Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Department of Education will work closely with schools and other stakeholders in the coming months on the implementation of this major reform.

In recognition of the ongoing impact that Covid-related school closures and disruption has had on our school system, I am providing funding for the continuation of the enhanced summer programme for a further year, along with other well-being and inclusion supports.

FURTHER AND HIGHER EDUCATION, RESEARCH, INNOVATION AND SCIENCE

Investing in our further and higher education and research sector is priority for the Government and is essential if we are to maintain a modern, knowledge-based and innovative economy. Next year, I am allocating €3.9 billion to this sector. Reflecting its vital role, I am providing €150 million in additional funding over this year and next year to strengthen the financial position of the higher education and to help ensure its long-term sustainable funding.

In order to deliver on the Housing for All and climate action plans, we need to invest in skills through apprenticeships and further education and training. I am providing funding for 2,500 additional apprenticeship places and 4,500 registrations. I am also providing more than 11,000 upskilling and reskilling opportunities for those sectors most impacted by Brexit and over 2,000 Skillnet places in sustainable finance, green technology and climate change.

ENTERPRISE

A strong enterprise base is fundamental for the success of any economy. Today, I am allocating an additional €36 million to the Department of Enterprise, Trade and Employment to support investment in areas such as digitalisation and the green economy.

Our businesses must be innovative to avail of the opportunities of tomorrow and continue to drive growth. Today’s budget will enable Enterprise Ireland to enhance its science and technology programmes. It will also allow further calls to take place under the disruptive technologies innovation fund.

The work of the IDA in attracting foreign direct investment to Ireland has led to the creation of many high-skilled and well-paid jobs. This budget will support the IDA property programme and investment in advanced manufacturing facilities.

The micro and SME community are the backbone of the economy, providing employment in every town and village in our country. Increased funding for local enterprise offices under this budget will deliver on the programme for Government commitment to expand the current service provision to those companies with more than ten employees. It will also allow for the continued roll-out of the energy efficiency scheme for small firms.

In addition to the temporary business energy support scheme announced by the Minster, Deputy Donohoe, today, the Government this morning approved a Ukraine enterprise crisis scheme worth €200 million for firms operating in the manufacturing or internationally-traded services sectors or both.

DELIVERING ON THE NATIONAL DEVELOPMENT PLAN

This Government remains committed to delivering the €165 billion national development plan. In overall terms, more than €12 billion will be made available next year for vital infrastructure investment across Ireland. To safeguard the delivery of key projects, I announced changes to the public works contract during the year to meet the challenge of rising energy and construction material costs. In addition, my Department is continuing to engage with the construction sector to increase digital adoption and establish cleaner, greener and more modern methods of construction.

CLIMATE ACTION

We stand at a crossroads in global affairs. Along with our European neighbours, we are in the midst of what is certainly the greatest crisis in global energy markets since the 1970s and, perhaps, ever. If there is one silver lining to this, it is that there is broad agreement on the solution to the crisis. We need to reduce our dependence on energy imports, particularly from Russia, by becoming more efficient in how we use energy and especially by accelerating the shift to renewable energy in line with our existing climate goals.

Making progress will, of course, require additional investment. That is why I am providing €850 million in capital investment to the Department of the Environment, Climate and Communications next year, €337 million of which will go towards grants for energy efficiency. This will fund over 37,000 home energy upgrades including upgrades for households in, or at risk of, energy poverty through the warmer homes scheme. This is the highest funding ever commitment to energy efficiency. Alongside the grant supports that will be available, funding will also be provided to support the introduction of a new low-cost loan scheme for residential retrofitting.

THE CARBON TAX

As set out in the programme for Government, every additional euro raised in carbon tax will be returned to the people of Ireland through energy efficiency upgrades, social protection schemes to protect the most vulnerable and measures to incentivise farming in a more environmentally-friendly way. An additional €211 million will be made available next year, bringing the total carbon tax revenue available for investment to €623 million. Almost half of all funds raised by the carbon tax will be invested in improving the energy efficiency of our homes.

Targeted social welfare measures will also be undertaken. These include an increase to the qualified child payment and increases to both the thresholds for eligibility for the working family payment and the means limit applied to determine eligibility for fuel allowance. The total investment in these three measures alone is estimated at €57 million. This will be part-funded by carbon tax receipts. In total, the carbon tax will fund €218 million of social protection spending next year.

Some €81 million in carbon tax funding will be provided to the Department of Agriculture, Food and the Marine next year. This increased funding will be used to fund the new agri-climate rural scheme detailed in Ireland’s Common Agricultural Policy, CAP, Strategic Plan 2023-2027. This will support up to 50,000 farmers who undertake actions that will support improved outcomes on biodiversity, climate, air and water quality.

TRANSPORT

The NDP sets out national investment priorities for the transport sector up to 2030. I am allocating €3.5 billion inclusive of current expenditure to the Department to support the delivery of a range of projects next year.

