Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Chair. The strategy set out in the SES also represents an important step forward in how we approach the issue of windfall corporation tax receipts. Across the period 2024 to 2026, €2.25 billion of this windfall will be deployed to support additional infrastructure projects. This form of capital investment will be contingent on windfall receipts remaining at elevated levels and it is intended that investment will be used for projects that can actually be delivered within the time period. The Minister for Public Expenditure, National Development Plan Delivery and Reform will provide more details on this.

We are also very much aware of the risks of using temporary windfalls to fund permanent spending. We are not going to make that mistake. Instead, we recognise that these revenues are temporary. We will take advantage of some of this windfall to build improvements to our economy that will continue to pay dividends long after these transient receipts have fallen away. We are also setting aside some of the windfall to build up our fiscal buffers and ensure that we can face future shocks from a position of strength. Some €6 billion in windfall receipts have been transferred to the National Reserve Fund over the past 12 months. In addition, work is currently well under way on proposals for a new long-term savings fund that will allow us to invest excess tax receipts to prepare for the challenges on the horizon, including the long-term structural pressures from an ageing population, and the digital and climate transitions.

Parallel to that, we are working on proposals for an additional public investment fund to be utilised during an economic downturn. In the past, during challenging economic times, we have had to cut back on capital investment, which has had a negative impact on employment and our future growth prospects. It is intended that this fund will help maintain capital investment during an economic downturn, thus supporting jobs at a critical time, and ensuring that major infrastructural projects are delivered. I intend to bring proposals in this regard to Cabinet over the coming weeks.

The strategy announced in the SES is a roadmap for building on the progress that we have made. It ensures that we have the flexibility to respond as needed to the challenges of today and those we will face in the future. We have come a long way over the past few years, but there are more challenges that must be addressed, and the SES provides a roadmap for how we will do so. I thank the Chair.