Dáil Éireann Debate, Thursday - 23 September 2021
211. Deputy Christopher O'Sullivan asked the Minister for Public Expenditure and Reform if there have been any further developments with regard to the Brexit Adjustment Fund; and if he will make a statement on the matter. [33692/21]
View answer213. Deputy Neale Richmond asked the Minister for Public Expenditure and Reform if he will report on Ireland’s funding under the Brexit Adjustment Reserve. [34659/21]
View answerI propose to take Questions Nos. 211 and 213 together.
At the end of June, agreement was reached between the European Parliament and the Council of Ministers on the European Commission’s proposal for a Brexit Adjustment Reserve.
The Reserve has a total value of €5 billion in constant (2018) prices, or €5.47 billion in current prices. All Member States are to receive a provisional allocation.
I am pleased to say that Ireland has been allocated €1.065 billion in constant (2018) prices, equivalent to €1.165 billion in current prices. This represents 21% of the total value of the Reserve, the largest allocation for any Member State.
The reference period for expenditure under the Reserve runs from 1 January 2020 to 31 December 2023.
80% of the total Reserve will be made available as pre-financing in three instalments: 40% in 2021; 30% in 2022; 30% in 2023. The remaining 20% will be made available in 2025 once Member States have accounted to the Commission for expenditure under the Reserve. In Ireland’s case, the bulk of expenditure will be in the form of pre-financing.
The objective of Reserve is to provide support to counter the adverse economic, social, territorial and, where appropriate, environmental consequences of the withdrawal of the UK from the EU. Importantly, the Reserve may only support measures specifically taken by Member States to contribute to this objective.
In Ireland’s case, the allocation of resources from the Reserve will be aligned with the annual Estimates process. Ireland has already spent a considerable amount on preparing for Brexit, with successive budgets since the UK referendum providing significant supports for business and the agri-food sectors, as well as the infrastructure required at the port and airport to maintain the flow of east west trade.
Possible areas for support under Reserve include enterprise supports; supports for the agri-food sector; fisheries; reskilling and retraining; and infrastructure for the ports and airport.
In line with the requirements of the BAR Regulation, a Designated Body will be established within my Department to oversee expenditure under the Reserve.
