Joe Cooney
Question:274. Deputy Joe Cooney asked the Minister for Transport his plans to simplify and improve the driving licence exchange process; and if he will make a statement on the matter. [70160/25]
View answerDriver Licences
Questions (274)
Written answers
As Minister of State for International & Road Transport, Logistics, Rail & Ports, I wish to advise that the driver licensing exchange process is handled by the National Driver Licence Service, the provision of which I have delegated under national legislation to the Road Safety Authority.
As part of the standard governance processes for State agencies under my Department, officials from the Department meet with senior management from the Authority on a quarterly basis to discuss a range of issues. This includes operational performance and potential areas of concern.
The final quarterly governance meeting for the RSA will take place in the coming weeks and I will request that my officials seek an analysis from the RSA regarding the licence exchange process.
Bus Services
Questions (275)
Jen Cummins
Question:275. Deputy Jen Cummins asked the Minister for Transport the amount of fees paid to an organisation (details supplied) for its consultancy work on BusConnects since 2018. [70165/25]
View answerWritten answers
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 development of the BusConnects programmes in five cities in Ireland.
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 working days.
Bus Services
Questions (276)
Roderic O'Gorman
Question:276. Deputy Roderic O'Gorman asked the Minister for Transport the progress made to date on the legislative changes required to enable the operation of the M4 eastbound bus priority measures pilot scheme (details supplied); the work undertaken on these legislative provisions; the expected timeline for their completion; and if he will make a statement on the matter. [70189/25]
View answerWritten answers
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 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 Infrastructure Guidelines and the necessary statutory approvals.
In order to enable the operation of the M4 eastbound Bus Priority Measures Pilot Scheme some legislative changes are required. My officials are liaising with Transport Infrastructure Ireland (TII) regarding these legislative changes as a matter of priority and they will be completed as soon as possible.
Transport Policy
Questions (277, 278)
Barry Ward
Question:277. Deputy Barry Ward asked the Minister for Transport his views regarding the merits of introducing incentives to encourage persons to use means of international transport other than air travel; and if he will make a statement on the matter. [70242/25]
View answerBarry Ward
Question:278. Deputy Barry Ward asked the Minister for Transport the subsidies which are available for transport by ferry on and off the island of Ireland; and if he will make a statement on the matter. [70243/25]
View answerWritten answers
I propose to take Questions Nos. 277 and 278 together.
Sea travel to and from Ireland is provided on a commercial basis and therefore there is no subsidisation or incentivising of these services by the State. Several incentives already exist, however, to support this environmental friendly mode of transport. In terms of available alternatives to air travel, the ‘sail-rail’ ticket offering between Ireland and the UK is a well-established and popular choice for passengers and is actively promoted by both Iarnród Éireann and the ferry companies, Irish Ferries and Stena Line. The ticket, which includes a ferry crossing and rail passage to nearly every railway station in the UK, represents very significant savings. The Department understands that Irish Ferries also offers a 30% discount on ferry pricing to holders of "Interrail/Eurail" tickets and that over one thousand such discounted fares were sold in 2024 to those travelling to both the UK and France.
The recovery of passenger numbers since COVID-19 continues with factors such as the disruption to Holyhead port impacting passenger numbers for the year 2024. However Fáilte Ireland's publication on "Planned capacity for Winter 2024/2025" publication at www.failteireland.ie/FailteIreland/media/WebsiteStructure/Documents/Research/Air-Sea-Winter-Access-2024-25-(Web-publication).pdf?ext=.pdf notes that summer 2024 sea access grew by 7% as a result of the placement of additional capacity on both cross-channel and continental routes.
State-owned commercial port companies continue to develop facilities for both passengers and freight. Dublin Port Company is currently developing a new consolidated terminal to replace multiple existing facilities under its MP2 project, the second of three projects of strategic importance at the port. This will streamline operations and improve efficiency for ferry operators and passengers alike. The port of Rosslare Europort has recently completed the delivery of Terminal 7 at a cost of close to €230 million, which significantly upgrades its border and customs control facilities among others. The new infrastructure will also have a positive impact on passenger services at the port.
