John Lahart
Question:226. Deputy John Lahart asked the Minister for Finance the main policy achievements of his Department since 27 June 2020; and if he will make a statement on the matter. [56109/23]
View answerThursday, 14 December 2023
Questions (226)
Written answers
Since the formation of the Government on 27 June 2020 the Department of Finance has delivered a number of policy achievements which include;
Budget 2021, 22, 23 and 24
The unforeseen challenges of Ukraine, the ongoing recovery from the pandemic and the continuing fallout from Brexit were addressed from a position of strength with record levels of employment and a budget surplus.
Covid 19 related support schemes
The range of unprecedented proactive and pro-cyclical interventions to support the economy during the pandemic, all of which were made possible by the prudent management of the public finances in the pre-Covid years.
International Tax Reform
The agreement reached by Ireland with approximately 140 other jurisdictions in 2021 represents an important step towards resolving the issues brought about by the digitalisation of the economy and is intended to provide certainty for multinational enterprises whose business models are so important for the Irish economy. There are two pillars to this agreement. The EU Minimum Tax Directive will be implemented through the Finance (No.2) Bill 2023 making good on Ireland’s commitment to deliver Pillar Two of the OECD agreement. Ireland welcomed the publication of the Multilateral Convention (MLC) by the OECD, demonstrating the substantial progress made on all aspects of Pillar One. I look forward to the opening of the MLC for signature in due course.
Retail Banking Review
Government approved the publication of the Retail Banking Review in 2022 and the implementation of its 34 recommendations, which are now Government policy. A key issue identified by the Retail Banking Review was access to cash, both the ability to withdraw and deposit cash, and a number of recommendations address this. There is a dedicated team in place working on this issue that is currently developing legislation and preparing heads of bill, which I expect to bring to Government for approval to draft shortly.
Another related issue was a recommendation for the Department to lead on the development of a National Payments Strategy (NPS) in 2024 that will take account of the changing landscape and determine how best to adapt to it as per the terms of reference I published in June this year. The NPS will also take account of the EU legislative landscape including the shortly to be adopted instant payments regulation and the proposals on payment services, the digital euro and legal tender. The NPS is also looking at how to tackle fraud domestically and the acceptance of cash by both the private and public sectors. A public consultation will be issued shortly.
Funds Sector Review
A review of the Funds Sector commenced in 2023. “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets” is a wide ranging review of an important part of the financial services sector, both in Ireland and globally. A public consultation has been conducted and the review is due to report in Summer 2024.
Ireland for Finance Strategy
Action Plan 2023, the first action plan under the Update to Ireland for Finance strategy, was launched in March 2023 and contains 12 priority action measures. Priority themes are sustainable finance and digital finance and fintech.
In addition to these highlights, the Department has worked collaboratively on achieving positive results across the Divisions on policies in Economics, Climate Finance, EU and International Affairs and Financial Services. More details on these achievements are available in the Department’s annual reports for 2020, 2021 and 2022 and are available on the gov.ie site. These provide more information on initiatives such as Insurance reform, the selling down of the State ownership in Bank of Ireland, PTSB and AIB and the Credit Union policy review as well as on annual events, such as the National Economic Dialogue.
Work will shortly commence on the Department’s 2023 annual report which will be published and available on the gov.ie website. Further detail on the strategic framework that underpins my Department’s policy objectives for the years 2023 to 2025 is available in the Department of Finance Statement of Strategy 2023-2025 on the gov.ie site.