Wednesday, 22 May 2024

Written Answers Nos. 51-65

• Díospóireachtaí
• Aimsigh díospóireacht
  • Díospóireachtaí na Dála
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  • Díospóireachtaí Coiste
• Aimsigh vótáil
  • Vótálacha na Dála
  • Vótálacha an tSeanaid
  • Vótálacha Coiste
• Ceisteanna Parlaiminte
  • Ceisteanna scríofa
  • Ceisteanna ó bhéal
• Leideanna cuardaigh
• Nuair a bhíonn tionchar tromchúiseach ag aithrisí

Tax Reliefs

Ceisteanna (51)

Colm Burke

Ceist:

51. Deputy Colm Burke asked the Minister for Finance to clarify what measures are to be taken to ensure there is not a discrepancy between higher and lower paid workers as a result of a higher BIK being made available for electric cars, which may be more expensive, but simultaneously result in greater tax reliefs than for those with internal combustion engine models; what incentives are available and will be introduced for lower income workers to ensure that plug-in electric hybrid vehicles are more affordable for them; and if he will make a statement on the matter. [23015/24]

Freagraí scríofa

Minister for Finance

From 1 January 2023, new rates of benefit-in-kind (BIK) were applied to the provision of an employer provided car, which take into account the CO2 emissions of the car. As a consequence, lower rates of tax will generally apply to cars that are more environmentally friendly. 

Employer provided car

The amount taxable as a BIK remains determined by the cars original market value (OMV) and the annual business kilometres driven, but new CO2 emissions bands  are being used to determine whether a standard, discounted, or surcharged rate applies. Thus, under the BIK charging regime, the carbon footprint and fuel emissions of the car play a key role in determining the BIK charge.

From 1 January 2023, the cash equivalent of the use of an employer-provided car is determined using the formula:

Original market value (OMV) x A

To calculate A:

Determine the applicable vehicle category from Table B based on the amount of CO2 g/km the vehicle produces.

Locate the vehicle category in Table A.

Compare the annual business mileage travelled for the year to establish the appropriate percentage to use for A.

TABLE A

	Business Mileage					Vehicle Categories
Lower limit (1)	Upper limit (2)	A (3)	B (4)	C (5)	D (6)	E (7)
Kilometres	Kilometres	Per cent	Per cent	Per cent	Per cent	Per cent
--	26,000	22.5	26.25	30	33.75	37.5
26,001	39,000	18	21	24	27	30
39,001	52,000	13.5	15.75	18	20.25	22.5
52,001	--	9	10.5	12	13.5	15

TABLE B

Vehicle Category (1)	CO2 Emissions (CO2 g/km) (2)
A	0g/km up to and including 59g/km
B	More than 59g/km up to and including 99g/km
C	More than 99g/km up to and including 139g/km
D	More than 139g/km up to and including 179g/km
E	More than 179g/km

Preferential rate of BIK for Electric Vehicles (EVs)

Electric cars that fall into ‘Category A’ vehicles, i.e., vehicles with CO2 emissions between 0g/km and 59g/km inclusive benefit from a preferential rate of BIK, ranging from 9% - 22.5% depending on business mileage. An electric car is a car that derives its motive power exclusively from an electric motor.

Due to the impact that the new emissions based BIK system has on certain petrol and diesel cars, Finance Act 2023 provided as a temporary measure a €10,000 reduction to be applied to the OMV of cars in Category A, B, C and D for 2023 in order to reduce the amount of benefit-in-kind (BIK) payable. This was not applicable to cars in Category E. This treatment also applied to all vans and electric vehicles (cars and vans). This meant that for the purposes of calculating the BIK liability on an employer-provided car, employers could reduce the OMV by €10,000.

 

Finance Act (No. 2) 2023 extended the €10,000 reduction to be applied to the OMV of cars in Category A, B, C and D to apply for 2024.

In addition the Finance (No.2) 2023 extended the existing BIK tapering regime that was available for EVs to 2027. This means that  for an electric car/van made available for an employee’s private use during the years 2024 to 2027, the cash equivalent will be calculated based on the actual OMV of the vehicle reduced by:

• €35,000 in respect of vehicles made available in the 2024 and 2025 year of assessment;

• €20,000 in respect of vehicles made available in the 2026 year of assessment; and

• €10,000 in respect of vehicles made available in the 2027 year of assessment.

