Collection and Transfer of Advance Passenger Information: Motion

Minister of State at the Department of Justice (Deputy James Browne)

I move:

That Dáil Éireann approves the exercise by the State of the option or discretion under Protocol No. 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, to take part in the adoption and application of the following proposed measure:

Proposal for a Regulation of the European Parliament and of the Council on the collection and transfer of advance passenger information for the prevention, detection, investigation and prosecution of terrorist offences and serious crime, and amending Regulation (EU) 2019/818,

a copy of which was laid before Dáil Éireann on 13th January, 2023.

I seek Dáil approval to opt in to a proposal for a regulation of the European Parliament and of the Council on the collection and transfer of advance passenger information, API, for the prevention, detection, investigation and prosecution of terrorist offences and serious crime. This proposed regulation, as it relates to law enforcement, is a key part of cooperation with other member states in the area of information exchange for the purposes of detection, prevention, investigation and prosecution of terrorist offences and serious crime. The proposed regulation aims to build on and improve the existing rules in terms of the collection and transfer of API data. This motion follows on from the publication in December 2022 by the European Commission of two proposals for regulations, both regarding the collection and processing of API data relating to air travel.

To provide some background, advance passenger information refers to information contained in the machine-readable zone of a passenger's passport or travel document. This includes name, date of birth, gender, nationality and document or passport number. API also includes flight information such as flight number and arrival and departure times. Before a passenger boards a plane, this data is available to the airline and can be transmitted to the relevant authority in the destination country. The processing of API data provides an effective tool for advance checks of air travellers. Border checks for bona fide travellers are therefore expedited upon arrival, while more resources and time can be spent on identifying travellers who need further scrutiny. Consequently, API enables a risk-based, data-driven approach to border security for the purposes of law enforcement. The first of the two proposed regulations is better-known as the API border management regulation. This proposal relates to the processing of API data for border management-related purposes. However, Ireland does not need to opt in to this proposal, as it is a Schengen-building measure in which Ireland will automatically participate.

The second proposal is known as the API law enforcement regulation, which is the subject of today's motion. It relates to the processing of API data as part of the passenger name record, PNR, data set for the purposes of the detection, prevention, investigation and prosecution of terrorist offences and serious crime. As the API law enforcement regulation has a Title V legal basis, Ireland has until 6 May 2023 to notify the Presidency of the Council of the intention to opt in to this measure under Article 3 of Protocol 21.

To provide some contextual background to Deputies, the Irish Passenger Information Unit, IPIU, was established as a unit of the Department of Justice by the Minister for Justice under the European Union (Passenger Name Record Data) Regulations 2018, SI 177/18. The regulations were in turn made for the purpose of giving effect to EU Directive 2016/681, commonly known as the PNR directive. The IPIU is responsible for the collection and processing of passenger name record data for the purposes of the prevention, detection, investigation or prosecution of terrorist offences or serious crime and for transferring the data to designated competent authorities.

Schedule 3 of SI 177/18 provides that a number of competent authorities are entitled to receive the results of the processing of PNR data. The competent authorities are An Garda Síochána, the Office of the Revenue Commissioners, the Permanent Defence Force, the Department of Social Protection and the Department of Justice. Passenger name record data is information collected by air carriers for commercial purposes during the flight reservation process. Advance passenger information contains biometric information about a passenger such as name, date of birth and passport number. This information must be included as a data set of the PNR data when it is available from the carrier.

As mentioned, the two recent Commission proposals in this area are interrelated. The proposed sister regulation, the API border management regulation, establishes and legislates for a central router which will be established, operated and maintained by the European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice, known as eu-LISA, and will transfer the data gathered in pursuance of the API law enforcement regulation to each member state. Under the proposed API law enforcement regulation, air carriers will be mandated to use this central router to transfer API data to the passenger information unit of each member state. Mandating air carriers to transmit API data to a central router within the EU will streamline the overall process and reduce the costs on airlines as a central router will reduce significantly the number of separate connections to be maintained. A central router will replace the current system comprised of multiple connections between air carriers and national authorities.

