Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter. I am taking it on behalf of the Minister for Finance. As Deputy Byrne will be aware, the programme for Government, Securing Ireland's Future, includes a commitment to "Consider measures, in conjunction with the Department of Finance, to encourage gym membership and active participation in sport and exercise". The programme for Government also acknowledges that "sport holds a special place in Irish life and society ... promoting health and well-being, encouraging community participation and instilling a sense of pride in our people". It also commits to supporting our sporting ecosystem so more people can participate, reap the benefits of sport and fulfil their potential from grassroots right up to high-performance level. This can be achieved through a variety of means including increased participation, education, increased funding, supporting high performance and governance.

On the commitment to consider measures to encourage gym membership and active participation in sport and exercise, officials in the Department of Finance will consider the matter over the coming months with the expectation that an update of the examination will be provided as part of the annual tax strategy group process during the summer. That normally comes out around July. In line with best practice and as with all proposals for the introduction of new tax measures or the amendment of existing tax reliefs, the proposal to encourage gym membership and active participation in sport and exercise through the tax system must be assessed in accordance with the Department of Finance’s tax expenditure guidelines. These make clear the importance that any policy proposal that involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention. Any decisions regarding taxation measures are made in the context of the annual budget and Finance Bill processes at the appropriate time and having regard to available resources and the sound management of the public finances.

I take this opportunity to note that the tax code already provides for a number of fitness-based measures more generally. For example, the cycle to work scheme provides that bicycles and associated safety equipment provided by employers to employees will be treated as a tax exempt benefit-in-kind, subject to certain conditions being met. One of the benefits envisaged from the scheme was that more people cycling to and from work would improve health and fitness levels. In addition, the accelerated capital allowances scheme for childcare facilities and fitness centres encourages employers to develop on-site childcare facilities and fitness centres for their employees. The scheme provides accelerated allowances for qualifying buildings or structures over a seven-year period and accelerated allowances for related equipment at 100% for a year.

Officials in the Department will consider measures to encourage gym membership and active participation in sport and exercise over the course of the coming months. It is expected an update on this work will be outlined in the annual tax strategy group process during the summer.

As the Minister of State with responsibility for older people, I take the Deputy's point about the benefits. People are living longer and being more active and going to the gym is of benefit to all age groups, including the older cohort.

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