Peadar Tóibín
Ceist:215. Deputy Peadar Tóibín asked the Minister for Transport the number of vacant properties owned by his Department; and the number of which are houses or residential properties. [43154/24]
Amharc ar fhreagraDepartmental Properties
Ceisteanna (215)
Freagraí scríofa
All office and other accommodation occupied by the Department of Transport is provided by the Office of Public Works (OPW) which is responsible for the procurement of office and other accommodation required for Government Departments.
My Department currently owns one vacant property, the Dún Laoghaire rocket house, which is registered as being owned by the Irish Coast Guard (IRCG). It is a small stone built structure in Dún Laoghaire Harbour area that can only be accessed via an adjacent property. The building was condemned in 2012 and is not fit for habitation. IRCG is currently seeking advice regarding disposal of this site.
Departmental Bodies
Ceisteanna (216, 217)
Paul Kehoe
Ceist:216. Deputy Paul Kehoe asked the Minister for Transport to provide an update on the work of the sustainable aviation fuel task force; the recommendations it has provided; the date for the publication of the sustainable aviation fuel policy roadmap; and if he will make a statement on the matter. [43183/24]
Amharc ar fhreagraPaul Kehoe
Ceist:217. Deputy Paul Kehoe asked the Minister for Transport the number of times the sustainable aviation task force has met; the persons that comprise the task force; and if he will make a statement on the matter. [43184/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 216 and 217 together.
The Sustainable Aviation Fuel (SAF) Task Force was established in December 2023, to bring together stakeholders, to contribute to the development of a national SAF Policy Roadmap. To date, it has held four meetings, with another expected to take place in Q4 of 2024.
The membership of the Task Force can be found in the Terms of Reference, which are available on Gov.ie, also available are notes of the Task Force meetings.
www.gov.ie/en/publication/23102-sustainable-aviation-fuel-task-force/
Please note, the fourth meeting of the Task Force took place on 16 July 2024. The minutes of this meeting will be agreed with Task Force members at the next meeting in Q4 and will then be published on the website.
My Department is currently drafting the SAF Policy Roadmap, which is targeted for completion by the end of 2024.
Question No. 217 answered with Question No. 216.
Electric Vehicles
Ceisteanna (218)
Richard Bruton
Ceist:218. Deputy Richard Bruton asked the Minister for Transport if he will provide an update on the approximate roll-out time of charging infrastructure at depot sites, as announced in Budget 2025, as there are commercial road cargo and delivery companies willing and ready to transition their fleets from fossil fuel to electric, but require certainty of provision before they invest; and if he will make a statement on the matter. [43216/24]
Amharc ar fhreagraFreagraí scríofa
The Government is fully committed to supporting a significant expansion and modernisation of the EV charging network over the coming years.
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.
This includes the National Road EV Charging Network Plan and the draft Regional and Local EV Charging Network Plan.
The former will provide for the installation of high power charging infrastructure along the Motorway and National road Network to meet National targets set at EU level.
The latter plan provides a pathway for the accelerated delivery of regional and local EV charging infrastructure at destination and neighbourhood areas, in line with both national and European ambitions for cleaner transportation and will be led by Local Authorities.
It is recognised that certain fleets, such as the freight fleet, will face different challenges in the overall transition to electrification than private car users. The Government has already put in place supports to incentivise the purchase of an electric LDV or HDV category vehicle such as those used for cargo delivery, an example being the Zero Emission Heavy Duty Vehicle (ZEHDV) Grant Scheme.
With regard to charging of such vehicles, depot charging is one such option available to fleet operators along with the roll-out of HDV-specific charging at en-route charging hubs. There are no specific incentives currently in place for provision of charging infrastructure at freight depots at present, however ZEVI continuously monitor the need for additional action to address EV challenges for harder-to-transition fleets.
With regard to the Deputies reference to Budget 2025, no announcement was made with regard to charging at depot sites for freight road vehicles, however there was reference to charging for public transport fleets, such as for DART and for PSO bus services. If it is the case that it is one of these schemes the deputy would like to discuss I would be happy to do so.