Question No. 278 answered with Question No. 277.
Transport Policy
Questions (279)
Barry Ward
Question:279. Deputy Barry Ward asked the Minister for Transport to provide the percentage calculation for the contribution to Ireland’s green house gas emissions from aviation; if this figure will be broken down by cargo, passenger and private aviation; and if he will make a statement on the matter. [70244/25]
View answerWritten answers
The Environmental Protection Agency (EPA) has produced provisional estimates of greenhouse gas emissions for the time period 1990-2024. These provide insights into the annual Greenhouse Gas Emissions (GHG) in advance of final data being submitted to the EU and UN in 2026.
I am informed by the EPA that:
International aviation emissions• in 2024 were 3,345 kilotonnes of CO2 equivalent.
Emissions from domestic aviation• in 2024 were 31.2 kilotonnes of CO2 equivalent.
• Current data available to the EPA does not permit splitting passenger and freight emission estimations.
It is important to note that emissions from international aviation are not counted as part of Ireland’s national total emissions, but are reported by Ireland to the UNFCCC and EU for information purposes. Further, a substantial proportion of Ireland’s international aviation emissions are included in the EU Emissions Trading System, such as all intra EU flights and flights within the European Economic Area (EEA) including Iceland, Norway and Liechtenstein.
More broadly, the global approach to decarbonisation of the industry is based on the International Civil Aviation Organisation (ICAO) ‘basket of measures’ which identifies four pillars from which reductions are to be realised. These are aircraft technology improvements, operational improvements, the use of Sustainable Aviation Fuels (SAFs), and a global market-based measure known as the Carbon Offsetting and Reduction Scheme for International Aviation.
At a European level, Ireland continues to support the EU’s “Fit for 55 Package” which aims to facilitate a minimum net 55% EU greenhouse gas emission reduction by 2030. Furthermore, there are a number of EU regulations and directives in place that are aimed at reducing aviation emissions. This includes the aforementioned EU Emissions Trading System, and the ReFuelEU Aviation Regulation which places an obligation on aviation fuel suppliers to supply an increasing share of aviation fuel blended with SAF at European Union airports and requires airlines to increase uptake of SAF in predefined incremental steps.
At a national level, our airports are also taking steps to reduce their environmental impact. These measures contribute to an overall reduction in the carbon footprint of aviation, extending sustainability efforts beyond the aircraft and fuel, to include the entire aviation ecosystem.
Finally, of the ICAO 'basket of measures', it is widely acknowledged that the deployment of SAFs will play the greatest role in decarbonising the aviation sector in the short to medium term.
I am pleased to note that my Department published Ireland’s first Sustainable Aviation Fuel Policy Roadmap on the 21st of August 2025, fulfilling a clear commitment in the Programme for Government. To assist in the development of the Roadmap, the Department of Transport established the Sustainable Aviation Fuel Task Force in December of 2023, bringing together key stakeholders with responsibility for, and interest in, policy development and implementation in relation to SAF.
With the assistance of the Task Force and an extensive series of wider bilateral meetings, the Roadmap represents an important first step in developing Ireland’s national SAF policy, identifying a number of actions which will be built upon in future iterations, and setting a path for future SAF policy development.
The Sustainable Aviation Fuel Policy Roadmap is available at www.gov.ie/en/department-of-transport/publications/sustainable-aviation-fuel-task-force/
Bus Services
Questions (280)
Colm Burke
Question:280. Deputy Colm Burke asked the Minister for Transport if consideration will be given to reviewing the decision of the return journey of a proposed new route (details supplied) of the BusConnects Cork Programme; and if he will make a statement on the matter. [70248/25]
View answerWritten answers
As Deputy may be aware, 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 Cork.
