Seán Haughey
Question:1. Deputy Seán Haughey asked the Taoiseach if he will report on his attendance at the special European Council on 9 and 10 February 2023. [7241/23]
View answerTuesday, 28 February 2023
Questions (1, 2, 3, 4, 5, 6, 7, 8, 9, 10)
Bernard Durkan
Question:2. Deputy Bernard J. Durkan asked the Taoiseach if he will report on his recent attendance at the European Council; and the extent to which pressing issues were dealt with. [7398/23]
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Mary Lou McDonald
Question:3. Deputy Mary Lou McDonald asked the Taoiseach if he will report on his attendance at the recent special European Council meeting. [8118/23]
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Ivana Bacik
Question:4. Deputy Ivana Bacik asked the Taoiseach if he will report on his attendance at the special European Council on 9 and 10 February. [8209/23]
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Mick Barry
Question:5. Deputy Mick Barry asked the Taoiseach if he will report on his attendance at the recent European Council on 9 and 10 February 2023. [8634/23]
View answerBernard Durkan
Question:6. Deputy Bernard J. Durkan asked the Taoiseach the extent of any recent discussions he has had with the Ukrainian President or Ukrainian authorities, directly or at European level. [9876/23]
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Paul McAuliffe
Question:7. Deputy Paul McAuliffe asked the Taoiseach if he will report on his attendance at the recent European Council on 9 and 10 February 2023. [9936/23]
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Richard Boyd Barrett
Question:8. Deputy Richard Boyd Barrett asked the Taoiseach if he will report on his attendance at the recent special European Council meeting. [9958/23]
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Bríd Smith
Question:9. Deputy Bríd Smith asked the Taoiseach if he will report on his attendance at the recent special European Council meeting. [9962/23]
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Rose Conway-Walsh
Question:10. Deputy Rose Conway-Walsh asked the Taoiseach if he will report on his attendance at the special European Council meeting on 9 and 10 February 2023. [10253/23]
View answerOral answers (17 contributions)
Tógfaidh mé Ceisteanna Uimh. 1 go 10, go huile, le chéile.
I attended a special meeting of the European Council in Brussels on 9 and 10 February. The agenda covered Ukraine, the economy and migration. We also touched on relations between Kosovo and Serbia, as well as the tragic earthquakes in Türkiye and Syria.
The President of Ukraine, Volodymyr Zelenskyy, joined leaders in Brussels, meeting with all his EU counterparts in groups. In my engagement with him, I reiterated Ireland’s commitment to standing with Ukraine for as long as it takes. President Zelenskyy also joined us for the start of the European Council meeting. As we approached the first anniversary of Russia’s invasion of Ukraine, he thanked the EU for the assistance and support given to Ukraine and its people. In addition to expressing our commitment to Ukraine’s political, economic, humanitarian and other needs, we acknowledged the considerable efforts Ukraine is making to ensure it is prepared for the opening of accession negotiations with the European Union. This is especially impressive under the exceptionally difficult circumstances it faces.
The European Council discussed the economic situation in the EU and how to ensure the region’s long-term competitiveness, prosperity and international standing. We will return to this important discussion when we next meet in March.
We discussed migration, focusing in particular on the external dimension, where we agreed on the need to strengthen our external borders, engage better with countries of origin and transit and more effectively deal with people involved in trafficking and smuggling.
We expressed our deepest condolences to the victims of the tragic earthquakes in Türkiye and Syria and pledged humanitarian assistance to alleviate the suffering in all affected regions.
I wish to ask the Taoiseach about the Government's plan to implement a windfall tax. I am seeking clarity on the matter because I have been unable to get a straight answer from the Minister, Deputy Eamon Ryan. When I submitted written questions to the Minister in December, he seemed to rule out bringing in a windfall tax on electricity companies despite the record profits. A couple of weeks ago in this Chamber he dismissed my concerns, claiming he would bring in a windfall tax on private electricity companies for 2022 profits. I again submitted a written question and received the same answer, that is, that electricity companies would get to keep the very significant windfall profits from 2022 in full. Workers and families have been struggling to meet crippling electricity bills for more than a year, as the Taoiseach is aware, and electricity suppliers are now telling them they are not going to reduce prices. The prices have been artificially high because of how they were set. This allowed electricity companies to keep the obscene profits. It has been a shocking transfer of wealth from households to corporate profits. Could the Taoiseach please provide clarity? Will the Government be implementing a windfall tax on the 2022 profits of electricity companies - "Yes" or "No"?
It is great that the Taoiseach was able to meet with President Zelenskyy and express to him our solidarity with the people of Ukraine. As we know, the EU has agreed the tenth round of sanctions, which include new enforcement measures and additional reporting requirements. However, in response, the hard-hitting Belgian MEP, Guy Verhofstadt, tweeted last week that:
...the 10th sanction package is weak...as one country protects its Russian friends, another wants to go after Russian rubber, several like to keep hiding Russian Central Bank assets. High time to abolish unanimity!