Therefore,  when the €10,000 reduction above is added to the €35,000 reduction, the  total reduction in OMV for EV’s for 2024 is €45,000.

The reductions apply irrespective of the actual OMV of the vehicle or when the vehicle was first provided to the employee. If the reduction reduces the OMV to nil, a BIK charge will not arise. Any portion of OMV remaining, after the reduction is applied, is chargeable to BIK at the prescribed rates.

The precise arrangements surrounding what types of vehicles are provided by employers for those employees in the performance of their duties is a matter between the employee and their employer. Lower rates of BIK are applied to certain employer provided vehicles to incentivise the uptake of lower emissions vehicles, in particular EVs. On the specific question of plug-in hybrids, these vehicles would generally benefit from a lower BIK rate, based on their CO2 emissions.

Further information on the taxation of employer-provided vehicles is included in Tax and Duty Manual Part 05- 01-01b, which is available at the following links:

• www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-01b.pdf

• www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/private-use-company-cars/index.aspx

Vehicle Registration Tax

Ceisteanna (52)

Paul Kehoe

Ceist:

52. Deputy Paul Kehoe asked the Minister for Finance when the VRT rules were last changed for crew carrier vehicles that can carry over five passengers; if he is aware of the implications of this extra cost on those involved in the construction industry transporting workers who may have no other transport options available to them; and if he will make a statement on the matter. [23045/24]

Freagraí scríofa

Minister for Finance

Under the Finance Act 1992, Vehicle Registration Tax (VRT) is assessed on a vehicle at the time of its registration, and the way the tax is computed depends on the category of vehicle involved.

VRT on Category A vehicles (generally passenger vehicles) is assessed based on the value of the vehicle and its emissions levels for carbon dioxide (CO2 ) and nitrogen oxide (NOx). The VRT on Category B vehicles (generally light commercial vehicles and motor caravans) is assessed at 13.3% of the Open Market Selling Price (OMSP) of the vehicle. Heavier commercial vehicles, including lorries and buses, come within Category C and are charged to VRT at a flat rate of €200.

The legislation provides that the appropriate category of a particular vehicle is determined at the time of its registration based on the vehicle’s technical categorisation under EU type-approval rules. Category B vehicles are defined in the Finance Act based on the EU type-approval classification N1. These are commercial vehicles, designed and constructed for the carriage of goods and not exceeding 3.5 tonnes.  

Certain commercial vehicles are designed to carry cargo and passengers, and these qualify as either a Category A or Category B vehicle depending on the details of their technical specification, including whether the cargo and passenger areas are separate. In most such cases - often called ‘crew cabs’ -  the commercial vehicle’s cargo space is separate from the passenger space and so they generally qualify for Category B, due to the distinct cargo compartment. The Category B VRT rate of 13.3%, for which crew cabs normally qualify, will typically result in a lower VRT charge than the vehicle would otherwise attract as a Category A passenger vehicle. Crew cabs enable businesses, mainly in the construction sector, to carry workers safely to and from sites or other workplaces, while still having room to carry tools and other equipment. The definition specifically allows up to 6 passengers to travel in up to two rows of seats, which must be separated from the cargo area.

Since 31 July 2018, as a result of an amendment in the Finance Act 2017, N1 vehicles with 4 or more seats, which do not have a separate cargo compartment, are defined as Category A vehicles. The purpose of this amendment was to guard against tax avoidance by ensuring that N1 vehicles are charged at the Category A rate of VRT applicable to passenger vehicles, unless such vehicles have a separate compartment between the passenger area and the cargo-carrying compartment.

Tax Code

Ceisteanna (53)

Robert Troy

Ceist:

53. Deputy Robert Troy asked the Minister for Finance to review the bands for inheritance tax in Budget 2025 (details supplied). [23205/24]

Freagraí scríofa

Minister for Finance

Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances that is payable by the person receiving the gift or inheritance (the beneficiary) and is calculated by reference to the value of the property received.