Following public consultation, the new BusConnects Cork network was published in June 2022, and it aims to provide an increase of over 50% in bus services across the city. Planning for the implementation of the new bus network has commenced and it is expected that the new network will be implemented on a phased basis in the coming years. Implementation will be subject to funding and resources available.
Noting the NTA's responsibility in these matters, I have referred the Deputy's specific question to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.
Legislative Process
Questions (281)
Cathal Crowe
Question:281. Deputy Cathal Crowe asked the Minister for Transport the average time over the past six years it has taken to produce a stamped final bill in his Department from the time when his Department has received government approval for the general scheme and the heads of a bill; and if he will make a statement on the matter. [70282/25]
View answerWritten answers
Please see a list of Bills for the Department of Transport within the period as laid out below:
|
Name of Bill |
Date Government Approval Received for General Scheme and Head |
Date Stamped Bill Produced |
|
Merchant Shipping (Investigation of Marine Accidents) Act 2025 |
7th December 2022 |
12th July 2024 |
|
Road Traffic Act 2024 |
16th October 2023 |
13th December 2023 |
|
Railway Safety (Reporting and Investigation of Serious Accidents, Accidents and Incidents involving Certain Railways) Bill 2020 (enacted 24th October 2020 – this was priority legislation that was required to be in place by 31 October 2020). |
6th October 2020 |
24th October 2020 |
|
Air Navigation and Transport Bill 2020 |
18th June 2019 |
6th November 2020 |
|
Merchant Shipping (Investigation of Marine Casualties) (Amendment) Act 2022. |
8 December 2020 |
28 December 2022 |
|
Merchant Shipping (Light Dues) Order 2025 |
7 March 2025 |
24 June 2025
|
Per the above, the timeline from initial Government Approval and production of the dated and stamped Bill has varied between 19 calendar days and 751 calendar days, with the average time being 277 calendar days.
Departmental Funding
Questions (282)
Aidan Farrelly
Question:282. Deputy Aidan Farrelly asked the Minister for Transport if he will provide a schedule of all funding and grant aid provided by heading and subhead to Kildare, Wicklow and Meath local authorities in 2023, 2024 and to date in 2025; the amount returned and or not expended over the same period. [70318/25]
View answerWritten answers
Funding for Local Authorities is primarily allocated to different regions both directly through Departmental programmes and through programmes managed by agencies such as the NTA and TII as well as the relevant Local Authority itself.
National Roads
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the 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 Infrastructure Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you in relation to funding in Kildare, Wicklow and Meath
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.
Greenways
As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to Greenways. In line with Section 32 (2) of the Roads Act 1993, the planning, design, and construction of individual Greenways is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. Investment in Greenway and National Roads Active Travel projects is also subject to the requirements of the Infrastructure Guidelines and necessary statutory approvals.
Noting the above position, I will again refer your question, on this occasion, to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
Active Travel
As Minister for Transport, I have responsibility for policy and overall funding in relation to Active Travel. Funding is administered through the National Transport Authority (NTA), who, in partnership with local authorities, have responsibility for the selection and development of specific projects in each local authority area.
Noting the role of the NTA in the matter, I have referred your question to that agency for a more detailed answer. If you do not receive a reply within 10 working days, please contact my private office.
Regional and Local Roads
The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Councils' own resources supplemented by State road grants. The initial selection and prioritisation of works to be funded is a matter for the local authority.
As regards the regional and local road grant programme funding allocated to and drawn down by Kildare, Wicklow and Meath for the maintenance and improvement of regional and local roads in 2023, 2024 and 2025, details of the regional and local road allocations and payments to local authorities are outlined in the regional and local road allocations and payments booklets which are available on the Oireachtas Digital Library.
EV Charging
County Kildare is Regional Lead which has been identified as part of Region 4 under the Regional and Local EV Charging Network Plan and will be working with counties Louth, Meath and Wicklow as well as with relevant support organisations and stakeholders to identify the charging needs for their region.