The fact that data will be collected and transmitted via automated means will only improve the accuracy of data collected and enhance data protection measures. It will also increase the reliability of the data analysis carried out by competent authorities. The combined use of API data and PNR data enables the competent national authorities to confirm the identity of passengers and significantly enhances national security measures.

In summary, both API proposals aim to harmonise the requirements for the collection of API data by setting a mandatory list of API data elements to be collected by air carriers. The proposals will cover all air travellers on all flights into the European Union and certain "intra-EU" flights for the proposal regarding the prevention and detection of terrorist offences and serious crime. Furthermore, the central router to be established will be hosted and maintained by the relevant European agency for the benefit of all member states involved. The proposed API law enforcement regulation is also aligned with the applicable rules for the processing of PNR data by relevant authorities, as established in the PNR directive and recent European Court of Justice, ECJ, rulings. Once adopted, the rules in the proposed regulation will be directly applicable across participating states in the European Union. These new rules are expected to be applied in full as of 2028. Once the central router is developed, which is expected to be by 2026, public authorities and air carriers will have two years to adjust to the new requirements and to test the router before it becomes mandatory.

I commend this proposal to the House in the context of exercising Ireland's opt-in to the measure, and I thank the Deputies for their consideration of the matter.

Minister for Finance (Deputy Michael McGrath)

The Terms of Reference for the Citizens' Assembly on Biodiversity Loss specify that: the Government shall, on consideration of the report from the Citizens’ Assembly, provide in the Houses of the Oireachtas a response to each recommendation of the Assembly, setting out a timeframe for implementing those recommendations which it accepts.

Having now received the report of the Citizens' Assembly, the Government is commencing the process of preparing a comprehensive response to the full set of recommendations from the Assembly. Further information on the timeline of this response will be provided in due course.

In relation to recommendation no. 35, Ireland has committed to a number of measures addressing greenhouse gas (GHG) emissions and climate issues through the adoption of the Climate Action and Low Carbon Development (Amendment) Act 2021 and actions under successive Climate Action Plans (CAPs). The actions addressing climate change through GHG emissions reduction are kept under review through the Climate Action Delivery Board and through the review process of CAPs. Environmental taxation is reviewed annually through the budget process including examining tax measures and tax expenditures from a green budgeting perspective and by way of analysis contained in annual Tax Strategy Group Papers which are available online.

In relation to recommendation no. 38, I would highlight to the Deputy that strengthening the resilience of the European banking sector to environmental, social and governance (ESG) risks is one of the key objectives of the EU Banking Package. Improving the way banks measure and manage these risks is essential, as is ensuring that markets and investors can monitor what banks are doing. Prudential regulation has a crucial role to play in this respect. The EU Banking Package is currently at the trilogue negotiation stage with the co-legislators and it is hoped that final agreement will be achieved later this year.

On 8th November 2022, Government approved the establishment of a €500 million Growth and Sustainability Loan Scheme (GSLS). The Strategic Banking Corporation of Ireland will deliver the Scheme, which will provide for loans of €25,000 to €3m for terms of 7 to 10 years. The GSLS will be available to SMEs, including farmers and fishers. Under the scheme, 70% of the lending volume will be provided for investment in business growth and sustainability, while a minimum of 30% of lending volume will be directed to investment in environmental sustainability. The GSLS is due to be launched in Q2 2023.

Furthermore, Ireland’s 4th National Biodiversity Action Plan (NBAP) is currently in development. The Plan will set the national biodiversity agenda for the period 2023-2027 and aims to deliver the transformative changes required to the ways in which we value and protect nature.

Deputy Brendan Howlin

On the face of it, this is a perfectly acceptable proposal to opt into a regulation on the collection and transfer of advance passenger information. As the Minister of State set out in his presentation, that is information on a passenger's passport, such as date of birth, gender and citizenship, together with flight details. Again it is a justice regulation that comes before the House. We have until 6 May to opt in. We are always just in time with regulations coming here, although I note that the European Commission's publication on the two proposals for the regulations occurred only last December.