Where a person receives gifts or inheritances that are in excess of the relevant CAT tax-free threshold (Group threshold), CAT at a rate of 33% applies on the excess. The relationship between the person providing the gift or inheritance (the disponer) and the beneficiary determines the Group threshold below which CAT does not arise. Any prior gift or inheritance received by a person since 5 December 1991 from within the same Group threshold is aggregated for the purposes of determining whether any CAT is payable on a benefit. There are currently three Group thresholds:

• the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including certain foster children) of the disponer;

• the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;

• the Group C threshold (currently €16,250) applies in all other cases.

In addition to the Group thresholds, the Capital Acquisitions Tax Consolidation Act 2003 provides for a number of reliefs and exemptions from CAT. For example, reliefs are available in relation to gifts and inheritances of agricultural property and certain business property respectively where certain conditions are met. Furthermore, a person may receive gifts up to the value of €3,000 from any person in the same year without having to pay CAT. This is generally referred to as the “small gifts exemption” and gifts within this limit are not taken into account in computing CAT and are not included for future aggregation purposes.

It is important to note that the Group thresholds apply at an individual level. Therefore, where property is provided by way of gift or inheritance to a number of beneficiaries, each beneficiary will have a Group threshold in relation to that gift or inheritance based on his or her relationship with the disponer.

Further information on CAT, including the various CAT reliefs and exemptions, is available on the Revenue website at www.revenue.ie/en/gains-gifts-and-inheritance/index.aspx.

As with all tax heads, CAT will be reviewed as part of the annual Finance Bill process.

Tax Code

Ceisteanna (54)

Brendan Griffin

Ceist:

54. Deputy Brendan Griffin asked the Minister for Finance if Ireland is an outlier in personal taxation on investments; if citizens from other EU countries have a tax advantage when investing in funds domiciled in Ireland, whereas Irish citizens are at a disadvantage, thereby making investment in property and pensions the only simple alternative to leaving money in low interest savings accounts; if the matter will be reviewed; and if he will make a statement on the matter. [23239/24]

Freagraí scríofa

Minister for Finance

I note the Deputy's query in relation to the taxation of investments and specifically about non-Irish residents investing in funds that are domiciled here.  

The normal tax treatment afforded to Irish collective investment fund is that funds invested are allowed to grow on a tax-free basis within the fund. The income is taxed at the level of the investor rather than the fund, as is standard international practice. Funds are obliged to operate an exit tax regime and remit the tax deducted in this manner to Revenue. This ensures that appropriate tax is collected from Irish investors. This charge to tax does not apply in the case of unit holders who are non-resident. In the case of non-resident investors’ liability to tax on gains from the fund will be determined in their home jurisdiction.

The broad rationale for exempting such funds from direct taxation is to facilitate individuals to invest collectively, without suffering double taxation (that is, taxation both within the fund and in the hands of the investor on distribution). There is a charge to tax on Irish residents on the happening of a “chargeable event”. In order to prevent the indefinite deferral of a chargeable event (and therefore an exit charge), a deemed disposal occurs 8 years following inception of a policy of life assurance or acquisition of a fund and then every 8 years thereafter. The deemed disposal rules also apply to equivalent offshore funds. Any gain on the investment which arises from the date of inception or the date of acquisition to the date of the deemed disposal is subject to tax. This ensures that income isn’t rolled up indefinitely in life assurance policies or funds without being subject to tax. On the ultimate disposal of the investment, any tax paid which arose as a result of a deemed disposal is allowed as a credit against any final tax liability on disposal.

In general, non-Irish resident investors are not subject to Irish tax on their investment and do not incur any withholding taxes on payments from the fund, however different rules apply in respect of certain funds which hold interests in Irish real estate or particular types of Irish real estate related assets. In relation to investing in property, there are two legislative vehicles that facilitate such investment, Irish Real Estate Funds (IREFs) and Real Estate Investment Trusts (REITs).