ZEVI will continue to directly work with the local authority groups as they develop their strategies and will provide other supports and resources as necessary.
Public Transport
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 in the Greater Dublin Area, including in Counties Kildare, Wicklow and Meath.
In light of the NTA’s responsibilities for providing funding or grant aid to local authorities, as appropriate, including in Kildare, Wicklow and Meath I have forwarded your question to the NTA for direct reply to you. Please advise my private office if you do not receive a response within ten working days.
Tax Code
Questions (283)
Albert Dolan
Question:283. Deputy Albert Dolan asked the Tánaiste and Minister for Finance the current VAT policy in respect of UK customers purchasing livestock animals in Ireland for export to the UK; and the reason UK buyers are required to pay VAT upfront and subsequently claim a refund given that the animals are being exported; and if he will make a statement on the matter. [69037/25]
View answerWritten answers
The 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 certain categories to which Member States may apply a lower rate. The VAT Directive also provides a zero rating for the export and intra-EU supply of goods under certain conditions.
The supply of livestock animals is subject to the super reduced rate of 4.8%, otherwise known as the livestock VAT rate. However, the supply may be liable to the zero rate if the goods are exported as is the case with all exports of goods outside the EU, for example to Great Britain.
For the zero rate to apply, the goods supplied (e.g. the livestock) must be dispatched or transported directly by, or on behalf of, the supplier or the purchaser to a destination outside the European Union. Where the purchaser dispatches or transports the goods, they must be established outside the State for the zero rate to apply. The supplier of exported goods must ensure the goods have left the EU and retain evidence that the goods have left the EU. Further VAT guidance on exporting goods is available on Revenue.ie https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/vat-and-exports/index.aspx
Supplies of goods to businesses in Northern Ireland are subject to the same rules as any other intra EU cross-border supply of goods. Subject to certain conditions, a supply of goods, including livestock, to a business in Northern Ireland would be liable to VAT at the zero rate. The Northern Irish business would be liable to self-account for the equivalent UK VAT in Northern Ireland to the HMRC. Further VAT guidance on cross-border supplies of goods is available on Revenue.ie https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/intracommunity-supplies/index.aspx
Where a business has been incorrectly charged VAT by their supplier, they should in the first instance resolve the matter with their supplier. In most cases this will resolve the matter. However, if the matter cannot be resolved through agreement, the business may contact their local Revenue Branch. They should provide details of the supplier, the nature of the supply and how the goods were dispatched and transported taking into the requirements set out above and in Revenue’s published guidance.
Subject to certain conditions, businesses operating in the UK and who are charged Irish VAT can reclaim that VAT directly from Revenue, either through the electronic refund facility (EVR) available to Northern Irish businesses or via the 13th VAT Directive claims process available to Great Britain businesses. However, these facilities cannot be used to reclaim Irish VAT incorrectly charged by a supplier. Instead, the business should resolve the matter with their supplier and may contact their local Revenue Branch if the matter cannot be resolved.
Further information on the EVR is available on Revenue.ie https://www.revenue.ie/en/vat/repayments-to-unregistered-persons/foreign-traders-and-vat/foreign-traders-established-in-the-eu-paying-irish-vat.aspx
Further information on the 13th VAT Directive process is available on Revenue.ie https://www.revenue.ie/en/vat/repayments-to-unregistered-persons/foreign-traders-and-vat/foreign-traders-established-outside-the-eu-paying-irish-vat.aspx
As a matter of policy, Revenue does not refund VAT that was incorrectly charged. To do otherwise would expose the Exchequer to loss and create a significant compliance risk, given that, under VAT law, a supplier who charged the VAT would still have an entitlement to reclaim this VAT within four years subject to certain conditions.
The Deputy is welcome to supply details of any cases that have been directly raised with him, so that Revenue can look into the matter. He will appreciate, though that they will not be able to disclose the outcome of any investigations, owing to their statutory obligation to preserve taxpayer confidentiality.