Rail Network
Ceisteanna (219)
Ged Nash
Ceist:219. Deputy Ged Nash asked the Minister for Transport if his Department will carry out a feasibility study into the proposed M1 rail line between Drogheda and Clongriffin stations, as referred to in the all-island strategic rail review; and if he will make a statement on the matter. [43221/24]
Amharc ar fhreagraFreagraí scríofa
As the Deputy may be aware, the All-Island Strategic Rail Review was undertaken by the Department of Transport in co-operation with the Department for Infrastructure in Northern Ireland. Following two public consultations, the Review’s Final Report was published on the 31st of July 2024.
The Review's Final Report sets out 32 strategic recommendations to enhance and expand the rail system in Ireland and Northern Ireland up to 2050, aligning with net carbon zero commitments in both jurisdictions. The recommendations seek to transform the quality of the rail system to the benefit of passengers and wider society on the island, through additional track capacity, electrification, increased speeds, higher service frequencies and new routes. The Review’s recommendations include capacity enhancements on the Northern line between Dublin and Drogheda, which could be advanced through interventions such as four-tracking works or the development of a new rail line along the M1 motorway.
It should be noted that individual projects referred to in the Report will be subject to funding and relevant approvals as required under the Infrastructure Guidelines in Ireland.
Assisted by the European Investment Bank, the Department of Transport and Department for Infrastructure, and agencies north and south, are working to progress the Report’s recommendations in the years ahead. This includes a more detailed identification of rail priorities to pursue over the next decade, and this will include a consideration of the line between Dublin/Clongriffin and Drogheda. A report on this matter is expected to be published at some stage. Progress in following-up on the Rail Review will be reported on as appropriate through the North South Ministerial Council.
Active Travel
Ceisteanna (220)
Darren O'Rourke
Ceist:220. Deputy Darren O'Rourke asked the Minister for Transport if it is the case that funding has been withdrawn for the pedestrian and cycling scheme in Ratoath, County Meath; the level of funding that has been withdrawn; the reason for this and the new timeline and schedule for these works to proceed; and if he will make a statement on the matter. [43223/24]
Amharc ar fhreagraFreagraí scríofa
As Minister for Transport, I have responsibility for policy and overall funding in relation to Active Travel. Funding is administered through the National Transport Authority (NTA), who, in partnership with local authorities, have responsibility for the selection and development of specific projects in each local authority area.
Noting the role of the NTA in the matter, I have referred your question to that agency for a more detailed answer. If you do not receive a reply within 10 working days, please contact my private office.
A referred reply was forwarded to the Deputy under Standing Order 51.
Air Services
Ceisteanna (221)
Niall Collins
Ceist:221. Deputy Niall Collins asked the Minister for Transport regarding his support of connectivity and air access to the whole island, if he will please provide an account of the number of individual services (routes) that have been supported through the co-operative marketing fund per year since 2014, detailing which airport, State owned and otherwise, those services landed into; and if he will make a statement on the matter. [43241/24]
Amharc ar fhreagraFreagraí scríofa
I understand that my colleague, Catherine Martin, the Minister for Tourism, Culture, Arts, Gaeltacht, Sport, and Media will also be answering this same question, with reference to the Regional Cooperative Marketing Fund. Therefore, I will focus more broadly on the issue of connectivity and provide some detail in relation to passenger numbers at our State and regional airports.
International connectivity is facilitated through a network of international agreements, such as bilateral air services agreements, EU comprehensive air services agreements and the European single aviation market which is underpinned by EU regulation. My Department is responsible for the negotiation of bilateral agreements for Ireland and engages in EU level discussions when mandates for EU comprehensive agreements are being discussed and agreed.
An example of an EU comprehensive agreement is the EU-US Open Skies Agreement. It provides for transatlantic connectivity between the EU and the US, and is widely regarded as one of, if not the, most important agreements of its type in the world connecting two significant aviation markets to one another.
Ireland has capitalised on the Open Skies Agreement with the US and in 2023 Dublin airport was cited as 5th in the top 5 airports by direct connectivity to North America. Passenger traffic at our State airports continues to increase. For 2023, Dublin Airport was up 19% on 2022, Cork Airport was up 27%, and Shannon Airport was up 29%.
Similarly our (non-State) regional airports have established good connectivity with the UK and Europe. Over €138 million of exchequer funding has been allocated during 2020-2024 to support our regional airports, which has enabled this connectivity and the recording of strong growth in recent years.
While the above-mentioned agreements do serve to pave the way for air services to operate, ultimately the operation of scheduled and non-scheduled air services is a commercial decision for the air operator concerned, in cooperation with airports, tourism authorities, and other associated market actors.
