Written Answers Nos. 61-80
61. Deputy Louise O'Reilly asked the Minister for Transport the amount of funding that was given for the establishment of the Road Safety Authority in 2006; and the amount of funding the RSA was given in its first year, in tabular form. [28544/24]
Amharc ar fhreagra62. Deputy Louise O'Reilly asked the Minister for Transport the current and capital funding of the Road Safety Authority from 2006 to date, in tabular form. [28545/24]
Amharc ar fhreagraI propose to take Questions Nos. 61 and 62 together.
The information requested is being compiled by my Department and will be sent directly to the Deputy within 10 business days.
|
- |
Current |
Capital |
Total |
|
2006 |
597,250 |
597,250 |
|
|
2007 |
28,524,920 |
1,000,000 |
29,524,920 |
|
2008 |
38,953,000 |
1,468,757 |
40,421,757 |
|
2009 |
32,641,000 |
32,641,000 |
|
|
2010 |
23,825,000 |
23,825,000 |
|
|
2011 |
12,039,000 |
12,039,000 |
|
|
2012 |
13,662,000 |
13,662,000 |
|
|
2013 |
6,223,000 |
6,223,000 |
|
|
2014 |
0 |
||
|
2015 |
139,000 |
139,000 |
|
|
2016 |
139,000 |
139,000 |
|
|
2017 |
139,000 |
139,000 |
|
|
2018 |
139,000 |
139,000 |
|
|
2019 |
139,000 |
139,000 |
|
|
2020 |
139,000 |
139,000 |
|
2021 |
719,000 |
719,000 |
|
|
2022 |
989,000 |
989,000 |
|
|
2023 |
952,000 |
952,000 |
|
|
2024 |
955,000 |
955,000 |
63. Deputy Martin Kenny asked the Minister for Transport the estimated annual, first- and full-year cost of making the 20% public transport fare reduction permanent, in tabular form. [28547/24]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
In light of the NTA's responsibility in this area, I have referred the Deputy's request to the NTA for direct reply. Please advise my private office if you do not receive a reply within ten working days.
64. Deputy Martin Kenny asked the Minister for Transport the estimated annual, first- and full-year costs of extending the public transport fare reduction from 20% to 30%, 20% to 40% and 20% to 50%, in tabular form. [28548/24]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
In light of the NTA's responsibility in this area, I have referred the Deputy's request to the NTA for direct reply. Please advise my private office if you do not receive a reply within ten working days.
65. Deputy Martin Kenny asked the Minister for Transport the estimated annual, first- and full-year costs of extending the 50% fare reduction for young adults and students to 60%, 70% and 75%, in tabular form. [28549/24]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
In light of the NTA's responsibility in this area, I have referred the Deputy's request to the NTA for direct reply. Please advise my private office if you do not receive a reply within ten working days.
66. Deputy Martin Kenny asked the Minister for Transport the estimated annual, first- and full-year costs of extending the 20% fare reduction to commercial operators, in tabular form. [28550/24]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
In light of the NTA's responsibility in this area, I have referred the Deputy's request to the NTA for direct reply. Please advise my private office if you do not receive a reply within ten working days.
67. Deputy Martin Kenny asked the Minister for Transport the estimated annual cost for 2024 and 2025, as well as the total cost, of the Connecting Ireland rural bus scheme, in tabular form. [28551/24]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including TFI Local Link services and the rollout of services under the Connecting Ireland Rural Mobility Plan.
As this would be a matter for the NTA I have referred your question to them for a direct response. Please advise my private office if you do not receive a reply within ten working days.
68. Deputy Martin Kenny asked the Minister for Transport the total funding commitment to the A5/N2 upgrade, as well as an annual breakdown of this commitment for the years 2024-2029, in tabular form. [28552/24]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Infrastructure Guidelines and the necessary statutory approvals.
