Written Answers Nos. 354-378
354. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance his plans to make changes to the disabled drivers scheme; if he will consider expanding eligibility and modernising the scheme; and if he will make a statement on the matter. [69455/25]
View answerThe Deputy should note that my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or 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.
Under the aegis of the Department of the Taoiseach, the sub-group convened to progress the National Disability Inclusion Strategy proposals for a 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.
As the Deputy will be aware, when this government took office, we committed to a step change in the delivery of supports and services for people with disability and their families.
Budget 2026 is the first step in delivering on this ambition, providing some €3.83 billion to specialist disability services next year, an unprecedented increase of €618 million, or almost 20%.
This funding will be vital in delivering the National Human Rights Strategy for Disabled People. The commitment to develop a new scheme by the Department of Transport, and in this context review the Disabled Drivers and Disabled Passengers Scheme, are strong commitments in this strategy.
355. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance the steps being taken to address rising insurance premiums for consumers; and if he will make a statement on the matter. [69456/25]
View answerWhile neither I as Tánaiste and Minister for Finance, nor the Central Bank, can intervene directly in pricing under EU Solvency II rules, ensuring that consumers have access to affordable insurance cover is a key priority for this Government.
Considerable progress in this area has already been made. A significant number of reforms were delivered under the 2020 Action Plan for Insurance Reform that have contributed to stabilising the market, including the introduction of the Personal Injuries Guidelines, rebalancing of the duty of care, and legislative enhancements to the Injuries Resolution Board.
Together, these steps have helped reduce claims costs, improve consistency in personal injury awards, and create a more predictable environment for insurers. They have also supported the entry of new providers into the market and encouraged existing companies to broaden their risk appetite.
The new Action Plan for Insurance Reform, launched on 24 July, sets out a comprehensive set of targeted measures to further improve affordability, availability, and transparency across the insurance sector. Among the priority actions is a strong emphasis on enhancing market competitiveness by engaging directly with the international insurance market to attract new providers to Ireland. This approach aims to expand supply, drive greater competition, and reduce cost.
The Office to Promote Competition in the Insurance Market (OPCIM) also continues to play a central role in enhancing competition to address rising premiums. Taking account of the Programme for Government commitments, the Office remains important in promoting competition and in identifying opportunities to attract additional providers.
Securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority, with the goal of enhancing affordability and availability for consumers across all types of insurance.
357. Deputy Colm Burke asked the Tánaiste and Minister for Finance if his Department has now agreed with the Department of Finance where housing agencies have entered into agreements with building contractors for both the purchase and the building of apartments, that the VAT rate is now reduced to 9% both for the building and the site costs; and if he will make a statement on the matter. [65821/25]
View answerThe temporary 9% rate of VAT on the supply of apartments came into effect on budget night. This measure was extended to the construction of apartments, and the supply and construction of apartment blocks, including student accommodation from 26 November 2025. The 9% rate will apply until 31 December 2030. In the case of dual contracts (for site and building services) both elements will be covered by the 9% VAT rate.
358. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance the role of the new equity risk capital investment programme for homebuilding; and if he will make a statement on the matter. [65835/25]
View answerThe Ireland Strategic Investment Fund (ISIF) makes significant equity and debt investments available to support high impact residential development, including for SME homebuilders, urban regeneration, real estate and infrastructure projects.
In July 2023, ISIF established a €400m equity investment fund to support housing delivery, the last tranche of this funding’s deployment is now imminent. As part of the National Housing Plan, ISIF will shortly be committing further funding to meet their target of over 25,000 homes by 2030.
359. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the assessments he has made in relation to the costs of tax expenditure comparing the way in which the same funds for direct investment will be more effective in achieving social and economic goals; and if he will make a statement on the matter. [70408/25]
View answerI thank the Deputy for his question on the assessment and analysis of tax expenditures, and comparisons between tax expenditure and direct investment. There is an important distinction as tax expenditures are spending conducted through the tax system rather than directly through public expenditure programmes and this distinction in approach continues to receive deserved and detailed scrutiny adding to our efforts to increase awareness and transparency relating to the costs of tax expenditures.
The Deputy may be aware that the recently updated Tax Expenditure Evaluation Guidelines, which are produced by my department, outline the Government’s approach to (i) when tax expenditures are best used, noting that these narrow the tax base, and (ii) how they should be evaluated. Information from the guidelines and the outcomes of past evaluations to ascertain value for money and effectiveness relating to policy objectives, can be used to determine the most effective intervention approach.
These Guidelines explain that Government policy is based on the principle that tax expenditures should be used in limited circumstances where a) a demonstrable market failure exists and, b) the measure is more efficient than a direct expenditure intervention.
