Niall Collins (Limerick West, Fianna Fail)
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Question 76: To ask the Minister for Finance the details of the cycle to work scheme as announced by him in the supplementary Budget of 7 April 2009; and if he will make a statement on the matter. [21901/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Legislation was introduced in the Finance (No. 2) Act 2008 which allows an employer to incur the expense of providing an employee with a new bicycle. The scheme also applies to safety equipment relating to cycling without the employee being liable for benefit-in-kind taxation. The legislation also permits the benefit-in-kind tax exemption to apply in the context of salary sacrifice, that is, where an employee agrees to forgo or sacrifice part of his/her salary in lieu of the provision of new bicycle by the employer. The employee will not pay tax, PRSI or income levies on the remuneration sacrificed. The scheme allows an employer to purchase a new bicycle and/or bicycle safety equipment up to a value of €1,000 once every 5 years on behalf of an employee.

A guidance note on the scheme including a series of Questions & Answers provided by the Revenue Commissioners can be found at: http://www.revenue.ie/en/practitioner/law/bik-exemption-for-bicycles.pdf. Circular 16/2009 Cycle-to-work relating to implementation in the civil service has just issued and may be viewed on www.finance.gov.ie.

OPW advertised last week for expressions of interest from vendors of bicycles, pedelecs and electrically assisted bicycles who wish to supply such equipment to those availing of the scheme in the civil and public service. The OPW information can be found at: http://www.opw.ie/en/OurBusinessUnits/GovernmentSuppliesAgency/Cycle-to-WorkScheme/.

This site contains a list of suppliers. The list may be limited at the outset but shops and suppliers may apply to join at any stage.