There are a number of projects on the N2 which are listed in the current NDP. I can confirm that €1.6 million was allocated for the N2 Clontibret to the Border Scheme in 2024. With regard to future years, exchequer capital funding is allocated on an annual basis through TII to local authorities and as such it is not possible to confirm the level of any future funding allocations. All national roads projects in the NDP are kept under review each year and considered in terms of the overall funding envelope available to TII.
Noting the above position, I have referred your question to TII for a direct update as to the projects on the N2. Please advise my private office if you do not receive a reply within 10 working days.
The planning and implementation of the A5 upgrade project is the responsibility of the authorities in Northern Ireland.
The funding arrangements in relation to the A5 were governed by the 2014 Stormont House Agreement and Implementation Plan - A Fresh Start, and under this Agreement the Government had committed to provide funding of £75 million towards the cost of the A5 upgrade scheme once the statutory planning process in Northern Ireland was concluded. Provision of £25 million sterling was made by my Department in 2024 for funding the scheme should it be required. It was announced on February 20th that as part of Government funding commitments for Shared Island projects, €600 million was being committed for the progression of the A5 project.
The Department for Infrastructure in Northern Ireland estimates the total scheme cost for the A5 project is £1.6 billion with completion expected by 2032/2033 and the largest funding demands over the 2025 to 2028 period. The Department for Infrastructure has informed the Department of Transport that construction of the Main Works may commence in 2024. However, this is subject to a number of conditions being met. In addition, if there is a further legal challenge the start dates will likely be revisited.
69. Deputy Martin Kenny asked the Minister for Transport the estimated annual, first- and full-year costs of employing an additional 25, 50, 75, and 100 driving testers, in tabular form. [28553/24]
Amharc ar fhreagraUnder the Road Safety Authority Act 2006, the Road Safety Authority (RSA) has statutory responsibility for the National Driver Testing Service and the specific information requested is held by that agency. I have therefore referred the question to the RSA for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.
70. Deputy Niamh Smyth asked the Minister for Transport to provide an update on the roll-out of electric car chargers nationwide; and if he will make a statement on the matter. [27267/24]
Amharc ar fhreagraThe Government is fully committed to supporting a significant expansion and modernisation of the electric vehicle (EV) charging network over the coming years.
The number of publicly available charge points in Ireland has increased from 1,700 in September 2022 to 2,400. To achieve Ireland’s EU targets under the Alternative Fuel Infrastructure Regulation (AFIR), it is expected that there will be 3,200 – 6,210 public chargers required nationally by 2025.
The EV Charging Infrastructure Strategy 2022-2025 sets out the Government’s ambition regarding the delivery of this network to support up to 195,000 electric cars and vans by the middle of the decade.
Arising from this strategy, the National EV Charging Network Plan, published in May 2024, will see chargers installed every 60km on major roads.
Also published in May was the draft Regional and Local EV Charging Network Plan, which focuses on neighbourhood and destination charging locations and will be led by Local Authorities in partnership with both public and private sectors.
The finalised Universal Design Guidelines for EV Charging Infrastructure were published in May 2024 and outline the key considerations when designing, installing, and operating EV charging stations.
A range of new charging infrastructure schemes are being developed which will help provide another critical link in the overall network for public charging, including:
• A motorway infrastructure scheme, administered by TII, that will deliver banks of high powered chargers every 60km across the motorway network by 2025.
• A second high powered scheme, to be administered by TII, to provide banks of high powered chargers along the primary and secondary national road network.
• A Shared Island funded Sports Club scheme, which will install up to 200 fast chargers in sports clubs on the island of Ireland
• An EU Just Transition Fund supported scheme, which is planned to install 60-80 chargers in the Just Transition area in the midlands
• Local Authority pilot schemes, funding the roll out of EV charging in Local Authorities who have already developed local EV network plans,
while supporting the development of local EV Network plans in other areas
These new sites, in addition to those under other destination schemes currently planned will be delivered in 2024 and 2025.
