Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I move:

That Dáil Éireann approves, pursuant to section 5(4) of the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019 (No. 18 of 2019), the making of a payment of the sum of €1,500,000,000 (€1.5 billion) in the year 2022 and a payment of the sum of €3,500,000,000 (€3.5 billion) in the year 2023 from the Central Fund or the growing produce thereof into the National Surplus (Exceptional Contingencies) Reserve Fund.

If I may, I will make a brief statement on behalf of the Minister for Finance, Deputy Donohoe. We have seen measures taken by the Government today to deal with the cost-of-living crisis. The budget package is a package of nearly €7 billion. These measures include adjustments to income tax bands and increases in transfer payments such as social welfare and pension rates. Complementing this is a set of one-off measures amounting to €4.1 billion, which take effect from the final quarter of this year and which are in response to the unprecedented cost-of-living crisis.

This motion is under section 5 of the National Surplus (Reserve Fund for Exceptional Contingencies) Act 2019. Following Cabinet approval today, Tuesday, 27 September, I am seeking the Dáil's endorsement for a motion to transfer the sum of €1.5 billion this year and €3.5 billion next year. This is in addition to automatic annual transfers of €500 million already provided for in legislation for each of these years, giving a total transfer of €2 billion this year and €4 billion next year.

The approach of replenishing the reserve fund has been endorsed and is supported by the Irish Fiscal Advisory Council, IFAC, and is supported by the analysis on corporation tax revenue carried out by the Department of Finance. As a Government, we believe it is important we retain a national reserve to combat future problems that may arise. Having this available in the reserve fund can assist the Government with economic shocks that may impact the State and indeed the current economic shock should it persist beyond the spring. Thus we have sought to deal with today's problems while putting aside reserves for the future.

The Government's intention is that by 2023, including the two annual transfers of €500 million, the national reserve fund, which has a ceiling of €8 billion, will be provisioned to the tune of €6 billion. I commend the motion to the House.

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