Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

In response to amendment No. 3, I note that the cycle to work scheme provides that employees can avail of the scheme once in a four-year period, as Deputy Nash said. This period was reduced from five years by the Financial Provisions (Covid-19) (No. 2) Act 2020. The scheme covers the cost of a bicycle, locks, chains and other safety equipment to deter bicycle theft, though I note the figure the Deputy put on the record of the number of thefts estimated to be happening annually. Any deviation from the current self-administration system would involve additional administrative procedures for either Revenue, the employer or both in relation to the verification of loss, theft, insurance recovery, etc. As this runs counter to the administrative simplicity of the existing provisions, it would not be appropriate to alter the existing scheme as proposed. Instead, it would be prudent for any person obtaining a bicycle under the cycle to work scheme to ensure the bicycle is covered by insurance.

In respect of amendment No. 4, I note that the cycle to work scheme is predicated on there being an employee-employer relationship in place since the scheme operates by providing an exemption from benefit-in-kind where an employer purchases a vehicle and associated safety equipment for an employee. It is assumed the amendment proposed by the Deputy would involve the employer of a student or a parent who is purchasing a bicycle on behalf of their student child for use in journeys to and from school. The technical and administrative details of how such a scheme would operate could be quite complex and could impact significantly on administrative costs. Amending the cycle to work scheme to include bicycles for use by students to cycle to school would add to the administrative burden on employers participating in the scheme and, as a result, might lead to less participation in the scheme. Furthermore, I would expect considerable deadweight on such a proposal, with people benefiting who would have purchased the bicycle in any event.

On balance, I do not think that it is appropriate to include provision for such a report in this Finance (No. 2) Bill and I do not propose accepting the Deputy's amendment.