To achieve this, the Guidelines provide a recommended pre-determined set of questions to be addressed in every ex-ante tax expenditure evaluation, culminating to whether a tax expenditure is the best approach to address the relevant market failure.
It will also be of interest to the Deputy that, in line with the same Guidelines, my Department has published numerous evaluations and reviews of existing tax expenditures. For example, this year, reviews of the Foreign Earnings Deduction, the Reduced Rate of USC for Medical Card Holders, the Special Assignee Relief Programme, and the Rent Tax Credit were carried out and published on Budget Day.
My Department also publishes an annual report on tax expenditures. Tax Expenditures in Ireland – 2025 Report was published in July of this year and provides analysis of tax expenditures. The annex of the report provides a master list of each measure identified by my Department of meeting the definition of a tax expenditure provided for in Irish law.
As per the report, tax expenditures amounted to €8 billion in 2024, equivalent to 2 per cent of national income or, alternatively, to 8 per cent of total tax revenue.
As noted by the report, financing the level of revenue forgone associated with tax expenditures would be the equivalent of financing the expenditure of the fifth largest line of (voted) public expenditure in 2024, only spending by the Departments of Social Protection, Health, Education, and Housing, Local Government and Heritage were higher.
It may be of interest to the Deputy that a recent initiative of my Department – the Tax Expenditure Passports, were also published for the first time over the summer. These passports provide an easily accessible one-page summary of each tax expenditure currently in operation.
The Deputy may be interested in a paper prepared by my Department as part of this year's Tax Strategy Group process, which outlines the developments and improvements made in the area of tax expenditure reporting in recent years. This paper is available on the Department's website here: www.gov.ie/en/department-of-finance/publications/tax-expenditures-publications-and-guidelines/
My Department remains committed to improving the transparency and reporting of tax expenditures and their evaluation, and, I am satisfied with the current analysis and reporting.
360. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the assessments he has made in relation to the costs of tax expenditure, comparing the way in which the same funds for direct investment will be more effective in achieving social and economic goals; and if he will make a statement on the matter. [70408/25]
View answer361. Deputy Cathy Bennett asked the Tánaiste and Minister for Finance the total Irish receipts or projected receipts from the EU Multiannual Financial Framework; the total Irish contribution or projected contribution to the EUMFF in each of the years 2019 to 2027, in tabular form. [69684/25]
View answerMy Department collects data on Ireland’s EU Budget receipts, from relevant Government Departments, for the previous year on an annual basis for publication in the EU Transactions Reports and up until the year 2021 in the Department of Finance Budgetary Statistics. This operational data may be subject to revision and any updates which may be required are reflected in subsequent publication releases.
This table sets out Ireland’s EU budget receipts as reported by relevant Government Departments in this process, from 2019-2023, the latest year for which data is available. My Department is currently collecting the data on receipts for 2024, and this information will be published in the coming months. These figures include, but are not limited to, such programmes as the European Agricultural Guarantee Fund, the European Fund for Regional Development, and Erasmus+. They do not include funds directly managed by the European Commission; as such the figures do not provide the full picture of Ireland’s receipts from the EU budget.
Table 1: Ireland’s EU budget receipts, 2019-2023
|
Year |
Receipts from EU Budget € billion |
|
2019 |
1.8 |
|
2020 |
1.9 |
|
2021 |
2.4 |
|
2022 |
2.0 |
|
2023 |
1.7 |
The European Commission also publishes data on Member States’ transactions with the EU, of which the most recently available data is 2024. These figures can differ from those collected by Government Departments, reflecting differences in accounting practices and time periods.
In relation to future years, my Department does not forecast the precise levels of EU budget receipts Ireland is expected to draw down in a given future year. These figures are contingent on a number of factors, such as the status and speed of project implementation, and when individual Departments submit payment requests to the European Commission.
In relation to contributions, the annual contribution of Ireland to the EU Budget from 2019 to 2024 is as follows:
Table 2: EU Budget payments 2019-2024
|
Year |
Payments to EU Budget (€ billion) |
|
2019 |
2.4 |
|
2020 |
2.6 |
|
2021 |
3.5 |
|
2022 |
3.6 |
|
2023 |
3.7 |
|
2024 |
3.4 |
With regard to projected contributions, my Department’s most recent forecast was prepared for Budget 2026, for the remaining years of the current Multiannual Financial Framework period, which ends in 2027. My officials will continue to work on revising these forecasts as the MFF period progresses. The current projected contributions for the remaining three years are as follows:
Table 2: EU Budget payment forecast 2025-2027
|
Forecast Gross Payments to EU Budget |
2025 (€ billion) |
2026(€ billion) |
2027(€ billion) |
|
Total |
3.4 |
4.3 |
4.9 |
Based on my Department’s forecasts, Ireland’s contributions to the EU budget will continue to grow over the remainder of the MFF period. This is directly linked to several factors, including in particular the overall level of payments in the EU budget, which Member States must finance, and Ireland’s economic performance, which drives Ireland’s share of the overall budget. A significant proportion of how Member States finance the EU budget is according to relative Gross National Income (GNI).
