Holly Cairns (Cork South West, Social Democrats)
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315. To ask the Minister for Finance his views on providing a tax credit for parents and guardians for childcare costs; and if he will make a statement on the matter. [26546/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I acknowledge the continuing cost pressures on parents with young children.  In recognition of these pressures, a number of support measures are already in place to ease the burden on working parents. These include various tax-exempted child-care related supports provided by the Minister for Children, Equality, Disability, Integration and Youth and measures such as the Working Family Payment provided by the Minister for Social Protection.

With regard to taxation measures, and separate to the above:

- The Accelerated Capital Allowances scheme for Childcare Services was introduced to encourage employers to develop childcare facilities onsite for their employees.

- Individuals who provide child-minding services in their own home may claim childcare services relief each year, provided that they do not receive more than €15,000 income per annum from the child-minding income.

- Furthermore, a Single Person Child Carer tax credit of €1,650 is available as well as an additional standard rate band of €4,000. This credit and band is payable to any single person with a child under 18 years of age or over 18 years of age if in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year.

In relation to taxation more generally, I note the findings of the Interdepartmental Working Group on Future Investment in Childcare in Ireland, which published their report in July 2015. Having considered the option of a tax credit that would be available to those who incur childcare costs, the Group recommended against introducing such a measure. The group had concerns that a tax credit would not be equitable, would have high possible deadweight, could end up being fully absorbed in the cost of childcare, and might not have a meaningful impact on a parent's decision on whether to join or to return to the labour market.  Estimates produced at the time also suggested that the annual Exchequer cost of such a measure could be very substantial.

I have no plans, at present, to introduce a specific income tax relief for parents to assist with childcare costs. As the Deputy will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. In considering these, I must be mindful of the public finances and the many demands on the Exchequer given the current budgetary constraints and the equitable treatment of all tax-payers. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.

Holly Cairns (Cork South West, Social Democrats)
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316. To ask the Minister for Finance if the disabled drivers and disabled passengers scheme will be expanded to provide a range of tax reliefs linked to the purchase and use of specially constructed or adapted bikes and ebikes; and if he will make a statement on the matter. [26547/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations.

In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.  

The terms of the Scheme set out the following medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have  serious difficulties of movement of the lower limbs.

A Supreme Court decision of June last year found that the medical criteria set out in the Regulations (Statutory Instrument 353 of 1994) did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.  While  the Regulation was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989. Accordingly, I brought forward an amendment to the Finance Bill to provide for the existing medical criteria in primary legislation.

Following approval of the Finance Act 2020, a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities and the criteria for qualification for the Scheme, will be conducted this year. On foot of that review new proposals will be brought forward for consideration. There are no current plans to extend the scheme to adapted bicycles.

Further information on supports available to persons with disabilities can be found at

https://www.citizensinformation.ie/en/reference/guides/guide_to_entitlements_for_people_with_disabilities.html