Written Answers Nos. 111-125
111. Deputy Seán Canney asked the Minister for Finance if he will confirm that R2 residential zoned land will not be liable for the residential zoned land tax; and if he will make a statement on the matter. [25914/24]
View answerThe Residential Zoned Land Tax (RZLT) is a new tax introduced in Finance Act 2021 which seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. It aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing. The tax is an action contained in Housing for All, the Government’s plan for housing, to increase housing supply and is supported in the Programme for Government.
The tax applies to land that is:
• zoned suitable for residential development whether it be solely or primarily for residential use, or for a mixture of uses, including residential use, and
• serviced (that is: reasonable to consider may have access, or be connected, to public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply, necessary for dwellings to be developed and with sufficient service capacity available for such development)
In order to be liable for the tax the land must meet both criteria.
In identifying in-scope lands for the tax, the local authorities have identified the relevant zonings contained in their development plan, including land zoned phase 1, phase 2 and as a strategic residential reserve.
Finance Act (No. 2) 2023 amended the TCA to exclude from the scope of RZLT land which, while zoned for residential purposes, is subject to land management objectives in the relevant local authority development plan or local area plan which have identified such land for phased, and not immediate, development. Should land zoned "R2 residential" be subject to such land management objectives it may be excluded by Local Authorities when publishing the relevant maps and thus may fall outside the scope of the tax.
112. Deputy Carol Nolan asked the Minister for Finance to clarify if beneficiaries of temporary protection working remotely in Ireland for Ukrainian employers are not subject to the payment of tax in Ireland until 2025; if there are proposals to extend this beyond 2025; and if he will make a statement on the matter. [25945/24]
View answerI am informed by Revenue that, by way of concession, Ukrainians who came to the State as a result of the war in their country and who continue to be employed by their Ukrainian employer are treated as not being liable to income tax and USC on the employment income which is attributable to the performance of their Ukrainian employment duties in Ireland. This treatment applies solely to employment income that is paid to the Irish-based employees by their Ukrainian employer and not to any other income.
This Revenue concession is only available to employees who would have performed the duties of his/her employment in Ukraine but for the war there and, in addition, the employee must remain subject to Ukrainian income tax on his or her employment income for the tax year.
On 26 March 2024, Revenue confirmed in eBrief No. 098/24 (which is available to view on the Revenue website at www.revenue.ie/en/tax-professionals/ebrief/2024/no-0982024.aspx) that this concessionary tax treatment will cease with effect from 1 January 2025. From this date, these Irish-based employees of Ukrainian employers will be required to comply with the Irish tax requirements arising from the exercise of their Ukrainian employment in Ireland.
113. Deputy Catherine Connolly asked the Minister for Finance the total value of Ireland’s contribution to the Act in Support of Ammunition Production, intended to support the EU’s defence industry and to assist member states to increase their ammunition and missile production and to deliver ammunition and missiles to Ukraine; and if he will make a statement on the matter. [25961/24]
View answerThere is a principle of “universality” with regard to contributions to the EU budget (Multiannual Financial Framework), the current round of which amounts to €1.2 trillion over seven years from 2021 to 2027. This principle means that each member state makes its contribution to the entire budget rather than individual contributions to each individual spending area.
Notwithstanding this universality principle, to assist the FINPERT Committee during a recent discussion, the Department of Finance representative informally extracted the ASAP fund from the entire EU Budget and then applied current levels of Irish EU Budget contributions to it. The figure supplied on this basis was €12 million and the Department of Finance is satisfied the figure is as exact as it is possible to be.
Member states' contributions to the EU Budget are calculated based on what is known as the Own Resources system, which works out amounts due from member states based on a number of factors, the most significant element being Gross National Income (GNI). These amounts fluctuate based on changes in GNI and therefore the €12 million figure must remain an estimate as the ASAP programme is still in the process of being implemented, and in particular given the principle of universality.
114. Deputy Patrick Costello asked the Minister for Finance the steps his Department and the Revenue Commissioners take to ensure that the Convention for the Avoidance of Double Taxation between Ireland and Morocco does not allow claims from within the territory in Western Sahara, currently occupied by Morrocco, and which under European Union law is not considered part of Morrocco and must not be included in agreements with Morocco. [26021/24]
View answerThe provisions of the Ireland and Morocco Double Taxation Convention apply to persons, including companies, who are resident of either Contracting State or both as defined by the Convention. Benefits under the Convention are only extended by one State to a resident of the other State and with respect to income arising in either State. Persons not so resident and sources of income not from within either State do not qualify for benefits.