362. Deputy Matt Carthy asked the Tánaiste and Minister for Finance the number of times he plans to increase the cost of petrol, diesel and home heating oil until 2030; the cost to consumers of each increase; the compounded total cost of the increase, by increase and by category. [69333/25]
View answer379. Deputy Pa Daly asked the Tánaiste and Minister for Finance the number of times he intends to increase the cost of petrol, diesel and home heating oil until 2030; the cost to consumers of each increase; and the compounded total cost of the increase, by increase and by category. [73781/25]
View answerI propose to take Questions Nos. 362 and 379 together.
Liquid fuels used for motor or heating purposes are subject to excise duty in the form of Mineral Oil Tax (MOT). MOT comprises a carbon and a non-carbon component with the carbon component also being referred to as carbon tax. The application of carbon tax to petrol and auto-diesel was introduced in December 2009, followed by the extension of carbon tax to other liquid fuels on 1 May 2010.
Ireland’s carbon tax regime is a carbon pricing mechanism which directly links the taxation of fossil fuels to carbon dioxide (CO2) emissions: a single price is set for a tonne of CO2 and this price is then applied to each fuel type according to the level of CO2 emitted by that fuel when it is combusted. In this way, the carbon tax applying to each fuel type reflects the level of CO2 emissions that it releases.
Legislation was introduced in Finance Act 2020 to provide for annual increases in carbon tax rates up to May 2030, at which point all carbon tax rates will be based on charging €100 per tonne of CO2 emissions. Carbon tax rates on petrol and auto-diesel are legislated to increase at Budget time each October up to and including 2029, with rates on other liable fuels such as heating kerosene and marked gas oil legislated to increase each May (i.e. after the winter heating season) up to and including 2030. This means that MOT rates on petrol and auto-diesel are set to increase a further four times, and MOT rates on heating fuels are set to increase a further five times, over the remainder of the trajectory provided for in legislation.
For petrol, the MOT increases, inclusive of VAT, will total to 8.1 cents per litre over the remainder of the carbon tax trajectory. The annual increases will be 2.1 cents per litre for each of the next three years, and 1.8 cents per litre in 2029.
Inclusive of VAT the remaining four increases to MOT on auto-diesel will total to 9.6 cents per litre. The annual increases will be 2.5 cents per litre for each of the next three years and 2.1 cents per litre in 2029.
Kerosene is the most commonly used oil for home heating. Inclusive of VAT, the MOT rate increases on heating kerosene will total to 10.7 cents per litre over the remainder of the carbon tax trajectory. The annual amounts will be 2.2 cents per litre for each of the next four years and 1.9 cents per litre in 2030.
Marked gas oil is also used for heating. Inclusive of VAT the remaining five increases to MOT on marked gas oil will total to 11.2 cents per litre. The annual increases will be 2.3 cents per litre for each of the next four years and 2 cents per litre in 2030.
365. Deputy Sean Fleming asked the Tánaiste and Minister for Finance to provide details in relation to the residential zoned tax paid by each local authority for the years 2021, 2022, 2023, 2024, and to date in 2025; and if he will make a statement on the matter. [73326/25]
View answerRZLT was first charged on 1 February 2025 and therefore there were no receipts prior to 2025.
RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope, known as a relevant site. Relevant sites are identified by reference to maps published by local authorities, which are revised on an annual basis, and reflect land that the local authority has determined meets the relevant criteria for the tax, being that the land is zoned for residential or mixed-use (including residential) purposes and that it is serviced. Owners of such land, including local authorities, are required to register and pay the tax by 23 May each year.
I am advised by Revenue that information in respect of the amount of residential zoned land tax collected to date, including collections from local authorities, is published on the Revenue website. Please see a link to the latest publication at: www.revenue.ie/en/corporate/documents/statistics/property-taxes/pt-stats-update-211025.pdf
366. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance the number of people in receipt of the incapacitated child tax credit in the years 2024 and to date in 2025; and if he will make a statement on the matter. [73442/25]
View answerThe Incapacitated Child Tax Credit (ICTC) which is provided for by section 465 of the Taxes Consolidation Act (“TCA”) 1997, is available to an individual who has a child living, at any time in a year of assessment, who:
• if under 18 years of age is permanently incapacitated by reason of mental or physical infirmity and the infirmity is such that there would be a reasonable expectation that if the child were over the age of 18, the child would be incapacitated from maintaining himself or herself, or
• if over the age of 18 years at the beginning of the year, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated either before attaining the age of 21 or whilst in receipt of full-time instruction at a university, college, school or other educational establishment.
