Dáil Éireann Debate, Thursday - 1 June 2023
170. Deputy Pádraig Mac Lochlainn asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if his Department is negotiating with European Union officials to extend timelines and funding under the Brexit adjustment reserve fund into 2024, conscious that the current deadline is set for 31 December 2023; and if he will make a statement on the matter. [26861/23]
View answerThe European Union’s Brexit Adjustment Reserve (BAR) is a unique regulation established specifically to provide for Brexit. It provides support to counter the adverse economic, social, territorial and, environmental consequences of the withdrawal of the UK from the European Union.
The regulation is clear that in order to be eligible for BAR funding, the expenditure must fall within the BAR eligibility period for expenditure which runs from the 1st of January 2020 to the 31st of December 2023. I am aware that a number of other Member States had previously raised the issue of the possibility of extending these deadlines, but no extension was provided. However, the EU did provide that Member States might, in view of the impact of the Ukrainian conflict, transfer some BAR funding to the RePowerEU initiative. Ireland has transferred €150 million of BAR funding to RePowerEU.
My Department is in regular contact with the European Commission to ensure there is a clear understanding of the requirements under the BAR regulation, to allow Ireland to submit an accurate and complete claim in September 2024.
Ireland’s allocation from the reserve will be €1.015 billion. Funding from the BAR will be disbursed in two allocation rounds. The first round (80%) was in the form of pre-financing and was paid in three instalments across 2021-2023. The third tranche of this pre-financing from the Brexit Adjustment Reserve of €164 million was received in recent weeks. This brings the total BAR funding received so far to €0.8 billion. The remaining amount will be paid in 2025.
The application for BAR funding must set out the negative impacts of the withdrawal of the UK from the European Union, and how the measures carried out under the Fund alleviate the adverse consequences. The Government has therefore, over a series of budgets, allocated BAR funding across a number of impacted sectors in order to mitigate those adverse effects of Brexit and to adapt to regulatory changes.
Following the BAR Regulation coming into force in October 2021, specific funding of €389 million was provided in Budgets 2022 and 2023 across a number of sectors.
This was allocated as follows:
|
Department |
€m |
|
Agriculture |
271 |
|
Enterprise |
15 |
|
Further and Higher Education, Research, Innovation and Science |
37.3 |
|
Public Expenditure, NDP Delivery and Reform |
4.4 |
|
Foreign Affairs |
2.2 |
|
Tourism Culture Arts Gaeltacht Sports and Media |
7.75 |
|
Environment Climate and Communications |
24 |
|
Health |
5.5 |
|
Justice |
21.5 |
|
Transport |
0.1 |
|
Total |
389 |
Further funding can also be considered for allocation over the remainder of 2023. This would include consideration of funding in relation to permanent infrastructure at Rosslare port required for customs and SPS checks.
Officials in my Department are currently engaging in a review exercise of Brexit related spending, from the 1st of January 2020 to the end of December 2023, for possible inclusion in Ireland’s BAR claim to the EU Commission in September 2024. This involves engaging with Departments on spending outside of that allocated under Budgets 2022 and 2023 which may qualify for inclusion in the BAR claim. A figure of approximately €0.7 billion has been identified in this regard.
This work is ongoing and the exact makeup of Ireland's BAR claim will not be decided until the claim is submitted in September 2024. It should be noted that in addition to the above, the Government also provided significant funding to prepare for Brexit prior to the BAR eligibility period.