71. Deputy Brendan Smith asked the Minister for Transport if he will ensure that adequate personnel are allocated to the Cavan driver test centre to reduce delays in tests; and if he will make a statement on the matter. [28629/24]
Amharc ar fhreagraUnder the Road Safety Authority Act 2006, the Road Safety Authority (RSA) has statutory responsibility for the National Driver Testing Service. This includes driver tester allocation. I have therefore referred the question to the RSA for direct reply. I would ask the Deputy to contact my office if a response is
There are currently two driver testers allocated to Cavan. While a driver tester may be assigned to one centre, testers routinely and regularly move between centres to meet various demands.
At the end of May, the estimated wait time for Cavan was 16 weeks, while the estimated national average wait time to be invited to sit a driving test was 15.6 weeks. While this is still above the service level agreement target of 10 weeks, significant progress has been made since last August, when the estimated wait time was 34 weeks in Cavan and 30.4 weeks nationally.
The National Driver Testing Service is currently facing unprecedented demand, with the number of tests delivered rising by over 33% year-on-year. Progress in reducing wait times has been achieved primarily through the sanctioning of 75 additional driver tester posts by my Department last March, with the first additional testers entering active service last September. The RSA currently has sanction to employ up to 205 driver testers in total, which is more than double the 100 sanctioned posts in June 2022.
I recognise the challenges that excessive waiting times are imposing on people throughout the country and I welcome the Road Safety Authority's commitment to restoring average wait times to target as soon as possible. My officials are working closely with the Authority to support progress towards this goal not received within 10 days.
72. Deputy Cathal Crowe asked the Minister for Finance the number of help-to-buy claims approved since 1 July 2020, broken down by county; and the number of applicants associated with these claims; and the number of claims by homebuyers excluding self-builds, broken down by county, which is the number of these claims relating to purchases. [28397/24]
Amharc ar fhreagraI am advised by Revenue that as of 28 June 2024, the number of approved Help to Buy (HTB) claims, the number of applicants associated with these claims and the number of approved HTB claims in respect of the purchase of new houses or apartments, that were approved on or after 1 July 2020, broken down by county, are as set out in the table below:
|
Property County |
All Approved Claims |
Number of Applicants for All Approved Claims |
Approved Claims - purchase of new houses or apartments |
|
Carlow |
340 |
594 |
215 |
|
Cavan |
301 |
550 |
116 |
|
Clare |
526 |
952 |
212 |
|
Cork |
4,271 |
7,825 |
3,263 |
|
Donegal |
615 |
1,093 |
241 |
|
Dublin |
4,102 |
7,537 |
4,033 |
|
Galway |
1,473 |
2,671 |
727 |
|
Kerry |
377 |
688 |
75 |
|
Kildare |
4,012 |
7,435 |
3,842 |
|
Kilkenny |
561 |
1,030 |
259 |
|
Laois |
843 |
1,539 |
642 |
|
Leitrim |
88 |
163 |
16 |
|
Limerick |
927 |
1,670 |
589 |
|
Longford |
89 |
166 |
10 |
|
Louth |
1,265 |
2,293 |
1,074 |
|
Mayo |
595 |
1,078 |
217 |
|
Meath |
3,039 |
5,605 |
2,611 |
|
Monaghan |
334 |
607 |
74 |
|
Offaly |
562 |
1,028 |
328 |
|
Roscommon |
261 |
479 |
83 |
|
Sligo |
258 |
442 |
149 |
|
Tipperary |
458 |
826 |
115 |
|
Waterford |
807 |
1,455 |
598 |
|
Westmeath |
481 |
880 |
299 |
|
Wexford |
1,157 |
2,077 |
721 |
|
Wicklow |
1,369 |
2,551 |
1,203 |
|
Totals |
29,111 |
53,234 |
21,712 |
73. Deputy Brendan Smith asked the Minister for Finance if he is aware of the presence of a new nicotine inhaling product type on the market (details supplied); if this product type will be included in the excise regime planned for nicotine inhaling products, as announced in Budget 2024; and if he will make a statement on the matter. [28421/24]
Amharc ar fhreagraIn light of public health interests, continuing delays to the revision of the Tobacco Products Tax EU Directive and the Programme for Government commitment to tax e-cigarettes and vapes, it was announced last year that a domestic tax on e-cigarettes and vaping products will be introduced as part of this year’s Budget.
