Charles Flanagan (Laois-Offaly, Fine Gael) | Oireachtas source

In deference to the Deputies with just 90 seconds, I will start as quickly as possible. I am honoured to deliver my first budget speech as Minister for Foreign Affairs and Trade. I begin my remarks by paying tribute to my predecessor, Deputy Eamon Gilmore, who as Minister for Foreign Affairs and Trade steered the Department through an unprecedented time of economic crisis with a skilful hand on a clearly directed tiller. In particular, the trade aspect of the Department was considerably strengthened during his tenure and the embassy network was reconfigured with a strategic emphasis on new markets. Along with the former Minister of State, Deputy Joe Costello, he helped to stabilise the overseas development aid budget, and the House is grateful for those efforts.

In 2011 the Government introduced a plan to repair the public finances and restore growth to the economy. The huge sacrifices made by the people of Ireland have been crucial in turning the economy around from ruin to growth. Now is the time to solidify the nascent economic recovery and ensure that the benefits of healthy growth in the economy are dispersed so that the recovery is widened, deepened and felt by all. That is what budget 2015 is all about.

In foreign affairs and trade, there is positive news. In 2011, part of the Government’s plan to repair the Irish economy involved a fresh approach to our embassy network and to the State agencies to ensure that these important State resources were positioned to take full advantage of new opportunities in key emerging and high-growth markets, while maintaining our focus on mature markets. As the recovery takes hold, we must continue to deliver maximum overall benefit for the economy, leading to good jobs for our people at home in Ireland. Consistent with this overriding priority, budget 2015 will enable my Department to complete the process of opening five new embassies and three new consulates general in key locations across south-east Asia, Europe, Africa and the Americas. These new missions – not least the new embassies in Bangkok and Jakarta – expand the global reach of our economic diplomacy efforts and strengthen our capacity to advance key national interests in trade, tourism, investment and education promotion. The expansion of the embassy network also takes full account of a new market approach, as provided for in the Review of the Government Trade, Tourism and Investment Strategy published by my Department earlier this year. This provides a more strategic, up-to-date and nuanced direction for Ireland's international trade, tourism, investment and education promotion efforts. It incorporates for the first time markets that may deliver in the long term, while immediate sectoral opportunities exist in some cases. For example, there are food and drink opportunities in Nigeria and education opportunities in Vietnam, supported by our embassy footprint in these locations. Overall, the work of the embassy network is essential to efforts to enhance Ireland's international reputation and drive economic recovery through the promotion of trade, tourism and investment.

That activity makes a difference to Irish farmers, who export vast amounts of food, Irish companies, which depend on exporting to foreign market and all Irish taxpayers, who benefit from a growing economy with a strong export market. The Government has introduced important tax reforms in the budget and has protected our vital 12.5% corporate tax rate, which I know, from discussions I had with a wide range of business leaders I met recently in New York, Washington and Boston, is a significant factor – though not the only one – that makes Ireland such an attractive investment destination for foreign investors.

Our aid programme, the fight to end extreme hunger and poverty and the provision of humanitarian relief in the world are at the heart of our foreign policy. I emphasised the Government’s commitment in this regard at the United Nations in New York in September. I also underlined the importance of political will when I co-hosted the major international meeting on the zero hunger challenge at UN headquarters on 24 September. We have demonstrated our commitment in this budget by ensuring that there will be no reduction in Ireland’s overall official development assistance, ODA. For 2015, we have allocated just over €600 million for ODA. Some €476 million of this will be managed through Vote 27 and an estimated further €125 million will be provided through other Government Departments and Ireland’s share of the EU development co-operation budget. While this will entail a very slight reduction of €3 million - approximately 0.5% - in the allocation under Vote 27, there will be no reduction in Ireland’s overall ODA for 2015.

Ireland has been recognised internationally for successfully stabilising its development budget during the past three years in the aftermath of severe cuts, difficult times and a serious economic crisis. I am of the view that maintaining the budget through the provision of €601 million for Ireland’s aid programme will be seen as a very significant contribution in 2015. The Government’s development policy, One World, One Future, restates our commitment to the target of providing 0.7% of GNP for ODA when economic circumstances permit. My colleague, the Minister of State, Deputy Sherlock, will elaborate further on this matter during his contribution.

A very important part of my Department’s work is the support provided to Irish emigrants overseas. Funding of the emigrant support programme will be maintained at its 2014 level of almost €11.6 million, while an additional €1 million is being allocated in respect of new projects. This support, along with the appointment of my colleague, Deputy Deenihan, as Ireland's first ever Minister of State with responsibility for diaspora affairs, demonstrates our commitment to assist Irish people living abroad. Building and maintaining connections with the diaspora is a priority for the Government and the emigrant support programme is one of the key tools we have for this. It provides funding for community organisations around the world that work with Irish emigrants and their descendants. Since its establishment in 2004, the programme has disbursed more than €110 million to support emigrants and build connections with the diaspora. In 2013, the programme provided funding to 182 organisations in 15 countries. Almost €6.8 million of this went to organisations in Britain, €1.6 million to those in the US, €1.4 million to Ireland-based organisations and €400,000 to Australian community groups.

Since my appointment as Minister three months ago I have visited emigrant support centres in London, New York and Boston. I am impressed by the wide range of support services provided by these centres to many of the most weak and vulnerable in the communities in which they operate. I take this opportunity to place on the record my deep appreciation for the hard work done by the staff of these important centres. While we rightly celebrate the successes of many Irish people around the world, we must not lose sight of those who have not enjoyed that success and who are rendered vulnerable as a result of loneliness, dislocation or other factors. In that context, no one should underestimate the importance of our international welfare projects and programmes.

The House will be aware that very important work is being undertaken by the Government in respect of the peace process. The Secretary of State for Northern Ireland and I have announced our intention to convene all-party talks involving both Governments. These are expected to begin tomorrow in Belfast. I am strongly of the view that the talks are required to overcome the current political impasse within the Northern Ireland Executive, including in the context of importance legacy issues such as parades, flags, identity and dealing with the past. These are commonly referred to as the Haass issues. The objective is to ensure that Northern Ireland's political institutions will not only function but will flourish to the benefit of all, as envisaged in the historic Good Friday Agreement of 1998. While these developments are happening at political level, important work continues on the reconciliation agenda. On a recent visit to Belfast I saw, at first hand, the positive impact of the Government's reconciliation fund in communities across the city and also Northern Ireland. I had the pleasure of meeting many of the hardworking groups involved in reconciliation projects at the annual reconciliation networking forum held in Dublin Castle last month. I am very pleased, therefore, that the reconciliation fund's budget will be maintained at the 2014 level of €2.74 million, despite the ongoing budgetary pressures. This is a strong signal of the Government's commitment to peace and reconciliation on the island of Ireland, as is the allocation of responsibilities in the area of North-South co-operation to my colleague, the Minister of State, Deputy Sherlock. In 2013 the reconciliation fund made grants to more than 150 projects supporting organisations across the community and voluntary sector. These groups are building meaningful links across communities and in Border areas, addressing issues, including sectarianism, and working to create better understanding between people and traditions on this island.

The budget contains much positive news for the Department of Foreign Affairs and Trade. I have focused on four areas of crucial importance which reflect the breadth of my Department’s activities and its current priorities. I will now hand over to my colleague, the Minister of State, Deputy Sherlock.

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