The IREF tax regime was introduced in Finance Act 2016. An IREF is an investment undertaking, or a sub-fund, which derives 25% or more of its market value (either directly or indirectly) from real estate assets in the State.  IREFs are subject to an IREF Withholding Tax (WHT) of 20% on distributions to non-resident investors. The legislative provisions exempt certain categories of non-resident investors such as pension funds, life assurance companies and other collective investment undertakings from having IREF withholding tax applied in circumstances where the appropriate declarations are in place. Irish resident investors are generally subject to a separate investment undertaking tax, at a rate of 41% for individuals and 25% for companies, on distributions received from the fund.

A REIT is a quoted company, used as a collective investment vehicle to hold rental property. The function of the REIT framework is not to provide an overall tax exemption but rather to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle. REITs are publicly listed companies - therefore distributions are dividends within the scope of Dividend Withholding Tax (DWT), which applies at a rate of 25%. REITs are obliged to distribute at least 85% of profits annually. Irish resident investors are liable to tax at their marginal rates on dividends received, with a credit for the DWT deducted. Non-Irish resident investors are subject to DWT at 25%. Those resident in treaty-partner countries may be able to reclaim some of this DWT under the relevant tax treaty.

Last year, on 6 April 2023, I published the Terms of Reference for a review of Ireland’s funds sector - ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. The review is wide ranging and looking at a range of issues relevant to the funds sector, taking into account the recommendations in this area of the Commission on Taxation and Welfare 2022 report, Foundations for the Future.

In that context, one area being considered by the review is the taxation regime for funds, life assurance policies and other related investment products; with the goal of simplification and harmonisation where possible. A public consultation was held from 21 June 2023 to 15 September 2023 and the review is now well advanced. Based on the data available, Irish savers and investors do not invest in as broad a range of products as in many other Member States. However, there are many reasons for this including taxation.  As per the terms of reference, the Review team will report to me this Summer and I look forward to considering its findings at that point. On that basis it would not be appropriate to presuppose any outcomes of the review at this time.

In addition, as with all areas of tax policy, the taxation of investments will be kept under review throughout the annual budgetary and Finance Bill process.

Tax Exemptions

Ceisteanna (55)

Cathal Berry

Ceist:

55. Deputy Cathal Berry asked the Minister for Finance if he will consider exempting psychotherapists and counsellors from the 13.5% VAT rate, in order to improve access to mental health services; and if he will make a statement on the matter. [23268/24]

Freagraí scríofa

Minister for Finance

The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation the provision of medical care services by recognised medical professionals are exempt from VAT.  This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011, and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.

Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration.  Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.

Psychologists are listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.

On 27 February 2019, the then Minister for Health, Simon Harris TD, confirmed the establishment of and appointment of members to the Counsellors and Psychotherapists Registration Board, under the Health and Social Care Professionals Act 2005 (amended) to regulate the professions of Counsellors and Psychotherapists. The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019. 

Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for my colleague, the Minister for Health. 

I understand that officials in my Department have engaged with their counterparts in the Department of Health in relation to this matter and have advised them that the VAT exemption in question will apply from the date of registration by the Counsellors and Psychotherapists Registration Board.

Tax Yield

Ceisteanna (56, 57, 58)

Brendan Griffin

Ceist:

56. Deputy Brendan Griffin asked the Minister for Finance the amount generated by the local property tax, per local authority area, in 2023; and if he will make a statement on the matter. [23298/24]

Brendan Griffin

Ceist:

57. Deputy Brendan Griffin asked the Minister for Finance the number of individual properties registered for payment of the local property tax, per local authority area, in 2023; and if he will make a statement on the matter. [23299/24]

Brendan Griffin

Ceist:

58. Deputy Brendan Griffin asked the Minister for Finance the amount generated by the local property tax per category of property valuation, per local authority area, in 2023; and if he will make a statement on the matter. [23300/24]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 56 to 58, inclusive, together.

I am advised by Revenue that the amount generated by the local property tax and the number of properties, per Local Authority area, in 2023, are available in Table 2 of the Property Tax Statistics publication for January 2024, which is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/property-taxes/current-year-stats/index.aspx

In addition, the table below shows the amount generated by the local property tax per category of property valuation, per Local Authority, in 2023. Due to Revenue’s obligation to maintain taxpayer confidentiality, as provided for in Section 851(A) of the Taxes Consolidation Act 1997, it cannot provide full details in relation to certain properties where the number of properties in a particular category/Local Authority are below 10.

