Dáil Éireann Debate, Thursday - 20 January 2022
190. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he is satisfied that the action taken by his Department to date remains sufficient to protect Ireland from the double impact of Brexit and Covid-19; if he is contemplating any further measures in this regard; and if he will make a statement on the matter. [2855/22]
View answerAs the Deputy will agree, the global pandemic and the UK’s departure from the EU have dominated the policy landscape over the last two years.
In relation to the global pandemic, significant direct expenditure supports have been put in place by the Government since early 2020 to respond to the impacts of COVID-19. This funding has been critical in supporting people and businesses impacted by the pandemic and in providing the necessary funding to allow key public services respond effectively to the crisis.
Some €30 billion in additional funding was made available to Departments across 2020 and 2021 for measures related to COVID-19, with provision for up to €7 billion made under Budget 2022. This funding has supported the delivery of key public services while addressing the challenges of COVID-19 and providing critical income and employment supports to workers and businesses, including the Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS).
At an EU level, the Union has responded with an unprecedented €800 billion recovery package, NextGenerationEU. At the heart of this package is the EU’s Recovery and Resilience Facility.
The National Recovery and Resilience Plan will enable Ireland to access funding under the Facility. The Plan has a total value of €990 million. Its overall objective is to contribute to a sustainable, equitable, green and digital recovery, in a manner that complements and supports the Government’s broader recovery effort. It is aligned with domestic policies, notably the Economic Recovery Plan and the National Development Plan.
The full implications of the UK’s departure from the EU remain to be seen but clearly will be significant. Successive budgets since the UK referendum on EU membership have seen around €1 billion committed to preparing for Brexit, including supports to business and the agri-food sector, as well as for the infrastructure required at the ports and airports to maintain the flow of east west trade.
At an EU level, the Union’s response includes the Brexit Adjustment Reserve which has a value of more than €5 billion. The objective of the 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.
I am pleased to say that Ireland has been allocated €1.165 billion in current prices from the Reserve. This represents 21% of the total value of the Reserve, the largest allocation for any Member State. Areas for support are likely to include enterprise supports; measures to support fisheries and coastal communities; targeted supports for the agri-food sector; reskilling and retraining; and checks and controls at ports and airports.