Budget 2026
Questions (284, 287)
Paul Lawless
Question:284. Deputy Paul Lawless asked the Tánaiste and Minister for Finance if he will commission a review of Budget 2026's impact on disabled households, particularly during the winter months, compared with what Budget 2025 offered in comparison; and if he will make a statement on the matter. [69592/25]
View answer
Ken O'Flynn
Question:287. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if his Department produced any analysis in advance of Budget 2026 on the net financial position of disabled households after the withdrawal of once off supports including the electricity credits, fuel lump sums, disability cost-of-living payment and living alone lump sum; and if he will publish this analysis. [69175/25]
View answerWritten answers
I propose to take Questions Nos. 284 and 287 together.
Government recognises the additional economic burden faced by households affected by disability, particularly in the context of elevated cost of living pressures over recent years. It is for this reason that Government has introduced targeted budget measures to support vulnerable households.
While no specific analysis was conducted on the net financial position of disabled households, the Department of Finance did conduct distributional analysis to examine the impact of proposed tax and welfare measures on a range of households. As with previous budgets this analysis was conducted throughout the decision-making process for Budget 2026. Ex-post distributional analysis of the final budget measures was then published in the Beyond GDP – Quality of Life Assessment on budget day.
The Department’s analysis compares new tax and welfare measures in Budget 2026 against a baseline of permanent measures in Budget 2025. The analysis finds that households with disabilities gain more (1½ per cent on average) than non-disability households (0.6 per cent). Furthermore, lower income households affected by disability see a larger increase in their disposable income than high income households.
Similar analysis conducted by the ESRI also shows evidence of declining poverty rates for most groups. Indeed, the ESRI analysis shows that over the past six budgets even when excluding cost of living measures the lowest income households have seen income gains ahead of both price and wage growth.
I am confident that the measures introduced by this Government as part of the last number of Budgets have helped to drive improvements in equality and reductions in poverty.
Public Sector Staff
Questions (285)
Barry Ward
Question:285. Deputy Barry Ward asked the Tánaiste and Minister for Finance the number of employees currently employed in the offices of the Comptroller and Auditor General; the number of staff per year since 2015, by grade, in tabular form; and if he will make a statement on the matter. [70287/25]
View answerWritten answers
The Office of the Comptroller and Auditor General employed the following number of employees, by grade, at 31 December each year.
|
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 (at 30 November) |
|
CO |
2 |
2 |
2 |
4 |
4 |
3 |
2 |
2 |
1 |
1 |
1 |
|
EO |
43 |
45 |
51 |
54 |
61 |
62 |
54 |
68 |
53 |
61 |
76 |
|
HEO |
42 |
40 |
41 |
62 |
64 |
61 |
62 |
61 |
62 |
68 |
66 |
|
AP |
40 |
42 |
38 |
33 |
40 |
38 |
38 |
45 |
43 |
43 |
43 |
|
PO |
12 |
12 |
11 |
12 |
13 |
13 |
13 |
14 |
14 |
13 |
14 |
|
A.Sec. |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
|
Sec. Gen. |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Other |
1 |
1 |
0 |
0 |
0 |
0 |
1 |
1 |
3 |
5 |
5 |
|
Total |
143 |
145 |
146 |
168 |
185 |
180 |
173 |
194 |
179 |
194 |
208 |
Note: The figures for EO includes the Trainee Auditor grade, which is a professional and technical grade specific to the Office of the Comptroller and Auditor General for which EO is the closest equivalent grade.
Road Tolls
Questions (286)
Louis O'Hara
Question:286. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance the plans to support motorists who will be affected by recently announced road toll charge increases; if Department has any plans to encourage employer reimbursement schemes for employees who regularly use tolls to commute to and from work (details supplied); and if he will make a statement on the matter. [69006/25]
View answerWritten answers
While I appreciate that some people use cars to travel to their principal place of employment, ultimately it is a matter for individuals to choose the transport option that works best for them, taking into account certain tax incentives which are available. For example, in order to encourage the uptake of more sustainable and environmentally friendly transport options, persons commuting to work can already avail of the TaxSaver scheme in respect of public transport; and the cycle to work scheme.