These figures are provisional and are subject to revision. The final set of statistics in relation to Local Property Tax 2023 will be published on the Revenue website in the summer of 2024.

Local Authority of Property	Band 1	Band 2	Band 3	Band 4	Band 5	Band 6	Band 7	Band 8	Band 9	Band 10	Band 11	Band 12	Band 13	Band 14	Band 15	Band 16	Band 17	Band 18	Band 19	Band 20
Carlow	28%	34%	24%	8%	3%	1%	1%	1%	1%
Cavan	51%	25%	17%	5%	1%	0%	0%	0%
Clare	24%	32%	25%	10%	4%	2%	1%	0%	0%	1%
Cork City	11%	18%	29%	18%	9%	4%	3%	2%	2%	1%	1%	1%	0%	1%	2%
Cork County	14%	21%	32%	15%	8%	3%	2%	1%	1%	1%	0%	2%
Donegal County	57%	21%	14%	5%	2%	1%	0%	1%
Dublin City	5%	8%	16%	16%	11%	6%	5%	4%	4%	3%	2%	2%	2%	2%	1%	1%	1%	1%	1%	10%
Dún Laoghaire-Rathdown	1%	1%	5%	8%	11%	11%	10%	9%	9%	5%	4%	2%	3%	2%	2%	1%	2%	1%	2%	12%
Fingal	3%	9%	20%	18%	13%	8%	6%	4%	4%	2%	2%	1%	1%	1%	1%	1%	1%	1%	1%	3%
Galway City	9%	19%	30%	15%	9%	5%	3%	2%	2%	1%	1%	0%	1%	0%	2%
Galway County	18%	30%	27%	11%	6%	3%	2%	1%	0%	0%	0%	1%
Kerry	23%	31%	27%	10%	5%	1%	1%	1%	0%	0%	1%
Kildare	7%	13%	30%	23%	12%	5%	3%	2%	1%	1%	1%	0%	0%	2%
Kilkenny	18%	31%	26%	11%	5%	3%	2%	1%	1%	1%	2%
Laois	29%	37%	21%	7%	3%	1%	1%	0%	1%
Leitrim	63%	22%	11%	2%	1%	1%
Limerick	22%	29%	25%	11%	5%	2%	2%	1%	1%	0%	0%	1%
Longford	54%	31%	10%	3%	1%	1%
Louth	21%	27%	28%	13%	5%	2%	1%	1%	0%	1%
Mayo	37%	31%	19%	6%	2%	1%	1%	0%	0%	1%
Meath	8%	18%	33%	18%	11%	4%	3%	1%	1%	1%	0%	0%	1%
Monaghan	44%	26%	21%	6%	1%	0%	0%	0%	0%
Offaly	29%	36%	22%	7%	3%	1%	1%	0%	0%	0%	0%
Roscommon	46%	31%	14%	4%	2%	1%	1%	1%
Sligo	39%	19%	22%	11%	4%	2%	1%	1%	0%	1%
South Dublin	5%	10%	25%	20%	13%	10%	7%	3%	2%	1%	1%	0%	0%	0%	1%
Tipperary	30%	33%	22%	8%	3%	1%	1%	0%	0%	2%
Waterford	24%	27%	24%	11%	6%	2%	2%	1%	1%	0%	0%	1%
Westmeath	23%	35%	24%	10%	4%	1%	1%	0%	0%	1%
Wexford	23%	32%	27%	10%	4%	1%	1%	1%	0%	0%	1%
Wicklow	5%	9%	20%	19%	14%	9%	6%	4%	3%	2%	2%	1%	1%	1%	1%	4%
Total € m	€72.25	€90.10	€113.00	€71.75	€44.89	€26.27	€20.26	€13.98	€12.20	€8.17	€6.03	€4.08	€4.31	€3.54	€2.93	€1.82	€2.67	€1.95	€2.63	€18.14

Question No. 57 answered with Question No. 56.

Question No. 58 answered with Question No. 56.