My officials are preparing legislation for the introduction of a domestic tax regime for these products and that work is ongoing. The scope of the tax and the applicable rate will be finalised in advance of the Finance Bill. It is proposed that definitions, for tax purposes, will be introduced in Finance Bill 2024, after which time the administration and tax collection systems can be established.
The Department of Health are also drafting their own legislation and policies in relation to nicotine inhaling products. My Department is liaising with colleagues in the Department of Health in relation to the regulation of e-cigarettes and related products and will continue to work with them in order to align appropriately our respective positions.
74. Deputy Christopher O'Sullivan asked the Minister for Finance the calculations resulting in a figure of €545 million when estimating the cost of reducing VAT to 9% for food-led hospitality businesses; if he could give a full breakdown on how this figure was reached; and if he will make a statement on the matter. [28466/24]
Amharc ar fhreagraI am advised by Revenue that traders are not required to separately identify the VAT yield from specific activities, therefore it is not possible to estimate the cost of a VAT reduction for the food-led hospitality sector using tax information alone.
To calculate an estimate, Revenue uses both taxpayer returns and third party macro-economic data provided to Revenue by the Central Statistics Office (CSO). This data contains a detailed breakdown of Personal Consumption Expenditure across a range of expenditure items. To estimate consumption for a future year, Revenue grosses up the latest available data using a combination of CSO price indices, taxpayer returns and Department of Finance macroeconomic forecasts.
The estimated total consumption within the food services sector not subject to the 0% or 23% rate of VAT is currently estimated to be €12 billion (VAT exclusive) in 2024. The full year VAT yield by applying the reduced rate of VAT (13.5%) to this consumption is estimated at €1.6 billion. The full year VAT yield by applying the second reduced rate of VAT (9%) to this consumption is estimated to be just under €1.1 billion. The full year cost is the difference between these estimates, currently €545 million.
75. Deputy Josepha Madigan asked the Minister for Finance if there are plans to increase the income cut-off point for retirees and pensioners before they become liable for income tax and DIRT tax on savings, which currently stands at €18,000 and has not changed for several years; if consideration will be given to raising this threshold to at least €22,000 in Budget 2025; and if he will make a statement on the matter. [28489/24]
Amharc ar fhreagraAs the Deputy is aware, the age exemption applies for any year of assessment where an individual is aged 65 years or over and his or her total income does not exceed €18,000 per annum. Where an individual is a married person or civil partner and is jointly assessed to tax, the age exemption will apply where either individual is aged 65 or over and where the couple’s total income does not exceed €36,000 per annum. The relevant income thresholds may be increased further if the individual has a qualifying child. The thresholds are increased by €575 in respect of both the first and second child, and €830 in respect of each subsequent child.
It is important to note that marginal relief may be available where the individual’s or couple’s income exceeds the relevant exemption limit but is less than twice that amount. Where marginal relief applies the individual or couple is taxed at 40 per cent on all income above the exemption limit to a ceiling of twice the exemption limit. The system of marginal relief ensures that in cases where an individual's or couple’s income rises above the exemption threshold that their net income will not decline, as the 40 per cent income tax rate only applies to the proportion of income above the threshold. Once the income exceeds twice the exemption limit marginal relief is no longer available and the individual pays tax under the normal tax system.