All claims for double taxation reliefs or benefits must be within the scope of the terms of the relevant treaty and the Taxes Consolidation Act and, while there are not procedures specific to the Ireland-Morocco Convention, Revenue will challenge such claims that it has reason to believe are not within scope. Where a claim examined by a Revenue Officer does not have sufficient information, documentation, or the appropriate certification from the tax authority of the State of residence of the claimant, it will be rejected.
My Department is aware of the ongoing legal proceedings at an EU level regarding the territorial applicability of certain EU-Morocco agreements. I note the opinion provided by the Advocate-General in respect of those proceedings. My officials will continue to monitor the situation closely in advance of a ruling of the Court. Ireland, together with our EU partners, will give careful consideration to the judgment ultimately reached. My Department will continue to liaise with the Department of Foreign Affairs to ensure that the outcome adopted is consistent with Ireland’s long-held position that Western Sahara is a non-self-governing territory and that we support the United Nations Security Council Resolutions, which support the right to self-determination of the people of Western Sahara.
115. Deputy Denise Mitchell asked the Minister for Finance the reason registered blind persons are omitted from availing of the primary care certificate; his plans to include blind persons in the future; and if he will make a statement on the matter. [26106/24]
View answerThe 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.
The vehicle must be specially constructed or adapted for use by the Primary Certificate (PMC) holder. A vehicle that has not been adapted for use by the PMC holder, including vehicles with automatic transmission on the base model unless further adapted, do not qualify for DDS provisions.
The Scheme is open to severely and permanently disabled persons as defined, as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Principal Medical Officer (PMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal (DDMBA).
To qualify for a PMC an applicant must satisfy at least one of six medical criteria that is set out in legislation. Only an applicant deemed to meet at least one of these criteria by the HSE PMO or the DDMBA will obtain a Primary or Board Medical Certificate.
The Deputy should note that my Department and I share concerns that the DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
However, this is very much a matter for Government as whilst my Department has oversight of the DDS, I do not have responsibility for disability policy.
In that context, any further changes to the existing DDS would run counter to the National Disability & Inclusion Strategy (NDIS) proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
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. One of these issues which is being examined is how the DDS can be replaced. Four meetings of the group have been held, in July, November, December 2023; and March 2024.
The Department of Finance 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. Further consideration is being given to the principles and parameters for a new scheme in line with best international practice.
116. Deputy Carol Nolan asked the Minister for Finance to provide a breakdown of the fines issued against his Department by the Court of Justice of the European Union for the period 2010 to date; and if he will make a statement on the matter. [26133/24]
View answerThe Department of Finance had no fine issued against it by the Court of Justice of the European Union for the period 2010 to date.
117. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year costs of reducing the first rate of USC from 0.5% to 0%; reducing the second rate of USC from 2% to 0% and increasing the threshold to the third rate of USC from €25,760 to €35,000. [26150/24]
View answer118. Deputy Pearse Doherty asked the Minister for Finance the first and full-year costs of reducing the first rate of USC from 0.5% to 0%; reducing the second rate of USC from 2% to 0%; and increasing the threshold to the third rate of USC from €25,760 to €40,000. [26151/24]
View answerI propose to take Questions Nos. 117 and 118 together.
I am advised by Revenue that the estimated costs for the proposals outlined by the Deputy on a first and full year basis are shown in the below table.
As a reduced rate of USC of 2% currently applies for those aged 70 years or older with income of €60,000 or less and for those who hold a full medical card with income of €60,000 or less, the estimated costings also include a decrease in the reduced rate of USC from 2% to 0% for consistency.
|
Proposed Measure |
First Year Cost €m |
Full Year Cost €m |
|
First and second USC rates reduced to 0%, and the threshold to the third rate of USC increased from €25,760 to €35,000 |
1,260 |
1,445 |
|
First and second USC rates reduced to 0%, and the threshold to the third rate of USC increased from €25,760 to €40,000 |
1,495 |
1,720 |
119. Deputy Charles Flanagan asked the Minister for Finance the options available to a person commuting to work on a daily basis whose company does not participate in the Taxsaver monthly and annual rail tickets or the cycle to work scheme; and if he will make a statement on the matter. [26177/24]
View answerFollowing engagement with the Deputy's office, I understand that this Parliamentary Question relates to a situation where an individual is unable to avail of the Taxsaver scheme or the Cycle to Work scheme as their employer does not participate in either scheme. I am informed that the Deputy wishes to know whether the individual can avail of either scheme by another method.
Section 118(5A) of the Taxes Consolidation Act 1997 (TCA) provides an exemption from benefit-in-kind (BIK) where an employer purchases a travel pass for an employee. This is commonly known as the Taxsaver scheme.
