Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I will briefly outline the contents of the legislation. It is a short Bill which is very technical in nature. It has ten sections and one Schedule, containing the text of the 2020 new arrangements to borrow, NAB, decision.

Section 1 sets out the definitions used in the Bill. Section 2 provides for the approval of the terms of the NAB decision and Ireland's adherence to, and participation in, the NAB decision. This also empowers the Minister for Finance to consent to future amendments to the NAB decision on behalf of the State, subject to a Government decision and consultation with the Central Bank.

Section 2 grants the necessary powers to the Central Bank to perform the obligations and exercise the rights arising from Ireland's adherence to the NAB decision and clarifies that any moneys received by the State under the terms of the NAB decision should be directed to the Central Bank. Section 3 of the Bill provides that, in cases where amendments to the NAB decisions are approved by Dáil Éireann, a notice of this approval is published in Iris Oifigiúil.

Section 4 of the Bill provides for a ministerial guarantee to cover the Central Bank's participation in the NAB on Ireland's behalf. This section requires the Central Bank to submit an annual report on the use of ministerial guarantees on the NAB decision to the Minister for Finance. This statement will be incorporated into the annual report on Ireland's participation in the IMF and World Bank which is laid before both Houses of the Oireachtas each year, in accordance with section 10 of the Bretton Woods Agreements (Amendment) Act 1999.

Moving on to the trust funds element of the Bill, section 5 provides for the payment of grant contributions by the Minister for Finance to the IMF's Catastrophe Containment and Relief Trust, CCRT, up to an aggregate total of €50 million. All proposed payments to the CCRT will be subject to a resolution by Dáil Éireann. Section 6 sets out the mechanism by which grant contributions may be made to existing IMF trust funds as well as those yet to be established. As explained earlier, any proposed contribution will require a ministerial order, followed by a resolution of Dáil Éireann. Like the CCRT, payments up to an aggregate total of €50 million may be made to each individual trust fund.

Section 7 amends section 3 of the Bretton Woods Agreements Act 1957 to provide for the payment of grant contributions to the IMF trust funds and to reflect the fact that the "ESAF Trust" has been renamed the "PRGT". Similarly, section 8 amends section 1 of the Bretton Woods Agreements (Amendment) Act 1999 to replace the definition of the "ESAF Trust" with the definition of the "PRGT". It will also amend section 4(5) of that Act to increase the total aggregate amount that may be paid to the PRGT to €75 million. Taking into account the total contributions to the ESAF trust or PRGT to date, this amendment will facilitate further grant payments up to an aggregate maximum of approximately €50 million.

Section 9 repeals section 163 of the Finance Act 2010. This was intended to amend the Bretton Woods Agreements Act 1957 to provide for a borrowing agreement between Ireland and the IMF. As Ireland's 2010 borrowing agreement with the fund lapsed without taking effect, section 163 of the Finance Act 2010 is redundant so a repeal of that section is in order.

Section 10 is a standard section defining the Short Title of the Bill.

We are living through a particularly turbulent time. Having emerged from a pandemic, we are now dealing with the Russian invasion of Ukraine which has brought a new set of challenges for the world as a whole. Multilateral co-operation has formed the basis of the global response to the Covid-19 crisis and will do so again in facing down the unconscionable aggressions of Vladimir Putin.

Multilateralism is also the cornerstone of how Ireland engages with the world. As a small, outward-looking nation, Ireland, throughout our history, has both benefited from and contributed to such international co-operation. Ireland must continue to play an active role in supporting the multilateral system.

Given its key role in fostering economic stability and global growth as well as acting as the de factoglobal lender of last resort, the IMF is a critical part of that system. This legislation, facilitating Ireland's participation in the NAB decision and payments to IMF trust funds, is another important step on Ireland's journey to re-engage fully with the IMF. Moreover, it is a strong demonstration of our commitment to multilateralism and of our long-standing support for the world's poorest people in their time of greatest need.

I look forward to a constructive debate. I commend the Bill to the House.

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