Tax Code

Ceisteanna (59)

Brendan Griffin

Ceist:

59. Deputy Brendan Griffin asked the Minister for Finance if he will reconsider plans to reintroduce further excise increases on fuel later this year; if tax receipts from fuel are ahead of schedule to date in 2024; if so, by how much; if he will provide a breakdown of actual income versus projected income, per category; and if he will make a statement on the matter. [23302/24]

Freagraí scríofa

Minister for Finance

The Government is conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in excise rates which, inclusive of VAT amounted to 21 cents, 16 cents and 5.4 cents per litre on petrol, auto-diesel and marked gas oil, respectively.

These temporary cuts to excise rates were initially due to end on 31 August 2022, but following review and monitoring of fuel prices, were extended until February 2023, with a phased restoration of rates occurring in June and September 2023. A final restoration of excise rates was due to take place on 31 October 2023, but Budget 2024 provided for further extension until 31 March 2024, with phased restoration occurring in April and August 2024. The first of these restorations took place on 1 April 2024 adding 4 cent per litre to petrol, 3 cent to auto diesel and 1.7 cent to MGO.

Carbon tax rate increases on petrol and auto-diesel are legislated to occur on 9 October 2024 when the rate of carbon tax will increase from €56 to €63.50 per tonne of carbon dioxide emitted. This will add 2.1 cent per litre of petrol and 2.5 cent per litre of auto diesel, VAT inclusive. Carbon tax increases are implemented annually under the 10-year carbon tax trajectory that was introduced in Finance Act 2020. The 2020 Programme for Government committed to increasing the amount that is charged per tonne of carbon dioxide emissions from fuels to €100 by 2030, and the 10-year trajectory of carbon tax increases delivers on that commitment. The commitment also features as one of the nine reform measures in Ireland’s National Recovery and Resilience Plan.

While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained. 

I am advised by Revenue that the provisional year to date (January – April) excise receipts for Mineral Oil Tax (MOT), Solid Fuel Carbon Tax (SFCT), Natural Gas Carbon Tax (NGCT) and an estimate of VAT receipts in respect of fuels are provided in the table below.  The Deputy should note that while  Budgetary projections for overall excise annual receipts between 2022 and 2026 are published in the Budget 2024 Economic and Fiscal Outlook which is available on www.budget.gov.ie,the particular level of detail requested is not available. 

In relation to VAT, I am further advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on fuel using taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated on fuel is provided below.

	January – April 2024
MOT Receipts €m	904.5
SFCT Receipts €m	11.9
NGCT Receipts €m	57.3
Estimated VAT Receipts €m*	304.1
Total Receipts €m	1,277.8

*estimated VAT receipts are for January to March.

Finally, the Deputy should note that I will continue to monitor and review the position in the coming weeks in the context of the final phase of excise rate restorations due to take place in August 2024.

Flood Risk Management

Ceisteanna (60)

Brendan Griffin

Ceist:

60. Deputy Brendan Griffin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if repairs to a breach in the river bank at a location in County Kerry (details supplied) will be carried out; and if he will make a statement on the matter. [23220/24]

Freagraí scríofa

Minister of State at the Department of Public Expenditure, National Development Plan Delivery and Reform

The Office of Public Works (OPW) is responsible for the maintenance of arterial drainage schemes completed under the Arterial Drainage Acts, 1945 and 1995, as amended. The OPW does have a responsibility to maintain assets (flood defence embankment, backdrains, structures, etc.) within the townlands of Roscullen and Shanakeale.  While these assets form part of the Maine Catchment Drainage Scheme, the OPW is not aware of any breach of the flood defence embankments maintained by the OPW in that area.

The OPW South West Regional Office will contact the person concerned to confirm the exact location referred to by the Deputy and will undertake a site visit.

Tobacco Control Measures

Ceisteanna (61)

Noel Grealish

Ceist:

61. Deputy Noel Grealish asked the Minister for Enterprise, Trade and Employment if his Department has been consulted with and provided observations on proposals to raise the legal age for smoking, particularly given concerns expressed by retailers on the workability of have differing age limits applying to the purchase of alcohol and tobacco products. [23037/24]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

The Public Health (Tobacco Products and Nicotine Inhaling Products) Amendment) Bill 2024 is a matter for my colleague Minister for Health, Stephen Donnelly TD.