That being said, with a view to supporting strategic route development to and from the regions, my Department will be undertaking a consultation process with relevant stakeholders shortly to consider the potential for the development of an Exchequer funded Start-up Aid Scheme for airlines. This is one of a number of actions recently announced under the Mid-Term Review of the Regional Airports Programme.
Driver Licences
Ceisteanna (222)
David Stanton
Ceist:222. Deputy David Stanton asked the Minister for Transport further to Parliamentary Question No. 231 of 9 September 2024, if the review for a driving licence exchange agreement with the Canadian province of Nova Scotia has been completed; if so, the decision made; if not, when he expects a decision to be made; and if he will make a statement on the matter. [43273/24]
Amharc ar fhreagraFreagraí scríofa
I am informed by the Road Safety Authority that its technical team is currently reviewing Nova Scotia's driving test standards against Irish driving test standards. The review has not yet been completed.
Driver Licences
Ceisteanna (223)
David Stanton
Ceist:223. Deputy David Stanton asked the Minister for Transport if a person on a full driving licence from the Canadian province of Nova Scotia can avail of the shorter essential driver training of six lessons and the fact that they do not have to be a learner for the usual minimum of six months before taking a driving test; and if he will make a statement on the matter. [43293/24]
Amharc ar fhreagraFreagraí scríofa
In order to drive here, people with a non-exchangeable licence who come to reside in Ireland must obtain an Irish licence. A person with a full but non-exchangeable licence must go through the normal driver learning process but can avail of the shorter Essential Driver Training of 6 lessons, instead of the usual 12, and they do not have to be a learner for the usual minimum of 6 months before taking a driving test.
As Ireland does not have a licence exchange agreement with Nova Scotia, the shorter Essential Driver Training of 6 lessons applies and in addition the driver does not have to wait 6 months from obtaining a learner permit before taking a driving test.
Ukraine War
Ceisteanna (224)
Cathal Crowe
Ceist:224. Deputy Cathal Crowe asked the Minister for Finance Ireland’s contribution to the Ukraine Facility; and if he will make a statement on the matter. [42846/24]
Amharc ar fhreagraFreagraí scríofa
At the European Council meeting on 1 February 2024, the mid-term revision of the EU Budget Multi-annual Financial Framework 2021-2027 was approved by all 27 Member States.
A key element of the mid-term revision is the introduction of the Ukraine Facility, comprising an EU support package of €50 billion for Ukraine, which will be provided in the form of loans (with a maximum amount of €33 billion) and grants (with a maximum amount of €17 billion).
The funding for the loan component is raised by the European Commission on the markets rather than through the Member States' EU Budget contributions. The loans are guaranteed by the EU Budget headroom, which is the space between the own resources and expenditure ceilings of the Multi-annual Financial Framework.
In the event that Ukraine was not in a position to make some or all loan repayments, the EU Budget would cover them. This in turn would be covered by the Member States via their EU Budget contributions, as under the Own Resources Decision Member States would be legally obliged to provide any amounts that need to be financed under the headroom. The necessary funds would be mobilised through an amending budget, allowing the Gross National Income key applicable at the time to be applied to calculate Member States' pro rata shares of liabilities.
The grant component is funded by the Member States EU Budget contributions, through a new thematic special instrument, the Ukraine Reserve, set up over and above the Multi-annual Financial Framework’s expenditure ceilings as part of the mid-term revision agreement.
The Ukraine reserve will be mobilised each year until 2027 as part of the annual EU Budget procedure taking into account the progress Ukraine makes in implementing reforms and using investments.
Given what is set out above and the annual nature of the process for determining the level of grants to be disbursed to Ukraine, it is therefore not possible at this juncture to provide a specific value for Ireland’s contribution to the Ukraine Facility. In addition, Member States' annual contributions to the system of own resources which fund the EU Budget are based on dynamic underlying variables and are subject to fluctuation.
Furthermore, Member States' contributions to the EU budget are not assigned to specific expenditure categories. Instead the contributions are made to the overall Own Resources pool in accordance with the "principle of universality" set out in Chapter 5 of Regulation (EU, Euratom) 2018/1046.
