Dáil debates

Wednesday, 9 October 2019

Financial Resolutions 2019 - Financial Resolution No. 9: General (Resumed)

 

3:55 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

We are in a critical phase of the Brexit process. The European Council meets next week ahead of the rapidly approaching Brexit deadline of 31 October. Despite media speculation - of which there has been plenty, although much of it is inaccurate - this Government has been always clear we want to be helpful and we are willing to consider proposals that might break the impasse. Ireland wants a positive outcome to this process, and we will keep working until the last minute to try to find a way forward. The Taoiseach spoke to Prime Minister Johnson yesterday, and they will meet again tomorrow. I met Michel Barnier last night in Brussels to take stock of the ongoing talks between the task force and the UK. To be clear, Ireland cannot accept a deal that risks undermining the Good Friday Agreement or jeopardises our place in the EU Single Market through unproven solutions or future promises. Michel Barnier reaffirmed clearly yesterday that this remains the EU position also.

Ireland continues to work closely with the European Commission on interim arrangements for the Border in the event of a no-deal Brexit. We have a shared twin objective of avoiding a hard Border on the island of Ireland and protecting the integrity of the Single Market and Ireland's place therein. The UK's current proposals do not form a basis for an agreement. We know that. We need real and honest solutions to avoid a no-deal Brexit and all that will entail for Ireland, the EU and the UK. The UK must match its stated aspirations for a deal with legally operational and credible solutions that are compatible with the withdrawal agreement. The UK proposals of last week were a welcome step forward, but there is more road to travel, particularly in the area of customs. The Government has been clear about the potential cost of Brexit for Ireland throughout this process, particularly a no-deal Brexit. A no-deal Brexit will never be Ireland's or the EU's choice but nevertheless, we must continue to prepare for that outcome.

In preparing budget 2020, the Government was acutely aware of the scale of Brexit's implications and the need to ensure we put in place timely, targeted and temporary measures for the sectors most exposed. Prudence dictated we prepare budget 2020 on the basis of a no-deal Brexit. Overall, the Government has made €1.2 billion available in the event of a no-deal Brexit. Some €650 million will be made available to support the most vulnerable sectors, including agriculture, enterprise and tourism, as well as assisting the workers who will be affected in the most vulnerable regions. Some €355 million will be provided to minimise trade disruption through investments in ports and airports, primarily in infrastructure but also in staffing, including through Global Ireland 2025, enterprise, tourism, farming and competitiveness supports. Some €220 million will be used to provide immediate assistance to firms and enterprises, including farms across the country. This includes new initiatives to assist enterprises to transition and restructure. For some, this will be as they look at new markets and having to potentially change the kind of products they produce. We are providing immediate support for beef farmers and for those involved in fisheries, as Members would expect. We will continue to support food companies to reorientate towards new products and markets, and to support other sectors to improve their competitiveness. Some €40 million has been allocated to the tourism sector for the worst affected regions and new marketing initiatives. InterTradeIreland will receive an extra €2 million to support cross-Border firms, North and South. These measures are in addition to the wide range of supports already in place, including the €600 million for Brexit-related loan schemes. At the same time, the Government has sought to help employers and employees in vulnerable companies to keep them at work. Some €45 million will be provided to support businesses and workers that may face difficulties in the short-term. The national training fund will support tailored training and upskilling for workers. Further funding will be released as the impact on particular sectors and regions becomes clearer. This will allow for targeted measures for the most affected parts of the country when needed.

I recently updated the House on our Brexit preparations, so I will not expand on the full range of steps we have taken to mitigate the risk Brexit poses to our businesses and citizens. Suffice to say the Government will ensure this work will continue for as long as necessary in all Government Departments and State agencies, in tandem with the EU.

I am pleased to have secured an increase of almost 9% in the current allocation to the Department of Foreign Affairs and Trade in 2020, known in my Department as Vote 28. This will support Brexit preparedness in the implementation of Global Ireland 2025 and in continuing to deliver a world class passport service. In June 2018, the Government launched Global Ireland 2025, an ambitious plan which aims to double the scope and impact of Ireland's international presence by 2025. This expansion will deepen our impact across priority regions. It will leverage opportunities to grow our trade and inward investment, it will further strengthen political relationships with our partners and it will enable us to better support Irish citizens and our diaspora abroad. As a small, open economy that depends on a stable international trading system, we are particularly vulnerable to the serious risks now facing the rules-based order that has defined international relations and trade for decades. We cannot afford to underestimate the risks they pose for us, and it is in our overwhelming national interest that we step up our efforts to support the international system on which we depend.

Over the lifetime of Global Ireland 2025, Ireland will open 26 new diplomatic missions. We will also strengthen the existing embassy network. We have made good progress already, with the opening of new embassies in Monrovia, Wellington, Bogotá, Santiago and Amman, and the opening of new consulates in Vancouver, Mumbai, Cardiff, Los Angeles and Frankfurt. This expansion will continue next year with the opening of new embassies in Kiev, Manila and Rabat, creating new opportunities for Irish businesses.

The Government decided Ireland should participate in Expo 2020 in Dubai. This is expected to attract some 25 million visitors over the six-month exhibition period, and is a unique promotion opportunity for Ireland. Our presence at Expo 2020 will offer a global platform to connect Ireland's universities, agencies, businesses and institutions with the rest of the world. It will highlight Irish innovation, support trade and tourism opportunities in the United Arab Emirates, UAE, and the wider gulf region, and strengthen bilateral relations with the UAE, for which Expo 2020 is a major national priority. My Department is the lead Department for this team Ireland project, involving a number of Departments and State agencies, as Members would expect.

The Passport Office has seen a threefold increase in applications related to Brexit in 2019, compared to the pre-referendum baseline. Almost 850,000 passports and passport cards were issued between January and the end of September 2019, an increase of more than15% over the same period in 2018. It is likely the level of passport demand will continue to grow into next year. The implementation of the online channel for adult and child renewals has transformed the passport application process. This award-winning service is a resounding success, with more than 760,000 applicants for passport books and cards processed through the online channel since it was launched in 2017. So far in 2019, 62% of all eligible renewal applications were processed online. This service has already delivered significant savings and efficiencies and improved customer service. For 2020, the Government has allocated almost €838 million for official development assistance, ODA, an increase of just under €21 million on the 2019 budget allocation. Some €551 million will be managed by my Department, with the remaining accounted for through Ireland's share of the EU development co-operation instruments and ODA-eligible contributions from other Departments. This is the sixth consecutive year allocations to ODA have increased and the level of funding is approaching pre-financial crisis levels. We expect ODA, as a percentage of GNI, to be in the region of 0.31%, and next year's figure will be similar to that of this year.

The Government's allocation to ODA has increased by €131 million, or 18.5% in the past two budgets since the Taoiseach and I launched Global Ireland 2025. The Government remains firmly committed to making significant incremental steps toward meeting the Global Ireland 2025 objective of allocating 0.7% of GNI for ODA by 2030.

Ireland is well recognised for our commitment to reducing poverty and vulnerability, our focus on the least developed countries and for reaching those furthest behind first.

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