Dáil debates

Thursday, 17 June 2021

Ceisteanna Eile - Other Questions

Tax Reliefs

9:55 am

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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9. To ask the Minister for Transport, Tourism and Sport if there are plans in place to introduce a part-time TaxSaver commuter ticket in the wake of the Covid pandemic; and if he will make a statement on the matter. [32428/21]

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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17. To ask the Minister for Transport, Tourism and Sport if customers who purchased an annual commuter TaxSaver ticket for 2020 and who were subsequently provided with an extension of it to the middle of 2021 will now be provided with an extension to the end of 2021 in view of the fact that for many customers, if they have followed public health advice will have been working from home since the start of 2021; and if he will make a statement on the matter. [32429/21]

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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Are there plans in place to introduce a part-time TaxSaver commuter ticket in the wake of the Covid pandemic? I also wish to ask the Minister whether customers who purchased an annual commuter TaxSaver ticket for 2020 and who were subsequently provided with an extension of it to the middle of 2021 will now be provided with an extension to the end of 2021 in view of the fact that many of them, if they have followed public health advice, will have been working from home since the start of 2021.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 9 and 17 together.

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport or in decisions on fares.

Following the establishment of the National Transport Authority in December 2009, the NTA has responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation, PSO, contracts.

The Covid-19 crisis has had a profound impact on the public transport sector and the travelling public. The introduction of restrictions on public movement and the temporary closure of many workplaces, education centres and leisure and social activities across the country has led to an unprecedented fall in demand for public transport, with passengers falling to below 10% of 2019 levels at the height of the restrictions. As a result, many TaxSaver holders were not in a position to use their tickets.

As part of a suite of measures introduced in 2020 to help mitigate the impact of Covid-19, including increased PSO subvention and the introduction of temporary supports for the commercial bus sector, Government approval was given to the NTA last year to extend the TaxSaver annual tickets that existed at that time, for a further six months, in response to the Covid-19 public health emergency.

This extension facilitated many customers who had been taking infrequent trips since March 2019. In parallel to the extension, all subsidised operators continued to offer refunds to those customers who chose to seek a refund and many have done so.

The NTA informed me recently that it is not in a position to offer a further extension of the TaxSaver annual tickets. For those passengers who will be travelling less frequently than before, there remains a range of discounted fares and tickets available through the Leap card, including Leap capping, both weekly and daily, Rambler tickets for bus services in Dublin, Irish Rail web fares and other discounted products.

In relation to the possible introduction of a possible part-time TaxSaver commuter ticket following the Covid pandemic, the NTA is currently evaluating such a proposal and my Department recently commenced discussions with the NTA and the Department of Finance in order to obtain approval for the implementation of a more flexible TaxSaver product. The NTA is proceeding with the detailed technical work associated with such a proposal, while discussions with the Department of Finance continue.

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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I thank the Minister. The Minister will be aware of customers who purchased an annual commuter TaxSaver ticket for 2020 and were subsequently provided with an extension of it to the middle of 2021. As I understand it, no further extension is being provided in 2021. Many of those commuters have continued working from home to date in 2021 and have not availed of the six-month extension.

I know of one person, for example, who paid for a full 2020 ticket, availed of the extension when it was offered last August clearly not expecting that lockdown would go on for so long and has yet to work in the office in 2021. If people return following public health guidance, they could be paying the cost of an 18-month commuter ticket while not even using it for that period. Current advice is still to work from home. Surely these people will now be provided with an extension to the end of 2021.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I am told, as I said, that it is not intended to offer an extension. However, there is a refund capability. Many people have opted for that but others have not. The Deputy's constituent might be informed of that as one option.

The proposal implied in the Deputy's question about having new more flexible TaxSaver supports is a good one. Post pandemic, we will likely be in a situation where people are commuting in different ways in hybrid schemes where people are not all commuting five days a week where the real benefits of a TaxSaver discounted ticket would apply. That offers the best prospect for the Deputy's constituent and others as a way of meeting possibly the new and different arrangements in the autumn, in the winter and next year, when we expect people coming back to work but not necessarily in the same way that they did prior to the pandemic.

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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I welcome what the Minister said in relation to a part-time scheme and I hope that the discussions between the Department of Finance and the National Transport Authority can be concluded as soon as possible. We need to be imaginative about this. Covid was a challenge but it also presents opportunities as we come out of the lockdown situation.

In relation to the other question and the refund, there was an option of a refund last year if you did not choose the extension for the first half of 2021. At the time the option seemed reasonable as last August, you would not have anticipated being advised to work from home for the first six months of 2021. The fact is that someone going back next month will be paying for 18 months' travel while only availing of it for nine months over the 2020-21 period.

Did the Minister ask the NTA why it was not in a position to extend this measure? Is it fair to make people essentially pay on the double? I welcome the initiative in terms of the part-time scheme.

10:05 am

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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We are considering a range of extensions to PSO supports for commercial and public bus operators. We have maintained services throughout the pandemic even though the numbers have been low. We expect a return to 100% carrying capacity on all public transport from 2 August, so there will not be restrictions, per se, on travel. However, it is not certain that the numbers will start to return. There will be nothing stopping anyone from using his or her TaxSaver ticket to avail of a full public transport service five days per week. That is already the case, but there will be no restrictions on numbers from 2 August, subject to the pandemic not growing. I imagine that is the main reason the NTA is not seeking a further extension of the TaxSaver scheme. However, we need a new scheme and I will use the Deputy's arguments in the discussions with the NTA and the Department of Public Expenditure and Reform to try to deliver that.

Questions Nos. 10 and 11 replied to with Written Answers.