I suppose it is swift enough by normal justice standards. We need to ensure that we have as much data as we can get, consistent with the safeguards that have been set out both in the Minister of State's speech and in the previous Deputy's contribution. It is important for Irish authorities to know in advance who is arriving at our airports. Streamlining the requirements in a transparent, open and understandable way is an important advance, particularly as previous regulations have been tested in various European courts, as was suggested already, to ensure that data are secured.

I have a few questions I would like to put to the Minister of State. Prima facie, it looks like some of it is an improvement on the existing situation and something that is desirable. On the existing statutory instrument, in terms of the organisations that can have access to the data, SI 177 of 2018, the Minister of State lists the competent authorities in his speech. Is that a comprehensive list? Would it require a further statutory instrument to expand that list? Is the Minister capable of amending it without formulating a new statutory instrument and laying it before the Houses, should some other agency of the State require it, such as the Criminal Assets Bureau or other agency?

In terms of the role of our own Garda National Immigration Bureau, clearly it must remain a matter for ourselves who can come into this State and who cannot. I have one concern about this advance presentation of data. It often can put pressure on an airline when a passenger presents themselves with a particular passport. They may have a fear of being fined if that passenger ultimately is refused entry into Ireland. I would be concerned that it would be a matter for our competent authorities, the Garda National Immigration Bureau, to make that determination in accordance with our norms and Irish law. I would hope that the collection of this data would not have a chilling effect on airlines, or cause people who in normal circumstances would be perfectly entitled to come here to be refused access onto an aircraft. It is about the provision of ultra-cautiousness if they had a fear that they would be fined for such passengers. I would be interested in having the Minister of State address that.

My third question relates to the issue of the UK post-Brexit. Obviously, they are not part of the European Union, therefore this regulation does not apply. How does it apply to passengers originating from the UK or transiting the UK in respect of the onward transmission to our authorities of passenger data? Is there some arrangement with the United Kingdom that they will be part of this common European system? Those three questions I pose by way of seeking further clarity and hopefully the Minister of State can provide it. On the face of it, this seems like an eminently sensible proposal.

Minister for Finance (Deputy Michael McGrath)

On 8th December 2022, the European Commission published its proposed “VAT in the Digital Age” reforms to amend the European Union VAT system to respond to the challenges of digitalisation. The proposed reforms aim to make the EU’s VAT system more resilient to fraud and more efficient for businesses. There are three pillars involved in the proposal.

The first is the introduction of common standardised Digital Reporting Requirements (DRR) and e-invoicing on business-to-business (B2B) cross-border transactions within the EU. The proposed changes would replace the current recapitulative statements with a new Digital Reporting System for intra-community transactions and would cover the same transactions that are currently covered by the recapitulative statements with additional reporting requirements. Member States will also have the option to impose DRR for domestic supplies of goods and services, similar to the mandatory DRR designed for intra-community transactions. The expectation is that the existing digital reporting requirements in various Member States should converge with the proposed cross-border requirements by 2028.

The second pillar of the proposal addresses the challenges of the platform economy in short-term accommodation rental and passenger transport services by clarifying existing rules and enhancing the role of e-commerce platforms in VAT collection. The proposed changes would mean that these facilitation services when provided by platforms to private persons will always be taxable where the underlying transaction is supplied. It will also place an obligation on platforms to charge VAT where the underlying provider is not VAT registered. Additionally, the currently optional Import One Stop Shop (IOSS) would become mandatory for platforms when certain imports of goods to consumers in the European Union are facilitated by them.

The third pillar of the proposal would reduce VAT registration requirements in the EU by expanding the scope of the One Stop Shop (OSS) and the application of the reverse charge for B2B transactions.

The proposals are significant. They will modernise the VAT landscape and will result in increased revenues for Tax Administrations and reduced costs for business if they enter into force, as intended, between 2024 and 2028.

A number of Council meetings have taken place since January 2023 to discuss the proposals and, in common with all legislative proposals of this nature, some of the proposed amendments may not be agreed or may change significantly from what is proposed. Unanimous approval of all EU Member States is required for the proposals to enter in force and, even if there is full agreement, it is possible that implementation may be delayed.

