Dáil Éireann Debate, Tuesday - 16 November 2021
66. Deputy Pádraig O'Sullivan asked the Minister for Public Expenditure and Reform if he will provide a report on the national recovery and resilience plan; and if he will make a statement on the matter. [55892/21]
View answerI am hoping the Minister can give us an update on the implementation of the national recovery and resilience plan. We know the importance of the plan, given the hefty investment available for battling climate change and the digitisation of local economies. Will the Minister give the House a progress report?
I thank the Deputy. The European Union’s €800 billion NextGenerationEU recovery instrument, along with its €1.2 trillion seven-year budget, is central to the Union’s response to the global pandemic. The aim of NextGenerationEU is to help repair the immediate economic and social damage brought about by the pandemic and to prepare for a post-Covid Europe that is greener, more digital, more resilient and fit to face the future.
The recovery and resilience facility is the largest component of NextGenerationEU, making more than €700 billion available to member states in the form of grants and loans, with Ireland in line to receive almost €1 billion in grants over the lifetime of the facility.
In order to access this funding, Ireland has developed a national recovery and resilience plan, with a total value of €990 million, which sets out the reforms and investments to be supported by the facility. The overall aim of Ireland’s plan is to contribute to a sustainable, equitable, green and digital recovery in a manner that complements and supports the Government’s broader recovery effort. The plan is based on 16 investment projects and nine reform measures covering three priorities: advancing the green transition; accelerating and expanding digital reforms and transformation; and social and economic recovery and job creation.
Ireland submitted its draft plan to the European Commission on 28 May 2021. On 16 July 2021, Commission President Ursula von der Leyen travelled to Dublin to present the Commission’s positive assessment and draft Council implementing decision to the Taoiseach. On 6 September 2021, I joined the Minister for Finance at the ECOFIN meeting at which Ireland’s draft plan was considered and the required Council implementing decision was then adopted by written procedure on 8 September 2021. Now that the decision has been adopted by the Council, the plan will be the subject of a financing agreement between the Commission and Ireland.
The next phase is the implementation of projects over the period 2021 to 2026, with milestones and targets to be achieved so that EU funding can be drawn down. An implementing body is being established in my Department to drive progress and delivery of the projects.
I thank the Minister for his response. As he said in response to an earlier question, we have a moment to talk about 16 investment projects and nine reform measures. What triggered my asking this question is that I noticed in recent days that the Spanish Government has made an application for disbursement. It has applied for an initial €10 billion of the €69 billion it has applied for. I am seeking a timeline for how we will go about the disbursement of our own moneys.
Do we have any timeline in mind? I have a particular interest in the electrification and upgrade of the Cork commuter railway line. Has the Minister any information pertinent to the €85 million digitalisation fund for the roll-out of broadband? We are aware that there are concerns over delays in broadband roll-out. Will these have a negative impact on the digitalisation programme?
There is €114 million for the SOLAS recovery skills response programme, which is about greening the economy and preparing the trades for that. If the Minister has any information on that, I would appreciate it.
I thank the Deputy and acknowledge his strong support for the Cork area commuter rail programme, which he has been advocating to the Government for some time. It is a very exciting programme. Its total cost is €185 million over the five-year period from 2021 to 2026. It involves significant enhancement and development of the rail network over approximately 62 km from Mallow through Cork to Cobh and on to Midleton. The main construction contract will be signed next year, as well as the contract on the electric train fleet. It is estimated that the key work in Kent Station in Cork will be completed by the end of 2024 and the full project will be finalised in 2026. As the Deputy knows, all this is with the ultimate aim of having ten-minute frequency all day on electrified rail services associated with the Cork commuter rail project. Therefore, it is a really exciting project. I welcome the Deputy's support for it and the fact that he has raised it. I have a detailed information note on it that I am happy to share with him.
I thank the Minister. As he mentioned, the project is one of the most exciting that will be carried out in my area of Cork over the coming years. I am delighted to see progress on it.
I have two more questions I would like the Minister to address. Do we have any indicative timeline for the disbursement of funds in Ireland? Will it extend into next year? I would appreciate information in this regard.
Has the Minister any information on future grants? The rounds of funding in question are the first of a couple. The next round might be in 2023. Could the Minister advise us on any preparations that are being made in that regard?
We are expected to receive €915 million in grants in 2021 and 2022, with a further set to be allocated in 2023 under the recovery and resilience facility. Since this is EU funding, there is a significant amount of compliance required and we have to ensure we act in a manner that is consistent with the regulations. The instrument is performance based. Ireland will make its first payment claim to the Commission in the second half of 2022 and in each subsequent year until 2026. Over the course of the programme period, 2021 to 2026, projects funded under the national recovery and resilience plan will be put in funds via the Estimates process. That is how we are going to deal with this. The funding will start to flow quite soon. The important thing for us is to ensure we have projects we can deliver and implement on the ground. Those that the Deputy has highlighted are exciting ones to which the Government is fully committed. We look forward to implementing them.
