Dáil debates

Wednesday, 2 June 2021

Ceisteanna ó Cheannairí - Leaders' Questions

 

12:20 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Berry for the questions. First, the €915 million is a grant, not a loan, although the facility exists for Ireland to submit an application for loan facilities as well from the European Union's recovery and resilience facility. I actively supported the creation of a new European Union initiative, the recovery and resilience facility, at the European Council meeting last year. In my view, it is historic and unprecedented, but correct, that Europe would work collectively in a once in 100 years crisis to borrow money to enable Europe as an entity to get through the Covid-19 pandemic. In that context, as a small open economy, we benefit if the European economy is refloated through exporting goods and services to the Single Market and to more than 450 million citizens. That ultimately is what will drive the Irish economy into the future.

The allocation is provided to member states in two stages, with 70% paid in 2021-2022 and 30% in 2023. For 70% of the total €312.5 billion available in grants, the allocation key takes into account a member state's population, the inverse of its GDP per capitaand its average unemployment rate over the five years from 2014 to 2019, all of which are compared to the European average. For the remaining 30%, the formula will replace the 2015-2019 unemployment rate indicator with the observed loss in real GDP over 2020 and the observed cumulative loss in real GDP over the period 2020 to 2021.

Ireland's strong economic performance relative to other countries, plus our population, is the key factor in terms of the amount we have received in grant terms. The recovery and resilience submission is taken as a substitute for the semester process, which is the annual country-specific recommendations issued by the Commission. Ireland has made its submission. The plan has been submitted. It very much reflects the emphasis on the green economy and on digital transformation as key elements.

In terms of the other issues, the Defence Forces built infrastructure programme is in place. It is a five-year plan financed to 2025. On the provision of infrastructure in the Curragh Camp, there are a number of notable projects identified for delivery. The Deputy may wish to note that progression is well advanced on procurement and design of a new cadet school headquarters in the Curragh Camp. It is intended, subject to procurement, to commence construction of this much-needed building as quickly as possible. On upgrade of The Military College, the five-year plan identifies the development of that facility, with a planned construction start in 2025.

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