The credit may also be available to an individual who has custody of, and maintains at his or her own expense, a child who fulfils the above criteria.
I am advised by Revenue that the latest data available on the number of taxpayer units availing of the ICTC is available on the Revenue website in their ‘Cost of Tax Expenditures’ publication, which can be accessed at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf
In this regard, 47,700 taxpayer units claimed the credit, with an Exchequer cost of €151.3 million, in 2023 the latest year for which Revenue data is available.
As self-assessed Form 11 tax returns for 2024 were due to be filed by November 2025, data is not yet available in relation to that year. Data in relation to 2024 will be available in mid-2026, once the returns have been processed and data is prepared for analysis. The deadline for self-assessed Form 11 returns in relation to 2025 are not due until November 2026 and therefore data in relation to 2025 will be available in mid-2027.
It should be noted that the data published in relation to the ICTC are published on a taxpayer unit basis, where jointly assessed couples are counted as one unit.
367. Deputy Marie Sherlock asked the Tánaiste and Minister for Finance if his Department has engaged with the European Commission in relation to the inclusion of breast pumps and attachments within the categories of goods and services listed in Annex III of the EU VAT Directive, which would allow for a lower VAT rate on breast pumps and attachments as is the case for other medical equipment and appliances; and if he will make a statement on the matter. [73531/25]
View answerThe VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within the categories of goods and services listed in Annex III, in respect of which Member States may apply a lower rate. Breastfeeding pumps and other breastfeeding equipment are not included in the categories of goods and services specified in the Directive, and so it is not possible to apply a lower VAT rate to breast pumps and attachments and they are liable to VAT at the standard rate.
As the Deputy will be aware any changes in relation to the VAT Directive require unanimity. The last revision to Annex III of the VAT Directive was agreed to in April 2022 after a four year negotiation process. No further change to Annex III is expected at this time.
368. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance the key measures his Department has taken to support and sustain the economy during 2025; his priorities for 2026; and if he will make a statement on the matter. [73577/25]
View answer369. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance his assessment of the performance of the economy during 2025; the outlook for 2026 and subsequent years; and if he will make a statement on the matter. [73578/25]
View answerI propose to take Questions Nos. 368 and 369 together.
Despite trade, geopolitical and other headwinds, incoming data confirms that the Irish economy has continued to perform well in 2025. National Accounts data published by the CSO earlier this month show that in the first three quarters of the year Modified Domestic Demand – a proxy for domestic economic activity – grew by over 4 per cent on an annual basis. Over the same period, consumer spending grew by almost 3 per cent.
Employment reached a record high of over 2.82 million in the third quarter of 2025 with over 30,000 jobs created on an annual basis. However, the pace of growth has eased in recent quarters.
My Department expects growth in the Irish economy to remain relatively solid in 2026. Modified Domestic Demand is expected to grow by 2.3 per cent next year. Strong momentum in consumer spending is projected to continue into 2026 with annual growth of 2.3 per cent also forecast. Employment is projected to expand by 1.5 per cent next year with unemployment expected to remain relatively low and broadly consistent with 'full employment'.
Beyond 2026, the economy and labour market are expected to continue to record solid growth, albeit at a more moderate pace than in recent years.
My Department has worked to support and sustain economic activity through inter alia the introduction of measures announced in Budget 2026. For businesses, these include the enhancement of the Research and Development Tax Credit and Capital Gains Tax Revised Entrepreneur Relief relief, as well as the reduction of the VAT rate to 9 per cent for the hospitality sector. Households will benefit from measures such as the extension of the reduced VAT rate for electricity and gas, with renters benefiting from the extension of the rent tax credit for a further three years.
Government continues to be in a position to support households and businesses because of the prudent management of the public finances. For 2025, we are on track to run a headline budget surplus and have continued to invest in the Future Ireland Fund and Infrastructure, Climate and Nature Fund. The total combined value of these funds will be approximately €17 billion by end-2025.
More generally, Government has been proactive in its response to the more challenging external environment. Indeed, the Government Action Plan on Market Diversification, the Action Plan on Competitiveness and Productivity, as well as the revised National Development Plan will help boost competitiveness and ensure the resilience of our economy over the coming years.
