Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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13. To ask the Minister for Finance if he will prioritise the removal of VAT from defibrillators following the agreement by European Union finance ministers to amend Council Directive 2006/112/EC on 7 December 2021 given that the removal of VAT will increase the ability of many sports clubs and community organisations to private life-saving assistance; and if he will make a statement on the matter. [9689/22]

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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I ask the Minister if he will prioritise the removal for VAT from defibrillators from following the agreement by European Union finance ministers to amend Council Directive 2006/112/EC.

Paschal Donohoe (Dublin Central, Fine Gael)
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The EU Commission published a proposal on the reform of VAT rates in January 2018 which would allow member states more flexibility in how they apply VAT rates. As the compromise text agreed at the meeting of the Economic and Financial Affairs Council, ECOFIN, in December has been amended significantly in comparison to the original proposal, the European Parliament will once again be consulted for its opinion. While not providing for as much flexibility as the original proposal, it still provides greater scope for member states to make changes when it comes to setting VAT rates. Assuming the Parliament issues its opinion on the proposal, the Council will formally adopt the directive. I understand that the Slovenian Presidency wrote to the European Parliament looking for an early response. I expect the response will be due in the coming months. Following the Council formally adopting the directive, it will be published in the Official Journal of the European Union and will enter into force on the 20th day following that of its publication. After that, we will consider what our options are with regard to setting VAT rates. I hope that we will get an answer back from the European Parliament in relation to this proposal in the coming months. After that, I know that the Council will act to try to implement the directive quickly.

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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It is encouraging to see that this is finally progressing. Hopefully, it will end in a positive result. As the Minister is probably aware, approximately 5,000 people die in this country every year from sudden cardiac death. Around 14 or 15 years ago, when I used to train an under-13s soccer team, I witnessed a defibrillator saving a young person's life on the pitch. I am fully aware of the benefits of having them in as many locations as possible. As recently as three weeks ago, we were down in Glounthaune, County Cork, where Stryker, the medical devices company, sponsored three defibrillators that have been kitted out in old telephone booths along the new greenway that we are installing between Carrigtohill and Glanmire. We are fully aware of the importance of these machines. It is important that we get them out to as many areas as possible. I ask the Minister to expand on precisely what process must happen on the EU side before we see the introduction of these VAT changes.

Paschal Donohoe (Dublin Central, Fine Gael)
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I am very aware of the really important role that defibrillators play in sporting and voluntary clubs all over our country. I see them in many clubs that I go into. In terms of what will happen, firstly, the European Parliament has to come back with an opinion on the decision that has been made by the finance ministers at the meeting of ECOFIN. When the Parliament comes back with that opinion, it will then be considered by ECOFIN. At that point, the final decision is made on the matter and it will then be published in the Official Journal of the European Union. That is the procedure that is ahead. I very much hope it can be concluded quickly.

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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The Minister mentioned that the current proposal is not perhaps as flexible as the original proposal. I am not fully aware or au faitwith what has happened previously. I ask the Minister to expand on why it is not as flexible as the original proposal. Second, I am aware that in the context of the negotiations around this issue at EU level, a list of supplies to which a reduced VAT rate can be applied is to be increased. Member states will also be allowed to make some supplies subject to 0% VAT. The emphasis here is going to be on issues regarding improving the environment, public health and the digital transition. I ask the Minister to comment on that.

Paschal Donohoe (Dublin Central, Fine Gael)
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The reduced areas of flexibility refer to two new limitations that will be on member states. They are included in the third annexe of the current proposal. The first limitation will limit member states to applying a 0% rate to no more than seven value added taxable categories. The second limitation will limit member states to using a maximum of 24 categories to which a reduced rate can be applied. In other words, it will be setting a floor of no more than seven categories and a ceiling of 24 categories. The area of reduced flexibility concerns the kinds of goods and services to which a lower rate of VAT can be applied. The Deputy made reference to the question of whether these VAT rates can then be applied to the kind of changes in technologies that are needed for a lower carbon future. Indeed, they can be, but that will then depend on the decisions that individual member state Governments make.