Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This is a very important Bill. We support the Government's decision that Ireland become a member of the bank and the fund. This is a €100 million commitment over eight years, split between capital, called-in capital to the bank and the contribution to the development fund, amounting to €12.4 million per annum. This is much more than a monetary commitment. It is important that Ireland participate actively in various multilateral institutions particularly in the area of international development. We are already a member of several international development banks, including the International Monetary Fund, IMF, the World Bank, the European Bank for Reconstruction and Development, EBRD, the European Investment Bank, EIB, the Council of Europe Development Bank, the Asian Development Bank and, most recently, through the legislation passed in this House, the Asian Infrastructure Investment Bank. The decision to become a member of the African Development Bank and fund is in line with those commitments.

It is an opportune time to acknowledge the incredible work of many Irish missionaries in Africa down the years and which continues to this day. The selfless dedication and work of many members of different religious orders from Ireland over many years in Africa has been quite astounding. It is important to acknowledge that and express our thanks for that work.

The fact the African Development Bank emphasises issues such as climate change, agriculture and nutrition, fragile states, economic development and job creation makes it worthy of support. Our shareholding will be modest, coming in at just under 0.8% of the overall share profile of the bank. We will be one of a growing number of European countries which will be members of the bank and fund. It is important that the objectives of the bank and the fund are consistent with the sustainable development goals we have signed up to through various international commitments. It is important that Ireland's voice and that of the European Union are heard positively ensuring that the sustainable development agenda is to the fore when the board of directors of the bank make decisions on where to invest funds and what types of project to invest in.

The terms of the Bill are straightforward. We will participate fully on Committee Stage in the analysis of the Bill to make sure it achieves the objectives as set out. There is a trade dimension to Ireland's business relationship with Africa. It is a growing relationship as Irish businesses look to diversify their presence in different markets, not least against the backdrop of Brexit, which remains uncertain, although we welcome reports of an agreed text between the EU and the UK negotiating teams in recent hours. There are, however, several hurdles to be crossed before there is a workable agreement that avoids the type of disruption we do not want to see affecting the Irish, UK and European economies.

In 2017, according to information provided by the Oireachtas Library and Research Service, the total value of Irish exports to Africa was €1.42 billion, with imports to Ireland worth €601.3 million. The main export markets in Africa for Ireland are first, Nigeria, worth €280 million, second, South Africa, worth €243 million, and then Egypt, Morocco and Algeria.

There will be further opportunities. Reputationally, Ireland's membership of and participation in this bank and the African Development Fund will enhance the opportunities available to Irish firms to develop trade links further in the period ahead. That is very welcome.

The Minister of State is saying that, in respect of additional calls of capital that may be required, the prospect of the estimated €600 million ever being called in is negligible. He used the term "negligible". It is important, of course, that we assess properly the likelihood of this and make sure we are protected by way of our Exchequer contribution. This bank will operate very much in a similar way to the other international development banks to which Ireland is currently party. Our Minister will be a governor of the bank and will attend the AGM once a year. Ireland will be participating, presumably on a rotational basis, as part of a constituency of non-African member states to share the director role. As a result, there will at some point be an Irish director for three years, renewable for one term. I am sure the Government will seek to ensure we have representation that is proportionate to the contribution and commitment we are making to this initiative.

The contribution we are making is reckonable in terms of Ireland's ODA commitments. There is an arguable case in either direction on that front because it is not ODA in the traditional sense, but I acknowledge the work of this bank can contribute very significantly to economic development within Africa. This, of course, is a goal of the Government. The definition of ODA is evolving. We have to continue to examine ways of expanding our influence in favour of the type of model we believe works and will work in Africa, such that countries there can continue to explore opportunities to develop their economies and build trade links with other countries, taking account of the vast size of the continent and its diversity along so many metrics.

I will not elaborate beyond that. The Fianna Fáil Party supports this legislation. It is a demonstration of Ireland's commitment to participating in organisations internationally that focus on development, particularly sustainable development. We need to ensure that agenda is pursued in the operational decisions made by the bank. We are making a modest financial commitment up-front but it is an important one. It will enhance Ireland's reputation and its presence on the continent of Africa. It will open doors and create opportunities for further business and trade links to be developed, which is in the common interest of Africa, Ireland and the wider European Union.

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