This Bill refers to the commencement of section 28 of the Public Health (Tobacco Products and Nicotine Inhaling Products) Act. I have been consulted on this and I support these changes. I have also asked that I be appraised of any developments in respect of this important matter.

The retail unit in my Department corresponded with the Department of Health, asking them to also advise us of any further proposed amendments which may impact on the retail sector.

Departmental Priorities

Ceisteanna (62)

Catherine Connolly

Ceist:

62. Deputy Catherine Connolly asked the Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 60 of 18 April 2024, for an update on his Department’s engagement with the Department of Foreign Affairs with a view to developing a new business and human rights action plan and implementation body; his plans for independent oversight of the implementation of the new action plan; and if he will make a statement on the matter. [23077/24]

Freagraí scríofa

Minister for Enterprise, Trade and Employment

I recognise the importance of businesses having a focus on human rights as there is a strong expectation from society that businesses consider how their operations can impact on human rights. Businesses have reacted well since Ireland launched its first National Plan on Business and Human Rights (2017 - 2020) towards the end of 2017.

Ireland became the 19th state in the world to develop a National Plan. In December 2021, a review of the implementation of the Plan was brought to Government. It found that over 91% of commitments under the Plan were achieved, with plans to implement the remainder.

Stakeholder engagement is an integral part of developing the second National Plan. The first step in this process was the public consultation that the Department of Foreign Affairs and my Department published last summer seeking the opinions of interested stakeholders to inform the development of the second Plan. Eleven submissions were received, from business representatives, trade unions, human rights organisations and academia.

The second step was the creation of the stakeholder forum. It has met once since it was convened, on 14 December 2023. It brought together representatives of Government, civil society, trade unions and business, including officials from my own Department. The purpose of this initial meeting was to draw out common themes that emerged from the public consultation process, and to seek clarification on or elaborate certain recommendations, with a view to establishing the likely scope and content of the new National Plan. The next meeting of the Stakeholder Forum is scheduled to take place in early June 2024.

A meeting with officials from other relevant Government Departments took place on 9 May 2024 to discuss a working outline of the second plan. The working outline of the second plan is currently being prepared by officials. The working outline will include information regarding options for an implementation body to provide independent oversight of the plan’s implementation.

The new Plan is expected to cover a multi-annual timeframe as was covered in the first Plan. It is intended to build on the achievements of the first National Plan, while reflecting new developments in the international understanding of business and human rights, including new EU instruments. It will also align with the commitment in the Programme for Government to ‘ensure that the Action Plan on Business and Human Rights is further developed to review whether there is a need for greater emphasis on mandatory due diligence’. The ambition is to finalise the new plan later this year.

Work Permits

Ceisteanna (63)

Aindrias Moynihan

Ceist:

63. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment the up-to-date position on the introduction of a single permit system for work permits and visas; and if he will make a statement on the matter. [23082/24]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

On 15th May, my colleague, Minister for Justice McEntee, and I announced that Government approval had been secured for a number of key actions to increase Ireland's competitiveness in attracting the skills and talent our economy and society needs.

A key component of this was the approval to implement a single permit for both employment and residence in Ireland. Currently applicants must apply to the Department of Enterprise, Trade and Employment for an employment permit, and then apply to the Department of Justice for a visa. Introducing a single permission will reduce the cost and complexity of having to separately obtain employment and residence permits. These measures will not only attract much needed talent but also enhance Ireland’s reputation as an attractive place to work and do business.

The adoption of the Single Permit is expected to be completed over the course of the next three years. A programme management team will now be established between My Department and the Department of Justice to commence the implementation of the Single Permit. The programme is expected to be delivered on a phased basis, which will aim to streamline existing processes and enhance overall customer experience.

Business Supports

Ceisteanna (64)

Aindrias Moynihan

Ceist:

64. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment if supports are being considered for SMEs in the use of AI technologies for their businesses; and if he will make a statement on the matter. [23083/24]

Freagraí scríofa

Minister of State at the Department of Enterprise, Trade and Employment

My Department of Enterprise, Trade and Employment is taking action on a number of fronts to increase the number of Irish businesses using AI, in line with our National AI Strategy, “AI – Here for Good”.

