Dáil debates

Wednesday, 20 November 2019

Finance Bill 2019: Report Stage (Resumed)

 

4:50 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank Deputies for their contributions. I acknowledge that in much of the engagement leading up to the budget, Deputy Cowen had raised this issue consistently on behalf of his constituents and that, on Committee Stage, Deputy Denis Naughten also raised it on many occasions. I have also heard Deputy Lowry's remarks about his constituents who have been affected.

I had a very small taste of the issues the Deputy's refer to when I visited Lanesboro last week upon the announcement of the change in the licence. I met many of the people who had been working with Bord na Móna and the ESB and who have been significantly affected by this decision. Many of them explained that their grandparents had worked for ESB or Bord na Móna and that they themselves had been anticipating jobs and careers that stretched well into the future. In fairness, while there was a sense that their jobs were changing and that they would come to an end at some point in the future, they were not expecting and they were not prepared for it happening on the basis of the current timeline. This underscored for me a point I made previously to the effect that when we talk about the different effects a change in our economy will bring, we tend to think about it in terms of a change in income for people, for example, as a result of increases in the price of fuel or changes in the price of carbon. Although a change in a person's income is significant, it is far more fundamental when a citizen loses a job or believes that a job he or she was going to have into the future will no longer be available.

Each of the Deputies expressed their concerns on this issue. While I do not represent those constituencies, I am aware of the real anxiety, especially as we approach Christmas, regarding to what will happen. I appreciate that the key issue is not just about the loss of the jobs, it is also the indirect effects of this in the local community, the other employment that was dependent on these jobs, and the effect it will have on the rates base of Offaly County Council and other county councils in the areas mentioned. In the context of what we are going to do, it is my very strong view that the need for a transition - be it the so-called just transition or the simple need and imperative to come up with new work and new jobs for people who will be affected - will claim one third of the revenue raised by the change in carbon pricing. I will play a role in ensuring that the communities mentioned this evening are at the forefront of the planning in this regard. This is why we have looked to put in place a just transition structure within the communities referred to by the Deputies. Mr. Kieran Mulvey will lead this on behalf of the Government. I have had extensive, personal experience of Mr. Mulvey in the work he does, and he is especially strong in working with local communities to address these kinds of issues. I have a lot of faith in his ability to do this.

There are two main reasons I am not accepting this amendment and for asking the Deputy to consider withdrawing it. From an EU regional aid guideline perspective, we are not able to provide geographically targeted tax incentives. If we were to do this, and if we were to go down the route with a move such as proposed in the amendment, there is no doubt that Deputies Lowry, Kenny and others who may have communities affected by the changes, would want their communities' and their towns' names in the tax code. Legally we cannot do that. Even if we could do it, I hope the Deputies will appreciate that if we begin to single out specific communities or towns we would run the risk of the likelihood of every Deputy wanting the same. I have no doubt that in the ensuing debate on the issue in the Dáil and in the relevant Oireachtas committees, our ability to respond back to the changing jobs - as referred to here - will be the key way in which the Government is evaluated in the context of how we use the money that will be raised by means of the change in carbon pricing. I am very committed to playing my part in ensuring that we work hard to find sustainable employment for those who have been affected by the changes relating to Bord na Móna and in the ESB. I know why these semi-State bodies were first set up in these parts of the country in which they are located. I know the needs that exist. Through the change we make in carbon pricing and by means of other policies at the disposal of the Government, we will play our part in trying to come up with a different future for those citizens who have been affected by this licence change.

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