Fuel Prices
Ceisteanna (225, 253)
Paul Kehoe
Ceist:225. Deputy Paul Kehoe asked the Minister for Finance his views on the likelihood of Ireland having the most expensive diesel in Europe once the carbon tax increase is levied on 1 October 2024; his plans to reduce the financial burden on the transport industry; and if he will make a statement on the matter. [43182/24]
Amharc ar fhreagraPaul Kehoe
Ceist:253. Deputy Paul Kehoe asked the Minister for Finance his views on the likelihood of Ireland having the most expensive diesel in Europe once the carbon tax increase is levied on 1 October 2024; his plans to reduce the financial burden on Irish consumers; and if he will make a statement on the matter. [43179/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 225 and 253 together.
The Government is conscious of the implications of fuel costs for all sectors of society.
A number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. While taxation affects the final retail price, amendments to tax rates may not fully absorb price shocks given the larger impacts of energy markets, embedded costs as well as pricing policy at wholesale/retail level and involve a significant cost to the Exchequer in terms of revenue foregone.
The best way of insulating our economy and society from fuel prices shocks is to reduce our dependence on fossil fuels. Carbon taxes were introduced in Ireland to incentivise the development and use of alternatives to fossil fuels. Finance Act 2020 introduced a ten-year trajectory of annual carbon tax increases which will result, by 2030, in rates being based on charging €100 per tonne of carbon dioxide emissions. The trajectory delivers on the 2020 Programme for Government commitment, is an important element of Ireland’s Climate Action Plan and features as a key reform measure in Ireland’s National Recovery and Resilience Plan. A significant portion of carbon tax revenue is allocated for targeted expenditure on welfare and energy efficiency measures, to prevent fuel poverty and ensure a just transition to a low carbon economy.
The carbon tax rate on petrol and auto-diesel increased on 9 October from €56.00 to €63.50 per tonne of carbon dioxide. The increases added, inclusive of VAT, 2.5 cents per litre to auto-diesel. According to the European Commission’s weekly oil bulletin published on 17 October 2024, the average retail price for a litre of auto-diesel in the State was €1.62, placing Ireland 7th most expensive amongst Member States. The table below details the Mineral Oil Tax (MOT), National Oil Reserves Agency (NORA) levy, and VAT costs, totalling €0.92, included in an auto-diesel retail price of €1.62 per litre.
|
Breakdown of auto-diesel retail price |
€/litre |
|
Pre-taxes & NORA levy |
0.70 |
|
NORA levy |
0.02 |
|
MOT (0.43 non carbon + 0.17 carbon) |
0.60 |
|
VAT @ 23% |
0.30 |
|
Retail price (incl. NORA levy, MOT &VAT) |
1.62 |
The position is much improved from June 2022 when diesel prices were €2.15 per litre.
You should also be aware that despite the restoration of excise rates which occurred in August 2024, and the recent carbon tax increase, national average retail prices have shown steady decreases in recent weeks. While average prices in May 2024 were approximately €1.84 and €1.78 per litre for petrol and diesel respectively, prices as of 14 October are €1.69 and €1.62 per litre respectively, approximately 15 cent and 16 cent cheaper.
In line with the Programme for Government policy approach to carbon tax and commitments to protect the vulnerable, a targeted package of social protection interventions has been developed.
Budget 2025 provides for a €951 million allocation toward this end, an additional €163 million on 2024’s allocation. This expenditure will provide:
• €306 million for the Department of Social Protection for targeted social welfare interventions – which includes a €300 lump sum payment to be made to recipients of the Fuel Allowance, and €200 to be paid to recipients of the Living Alone Allowance.
• €477 million to the Department of the Environment, Climate and Communications for retrofitting, just transition, and ODA;
• €143 million for the Department of Agriculture, Food and the Marine for green & sustainable farming measures
• €20 million for the Department of Transport for continuation of carbon tax-funded programmes since 2020.
• €5 million for Department of Housing, Local Government and Heritage for continuation of carbon tax-funded programmes since 2020.
With regard to the transport sector the Deputy will be aware that the Diesel Rebate Scheme (DRS) provides support for qualifying road haulage and passenger transport operators. Under the scheme, a partial rebate of MOT is available when the retail price of auto-diesel exceeds €1.23 per litre, inclusive of VAT. Depending on average retail prices, rebate payments of up to 7.5 cent per litre may apply. The DRS rebate payment has been at the maximum level since October 2021 and I am advised by Revenue that, from January to end September this year, €26.9m has been paid out under the scheme.