I certainly would not go that far. The evidence indicates that Ireland is doing very well in the implementation of the sanctions. Is there much evidence available to indicate that the sanctions are being violated and circumvented? Should other non-Western countries be persuaded to join in the effort, or at least not be allowed to facilitate the circumvention of existing sanctions? In this regard, I would like to welcome the appointment of David O'Sullivan as international special envoy for the implementation of the EU sanctions. What is the Taoiseach's understanding of his work to date and when will his comprehensive assessment of the position be expected?
I thank the Taoiseach for his response. I ask the extent to which the earthquake and the survivors in Türkiye and Syria have been the focus of attention, with particular reference to the co-ordination of European rescue efforts and help and support to Türkiye and Syria at this very important time, given Türkiye's support for the EU and, in fact, previous anxiety to join the EU in an effort to cultivate and improve relations in that area, which might be helpful also on Türkiye's opposition to the admission of new countries to NATO.
In response to the European Commission's proposals for a green deal industrial plan for a net-zero age, EU leaders called for further work to be undertaken in several areas, including state aid. It appears that leaders have limited the Commission's state aid work to consider the procedural issues in minor temporary support. As a small member state with significant domestic supply and export opportunities in renewable energy, the Government should be directing the work of the Commission to consider how we can strengthen the commercial semi-State agencies. State rules cannot act as a blockage to Ireland's ambition for energy security and independence. Leaders also tasked the Commission with boosting skills to meet the challenges of labour shortages and the transformation of jobs. I am sure the Taoiseach accepts that the renewables sector must be equipped with the skills base needed to succeed and support its State-led strategies, such as tailored plans for SMEs and sector-specific apprenticeship schemes. The CEO of Green Rebel has argued that the renewable energy sector has the potential to bring life back to rural communities, creating high-end jobs and revitalising towns and villages across the country. Does the Taoiseach agree that Ireland urgently needs to meet the immediate and increasing need for skilled staff in this area?
Europe is rearming and the world is rearming. The International Defence Exhibition and Conference, IDEX, took place in Abu Dhabi from 17 February to 21 February. Arms manufacturers from all over the world participated and big money was made from selling the machinery of death and destruction. The United Arab Emirates signed deals there worth $6 billion. A strong Israeli presence was reported. Russia's deputy premier was there and a Russian company displayed armoured vehicles, attack helicopters and anti-aircraft missile systems used in Ukraine. "Few things illustrate the health of the arms industry like a massive defense fair", according to CNBC News. In publicity from the organisers, one of the countries listed as a participant at the expo for the first time was Ireland. Can the Taoiseach tell us whether the Irish State was represented? Did privately-owned Irish companies or Irish-based companies participate? Finally, were arms deals signed by either or both?
I appreciate the Taoiseach outlining some of the details of the European Council meeting. There are two areas of concern for me. One is the fact that the latest round of sanctions includes further seizing of assets belonging to Russian companies and Russian citizens. How might we mobilise those resources to support Ukraine and its economy during any reconstruction, and also to support the millions of Ukrainian migrants living in EU countries right across Europe? I would appreciate it if the Taoiseach could provide any details on that. Second, I know that there are general discussions on the European economy as well. The increase in interest rates by the European Central Bank has been significant. The ECB is independent, but Irish mortgage holders have seen a really significant increase in their mortgage repayments. That will have a cap on demand. Does that necessarily relate to a reduction in inflation? Is our current inflationary spiral linked to supply or demand? Have the European leaders discussed how the increase in the interest rate will impact broader growth in Europe?
There is literally not a day that goes by when we do not get further evidence of the obscene profiteering of energy companies. The latest, of course, is Electric Ireland finding itself able to reduce prices for business, but not able to do so for householders, and the fact that wholesale prices for energy have now dropped to 18-month and pre-war lows. It appears that while they were able to jack up prices to extortionate levels to crucify ordinary people, they cannot reduce the prices now that wholesale prices have gone down. Is it not long past time that the Taoiseach accepted that the profiteering can only be ended by introducing controls on prices and, indeed, by nationalising the energy sector so it operates on a not-for-profit basis and stops ripping off ordinary people who are being crushed by the cost-of-living crisis?
I want to return to the question of what the EU discussed in regard to migration. I know the meeting was prior to the tragedy that happened in the Mediterranean, where at least 62 people, including a month-old baby and twin toddlers who were among 12 children, drowned coming from countries like Afghanistan, Pakistan and Iran. We know that the accurate number of deaths recorded in the Mediterranean Sea cannot be ascertained, and that between 2014 and 2018, in a four-year period, about 12,000 people who drowned were never found. My question for the Taoiseach relates to Frontex and the role of the EU. For example, on the coast of Italy where these boats went down, the right-wing Italian Government recently passed a law preventing charities from performing life-saving rescues except one at a time. Of course, it is impossible for those charities, all of which are privatised, to operate in that strait. Frontex, the European agency for sea and rescue services, no longer has a role to play in preventing people from drowning and the EU pays over millions and millions to countries like Libya to keep people on their shores. Yet, they are still coming and they keep drowning. When is the EU going to reinstate a sea rescue operation to avoid such horrendous, inhumane and barbaric incidents as we have just witnessed off the Italian coast?
