saw in 2022. As per the Central Statistics Office Consumer Price Index, average national retail prices of auto diesel and petrol have decreased from approximately €1.85 per litre in October 2023 to approximately €1.69 per litre for diesel and €1.68 for petrol in January 2024. More recently the European Commission Weekly Oil Bulletin shows that the national average price as of 26 February 2024 was approximately €1.72 for both fuels.
In conclusion, I have no plans to postpone the excise restorations of 8cpl for petrol and 6cpl for diesel, the first phase of half these amounts (4cpl and 3cpl respectively) which is due to commence on 1 April 2024.