I am allocating €2.6 billion of capital funding to transport. This represents the highest level of capital investment since 2008. This will help us to progress key transport infrastructural projects, including BusConnects, MetroLink and the DART+ programme. This investment in our transport network, the reductions announced in passenger fares and the continued roll out of electric vehicle grants will assist us greatly in meeting our ambitious climate targets.

BROADBAND AND COMMUNICATIONS

As well as offering educational and recreational opportunities to rural Ireland, the national broadband plan provides households throughout the country with the ability to take up remote work. The implementation of the plan has passed 75,000 households, with funding of €217.5 million allocated for next year in order that we might reach a target of up to 185,000 households by the end of 2023.

RURAL AND COMMUNITY DEVELOPMENT

The importance of having a strong sense of community was never more evident than over the past two years. Now, in the aftermath of the worst of the pandemic, the emergence of the hybrid working model has reinvigorated many rural communities. Connectivity, through rural connective hubs, as well as connecting rural communities through transport services, is vital to keeping our rural communities alive and giving them the opportunity to thrive.

The Government continues to be committed to our rural communities, and so I am providing an investment of €390 million for rural and community development. This funding will help deliver on key commitments set out in Our Rural Future and the NDP, as well as an inclusive and regionally balanced recovery and remote working capabilities.

In addition to the core funding for next year, I am providing €11 million for the continued response to the Ukrainian refugee crisis at community level to help integrate arrivals from Ukraine into local communities.

Recognising the increased cost of living for all sectors, €10 million is being provided directly to the Department for immediate supports to community groups to assist in managing increased costs.

AGRICULTURE, FOOD AND THE MARINE

Agriculture is arguably the most important sector to our rural economy and is centred at the heart of many towns and villages across Ireland. Today, I am allocating €2.14 billion for the Department of Agriculture, Food and the Marine for next year, an increase of €283 million on the 2022 allocation. Next year, 2023, will be an important year for the sector, with the commencement of the new almost €10 billion CAP strategic plan for the period 2023-27. More than €500 million of the allocation will further strengthen the sustainability of Irish agriculture and drive the sector’s climate ambitions.

The agrifood sector is an important contributor to our rural and national economy. In recognition of its exposure to the potential adverse impacts of Brexit, I am allocating €238 million from the Brexit adjustment reserve for measures to alleviate the impact of Brexit on the sector.

In line with the undertaking in the programme for Government’s on carbon tax, the 2023 portion of the carbon tax funds for agriculture is included in the allocation for the new ACRES agri-environmental scheme as part of the CAP strategic plan.

JUSTICE

I am providing an additional €150 million for the justice sector in 2023 to enable continued investment in existing services and new measures.

High-visibility policing is crucial to making sure that communities across the country are safe and feel safe. That is why we need to continue to strengthen An Garda Síochána, which protects and serves us. I am pleased to announce today that funding is being made available to recruit a further 1,000 gardaí into the Garda college next year. An additional 430 Garda civilian staff will also free up more front-line gardaí for core policing duties. A new recruitment campaign next year will also help us guarantee that 200 new recruits will enter Templemore every three months over the coming years. In addition, a €5 million increase in the overtime budget for An Garda Síochána, to over €100 million, means that gardaí will be deployed, as needed, to tackle crime and antisocial behaviour in our communities.

Funding for justice also supports the delivery of an ambitious five-year programme of reform to address service demand and support the establishment of a new statutory agency for domestic, sexual and gender-based violence.

Additional funding is also provided for the establishment of the new gambling regulatory authority; further implementation of the youth justice strategy; the community safety and innovation fund; the courts modernisation programme; and additional staffing and operational supports for the Irish Prison Service and the Data Protection Commission.

DEFENCE

Defence will receive a significant increase in investment of €67 million in 2023, to nearly €1.2 billion. This year, the Commission on the Defence Forces recommended transformational changes to Ireland’s defence organisation. This allocation will include pay and allowance enhancements for serving members of our Defence Forces, the establishment of new transformation posts to lead this change and the provision for the recruitment, training and support of a projected 400 additional members of the Permanent Defence Force next year.

The capital allocation for defence will increase by €35 million, or 25%, to €176 million. This is a step change in capital funding for defence, and will be used to prioritise the development of a primary radar capability to secure our airspace and upgrades in force protection and Defence Forces infrastructure projects.

FOREIGN AFFAIRS

Next year will be the 50th anniversary of the Government’s development programme, Irish Aid. I am very pleased that we will mark this anniversary by increasing total support for official development assistance, ODA, to over €1.2 billion in 2023, an increase of €177 million on 2022. The overall increase includes an additional €100 million for Irish Aid, representing a 17% year-on-year increase.

We are resolute in our solidarity and support for the people of Ukraine against Russian aggression. Some €75 million of the increased funding for ODA in 2023 will be to provide a response to the humanitarian needs within Ukraine and its immediate neighbours, as well as a response to the wider food security consequences of the invasion, most notably in Africa and parts of the Middle East. In view of the urgent need, I am allocating a further €30 million to the Department of Foreign Affairs this year. This funding will be used to provide additional humanitarian assistance for victims of the devastating food security crisis in the Horn of Africa.