I thank the Deputies for their questions. On the windfall tax and energy prices, the windfall tax proposal, which is at an advanced stage and being developed by the Minister for the Environment, Climate and Communications and the Minister for Finance, derives from EU law in this area. My understanding is that it has two elements. The first is a tax on gas and oil product producers in Ireland, of which there are not many but there are a few. There is also a tax on generators. The tax raised on generators will be used to bring down prices for businesses and householders. It will apply to profits made in 2022 to be taxed in 2023, and profits made in 2023 to be taxed in 2034. Generally, profits are taxed the year after they are made. That is the principle that will be applied, as I understand it. I do not think that nationalising the energy sector is a good idea.
At the outset, it would involve paying a large amount of compensation to the shareholders and owners of those companies. People might argue that this will be recovered after ten, 15 or 20 years, but, certainly initially, it would involve a significant financial outlay and a big cost to the taxpayer, which would not be recouped for a long time, if at all. I am not sure if countries have ever tried to experiment with running energy systems on a not-for-profit basis. I think it was attempted in communist countries between the 1920s and the 1980s and what they suffered as a result was a lack of investment, shortages, blackouts and so on. I am not sure it is a model we would like to experiment with here, given it did not work in-----
The ESB is run on a not-for-profit basis.
The ESB, founded in the 1920s, is run on a not-for-profit basis.
No. The ESB works as a State-owned enterprise-----
It put the lights on everywhere in the country.
-----and has a profit remit. I think what we are talking about is a model that was tried in the Soviet Union and places like that, where it did not work out so well.
In response to Deputy Haughey's question, like him, I do not support removing unanimity when it comes to sanctions. Unfortunately, there is evidence of circumvention, not particularly by EU countries, to the best of our knowledge, but by some countries that are located around the EU. We see that there are unusual changes in trade flows and trade statistics that indicate that circumvention may be occurring. That reminds us that Russia does have some friends out there, notwithstanding what it has done, and there are some countries that have no choice but to be Russia's friend for various reasons. This is a serious situation. I also welcome the appointment of Mr. David O'Sullivan as the special envoy for sanctions.
Deputy Durkan asked about the terrible earthquake that happened in Türkiye and Syria and the appalling human consequences. On behalf of the Government, I wrote to President Erdoğan to express my most sincere condolences on the loss of life and the destruction that occurred as a consequence of the earthquakes. Our thoughts are with all those who have been affected by the earthquakes and their aftershocks. We are providing €10 million in humanitarian assistance to the people of Türkiye and north-west Syria. That is being done through the UN's humanitarian fund for Syria, the Red Cross and Red Crescent societies and Irish NGOs working on the ground, including Concern and Goal. I extend my condolences to Goal and the families and friends of all Goal workers who lost their lives in the earthquakes. The situation in Syria is of particular concern, given the civil war there, and Ireland and the international community will work through the UN to ensure a speedy provision of aid to the parts of Syria that need it most.
Deputy Paul Donnelly asked about state aid. I agree with what he said about skills and the need to ensure we have a pipeline of people who have the skills to work in the renewable energy sector and to help us to build those windfarms and to deploy all those solar panels. Let us not forget, though, that they are often the same people we are asking to build and to retrofit all the houses and to build the metro, and there are only so many people who can do so many things. That is a challenge we face-----
Let the migrants work.
-----trying to do so much at the same time. I support, as the Government does, the appropriate use of state aid, but we should never forget that state aid is ultimately taxpayers' money given to businesses. Small countries like ours will never be able to compete with big countries when it comes to the amount of state aid they could give their companies. That is why we always need to be careful about that. If the state aid rules are relaxed too significantly by the European Union, the amount of state aid that France, Germany or Italy can afford to give its companies will dwarf what we can give many times over and we will find ourselves at a competitive disadvantage. We will give our companies state aid just so they can catch up, not so they can compete and grow. That is a big problem and always has to be borne in mind.
When it comes to the war in Ukraine, Deputy Barry referred to the arms industry. Let us be under no illusion that the war in Ukraine is a windfall for the arms industry, which will make a fortune out of the fact that there is a war happening in Europe. That is not just the arms industry in the west; it is the arms industry all over the world. We live in a dangerous world, and countries such as Ukraine get attacked and other countries face hybrid attacks. That is why countries have to be able to defend themselves and to buy the equipment to do so. Deputy Barry referred to an event in the UAE. I am not aware of that event. To the best of my knowledge, there was no Government involvement in it, but I could be wrong about that. There is a defence and security industry in Ireland, and it is an industry that has a role to play. It is often involved in the space industry, protective armour, robotics, artificial intelligence and things like cybersecurity. Unfortunately, we live in a dangerous world where even peaceful countries such as Ireland that do not want to spend a fortune on defence have to spend money on defence because we could be attacked, perhaps not in the way Ukraine is being attacked - I highly doubt that would ever happen - but hybrid warfare is a reality now, particularly when it comes to cybersecurity.