In addition to this, it should be noted that businesses which are VAT registered may deduct the VAT charged to them on the purchase of business inputs, such as auto diesel.
The Deputy can be assured that I and my officials will continue to monitor and review fuel prices over the coming months.
Tax Code
Ceisteanna (226, 249)
Paul Kehoe
Ceist:226. Deputy Paul Kehoe asked the Minister for Finance how the move to decarbonise Ireland’s economy will necessitate a change in the country’s taxation model; if he is in favour of the establishment of an expert group on taxation including civil service officials, economists, environmental specialists and fuel industry representatives to develop a balanced fiscal strategy that supports the transition to sustainable energy while maintaining the financial stability of the fuels sector while ensuring the State is appropriately funded through taxation; and if he will make a statement on the matter. [43186/24]
Amharc ar fhreagraPaul Kehoe
Ceist:249. Deputy Paul Kehoe asked the Minister for Finance his views on how Ireland’s taxation model will change as we move to a decarbonised economy; if he is favour of the establishment of an expert group on taxation including civil service officials, economists, environmental specialists and fuel industry representatives to develop a balanced fiscal strategy that supports the transition to sustainable energy while maintaining the financial stability of the fuels sector and ensuring the State is appropriately funded through taxation; and if he will make a statement on the matter. [43173/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 226 and 249 together.
As the Deputy will be aware, there has been much reform to environmental taxation in recent Budgets, including strengthening the environmental rationale of vehicle taxation and providing a multi-annual trajectory of carbon tax rate increases. While this is welcome from a climate action perspective, the shift towards lower emissions vehicles and fuels will have an exchequer impact.
In July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government. The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies and is available online: www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/.
Building on this work, in September this year my Department published further analysis focussing on carbon tax; Carbon Tax Projected Exchequer Revenue Estimates 2024-2030. This paper examines trends in carbon tax exchequer yields in Ireland over the last decade, and provides forward projected estimates of carbon tax yields over the next six years to 2030, in order to provide timely analysis of estimated trends and levels of expected exchequer receipts from carbon taxation. The analysis also examines how domestic climate change policies are expected to impact carbon tax yields, as our economy transitions to a low carbon economy in line with current climate action plan 2024 (CAP24) measures. The paper is also available on my Department’s website:
www.gov.ie/en/publication/8e2d0-carbon-tax-projected-exchequer-revenue-estimates-2024-2030/ .
The estimates in this work are based on analysis of the Sustainable Energy Authority of Ireland (SEAI) and the Environmental Protection Agency (EPA) ‘With Additional Measures’ (WAM) and ‘With Existing Measures’ (WEM) scenarios for climate action delivery. The Department keeps these point-in-time estimates under ongoing review, and has allocated all carbon tax receipts in line with the Programme for Government commitments.
There are a number of ongoing work streams focussed on the development of sustainable fuel policy across different sectors including the National Demand Management Strategy, the Alternative Fuels Working Group and Climate Action Plan actions/progress reports. Taxation policy is also reviewed annually via the budget process which includes publication of Tax Strategy Group papers setting out options relating to future tax policy. Stakeholder bodies are welcome to provide input via pre budget submissions or representations.
Illicit Trade
Ceisteanna (227)
Paul Donnelly
Ceist:227. Deputy Paul Donnelly asked the Minister for Finance his views on the sale of illicit tobacco products online; and to clarify if social media platforms can be mandated to delete profiles engaging in this activity instead of just deleting the post. [42382/24]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that it uses a range of measures to tackle the sale of illicit cigarettes, including online sales. At the core of these measures is identifying and targeting the smuggling of illicit tobacco products into the State, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies, which includes analysis of online activities, and ensuring the optimum deployment of resources on a risk-focused basis.
The smuggling of tobacco products has a transnational and cross border dimension and, in addition to Revenue’s ongoing cooperation with An Garda Síochána in this area, Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF), and international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.
Revenue regularly carries out analysis of online activity related to the sale of illicit tobacco products. When such activity is discovered, Revenue takes the appropriate steps to identify and prosecute such individuals and also seize the illicit goods. I am pleased to say that Revenue has achieved considerable success in tackling the sale of illicit tobacco products and products being sent via parcel post, with 724 seizures of cigarettes and 468 seizures of tobacco in 2023, with a combined value of over €2.7m and 483 seizures of cigarettes and 301 seizures of tobacco to the end September this year, with a combined value of nearly €2.6m.