I chair the newly refreshed Enterprise Digital Advisory Forum, with industry and expert representatives, which provides valuable advice and perspectives on how we can best help businesses to digitalise and adopt advanced digital tools such as AI.

Digitalisation and AI adoption support, including advice, consultancy and grants, is also available through the Local Enterprise Offices, and the SME support package, launched last week, widened the eligibility for the Trading Online Voucher, by extending it to all sectors up to 50 employees, expanding the eligible expenditure, and doubling the grant to €5,000.

I would like to draw particular attention to CeADAR, Ireland's Centre for Applied AI, which acts as the bridge between the worlds of applied research in AI and data analytics and their commercial deployment by business. CeADAR is playing a crucial role in helping businesses to adopt AI.

Government has established four European Digital Innovation Hubs to help businesses, and SMEs in particular, in evaluating and adopting digital and AI tools. The Hubs serve as 'one-stop shops' with research organisations at the core, providing access to technical expertise and experimentation, as well as innovation services, and the training and skills development necessary for successful digital transformation.

Furthermore, Skillnet Business Networks provide AI upskilling to businesses at all levels, from 1-day foundational training to master’s level courses.

AI technology continues to advance at a rapid pace. It is important therefore, that our supports continue to be agile and adaptive in order to respond to developments, and seize the opportunities of AI for good.

Job Creation

Ceisteanna (65)

Aindrias Moynihan

Ceist:

65. Deputy Aindrias Moynihan asked the Minister for Enterprise, Trade and Employment the measures being considered in increasing the current number of IDA-supported jobs for the mid Cork region; and if he will make a statement on the matter. [23084/24]

Freagraí scríofa

Minister for Enterprise, Trade and Employment

IDA Ireland's strategy, Driving Recovery & Sustainable Growth 2021-2024, identifies opportunities for sustainable growth among its established base of clients and new investments. The strategy is delivered through a focus on five pillars: Growth, Transformation, Regions, Sustainability, and Impact, through a focus on transformative investments to increase the productivity of Irish operations and their workforce through RD&I, digitalisation, training, and actions on sustainability.

Despite the challenging global economic environment, over 19,000 new jobs were created in IDA supported client companies in 2023, maintaining the numbers directly employed in the multinational sector in Ireland at over 300,000 for the second consecutive year.

Moreover, regional development remains a top priority for my Department and for IDA Ireland. As part of IDA Ireland’s strategy, half of all investments to the end of 2024 are to go to regional locations outside Dublin. In this regard, IDA Ireland won 248 investments in 2023 of which 54%, or 132 projects, went to regional locations. The total number of regional jobs now stands at 163,471 with employment in the South-West Region, across Cork and Kerry, up 1.2%. There are now 233 IDA client companies in the South-West Region, employing 51,296 people. 216 of these companies are in Cork with combined employment of 49,253 people.

The South-West has a significant ecosystem of well-established companies across Technology, Life Sciences, International Financial Services and Engineering & Industrial Technologies. It has also won significant investment across all of these sectors over a sustained period which has contributed significantly to employment growth and positive economic impacts on other sectors of the economy. Key IDA client companies in the region include Apple Operations Europe, Dell EMC, Amazon CSC Ireland Ltd., Eli Lilly SA, DePuy Synthes, Boston Scientific, TELUS International and Stryker.

Cork has seen investment announcements from IDA client companies like Infineon Technologies AG, Qualcomm, PepsiCo, Blink Parametric, AMD, dóTERRA, BioMarin, Oxford Global Resources Ltd, Stryker and Dell Technologies in recent years.

IDA Ireland actively engages with Cork County Council and other property owners and stakeholders across the South-West region on their development plans and markets sites and property solutions, through its extensive overseas network, to both existing and new investors, including property in the mid Cork region. In this regard, the region is well positioned to continue to retain and attract new FDI investment and grow employment in existing companies and IDA Ireland will continue to collaborate with all stakeholders and parties in the region to achieve this objective.

• Written Answers Nos. 32-50
• Written Answers Nos. 66-80