My overarching priority for next year is to continue to deliver on the commitments set out in the Programme for Government. In relation to the economy and public finances, it is essential that we continue to run headline budgetary surpluses, protect jobs, as well as invest ‘windfall’ tax receipts into our long-term savings funds to prepare for future structural costs. In addition, Ireland’s Presidency of the Council of the European Union in the second half of 2026 is a key priority for Government, which offers enormous opportunities for Ireland to show leadership on the European and global stages.
370. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance the key measures taken to support Ireland’s tax competitiveness during 2025; his priorities for 2026; and if he will make a statement on the matter. [73579/25]
View answerMaintaining Ireland’s tax competitiveness is a key objective particularly in the context of economic uncertainty globally and the evolving international tax reforms.
Budget 2026 and Finance Bill 2025 introduced a range of measures designed to support competitiveness, sustain Ireland’s attractiveness for foreign direct investment, support domestic businesses and promote innovation. Some relevant measures provided for in Finance Bill 2025 include:
• A number of enhancements to the R&D tax credit regime, including increase in the rate of the credit from 30 per cent to 35 per cent. The primary policy objective of the credit is to increase business R&D in Ireland, as R&D can contribute to higher innovation and productivity. I will also publish a Research and Development Compass in the coming weeks, setting out potential pathways for future development of the credit and for new a innovation support to be developed in 2026.
• The update and enhancement of the participation exemption for foreign dividends. The participation exemption provides an alternative, much simplified mechanism for double tax relief for multi-national businesses by reducing the complexity and administrative burden of the current system.
• Measures to strengthen the competitiveness of Ireland’s audiovisual sector. An enhanced rate of 40% has been introduced under the Section 481 Film Tax credit for qualifying VFX work. In addition, the Digital Games Tax credit has been extended for a period of 6 years and further enhanced to allow for claims in respect of expenditure incurred on the development of post release content.
• To support opportunities for growth in the funds industry, specifically in the private assets space, a discrete but important tax change in Finance Bill 2025 provided for a Dividend Withholding Tax exemption for Investment Limited Partnerships and equivalent EEA partnerships. This measure is intended to increase the attractiveness of the Investment Limited Partnership as a fund structure and to help cement Ireland’s position as a desirable location for regulated investment funds.
• An increase in the Revised Entrepreneur Relief lifetime limit from €1 million to €1.5 million for disposals made from the 1st of January 2026.
With regard to other ongoing work, my Department is also undertaking a review of the tax treatment of interest in Ireland, which seeks to deliver a simplified and competitive taxation regime for interest which is aligned with international best practice. The taxation of interest is complex and is governed by Irish and EU legislation, and the proposed reform is intended to help safeguard Ireland’s competitiveness by providing a sound and stable interest deduction basis for both domestic businesses and inward investment in Ireland. Following extensive consultation with stakeholders, an Action Plan for reform of Ireland’s taxation regime for interest was published as part of Budget 2026 which sets out a phased approach to progressing reforms. A Feedback Statement for phase one of reform was published on 21 November 2025 and further public consultation will be carried out over the course of the next year.
To support broader housing policy objectives and to address complexity in the Irish Real Estate Fund (IREF) regime, which may be acting as barrier to investment for international investors, it was announced as part of Budget 2026 that a public consultation on proposals to simplify the IREF regime, without limiting its effectiveness, will also be held in 2026.
At an EU level, simplification of EU tax law has been identified as a key enabler of enhancing EU competitiveness. In this regard, Ireland is actively engaging with the Commission and Member States ahead of the expected publication of legislative proposals in June 2026. The proposals will seek to simplify several of the EU’s corporate tax Directives, including the several iterations of the Directive on Administrative Cooperation, and both my officials and I are committed to progressing them during Ireland’s Presidency of the Council in the second half of next year.
At OECD level, Ireland has consistently approached ongoing negotiations on the OECD Pillar Two Agreement with the aim of ensuring a level playing field for all stakeholders and maintaining Irish and European competitiveness. We remain committed to participating constructively in discussions to provide certainty and stability to the business community and avoid further fragmentation of the international tax architecture.
This is a high-level overview of some of the work ongoing in my Department, recognising the need to protect Ireland's competitiveness to support continuing investment and employment in our economy.
371. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance if he will report on the Future Ireland Fund during 2025; his priorities for 2026; and if he will make a statement on the matter. [73580/25]
View answer372. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance if he will report on the Infrastructure, Climate and Nature Fund during 2025; his priorities for 2026; and if he will make a statement on the matter. [73581/25]
View answerI propose to take Questions Nos. 371 and 372 together.
As the Deputy will be aware, the Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF) are the two new long-term savings funds established by the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024 (‘the Act’).