In addition to this Revenue have secured 45 summary convictions with fines of €101,500 handed out in 2023 and 29 summary convictions with fines of €83,250 handed out to the end of September this year, related to the sale of illicit tobacco products. I am aware that Revenue monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources to counter any new developments or methodologies employed by the criminal gangs involved in that trade.
I am advised by Revenue that it is the role of Coimisiún na Meán to assess if providers of an online platform are meeting their obligations under the Digital Services Act (DSA) in relation to illegal content,?and to make sure that they have user-friendly and accessible reporting mechanisms in place for users. Under the Digital Services Act, online platforms are obliged to remove illegal content once it has been reported to them. Coimisiún na Meán cannot compel the immediate removal of illegal content and does not carry out a content moderation role, or act as an appeal body from decisions of providers of online platforms in relation to illegal content. Content that is believed to be illegal online should be in the first instance reported to the social media platform. If the platform does not act on the illegal content, this can then be reported to Coimisiún na Meán.
I am satisfied that combating the threat that the illicit tobacco trade poses to legitimate business, consumers, and the Exchequer continues to be a priority for Revenue.
Finally, if businesses or members of the public have any information regarding the sale or supply of illicit tobacco products, they can contact Revenue on the confidential free phone number 1800 295 295.
Tax Collection
Ceisteanna (228)
Paul Murphy
Ceist:228. Deputy Paul Murphy asked the Minister for Finance if he will instruct Revenue to remove interest on a repayment from a school (details supplied). [42407/24]
Amharc ar fhreagraFreagraí scríofa
Revenue’s primary goal is to ensure that all taxpayers and businesses meet their tax obligations in a timely fashion and pay liabilities as they fall due. This approach ensures that the Exchequer is funded to meet the needs of citizens and a ‘level playing field’ is maintained for the majority of businesses who are timely tax compliant. I am advised that Revenue’s clear preference is always to engage with taxpayers and, where possible, to agree mutually acceptable payment arrangements in preference to deploying debt collection/enforcement sanctions.
Revenue offers taxpayers flexible Phased Payment Arrangements to pay off their debt in instalments over a reasonable period of time. I am advised that Revenue actively engaged with the taxpayer (details supplied) in an effort to agree a mutually acceptable solution. Consequently, Revenue recently agreed to a payment arrangement over an extended term of 10 years to facilitate the taxpayer in discharging the substantial tax debt. It should be noted that every payment arrangement will include interest. This is to ensure fairness and equity for those taxpayers who pay their liabilities in full and on time and also to compensate the Exchequer for late payment of taxes. Interest is a statutory charge imposed under the provisions of the Taxes Consolidation Act 1997 and I have no discretion to instruct Revenue to waive it.
Banking Sector
Ceisteanna (229)
Michael Healy-Rae
Ceist:229. Deputy Michael Healy-Rae asked the Minister for Finance about the provision of assistance to individuals (details supplied); and if he will make a statement on the matter. [42419/24]
Amharc ar fhreagraFreagraí scríofa
I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. This independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
On 9 September 2024 AIB launched an Odd-lot Offer pursuant to which shareholders holding fewer than 20 ordinary shares each in AIB Group plc were offered the opportunity to sell their shares at a 5% premium to the market price without incurring any stockbroking fees or commission. The Odd-lot Offer opened on 9 September 2024 and closed on 7 October 2024.
AIB undertook this course of action in response to feedback from shareholders who had asked the bank to look into a mechanism of this type. Smaller shareholders were unable to realise value for their shares on the market on account of share dealing costs. AIB recognised that this was an issue for smaller shareholders and estates of deceased shareholders.
Shareholders gave approval at the 2024 AGM for AIB to put the mechanism in place to permit an Odd-lot Offer and authorised the Board of AIB to launch an Odd-lot Offer at any time over the following 18 months. Having received the required regulatory approval from the European Central Bank, the Board of AIB then decided to proceed with an Odd-lot Offer.
AIB bought back shares from eligible shareholders at €5.65 per share, which represented a 5% premium to the volume weighted average price of AIB’s shares traded on Euronext Dublin over the five trading days immediately preceding the launch date of the Odd-lot Offer (9 September 2024).
It is important to note that each eligible shareholder who wished to retain their shareholding in AIB had the option to opt out of the Odd-lot Offer prior to its conclusion.