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. 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 benefit.
It is important to note that employers are not required to take part in the Taxsaver scheme. Where an individual's employer does not participate, any benefits that could arise under the scheme will not be available to any employees of that employer.
If an employer does participate in the scheme, they will also save money as 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.
Furthermore, employees may also claim a tax deduction in respect of:
(a) the cost of travelling expenses necessarily incurred in the performance of the duties of their employment or office; and
(b) the cost of other expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment.
However, these deductions do not ordinarily include the cost of travelling to and from a principal place of work. It is a long-established principle of tax case law that the expenses incurred in travelling from home to work and work to home are expenses which are not necessarily incurred in the performance of the duties of an office or employment. The reimbursement to an office holder or employee of such expenses is therefore taxable and subject to PAYE deductions.
Finally, in line with best practice, and as with all proposals for the introduction of new tax measures or the amendment of existing tax reliefs, the proposal should be assessed in accordance with the Department of Finance Tax Expenditure Guidelines. The guidelines make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
I have no plans, at present, to introduce the measure along the lines proposed by the Deputy.
Question No. 287 answered with Question No. 284.
Grant Payments
Questions (288)
Michael Cahill
Question:288. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to consider expanding the criteria for car adaptation grants, to ensure those most in need are not excluded as they do not meet the limited criteria; and if he will make a statement on the matter. [69180/25]
View answerWritten answers
It is assumed that the Deputy is referring to the Disabled Drivers and Disabled Passengers Scheme or DDS. To clarify the scheme does not provide grants for car adaptions, the DDS provides relief from VRT and VAT on the use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Deputy should note that my Department and I share concerns that the DDS is no longer fit-for-purpose.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress NDIS proposals for needs-based, grant-aided, modern vehicle adaptation supports to replace the DDS, generated a report that was submitted to the Department of the Taoiseach. In considering this report, it has been proposed that a new grant-based scheme be developed and led by the Department of Transport.
The Department of Transport is beginning the development of this new scheme. The existing DDS remains with the Department of Finance and will continue to be reviewed in the context of new scheme developments by the Department of Transport.
Insurance Industry
Questions (289)
Ruairí Ó Murchú
Question:289. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance the measures to reduce insurance premiums, including public liability insurance premiums; and if he will make a statement on the matter. [69292/25]
View answerWritten answers
Insurance reform is a priority for this Government. A wide range of actions to reform the insurance sector have been taken since 2020, with particular focus on reducing insurance premiums, including public liability insurance.
The 2020 Action Plan for Insurance Reform delivered key measures including the introduction of the Personal Injuries Guidelines, legal reforms to rebalance the duty of care, and the establishment of the Office to Promote Competition in the Insurance Market (OPCIM). These reforms have contributed to greater market stability and have supported new market entrants such as OUTsurance, Revolut, and several Managing General Agents.
The OPCIM also continues to play a role in restoring insurance availability in sectors that previously faced substantial challenges, including adventure tourism, equestrian centres, childcare services, inflatable hire, and high-footfall hospitality businesses. In addition, feedback from insurance stakeholders has indicated that public liability insurance issues are showing signs of some easing; more capacity is entering the market and certain insurance rates are reducing. This is an indication that the Government’s reform agenda is having an impact.
The Government has also shown its appetite for further reform of the sector by re-establishing the Cabinet Subgroup on Insurance Reform, which I chair as Tánaiste and in developing a new Action Plan for Insurance Reform. The new Action Plan, published on 24 July, sets out an updated and comprehensive suite of targeted measures to further improve affordability, availability, and transparency across the sector. A central priority is enhancing market competitiveness by proactively engaging with the international insurance market to attract new providers to Ireland, thereby increasing supply and exerting downward pressure on premiums. The subgroup takes a whole-of-government approach in the implementation of the Action Plan.