It should be noted, however, that where the individual’s income is greater than the exemption limit but below twice that limit, the taxpayer is entitled to the benefit of the more favourable treatment between the use of marginal relief or the normal tax system of credits and bands.
I have no plans to increase the age exemption limits. However, it should be noted that in circumstances where the individual or couple no longer benefits from the age exemption or marginal relief they will benefit from the increases to the main personal tax credits in recent Budgets.
The increases to the main personal tax credits in Budget 2024 (€100 increase to the single, employee and earned income credits and a €200 increase to the credit for married couples/civil partnerships) means that the effective entry point to income tax has increased for all taxpayers, including those aged over 65. From 2024, the effective entry point to income tax for an individual in receipt of the single person credit, employee/earned income credit and the age credit has increased by €1,000 per annum from €18,975 to €19,975 per annum.
It is important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. Persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. Reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum. Social welfare income such as the State Contributory Pension and State Non-Contributory Pension are excluded from the calculation when determining if an individual’s income has exceeded the €60,000 income threshold. Furthermore, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or Pay Related Social Insurance.
Turning to DIRT, interest may be received without paying DIRT in certain circumstances. For those aged 65 or over, a declaration form must be completed stating that the individual, their spouse or civil partner are 65 years of age or over when making the declaration and that their total income for the year, including the interest, must be below the annual age exemption limits.
The Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to income tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, at the following link - www.gov.ie/en/publication/7fbeb-report-of-the-commission/ .
Finally, as part of the Personal Tax Review published on Budget Day, my Department set out further analysis of the recommendations of the Commission on Taxation and Welfare, including in respect of the age exemption limits. The Report is available at the following link - www.gov.ie/pdf/?file=https://assets.gov.ie/273335/96f70eb1-64e1-4f02-9096-e36f306a048b.pdf#page=null.
76. Deputy Ged Nash asked the Minister for Finance if he is aware of the advantageous (40% and 39% respectively) visual effects (VFX)-related tax reliefs system the French and UK governments have introduced to support their respective VFX industries; if he is concerned that these measures will create a competitive disadvantage for the Irish VFX sector; if he is considering any measures to address this matter specifically as it relates to the indigenous Irish VFX sector in respect of a potential review of tax credits, for example; and if he will make a statement on the matter. [28530/24]
Amharc ar fhreagraIreland’s long-standing section 481 film tax credit provides relief in the form of a corporation tax credit related to the cost of production of certain audio-visual productions, including costs incurred on visual effects (VFX). The scheme is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of Irish and European culture.
Currently, the credit is granted at a rate of 32% of the lowest of:
• eligible expenditure,
• 80% of the total cost of production of the film, and
• €125 million, increased from €70 million in Budget 2024.
My predecessor, former Minister McGrath, provided for the increase in the section 481 project cap in Budget 2024 to support the competitiveness of our audio-visual sector in terms of attracting high value productions to Ireland and to further Ireland’s reputation as a centre of excellence for screen production.
I have been made aware, by industry stakeholders and by my officials, of the uplift for VFX production currently available in France, and of the UK Government’s recent consultation process on a proposal to enhance its VFX supports in April 2025. However the Deputy will be aware that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
77. Deputy Paul Murphy asked the Minister for Finance if there has been any progress on the commitment in the Programme for Government to develop new stress tests for financial institutions to look at the impact of tangible risks of higher temperature scenarios and involvement with the fossil-fuel economy on their portfolios, as recommended by the Taskforce on Climate Financial Disclosures. [28543/24]
Amharc ar fhreagraI should say that as competent authority, the European Central Bank (ECB) is required to carry out annual stress tests on Significant Supervised Institutions (SSI), which includes Bank of Ireland and AIB, in the context of its Supervisory Review and Evaluation Process (SREP) as set out in Article 100 of the Capital Requirements Directive IV (CRD IV).