The FIF received its annual transfer of 0.8% GDP in 2025 in line with Section 8 of the Act. The value of this transfer was approximately €4.08 billion. This transfer builds on the transfers made in 2024, consisting of the initial annual transfer and monies transferred to the FIF from the National Reserve Fund (NRF). This brings the total value of transfers to the FIF by year-end 2025 to approximately €12.5 billion.
The ICNF, received a transfer of €2 billion from the NRF in 2024, and received its first annual transfer of €2 billion in 2025. This brings the total value of transfers to the ICNF by year-end 2025 to €4 billion.
Annual transfers are subject to an economic and fiscal assessment process carried out by the Irish Fiscal Advisory Council and my Department. Transfers to each of the funds in 2026 were approved as part of Budget 2026. The 2025 assessment is available on the Department of Finance website: www.gov.ie/en/department-of-finance/publications/budget-2026-transfers-to-the-fif-and-icnf-economic-assessment-in-accordance-with-the-act/
Responsibility for the investment of each of the two funds lies with the National Treasury Management Agency (NTMA). The NTMA publishes information and financial accounts in respect of the Future Ireland Fund, the Infrastructure, Climate and Nature Fund and the Ireland Strategic Investment Fund (ISIF) in its Annual Report. The 2024 Annual Report is available here: www.ntma.ie/annualreport2024/documents/NTMA-Annual-Report-2024.pdf
Drawdown from the ICNF for the purposes of funding ‘designated environmental projects’ may begin from 2026. Designated environmental projects are those projects which are likely to contribute to the reduction of greenhouse gas emissions, the improvement of water quality or the improvement of habitats in line with Section 20 of the Act. The process of drawing down funding for designated environmental projects, is managed by the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitisation.
374. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance the key measures taken under the remit of his Department to control insurance costs during 2025; his priorities for 2026; and if he will make a statement on the matter. [73583/25]
View answerNeither I, as Tánaiste and Minister for Finance, nor the Central Bank, can intervene directly in pricing of insurance under the Solvency II Directive. However, ensuring that consumers have access to affordable insurance cover is a key priority for this Government.
A key development in addressing the cost of insurance in 2025 was the publication of the new Action Plan for Insurance Reform 2025-2029 in July 2025. The plan sets out twenty-six actions being led across a number of Departments to address transparency, affordability and availability of insurance. There are ten priority actions and of these priority actions, one has been completed, and the remaining nine actions are currently on track to be completed within their respective timeframes.
My Department, through the Office to Promote Competition in the Insurance Market (OPCIM), also continues to prioritise increased competition and capacity across the insurance sector. The OPCIM plays an important role in engaging with insurers, brokers and a wide range of sectoral representatives to address gaps in insurance availability and encourage new market entrants. These efforts have led to a significant reduction in the number of insurance “pinch-points” faced by consumers and businesses. The OPCIM is also working closely with IDA Ireland to attract new international insurers to the Irish market. This work helps to broaden the supply base, diversify risk appetite and encourage more competitive pricing.
Priorities being led by my Department in relation to the Action Plan for Insurance Reform in 2026 include the publication and implementation of a Transparency Code for the insurance industry, progressing the Central Bank Amendment Bill 2025, a review of the price walking ban and actions relating to the affordability and availability of flood insurance.
The Government remains fully committed to the continued reform of the insurance sector and will continue to monitor the progress of measures to reduce the cost of insurance via the Cabinet Sub Group on Insurance Reform and work to secure a fair and transparent insurance market in Ireland.
375. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether he is satisfied that the current governance and reporting arrangements between his Department and the Central Bank of Ireland are adequate in circumstances where a regulated financial institution publicly confirms widespread customer-impacting errors; and whether, in his view, the absence of routine briefing or structured reporting to his Department in such cases presents any risk to effective Ministerial oversight of consumer protection policy. [73588/25]
View answerThe Central Bank of Ireland is the independent supervisor of all regulated financial service providers.
The Central Bank serves the public interest by safeguarding monetary and financial stability and by working to ensure that the financial system operates in the best interests of consumers and the wider economy. As part of its work the Central Bank engages with a range of stakeholders and, in particular, it works closely with the Department of Finance.
The Central Bank indicates that it is aware of the system generated error that affected certain former customers of Ulster Bank in relation to historical mortgage repayments. Under the Consumer Protection Code, regulated entities must correct errors and handle complaints speedily, efficiently and fairly.
The Central Bank expects all regulated firms to have robust systems and controls in place. When failures or breaches occur that impact customers, the Central Bank expects regulated entities to remediate and rectify without delay to ensure that customers are treated fairly and are put back in the position they would have been in had it not occurred.