TOURISM, CULTURE, ARTS, GAELTACHT, SPORTS AND MEDIA

The tourism, culture, arts, Gaeltacht, sports and media sectors are progressing through the post-Covid pandemic recovery phase. With the easing of restrictions, attendance and participation rates have improved, though they remain below pre-Covid levels. I am conscious of the need to provide support again next year for these sectors. Therefore, as well as providing an additional €45 million in core funding to support them, I am also providing temporary funding of €90 million to help consolidate their recovery from the pandemic.

In the Department’s overall allocation of over €1.1 billion, I am providing: €15 million for Fáilte Ireland initiatives; an overall allocation of €130 million to maintain the Arts Council’s level of funding in 2023; €1.25 million to support Irish as a living language in the Gaeltacht communities; and €4 million for high performance athletes to prepare for the Olympics and Paralympics in 2024.

OUR SHARED ISLAND

Next year will mark the 25th anniversary of the historic Good Friday Agreement. Based on the simple idea of co-operation between those of different backgrounds and faiths, it has been pivotal in bringing peace and reconciliation to this island. Much progress has been made in those 25 years and this Government continues to deepen connection and co-operation across the island of Ireland. To deliver all-island projects, the Government is allocating €100 million to progress the shared island fund and has committed to allocating €500 million of NDP funding out to 2025. We are progressing major cross-Border infrastructure projects, such as the Ulster Canal, and a new generation of investments to help address shared challenges and opportunities on an all-island basis.

I look forward to the implementation of the forthcoming PEACE PLUS North-South co-operation programme. Jointly supported by the European Union, the Irish and British Governments and the Northern Ireland Executive, PEACE PLUS represents a record €1.1 billion cross-Border investment in support of shared peace and prosperity on the island of Ireland.

EU FUNDING

Next year will also represent 50 years of Ireland being a part of the European Union. Ireland benefits significantly from this shared community of now 27 member states and access to almost 450 million people in the Single Market.

Recent years in particular have highlighted the importance of the solidarity of the European family of which we are part.

As the member state most directly impacted by Brexit, the €1 billion of funding reserved for Ireland from the Brexit adjustment reserve was very much welcomed. This is the largest single allocation for any member state and it is continuing to help counter the adverse economic and social consequences of Brexit.

The recovery and resilience facility, under which Ireland is set to receive almost €1 billion in EU funding over the period to 2026, supports all member states in mitigating the impacts of the pandemic. This funding will allow Ireland continue on our path of an equitable, green and digital recovery.

We will also receive €1.4 billion in cohesion policy funding for the 2021 to 2027 period. When this funding is co-financed at a national level, it will mean cohesion policy programmes add a total of almost €3.5 billion to the economy.

EXPENDITURE REFORM: MEASURING EXPENDITURE IMPACTS, VALUE FOR MONEY AND SUSTAINABLE PUBLIC SPENDING

With the scale of expenditure I have just outlined comes increased responsibility to target resources to create the most impact and to ensure value for money. There are a number of reform agenda initiatives that my Department is progressing. Performance and equality budgeting, and, increasingly, well-being and green budgetary elements are core to the budget process. Our spending review papers provide extensive policy analysis and evaluation on a diverse range of public spending areas, supporting evidence-based decisions.

Our reform initiatives are also continuing to ensure the robust, transparent and considered oversight of public funds through key reforms to the public spending code aimed at strengthening our approach to capital expenditure management through an external assurance process and a new major projects advisory group that supports Departments, including my own, in outlining the merits of a project. Building on this, my Department is currently working with the OECD to update our public spending code framework to ensure that it is robust in the face of changing priorities and to ensure that it takes appropriate account of the climate and environmental impact of the investment decisions that we make.

CONCLUSION

This past year has seen restrictions lifted and, for the most part, life has returned to much how it was before the pandemic. In that, there is a lot to be thankful for, including our health, our freedom and the strong bounce-back in the economy, but we now face new, serious challenges.

This budget seeks to strike the right balance with a range of targeted measures to help those most in need, with universal supports and investment in our long-term policy objectives.

This is a time of great change, and no little turmoil, across the world. I have no doubt the spirit of the Irish people will see us through. Our message to the people is clear. As a Government, we will do the very best we can to support them in the weeks, months and years ahead. I hope that, taken in the round, this budget shows our good faith to work with people and for people.

Our shared hope has been the bedrock of our resilience over the past three years. We have overcome so much in such a short space of time and together we will do so again.

As Seamus Heaney once expressed, "Hope is not optimism, which expects things to turn out well, but something rooted in the conviction that there is good worth working for."

A better and a fairer Ireland is a good we will continue to strive for. I commend this budget to the House.

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