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

My thanks to the Deputies for the questions they have raised. I will begin with the point that was brought to me by Deputy O'Donnell on how money from the European recovery fund will be allocated. The European Commission will perform an independent assessment regarding how countries have been affected by Covid-19. I would expect that included in the criteria will be the mortality levels within particular countries, the level of income those countries have per head of population and any fall across that period.

The Deputy raised the maternity leave point and again I indicate my understanding of why this is an issue. As I have said, we are looking at a number of avenues with the matter.

Deputy Peter Burke mentioned interest rates but neither I nor the Central Bank is in a position to determine or set interest rates. Interest rates are high in existing contracts for mortgages for many different reasons. One is our historical position with non-performing loans and another is the level of capital that many of our banks must hold currently, which is very different from the European norm. I have emphasised the point in the past, and I have seen progress on it, that new loans offered should be at interest rates that are more competitive. There has been some experience of that happening.

To respond to Deputy Joe Carey's comments, I absolutely understand the role of aviation as a catalyst for economic recovery and as part of that, I understand the role of Shannon Airport. In a previous role as Minister for Transport, Tourism and Sport, I had the opportunity to meet its representatives on many occasions with Deputy Carey. I will work with him and his group on the role of different airports. The Deputy is aware, for example, of the announcement recently made by Dublin Airport Authority. This is a sign of the challenge that many airports are facing. We will have to see if there is a way of working with the sector as a whole or with those State airports in their entirety to see how they can be supported as we look at how our country is reopened in the coming weeks, months and beyond.

The Deputy mentioned the high rate of income tax for overtime payments for nurses and I absolutely understand why the point was made. I concur with him in recognising the major contribution being made by nurses in hospitals day and night. I hope he understands, however, that I cannot single out any particular public servants, no matter how much I value them, for additional tax treatment compared with others. We will enter a period, as our economy recovers, when we will need to be very careful about how we manage money to ensure it is used in the most effective way. I understand why the Deputy is making the point and I absolutely share his appreciation for the work done by nurses.

I understand Deputy Carroll MacNeill's point on the maternity leave issue and I have indicated to the House that I am aware of it. There was also the point on the recovery fund and my expectations of what will happen with deficits across Europe in future. As we work our way through this Covid-19 crisis, the deficits for 2020 of every member of the European Union are increasing very quickly. Over time, for reasons related to the financial markets and the gradual normalisation of the budgetary framework of the European Union, I expect those deficits to fall. The pace at which they will fall is currently unclear as we are still unclear about where we stand with Covid-19 and public health in Europe. It is the safest route for Ireland to have a credible pathway for reducing our deficit once we regain our public and economic health. It is in our interests to do that but for 2020 it is already clear, as I mentioned to Deputy Michael McGrath, that we will deliver a very significant deficit for the year.

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