Supervisory Review and Evaluation Process (SREP) Results 2023
The 2023 Supervisory Review and Evaluation Process (SREP) for banks supervised by the ECB, took place during a period of uncertainty about both the economic outlook and the dynamics in financial markets. Along with capital adequacy and liquidity and funding risk, the SREP also scores a number of other key areas including business model, internal governance, credit risk, operational risk and climate and environmental (C&E) risk.
C&E risks are key for the economy and the financial sector. ECB Banking Supervision has stepped up its efforts to ensure that banks adequately identify, assess and manage C&E risks, while transparently disclosing the risks they are exposed to. C&E risks are being incorporated in the regular supervisory cycle and treated in the same way as any other material risk.
The results of the 2023 EU-wide stress test show that the banking sector would be able to withstand a severe economic downturn, as captured in the harshest adverse stress test scenario applied since the start of European banking supervision. ECB Banking Supervision will continue with its focused efforts to promote prudent behaviour and proactive risk management, ensuring that banks remain resilient and continue supporting the real economy during challenging times.
Capital Requirements Directive VI/ Environmental, Social and Governance Risk.
Under the EU Capital Requirements Regulation (CRR) III/ Capital Requirements Directive (CRD) VI, which come into effect in January 2025 and January 2026 respectively, institutions will have to include Environmental, Social and Governance (ESG) risk, including climate related considerations in their prudential framework. These measures should to be consistent with the sustainability commitments institutions undertake under other pieces of Union law, such as the Corporate Sustainability Reporting Directive (CSRD).
Institution supervisors will oversee how institutions handle ESG risks and include ESG considerations in the context of the annual SREP. Stress testing of those risks should start with climate and environment-related factors, and as more ESG risk data and methodologies become available to support the development of additional tools to assess their quantitative impact on financial risks, competent authorities should increasingly assess the impact of those risks in their adequacy assessments of institutions.
I am advised by the Central Bank that Ireland has been included in a number of other stress testing exercises as follows;
2022 supervisory climate risk stress test
The stress test exercise was the first exploratory supervisory stress test carried out by the ECB driven by specific data collection from banks aimed at creating awareness on climate risk among supervised entities as well as understand the banking sector’s resilience to the materialisation of climate-related risks. This is available at www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.climate_stress_test_report.20220708~2e3cc0999f.en.pdf.
2022 FSAP climate risk stress test
In 2022 the IMF conducted a stress test of the banking sector including climate stress tests. The banking analysis used scenario-based stress test to assess the resilience of retail and large international banks, while applying a streamlined sensitivity test on other international banks, which are all Less Significant Institutions (LSI). This is available at: www.imf.org/en/Publications/CR/Issues/2022/11/08/Ireland-Financial-Sector-Assessment-Program-Technical-Note-on-Stress-Testing-and-Systemic-525549.
Irish banks are also part of 2024/2025 “One-off Fit-for-55 climate risk scenario analysis”
The European Commission invited the ESAs (EBA, ESMA and EIOPA), the ECB and the ESRB to conduct a one-off Fit-for-55 climate risk exercise aimed at gaining insights into the capacity of the financial system to support the transition to a lower carbon economy even under conditions of stress, expressed as impacts on credit losses and market valuations. Banking sector and cross sectoral quantitative analysis will be carried out between Apr- Sept 2024 followed by drafting of final report. The results will be published in Jan 2025.
• The analysis will be based on three ad-hoc climate scenarios developed by the European systemic risk board:
• Baseline scenario - Fit for 55 package (referred to as “the package” going forward) is implemented as planned under a baseline macroeconomic environment;
• Adverse scenario - the package is implemented as planned under a baseline macroeconomic environment, but with the incorporation of additional climate risk downside factors due to sudden reassessment of transition and physical risk;
• Second adverse scenario - the package is implemented as planned but in an adverse economic environment (consistent with adverse scenarios for regular stress testing exercises) as well as additional climate risk downside factors due to sudden reassessment of transition and physical risk
The Central Bank is also engaged in a number of economy “exposure” and “scenario analyses” internally this year including:
• Working with Network for Greening the Financial System (a network of Central Banks and Financial Supervisors that aim to accelerate the scaling up of green finance and develop recommendations for Central Banks’ role for climate change) on scenarios within the Bank’s stress macro-modelling framework.