It is not possible to estimate the extra revenue that will accrue directly to the State if the proposals are enacted. The European Commission has estimated that they should result in EU Member States collecting up to €18 billion in additional VAT revenues annually, €11 billion of this as a result of anti-fraud measures, while also reducing administrative costs for business.

Deputy Seán Canney

I welcome the opportunity to say a few words on this proposal. It is important from a security point of view and it shows that we can use technology to increase security and streamline people's passage through airports. It can be very stressful for people to go through airports, given the security measures and so on. It is important that if this technology can be used to provide API, travellers will be able to pass through airport security in a more streamlined manner rather than having to queue up for hours to do so.

I wish to raise a matter with the Minister of State, who might be able to enlighten me. My constituency office gets many queries from people who need to go to the UK for a funeral or a family event, possibly at short notice, but do not have a passport. A passport should not be required because there is the common travel area covering Ireland and the UK. A person can travel from Ireland to Scotland, Wales, Northern Ireland or elsewhere in the UK without a passport. The person needs to have some form of identification to show the airline. Ryanair, however, insists on passengers having a passport. It is the only form of identification Ryanair will accept, whereas other airlines will accept other forms of identification, such as a public service card or a driver licence. A person travelling to the UK by ferry does not need a passport. This requirement is being foisted on people who book with Ryanair. They may realise they do not have a passport and be in a state of flux, especially if they are due to travel to attend a family funeral. This might affect older people whose brother or sister who was in England for a long time has passed away. It is very unfair that airlines are dictating the level of identity document they require. The identification required to go to the UK should be standardised. A photographic ID such as a public service card or a driver licence should be sufficient. If that is sufficient for some airlines, it should be sufficient for all airlines. Is this something that needs to be addressed with airline carriers? It creates a significant amount of stress and confusion and puts extreme pressure on the Department of Foreign Affairs and the Passport Service, which do their best, to get passports for people at short notice. I acknowledge the work they have done in recent years to tackle the backlog and ensure people get their passports on time. I have seen that work at first hand in recent years. Why is this happening with certain airlines but not with others? Ryanair will tell you how to run the country or your business or how to make a cup of tea, so it is no harm to ask it to get its house in order and accept something that is acceptable to every other airline in this country. I wish to bring this matter to the attention of the Government. It should be considered, although not in a brow-beating way, in order to make life a bit more comfortable for people in these situations. It is important that people who have to travel to a funeral in the UK, especially from the part of the west of Ireland where I live, can do so in a relaxed manner and know that they do not need a passport. They may book a flight and then realise a passport is needed but they do not have one. The airlines should make abundantly clear the identification they require. The standard should be that photographic ID such as a public service card or a driver licence is sufficient for travel within the common travel area. It is important for this issue to be raised. The Minister of State might bring it back to the Government to see how it can be addressed in order to bring about standardisation.

I welcome the provisions in the regulation before the House in terms of the use of technology to suppress international and other crime. That is important.

Minister for Finance (Deputy Michael McGrath)

The formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation. The level of official interest rates will influence the overall level of interest rates throughout the economy.

However, the determination and adjustment of retail and business lending rates and deposit rates are commercial decisions for individual lenders in line with the terms of the particular credit or savings contract and I have no function or role in such decision making matters by financial institutions.

Nevertheless, it is worth noting that the weighted average interest rate on new Irish mortgage agreements charged by credit institutions in Ireland at end-February 2023 was 2.92 per cent (compared to 2.76% in February 2022). The comparable average interest rate for new mortgages in the euro zone was 3.33% in February 2023, up from 1.36% in February 2022. The rate on new Irish mortgage agreements has now been less than the euro area average since October 2022 and is now the third lowest in the euro area.

In relation to savings rates, the Central Bank has advised that interest rates on household overnight deposits stood at 0.03 per cent in February 2023. Interest rates on new household deposits with agreed maturity rose to 1.02 per cent in February in Ireland.

The equivalent rate in the euro area was 1.92 per cent. Interest rates on outstanding deposits’ rates with agreed maturity was 0.35 percent in February 2023 an annual increase of 25 basis points since February 2022.

Question put and agreed to.

Dáil Éireann díospóireacht - Tuesday, 25 Apr 2023