If customers are not satisfied with the outcome of their engagement with their financial services provider they are entitled to lodge a complaint with the Financial Services and Pensions Ombudsman.
376. Deputy Brendan Smith asked the Tánaiste and Minister for Finance if cross-Government measures, including taxation measures, will be introduced to reduce the sale of land to non-farming interests, and particularly large-scale businesses, with specific reference to the need to support small farm holders who may wish to buy neighbouring farm land; and if he will make a statement on the matter. [73609/25]
View answerThere are a number of tax reliefs which support farmers who wish to acquire land for the purpose of their farming trade. These include reliefs from both Capital Gains Tax (CGT) and Stamp Duty.
Capital Gains Tax
Section 604B of the Taxes Consolidation Act 1997 (TCA 1997) provides relief from CGT in respect of gains arising on transactions undertaken to achieve farm restructuring. The purpose of farm restructuring is to make an individual’s farm more efficient and to improve the operation and overall viability of the farm. This can be done by selling, purchasing or exchanging farmland to bring the land closer together. The relief apples to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2025, where Teagasc has certified that the sale, purchase or exchange of agricultural land was made for farm restructuring purposes. Finance Bill 2025, which will shortly complete its passage through the legislative process, includes provision for a further extension to 31 December 2029. In addition, the relief is being expanded such that it applies to the sale, purchase or exchange of commercial woodland, and non-commercial woodland that is used for sustainability and biodiversity purposes.
The proposed amendments are subject to a commencement order (or orders) to be made by the Minister of Finance shortly.
The initial sale or purchase, or the exchange, must occur in the period outlined above and the subsequent sale or purchase must occur within 24 months of that initial sale or purchase. Full relief from CGT will be given where the consideration for the purchase or exchange of agricultural land is equal to or exceeds the consideration for the sale or the other land that is exchanged. Where the consideration for the purchase or exchange is less than the consideration for the land that is sold or the other land that is exchanged, relief will be given in the same proportion that the consideration for the land that is purchased or exchanged bears to the consideration for the land that is sold or the other land that is exchanged.
Further information regarding farm restructuring relief is available on the Revenue website at: www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/farm-restructuring-relief.aspx
Stamp Duty
Section 81C of the Stamp Duties Consolidation Act (SDCA) 1999 provides Stamp Duty relief to farmers who wish to consolidate fragmented farm holdings. The relief applies where farm holdings are consolidated by way of linked sales and purchases of land and where land is transferred as a gift or by way of exchange, where the purchase and the sale occur within 24 months of each other.
Where the relief applies, Stamp Duty at a reduced rate of 1% (instead of 7.5%) applies to the excess of the value of the land acquired over the value of the land disposed of. The relief is only available to a ‘farmer’ (or in the case of joint owners, one must be a farmer) who spends not less than 50 per cent of their normal working time farming and it is not available to non-farming interests.
There are a number of conditions which must be satisfied in order to qualify for the relief, in particular:
* Teagasc must issue a certificate stating that a sale and purchase or an exchange of farmland was made for farm consolidation purposes,
* The conveyance must contain a certificate that the relief applies,
* The land must be farmed by the purchaser, and
* In order to avoid a clawback of the relief, the land must be retained for five years.
This relief applies to acquisitions and disposals of land where the instruments are executed on or after 1 January 2018. This relief has been extended on many occasions and is currently due to expire on 31 December 2025 however Finance Bill 2025, which will shortly complete its passage through the legislative process, includes provision for a further extension to 31 December 2029. In its current form, the relief is available in respect of agricultural land which includes commercial woodland (as defined). Finance Bill 2025 also extends the scope of the relief to include non-commercial woodland used for conservation purposes. The proposed amendments are subject to a commencement order (or orders) to be made by the Minister of Finance shortly.
Further information on the Stamp Duty relief for farm consolidation, including examples for how to calculate the relief, are available on the Revenue website via the following link: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-81c-farm-consolidation-relief.pdf
Both the CGT and Stamp Duty reliefs are considered EU State aid and are granted under the Agricultural Block Exemption Regulation (ABER).
With regard to the Deputy’s question in relation to the sale of farmland to non-farming interests, it is of note that a measure was introduced in Finance (No. 2) Act 2023 to deter investors acquiring farmland with a view to leasing it out and availing of an income tax relief contained in section 664 TCA 1997.
Section 664 provides relief in respect of certain income arising from the long-term leasing of farmland. Subject to an upper limit, individuals who qualify for the relief are entitled to take a deduction in determining their total income for income tax purposes. To qualify, the lease must be a qualifying lease, that is, a lease of farmland which —
* is in writing or evidenced in writing,
* is for a definite term of 5 years or more, and
* is made on an arm’s length basis between one or more qualifying lessors and one or more qualifying lessees.
