Thomas Byrne (Meath East, Fianna Fail) | Oireachtas source

I thank both Deputies for the questions. Deputy Brady's question on the national recovery and resilience plans is very helpful. With the greatest respect, I have to say that there has been a lot of confusion about this issue today. To obtain the grants, member states are required to prepare national recovery and resilience plans setting out their reform and investment agendas for the years from 2021 to 2023. Plans can be adapted in 2022 in advance of the final allocation of funds in 2023.

The criteria for these plans, and ultimately for grants, will be the country-specific recommendations made under the European semester process. People have mentioned the European semester process as a sort of bogeyman. It is clear to me that, with the exception of Deputy Harkin and Deputy Haughey, nobody has read the European semester recommendations for Ireland for 2020. If they actually read them, Members would be very pleased to see what the money will be spent on. We will be required to put forward a plan that is consistent with those items, which have been recommended by the European Commission. We need to invest in the resilience of our healthcare; preserve employment and address the social impact of the crisis; focus on research and development; ensure liquidity provisions and the stability of the financial sector; preserve the Single Market and the circulation of goods and services; emphasise social and affordable housing; address the digital divide, particularly in education; pursue public investment priorities like public transport; and as noted by Deputy Harkin, step up action on aggressive tax planning. Who could be against this? This is where positivity around the grants and what they will be spent on can be found. The misrepresentation of what these grants will be spent on is very unfortunate.

I have already gone through the details of the CAP budget and noted the modest increase in current prices. Deputy Brady has made a fair point about the costs Ireland will undertake. He had a fair point about my being on the radio at 8.15 a.m. yesterday when the deal had been concluded within the previous two or three hours. As Deputy Haughey has said, I was not there because of a decision we had taken. Normally the delegation would have 20 members, including the Taoiseach. This time it had three, including the Taoiseach. Our contributions to the EU budget are projected to increase considerably in the coming years as a result of our economic growth. Irish contributions are expected to rise from about €3 billion in 2021 to more than €4 billion in 2027. However, the exact contributions to the repayment of Next Generation EU borrowing are yet to be determined. They will also depend significantly on what own resources arrangements are agreed. It is not possible to give an accurate overall figure until we make a decision on own resources at European level.

One thing that is clear is that recovery funds are needed now. It is really important to remember that Ireland has benefited greatly from EU membership in economic terms. The pharmaceutical jobs in Deputy Brady's constituency and any small or medium-sized enterprises that export to or depend on imports from the Single Market all depend on a strong Europe. Deputy Brady's constituents who work in those firms depend on Europe having its act together, as it did this week. That applies to the pharmaceutical industry in Clonmel and to the industries in Deputy Healy-Rae's constituency in Kerry, including Kerry Group, one of our largest exporters. That industry is absolutely dependent on a good Single Market. The same is true for the tourism industry. It depends on Europe doing well so that its tourists come and spend their money here. The benefits are wide-ranging. We cannot simply think in terms of the figures for what we contribute and what we get back. We have got back a hell of a lot more than we will ever put in. We benefit hugely from this.

Deputy Haughey raised the issue of own resources, and that is an important point. It has been clearly set out that there will be a plastics tax levy as a first step and there is a new own resource based on the weight of non-recyclable plastic packaging waste. That will be introduced next year. The European Council has also asked the European Commission to bring forward proposals on a carbon border adjustment mechanism and a digital levy. Any decisions on own resources would have to be made on the basis of unanimity, which means we would have a veto.

The issue of a digital tax was raised. This is a global issue which we believe needs an international solution. We support the work being done in this regard at the Organisation for Economic Co-operation and Development, OECD. We are committed to examining these issues but, in general, we are sceptical in regard to own resources.

I answered Deputy Haughey's question on the rule of law in my response to Deputy Harkin, but I will emphasise that we do support the rule of law. It is true to say that we would have preferred a stronger measure in this regard, but the provision that is there is strong enough, allowing the Commission to propose measures in case of breaches of common European values that affect the budget. The Council can adopt those proposals by qualified majority, which means nobody will be able to veto them, and they are absolutely crucial. I make this point at the General Affairs Council when talking to my European colleagues. It is a huge issue and there is widespread annoyance and, it has to be said, revulsion in some quarters at the breaches of the rule of law in parts of the European Union. That has to stop. We must not only send out a clear message that we do we not agree with what is happening but we must also show by example how the rule of law has applied in this State since the Civil War, to everybody's benefit, where there is respect for democracy, human rights, the courts system and the Garda. That has helped us economically and socially. Citizens of other member states can see that and we need to lead by example in this regard. I certainly support what Deputy Haughey said on the matter.

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