I am firmly of the view that securing a more sustainable and competitive market through deepening and widening the supply of insurance will support broader availability and affordability across the market, benefiting consumers and businesses alike.
Banking Sector
Questions (290)
Ruairí Ó Murchú
Question:290. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance the engagement he has had with the Central Bank regarding how customers affected by the tracker mortgage scandal can be assisted by the State; whether legislation to outlaw confidentiality agreements between banks and those who win their appeals is being considered; and if he will make a statement on the matter. [69293/25]
View answerWritten answers
Tracker mortgage failings by lenders have caused significant distress and, in some cases, have had devastating consequences for customers.
Following engagement and intervention with a number of lenders, the Central Bank of Ireland launched the Tracker Mortgage Examination in 2015.
The aim of the examination was to ensure that lenders identified all impacted borrowers and, to the extent possible, put them back in the position they would have been in if the lenders’ failings had not occurred.
Confidentiality clauses or non-disclosure agreements were not a feature of the framework of the Tracker Mortgage Examination and the Central Bank did not require the signing of confidentiality clauses where a customer received an award of redress and compensation.
In general, settlements of litigation proceedings are voluntary. As is the case with other regulatory authorities, the Central Bank of Ireland has no jurisdiction to interfere with or dictate the terms of private agreements that have been reached by the parties to a dispute situation.
It should be noted, from a regulatory perspective, these types of clauses does not prevent scrutiny by the Central Bank.
Since the completion of the supervisory phase of the Tracker Mortgage Examination in 2019, the Central Bank continues to monitor the outcomes of complaints, appeals and court cases.
Where such settlements do arise and could have a broader impact for other customers, the Central Bank has required lenders to provide the same benefit to similarly affected customers.
Tax Code
Questions (291)
Michael Collins
Question:291. Deputy Michael Collins asked the Tánaiste and Minister for Finance to clarify whether Revenue classifies tax refunds, tax credits (including the rent tax credit), and medical-expense relief refunds strictly as adjustments to tax liability rather than earnings; and if he will make a statement on the matter. [69301/25]
View answerWritten answers
I note the Deputy's question in relation to whether Revenue classifies income tax refunds as adjustments to tax liability rather than earnings. I understand that the Department of Housing will be providing answers in respect of the Social Housing and HAP elements of the original question. I'm sure the Deputy will appreciate that I cannot provide answers on those matters.
I am advised by Revenue that “taxable income” for the purposes of the Income Tax Acts is defined by section 3 of the Taxes Consolidation Act (“TCA”) 1997 as having the meaning assigned to it by section 458 TCA 1997. This section clarifies that Revenue considers income tax refunds arising as a result of tax credits as adjustments to tax liabilities rather than earnings.
Section 458 TCA 1997 provides that an individual who makes a claim shall be entitled to have deductions (specified in Part 1 of the Table to that section) made from their total income for the purpose of ascertaining the amount of income on which they will be charged tax, and to have their income tax reduced by the relevant tax credits and other reductions specified in Part 2 of that Table. The rent tax credit and relief for health expenses are included for this purpose.
Inflation Rate
Questions (292)
Ken O'Flynn
Question:292. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the Government’s current assessment of the main contributors to inflation in 2024 and 2025, including food, energy, transport and taxation-related factors; the measures being taken by his Department to reduce price pressures on households and small businesses; any analysis undertaken by his Department on the impact of carbon-tax increases on consumer prices, food distribution costs and energy costs for SMEs; and to state whether his Department has evaluated any links between carbon-tax policy and recent inflation trends, together with its long-term approach to carbon taxation in the context of price stability and cost-of-living pressures. [69317/25]
View answerWritten answers
The annual average rate of inflation as measured by the Harmonised Index of Consumer Prices (HICP) in 2024 was 1.3 per cent, while in the first 11 months of 2025 inflation has averaged 2.0 per cent.