• Work on the banking sector’s exposure to climate risks.
• Work on household transition risk and their capacity to decarbonise.
78. Deputy Michael Healy-Rae asked the Minister for Finance his views on the availability of cash payments to State agencies (details supplied); and if he will make a statement on the matter. [28571/24]
Amharc ar fhreagraIn June 2023, the terms of reference for a National Payments Strategy (NPS) were published, and work on the NPS has commenced. The work of the NPS will take account of the changing payment landscape and ongoing legislative developments at EU level, including proposals on instant payments, payment services, legal tender and the digital euro. Access to cash and acceptance of cash is also being examined as part of this work.
The Department sought views from across Irish society though a public consultation. A Consultation Paper on the NPS was prepared to guide the discussion and is available on the Department’s website, consult.finance.gov.ie/en. The Consultation Paper has three main areas of focus:
• Payments roadmap
• Acceptance of cash
• Access to cash [the development of the access to cash legislation is a separate work stream]
The consultation process closed on 14th of February and the responses to the public consultation will form an important part of the NPS. A summary of the submissions was published on the Department’s website and can be found www.gov.ie/en/publication/ebcb3-national-payments-strategy-public-consultation-summary-of-submissions/
Specifically, in relation to cash acceptance, there is a need to ensure that cash can be accepted as a means of payment where appropriate. The NPS work will, therefore, look at the acceptance of cash and consider if legislation should be introduced to require certain sectors or sub-sectors to accept or facilitate the acceptance of cash. By extension, it will have to be considered whether it should be policy of the Government to require the public service to accept or facilitate the acceptance of cash.
At the same time, the above actions will need to be mindful of European Commission initiatives on this topic. In June of 2023, the European Commission published a proposal for a Regulation on Legal Tender to look at access to and acceptance of cash across Member States. The Department of Finance aims to publish the final Strategy in H2 2024 and this will take into consideration consultation responses, stakeholder engagement and EU legislative developments in this area.
In September of 2023, Minister McGrath recommended a pause in any changes to the acceptance of cash by public bodies until the NPS is finalised in 2024. That is to say, public bodies should continue to accept cash where they currently do so and not remove this option as they may be subsequently required to revert back to accepting, or facilitating the acceptance of cash.
You might be interested in the press release which can be found at the following location: gov - Minister McGrath asks that existing payment methods in relation to cash acceptance remain pending the completion of the NPS (www.gov.ie)
79. Deputy John Paul Phelan asked the Minister for Finance if he is concerned that the decision not to raise the minimum excise duty on cigarettes in Budget 2024 has allowed manufacturers to absorb the 75c general excise increase, rather than pass it on to consumers as intended; and if he will make a statement on the matter. [28610/24]
Amharc ar fhreagraUnder EU law, manufacturers or importers of cigarettes are free to determine the maximum retail selling price for each of their products. It is not possible, therefore, for a Member State to direct companies as to the price at which cigarettes are to be sold.
EU law imposes certain obligations on Members States on the way in which the rates and structure of tobacco products tax operate. Tax on cigarettes must be made up of specific and ad valorem components. The EU Tobacco Products Tax Directive allows for the application of a minimum excise duty (MED) on cigarettes, provided the mixed structure of the tax (i.e. the specific and ad valorem components) is respected.
Minimum Excise Duty was introduced in Ireland in 2012 to provide a base tax charge such that in the event of industry price reductions, excise returns would only fall to a set level and then be maintained regardless of how much further industry prices fell. MED consists of two components, a specific rate and an ad valorem rate, calculated in reference to a ‘trigger price’ which is set by the Minister for Finance.
