Written Answers Nos. 21-40
33. Deputy Peadar Tóibín asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if the recent fall in corporation tax revenues has raised challenges in terms of public expenditure for his Department. [52076/23]
View answerThe October Fiscal Monitor, published by the Department of Finance, set out the latest Exchequer position. Tax receipts of €66.5 billion were collected to end October, ahead of the same period last year by €2.5 billion (4 per cent), driven by growth in income tax and VAT. On a cumulative basis, corporate tax receipts for the year stand at €15.7 billion, €0.4 billion or 2.7 per cent lower than the same period last year.
Since 2015, corporation tax receipts have increased substantially. Last year, corporation tax receipts stood at €22.6 billion. This represented a more than doubling of 2019 receipts and a more than fivefold increase on the position a decade ago. While the Government has welcomed these receipts, we have also warned about the risks of using windfall receipts to fund permanent expenditure commitments.
In order to reduce the risks associated with the volatility of these tax receipts, the Government has taken a number of steps.
Firstly, the formulation of fiscal policy, as set out in the annual Summer Economic Statement, takes account of latest macroeconomic and tax forecasts including the windfall nature of certain of the corporation tax receipts. The core expenditure growth rate for 2024 of 6.1 per cent is based on a balanced approach taking account of the elevated inflation levels and the need to ensure sustainability of investment in public services. The use of temporary non-core expenditure over recent years has also enabled the Government to respond to external challenges such as the pandemic, war in Ukraine and elevated inflation levels whilst protecting investment in day to day services and infrastructure.
Secondly, as part of the Government’s fiscal strategy announced as part of Budget 2024, two new funds will be established. The Future Ireland Fund and the Infrastructure, Climate and Nature Fund will help to future proof our economy and public finances by investing windfall corporation tax receipts to help prepare for future fiscal challenges and to assist in funding capital and climate-related projects. This will also enable us to maintain our investment plans over the longer term.
38. Deputy Michael Moynihan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for an overview of the progress made to date under National Strategic Outcome 10 of the National Development Plan 2021-2030; and if he will make a statement on the matter. [52298/23]
View answerThe Government has committed €165 billion funding for capital investment, as set out in the National Development Plan (NDP) published in October 2021. This expenditure was considered and agreed in order to support those sectors that would be key in delivering the ten National Strategic Outcomes (NSOs) identified in the National Planning Framework (NPF).
The NDP contains expenditure commitments for a range of strategic investment priorities which will contribute towards the achievement of these NSOs, including NSO 10 (Access to Quality Childcare, Education and Health Services).
In terms of childcare, during 2022, the Department of Children, Equality, Disability, Integration and Youth spent almost €60 million across its various capital programmes to support a range of key services in respect of children and young people and international migrants. In addition, in 2022, over 180 school building projects were delivered under various programmes and schemes, such as the Large Scale Capital Programme, and the Additional School Accommodation Scheme. Approximately 300 school projects were planned for 2023, with a further 1,000 schools projects in the pipeline.
In terms of healthcare, new elective hospitals are planned for Cork and Galway. Significant progress is being made on the National Children’s Hospital. In 2022 16 new Primary Care Centres were delivered and the National Forensic Mental Hospital, Portrane becoming operational. Seven Community Nursing Units were completed in 2022 including Clonakilty Community Hospital in Cork and Ambulance Bases were completed at Ardee, Merlin Park and Mullingar.
In 2023, over €12 billion is available to Departments to spend on vital infrastructure in areas such as transport, education, and health, as well as housing, water infrastructure and cultural amenities. NSO 10 will continue to be prioritised as we continue to deliver our National Strategic Outcomes across the country in line with the National Planning Framework.
The Government is committed to detailing progress on the delivery of the NDP at regular intervals into the future to allow for full transparency of the implementation of Project Ireland 2040. This is achieved through regular updates of the Project Ireland 2040 capital investment tracker and MyProjectIreland interactive map viewer which list projects and programmes, by NSO, on a regional and county level. In addition, Annual and Regional Reports on the implementation of Project Ireland 2040 have been published for 2018, 2019, 2020, 2021 and 2022. The Project Ireland 2040 Annual and Regional Reports, capital investment tracker and myProjectIreland interactive map are all available on gov.ie/2040.
40. Deputy Matt Carthy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if public procurement rules allow for the exclusion of companies based in a state that is under investigation by the International Criminal Court for war crimes, crimes against humanity or genocide. [52358/23]
View answer70. Deputy Matt Carthy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if public procurement rules allow for the exclusion of companies that are complicit in war crimes, crimes against humanity or genocide. [52357/23]
View answerI propose to take Questions Nos. 40 and Question No. 70 together.
Legal Provision
Public procurement rules in Ireland are governed by the four principal EU Procurement Directives and corresponding national legislation. The relevant Directives are:
2009/81/EC (defence and security)
2014/23/EU (concession contracts)
2014/24/EU (public contracts)
2014/25/EU (utilities)
For specific indictable criminal offences, mandatory exclusion grounds apply to public procurement procedures under these Directives where a concerned economic operator has been convicted, by final judgment, in a Member State. The procurement Directives specify the list of such offences. These are confined to convictions applied under relevant legislation specific to:
– participation in organised crime
– corruption
– fraud
– terrorist offences or offences linked to terrorist activities
– money laundering or terrorist financing
– child labour and other forms of trafficking in human beings
There is no provision in the Procurement Directives for the application of exclusion measures in relation to war crimes, crimes against humanity or genocide.
Exceptions
The specified mandatory exclusion provisions are subject to exceptions where an economic operator has taken what is termed ‘cleansing’ measures by which it may provide evidence to the public contracting body sufficient to demonstrate its reliability despite the existence of a relevant ground for exclusion.
Where such evidence is considered as sufficient by the public contracting body, the economic operator concerned must not be excluded from the procurement procedure.
The latter would not apply where a final judgment excluded participation in procurement or concession award procedure and for a specified period of exclusion.
Where a period of exclusion has not been set by final judgment, the maximum period for mandatory exclusion does not exceed five years from the date of the conviction by final judgment.
Russian Sanctions
Following the Russian invasion of Ukraine in February 2022, EU Regulation 2022/576 included a prohibition on the award and continued execution of public contracts and concessions with Russian nationals and entities or bodies established in Russia.
Public bodies are prohibited from awarding any contract to a Russian national, companies, subcontractors, entities or bodies established in Russia companies and entities directly or indirectly owned for more than 50% by such persons and any existing relevant contracts were to be terminated.