Inflation for services has been the primary driver of the headline rate of inflation over this period.
On average throughout 2024 and 2025, energy prices - which includes transport related components such as prices for petrol and diesel - were a significant negative drag on inflation. More recently, energy has contributed positively to the headline rate of inflation, reflecting higher prices for fuel and electricity.
Inflation for food products eased during 2024, before accelerating in 2025. Much of this increase reflects higher prices for agricultural commodities, which are a key driver of consumer prices for food. The recent rise in food prices has been concentrated in three categories: meats, oils and fats, and confectionary.
Announced policy measures including inter alia changes in rates of carbon tax are included in my Department’s forecasts for inflation, which were endorsed by the Irish Fiscal Advisory Council. The impact of carbon tax measures set out in Budget 2026 on headline inflation is expected to be relatively minor.
Government is all too aware of the impact inflation has placed on businesses and households over recent years. Government acted swiftly and decisively to mitigate the impact of rising prices. Budget 2026 moved away from temporary ‘once-off’ measures and towards a focus on permanent and sustainable measures, targeted at the most vulnerable. Budget 2026 measures to support households and businesses included:
• An overall budgetary package of €9.4 billion. Distributional analysis of Budget 2026 shows that the budget package is progressive, with all households receiving a boost in their net disposable income, with an average gain of 1.1 per cent.
• The extension of the reduced 9 per cent VAT rate for gas and electricity until 31 December 2030.
• The reduction of the VAT rate for food catering and hairdressing services to 9 per cent. This will support businesses in these services sectors who are facing increased cost pressures.
In relation to Carbon Tax, the Programme for Government committed to continue with the planned increases, aligning with recommendations from the Climate Change Advisory Council and scientific experts. The Finance Act 2020 legislated for annual increases to the carbon tax of €7.50 up until 2029 and €6.50 in 2030, when the rate will reach €100 per tonne of carbon dioxide. The additional tax yield raised by Carbon Tax is ring-fenced for climate action and just transition measures.
The Carbon Tax increased from €63.50 euro per tonne of CO2 emitted to €71 per tonne of CO2 emitted on 8 October 2025 for all propellant fuels. The increase will apply to all other fuels from 1 May 2026.
Analysis undertaken by the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package estimates that the net impact of the combined measures is progressive. Half of households are better off due to the measures part-funded by additional carbon tax funds, with households in the bottom four income deciles benefitting the most.
Tax Code
Questions (293)
Carol Nolan
Question:293. Deputy Carol Nolan asked the Tánaiste and Minister for Finance to state if he has abandoned the pledge to gradually increase the threshold for the top rate of tax to €50,000, and if not, to state the timeframe in which he now expects this pledge to be fulfilled; and if he will make a statement on the matter. [69344/25]
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The Programme for Government (PfG) commits to “implementing progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of Income Tax. While in the event of an economic downturn and unexpected deterioration in the public finance we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”.
Budget 2026 was designed to boost our economic resilience and protect jobs in a deeply uncertain international economic environment.
However, over recent years, the previous Government provided substantial income tax packages to support workers. The income tax measures implement over the period of the last Government are expected to be in line with wage growth (i.e. wages per head of 21.6 per cent). For example, the single standard rate band, which was increased by €8,700 or 24.6 per cent from €35,300 in 2020 to €44,000, with commensurate increases for jointly assessed married couples / civil partnerships and individuals who can avail of the increased band for single parents.
With the substantial personal Income Tax packages over the lifetime of the previous Government, significant progress has been made on increasing the entry point to the higher rate of income tax.
For this Budget the circumstances were different, and the Government had to make difficult choices. As has been done previously, when trade-offs have to be made due to limited resources or facing uncertainty, we did not implement changes to income tax credits and bands.
However, this was the first of five Budgets to be delivered by this Government, and the Government remains committed to, and will stand by, the Programme for Government commitment to make progressive changes to income tax, if the economy remains strong.