The current trigger price for MED was set in Budget 2021 at €11.50. This means that if a tobacco company sells a packet of 20 cigarettes at a price below €11.50, they will still be required to pay excise duty as if the price charged had been €11.50. Following Budget 2024, the excise duty payable at the current trigger price for MED is €9.59. In this way, MED acts as a disincentive to tobacco companies to sell cigarettes at a loss in respect of excise duty.
At present, the lowest retail price for 20 cigarettes on the Irish market is approximately €14.30, meaning that, in current market conditions, Minimum Excise Duty is not triggered. However, the existence in legislation of the Minimum Excise Duty is important as it sets a floor beneath which excise duties cannot fall, regardless of cigarette industry price drops, should they occur.
Because Tobacco Products Tax is structured to contain both specific and ad valorem components, it means that the effective minimum rate of excise duty increases every time the specific rate of tobacco products tax is increased. This change in the effective rate of MED occurs regardless of whether the MED trigger price is changed.
Finally, in respect of the Deputy’s concerns that manufacturers may have absorbed the Budget 2024 increase of 75 cents instead of passing on the increase to consumers, I am advised by Revenue that recent price trends indicate this is not the case. Prior to Budget 2024, cigarettes in the Most Popular Price Category (MPPC) on the market were priced at €16.00. The current MPPC is €17.05, an increase of €1.05 compared to the figure prior to Budget 2024. This data indicates that the Budget 2024 tax increase of 75 cents was fully passed on to consumers, and that the trade also increased retail prices by a further non-tax amount.
A summary of the changes to rates and tax content of cigarettes from Budget 2019 to Budget 2024 is set out in the table below.
Table: Changes to Rates and Tax Content of Cigarettes from Budget 2019 to Budget 2024
|
Budget |
Tax Increase |
Trade Increase |
Tax Content € |
Tax Content as % of Price |
|
Budget 2019 |
50c |
30c |
10.06 |
79% |
|
Budget 2020 |
50c |
30c |
10.65 |
79% |
|
Budget 2021 |
50c |
30c |
10.97 |
78.3% |
|
Budget 2022 |
50c |
30c |
11.80 |
78.7% |
|
Budget 2023 |
50c |
20c |
12.44 |
77.7% |
|
Budget 2024 |
75c |
30c |
13.27 |
77.8% |
80. Deputy Robert Troy asked the Minister for Finance the reason a spouse can only access €27,000 of a deceased spouse’s credit union savings and any remainder must go to probate; his views on whether this rule is fair when the spouse is clearly the next of kin and automatic beneficiary; and if he plans to review such rules in the short term. [28634/24]
Amharc ar fhreagraNomination is a unique provision available only for credit union members. By way of background, nomination is a legally binding agreement under which a credit union member can nominate a third party to be the recipient of the member’s money after their death, up to a limit of €27,000. The effects of nomination are that any amounts up to €27,000 will pass outside the terms of any will.
Any amount in excess of €27,000 are deemed assets of the deceased's estate and credit unions are obliged to administer any such funds in accordance with the rules of probate (if there is a will), or the law of succession (if there is no will). The probate office of the High Court deals with all matters relating to rules of probate. The rules of probate are the responsibility of my colleague, the Minister for Justice.
The recent Credit Union Amendment Act (2023) included an amendment to Section 21, which permits me, as Minister for Finance to approve increases in the nomination amount.
On the 8th February, my predecessor signed a statutory instrument approving an increase in the nomination amount from €23,000 to €27,000. Significant consultation was completed by my officials and Ministers of State with the credit union representative bodies, on nominations and all other provisions in the Amendment Act.
The increase in the nomination amount to €27,000 was supported by all representative bodies and recommended by the Credit Union Advisory Committee. In my view, it is at an appropriate level at this quantum.
I trust this clarifies matters for the Deputy.