In respect of farmland purchased by an individual pursuant to a contract entered into on or after 1 January 2024 for a consideration equal to the market value of the land at the date of the purchase, the purchaser will be required to hold the farmland in question for at least 7 years before letting that farmland under a lease which qualifies for relief under section 664. Long leases of farmland are considered purchases for the purposes of the 7-year holding rule.
The 7-year holding requirement does not apply to individuals who acquire farmland other than by way of purchase at market value, such as individuals who acquire farmland by way of gift or inheritance. Such individuals may claim relief under section 664 without meeting the 7-year holding period once all the conditions for the relief are met.
As with all taxes, CGT and Stamp Duty are kept under review by my department.
377. Deputy Pa Daly asked the Tánaiste and Minister for Finance the measures to address profits in the motor insurance industry; and to decrease the cost of premiums; and if he will make a statement on the matter. [73657/25]
View answerAs the Deputy will be aware, neither I as Tánaiste and Minister for Finance nor the Central Bank of Ireland can intervene directly in the pricing or provision of insurance products. These are commercial decisions for insurers, taken in line with EU law, specifically the Solvency II Directive, which governs the operation of the Single Market for insurance.
Ireland’s reform programme has helped shield consumers from sharper premium increases experienced elsewhere. Between 2016 and 2024, motor insurance premiums increased by approximately 65 per cent in the UK and by around 20 per cent across the Eurozone. In contrast, Ireland experienced a proportional reduction of approximately 34 per cent over the same period. This reflects the impact of measures such as the Personal Injuries Guidelines, reforms to the duty of care, and legislative enhancements to the Injuries Resolution Board, all of which have reduced claims costs and improved consistency and predictability.
Nonetheless, I fully acknowledge concerns regarding motor insurance profitability and the ongoing cost of premiums for consumers. Transparency and reform remain central to the Government’s response. A key achievement in this area has been the establishment of the National Claims Information Database (NCID), operated by the Central Bank of Ireland. The NCID has significantly enhanced oversight of claims costs, income and profitability trends within the insurance market and is regarded internationally as a leading source of insurance data.
NCID data shows that the private motor insurance market, after experiencing sustained losses from 2011 onwards, returned to profitability in 2023. In 2024, the sector recorded a profit of approximately 4 per cent, compared with 8 per cent in 2023. This reduction reflects the once-off impact of capital reserve releases in earlier years, rather than a structural increase in insurer returns. When viewed over a longer timeframe, profitability in the motor insurance market has remained cyclical in nature, underscoring the importance of assessing trends across multiple years rather than focusing on individual annual results.
Having said that it is also very important that the sector ensures good value for money and treats its customers in a fair and transparent manner. The affordability, transparency and availability of insurance will continue to be prioritised by Government through the new Action Plan for Insurance Reform, published in July 2025. As part of the Action Plan, a transparency code for the insurance industry is under development. The Code will require insurers to provide simple, understandable explanations of how premiums are formed and what broader factors influence pricing.
Government remains firmly committed to achieving a fairer, more sustainable and competitive insurance market, ensuring that the benefits of these reforms are fully realised, delivering tangible improvements in cost, choice, and access for all consumers.
378. Deputy Cathal Crowe asked the Tánaiste and Minister for Finance if he will consider exempting from inheritance tax any legacies left by patients who contracted hepatitis as a result of health care system failures; and if he will make a statement on the matter. [73737/25]
View answerSection 82 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides that the receipt of certain types of compensation and damages are not gifts or inheritances and are therefore exempt from CAT. The types of compensation and damages that are deemed not to be gifts or inheritances are:
• the receipt by a person of any compensation or damages received for any wrong or injury to that person, his/her property, reputation or means of livelihood;
• the receipt by a person of any compensation or damages received for any wrong or injury resulting in the death of another person.
It is not required that such compensation or damages are awarded by a court. The exemption will also apply where the payment is received bona fide by way of an out-of-court settlement. As such, the receipt by a person of compensation or damages for contracting hepatitis as a result of health care system failures is exempt from CAT.
The exemption provided by section 82 CATCA 2003 can only be availed of by the person who receives such compensation or damages. Where a person who received such compensation or damages subsequently dies, the exemption does not extend to inheritances received from that person’s estate.
The Deputy should note that my Department has examined extending exemptions that exist for compensation payments to legacies in a Capital Gains Tax context, however there were legal, technical and administrative impediments that would not allow for such legislation. It is likely that similar legal, technical and administrative impediments would apply to exempting from inheritance tax any legacies left by patients who contracted hepatitis as a result of health care system failure.