Similarly, section 118(5G) TCA provides for the Cycle to Work scheme, which offers an exemption from BIK where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work. Associated safety equipment may include items such as helmets, lights, bells, mirrors and locks.
Under section 118B TCA, an employer and employee may also enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for the relevant benefit.
It is important to note that employers are not required to take part in either of these schemes. Where an individual's employer does not participate in one or both of the schemes, any benefits that could arise under the relevant scheme will not be available to any employees of that employer.
This means that an individual cannot avail of either scheme if their employer has chosen not to participate. However, it may be worth highlighting to their employer that if they do decide to participate in the scheme, employer’s PRSI is not payable on the cost of the relevant benefit(s) when they make the associated deduction from their employees' salary payments.
Further information on both schemes is available on the Revenue website: www.revenue.ie/en/employing-people/what-constitutes-pay/items-not-treated-as-pay/index.aspx.
120. Deputy John Brady asked the Minister for Finance to provide an update in respect of the development of the Greystones media campus; if there is a timeline in place for the opening of the campus; if guarantees have been put in place to ensure that the development will be completed; and if he will make a statement on the matter. [26235/24]
View answerThe Greystones Media Campus is a privately funded project in which the Ireland Strategic Investment Fund (ISIF) is involved as a commercial investor.
On foot of information provided to me by the NTMA, some background and an update on developments related to the project is provided below.
ISIF carefully evaluated for a number of years’ ways in which it could invest on a commercial basis to support the development of new film studio infrastructure in Ireland in light of the increasing demand for film studio infrastructure globally, Ireland’s attractiveness as a location for producing content and the potential benefits to the Irish economy.
As a result of those evaluations, ISIF invested in Greystones Media Campus Limited (GMC), the company formed to develop a film studio in Greystones. The proposed development by GMC in Greystones secured planning permission in January 2021. In April 2022, it was announced that Hackman Capital Partners, ISIF and Capwell (a Sisk family investment vehicle) would partner to develop the proposed film studio in Greystones. Hackman is a Los Angeles-based real estate investment and operating company which owns and operates film studios in multiple jurisdictions worldwide. Hackman is the majority, controlling shareholder in GMC and ISIF and Capwell are minority, non-controlling shareholders. As part of the transaction, ISIF committed to invest up to €24m of equity in GMC to part fund the acquisition of the site and the development of a film studio campus. The majority of the transaction equity was committed by the other shareholders in GMC.
As ISIF is a commercial investor it is not able to provide any non-public or commercially sensitive information related to its investment in the company or any particulars of any legal conditions or safeguards contained in the transaction documents.
GMC commenced preliminary works on the site in 2022. However, the film and TV production sector globally faced significant challenges over the last two years which negatively impacted new film studio development projects worldwide (including in Ireland generally and in Greystones).
The current status of the development is commercially sensitive information but GMC is renewing its focus on the project. ISIF maintains ongoing and regular engagement with the company and its shareholders with respect to the proposed development.
I welcome the renewed focus on the project.
121. Deputy Sorca Clarke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the names of travel agents currently on the Office of Government Procurement Muti-Supplier Framework to provide travel services to public bodies. [25890/24]
View answerThe 2 economic operators appointed to the Travel Management and Ancillary Services Framework are Club Travel Limited and World Travel Centre Limited.
122. Deputy Cathal Crowe asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if the OPW will address flooding issues associated with a pocket of land (details supplied); and if he will make a statement on the matter. [25981/24]
View answerI wish to thank Deputy Crowe for raising the matter of flooding issues in Drumquin, Co. Clare.
The Office of Public Works (OPW) has a statutory duty to maintain Arterial Drainage Schemes performed under the Arterial Drainage Act 1945, as amended, and is currently undertaking maintenance works in parts of the Fergus Estuarine Embankment Scheme, which are located north and north east of Drumquin.
Based on the information provided by Deputy Crowe, and in the absence of specific land co-ordinates, Officials within my Department have identified an assumed site area in relation to the relevant landowner, and advised that there is no OPW Arterial Drainage Scheme in this location within the townland of Drumquin. The OPW understands that the sluice gate and defence embankment referenced in the correspondence provided to the OPW relates to “Land Commission” defences, which are in private ownership, and for which no state body/agency (including the OPW) has a statutory responsibility.
To facilitate further investigation, I request that Deputy Crowe provide the relevant land co-ordinates to the OPW, so that my Officials can confirm categorically whether the flood defence structures form part of an Arterial Drainage Scheme. In the event that the OPW have incorrectly identified the flood defence structure and do form part of an Arterial Drainage Scheme under the auspices of the OPW, Officials within my Department will carry out an immediate inspection and make any necessary arrangements to manage flood risk at this location.
