Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

They are not specifically included in that. I think the reason is that the self-employed are not included. The reason generally is that the cycle-to-work scheme is administered through the employer, through the PAYE system, so it is really suitable for people who have an employer and can work through the PAYE system. The self-employed are not in that category. I do not suggest it will happen, but the difficulties regarding self-employed people operating a scheme like this would be immense because they make tax returns perhaps only once a year and there is a practical, logical reason it is only for employees on PAYE, as that is very easy to administer.

That said, if a farmer could prove that a bicycle is wholly and completely necessary for the carrying out of his business, like the tractor, for example, for carrying a bale of hay on the handlebars or whatever he chooses to do on it, and he does not use it for personal use, perhaps a case could be made for it to be included under the vehicles and some element of a tax allowance might be provided. I say that in jest. I hope people do not take it too seriously. It would have to be wholly, necessarily and exclusively used in the course of a business. I have answered that question as best I can at this stage.

Regarding the help-to-buy scheme, the 70% rule is a very difficult one and there have been rulings set in legislation that can be appealed and people can seek reviews but the legislation does state 70% of the value of the loan to the cost of the building. When one sets a figure in legislation the people who interpret the legislation do not have any scope. It can be very difficult for people who are 1% or 2% short of the 70%.

Regarding the employment wage subsidy scheme, the employer can get a PRSI subsidy as well as the support from the tax office so it is a generous scheme, as has been mentioned.

A couple of speakers referred to the fact that the help-to-buy scheme is only for new homes. My understanding of this scheme is that its aim is to add to the supply. Buying a second-hand house does not bring an additional house into the system. If somebody builds a new house that is an additional house that is available. As Members are aware, since 2010 or thereabouts there has been very little house building and the problem is that there has been a shortage of supply. This scheme was introduced to encourage the supply of new houses rather than to assist people to move from an existing house to another one that already exists. It is aimed at increasing the housing supply. I take on board the points that have been made, which can be raised again in the context of the budget. The design of the scheme is to get people, such as block layers, plumbers, carpenters, those installing new fitted kitchens and everything that goes with a new house, back to work. It is not just about people buying a house, it is about those who get employment during the course of the construction of the house and it adds extra houses to the market. That is the purpose of the scheme.

Another issue raised related to the banks and mortgages in regard to Covid-19. The Government's position is very clear on that. We have asked the banks to be fair and reasonable but we cannot direct a bank on whom to give a mortgage to and whom to refuse. I accept that difficult cases have been mentioned. I will ask the senior Minister, Deputy Donohoe, to raise this issue. The Department will meet the banks and we will ask them to take a fair and reasonable approach. We do not want them to walk out of the mortgage market at the first sign of difficulty. I hope the banks will take a pragmatic and fair response and that they will not be as strict as they were in some of the correspondence they issued earlier. If the stimulus package has the desired effect and we get greater stability in the economy the banks might have more confidence in lending to people.

On whether the VAT reduction from 23% to 21% will be passed on, we want it to be passed on and we hope it will be but we cannot guarantee that will happen. I would be foolish to suggest otherwise. If one shop or café does it, I hope the next one will do it, but it is up to businesses to make the call. Because they are struggling financially due to loss of business and they are having to reinvest, they might want to use the benefit of the VAT reduction to keep the business going. That is an important element. There are two options. The benefit can be absorbed in terms of the extra costs that are incurred over Covid-19 to keep the business alive or if a business is strong enough it can pass it on to customers by way of a price reduction. The people who can judge it best are those who are closer to the ground. There is no mechanism to guarantee the benefit will be passed on. If that does not happen, we hope it will help to keep a business alive, which is the main thing we need to do.

Compliments were paid to the local employment offices, LEOs, throughout the country. We all recognise the work they do. Many contributions also referred to the tourism sector and the VAT rate, which I mentioned already, in terms of being registered with Fáilte Ireland. I take the point that it adds a restriction and it does not include some people but everybody would be more comfortable, especially after Covid-19, if they knew they were going to a place that was registered with Fáilte Ireland. People are nervous about leaving their houses and staying elsewhere and sleeping in beds when they do not know who slept in the bed the night before. People will have more confidence in the quality of accommodation when they go away if they know it is registered with Fáilte Ireland. I know other places are not included but, on balance, especially on this issue, we have to give confidence to consumers that they are going to a bed and breakfast or hotel that is registered with Fáilte Ireland if people are availing of this scheme.

Reference was made to Cork Airport.I know the Senator will raise that with my ministerial colleagues. All I can do on that particular point is pass on the views that have been expressed.

I am not very used to the format here, but I have tried to respond generally to the comments that were made. I know that on Committee Stage there will be a far more detailed discussion on some of the sections and recommendations.