With regards to concerns of flooding of properties in the Drumquin area, I note that such issues are a matter, in the first instance, for the relevant local authority to investigate and address. In the event that the relevant local authority considers that investment is needed to address this risk, it can apply to the OPW for funding under the OPW’s Minor Flood Mitigation Works and Coastal Protection Scheme. The purpose of the scheme is to provide funding to local authorities to undertake minor flood mitigation works or studies to address localised flooding and coastal protection problems within their administrative areas.
Under the OPW’s Minor Flood Mitigation Works and Coastal Protection Scheme, applications are considered for projects that are estimated to cost not more than €750,000 in each instance. Funding of up to 90% of the cost is available for approved projects. Applications are assessed by the OPW having regard to the specific economic, technical social and environmental criteria of the scheme, including a cost benefit ratio.
With regards to “slob” lands and the relevant landowner’s concerns pertaining to potential claims arising from injuries by persons when accessing the site, I can confirm that the OPW undertakes work on lands at Islandavanna, as the OPW is responsible for the maintenance of channels, embankments and associated infrastructure that form part of Arterial Drainage Schemes completed under the Arterial Drainage Acts 1945, as amended. The OPW however does not own the property/land or that adjacent to such channels, on which embankments and infrastructure are located. The OPW only has powers of entry onto the land to undertake any required maintenance works and relies on local cooperation and agreements. Therefore, any issues associated with use by unauthorised access, use by members of the public or liability concerns would be a matter for the legal owner.
I note that there has been construction works undertaken along an Embankment (E20) at Islandavanna to maintain coastal defences and that the OPW has used a parcel of land to facilitate this maintenance activity. I can confirm that the OPW intends to return this area to a greenfield site and Officials from my Department are willing to meet and discuss same with the relevant landowner if contact details can be provided.
123. Deputy Patrick Costello asked the Minister for Public Expenditure, National Development Plan Delivery and Reform further to Parliamentary Question No. 221 of 23 April 2024, if he will provide an update. [25987/24]
View answerKilmainham Gaol, National Monument 675 is in the care of the Office of Public Works.
In 1960 the Kilmainham Gaol Restoration Society was formed with the aim of restoring the Gaol as a memorial. Over the next 26 years many volunteers worked on this uniquely significant restoration project. During this time a number of plaques were placed in Kilmainham Gaol by the Restoration Society and the plaque the Deputy refers to is one such plaque.
In 1986, a decision was made by the Restoration Society to transfer the running of the Gaol back to the State under the care of the Office of Public Works (OPW).
Since the Gaol transferred to the State in 1986, the OPW has not made any changes to or replaced any of the plaques installed by the Restoration Society. The new information confirming the executions of Mr. Leo Dowling and Mr. Terrance Brady at Kilmainham Gaol has come to light and is now in the public forum. My officials will need to examine this request as part of the ongoing management of the Gaol work processes. I have requested that the matter is examined at the earliest time possible and that a further response will issue to you following those deliberations.
I have no further update at this time.
124. Deputy Patrick Costello asked the Minister for Public Expenditure, National Development Plan Delivery and Reform further to Parliamentary Question No. 170 of 29 February 2024, to provide an update. [25988/24]
View answerKilmainham Gaol, National Monument Number 681 is a National Monument in the ownership of the State.
Whilst the general siting of graves within the walls is recognised, there is no known detailed plan showing exactly where any individual was interred.
In relation to the persons referred to in this question, as the Deputy is aware, research on the general subject of graves at Kilmainham Gaol is being undertaken by a senior staff member of the site and in the first instance, concentrating on the years 1883 to 1885. This task involves extensive examination of General Prisons Board files in the National Archives for any possible leads on exact burial locations or ground plans of executed prisoners. This work is remains ongoing and as part of a wide programme of work for the staff at the Gaol.
I have no further update at this time.
125. Deputy Paul Donnelly asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of frameworks contracts currently in place to provide gas engineer services on behalf of the OPW within the Dublin region where the costs of works are in excess of €25,000. [26102/24]
View answerThe Office of Public Works (OPW) has no specific framework contracts in place to provide gas engineer services within the Dublin region.
However, the OPW has a framework contract for the provision of Mechanical Building Services Works in the Dublin region. The services provided by contractors under this framework include works to heating, ventilation, air conditioning, water services, wastewater services, wastewater pumping, water treatment and other mechanical services in the building portfolio. The contractors appointed provide Registered Gas Installers to carry out this work as necessary.
