Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Today, I am providing an additional €1.7 billion for 2025 for more homes and schools, for improvements in our hospitals and to tackle climate change. This will include an investment of €400 million in the national broadband plan. Next year, total capital investment will be close to €15 billion, the highest annual spend ever in our country. As we focus on infrastructure and the growing needs of our population, the most fundamental of these is having a home in which to live.

HOUSING

In budget 2025, I am providing over €7.8 billion to the Department of Housing, Local Government and Heritage, including:

- a further investment of €3.2 billion in capital funding to build more homes and address affordability constraints for households, and of this, €2 billion will be available in 2025 to deliver 10,000 new-build social homes;

- €680 million will be allocated to affordable housing schemes, supporting the delivery of 6,400 affordable homes in 2025, and it will also support additional grants under the vacant refurbishment property grant scheme to bring units back into use and turn them into homes;

- an unprecedented €1.65 billion in current funding will continue to support the 64,000 households in active social housing tenancies and will also provide for:

- an additional 7,400 new social homes next year, as well as continuing to support over 38,000 social housing leases already in place, and;

- 10,000 new homes will have their housing needs met under the housing assistance payment and rental accommodation schemes in 2025.

- a further €168 million in funding to support the regeneration of towns and urban areas and to deliver the infrastructure we need to support the growth in their delivery;

- support for specific categories of need are also delivered in this budget, with €23 million being provided to deliver Traveller community-specific accommodation; and

- a further €100 million for grants to adapt the homes of older people and people with disability.

I am also allocating €90 million to retrofit approximately 2,500 social homes in 2025, demonstrating the State’s commitment to help people reduce their energy bills and ensure our country can meet our climate targets.

INFRASTRUCTURE, CLIMATE AND NATURE FUND

In doing this, the Infrastructure, Climate and Nature Fund is one of the funds we have established to manage windfall tax receipts and help us prepare for the future. This fund has two very important roles: first, to ensure we have money to invest during periods when the economy is not doing so well; and, second, to invest in climate transition to prepare for and make happen a greener future. More than €3 billion is being set aside for this second role between 2026 and 2030. We will shortly set out how this money will be invested to provide a clear and consistent signal to those who wish to invest in these ambitions. The allocation process will be subject to further work between myself and the other Ministers. It will be used to support important projects that can assist with the reduction of greenhouse gas emissions, improve our water quality and improve on and deliver our nature and biodiversity objectives. What this will mean in practice is supporting projects that help Ireland to meet our climate and environmental obligations and ambitions, including climate neutrality. This will improve the lives of the people of Ireland. Further details on this proposed approach are set out in documentation published by my Department today.

CLIMATE

It was, therefore, very positive to record a 6.8% reduction in Ireland’s greenhouse gas emissions last year, although we know we need to do more. As we continue to invest in this, we will see further benefits, including warmer homes, less congestion in towns and cities, enhanced biodiversity and cleaner air and water. In support of these goals, capital funding for the Department of the Environment, Climate and Communications has been increased to over €1.14 billion, allowing for record allocations to be made for investment in energy efficiency and renewable energy. Warmer homes funding will reach a record level and is likely to reach more than ten times the funding provided in 2020, which will increase the number of homes benefiting from deeper retrofits. Funding will also support up to half of the cost of energy efficiency upgrades being met by the State, complemented by loans supported by the State. To support our farmers in becoming more environmentally sustainable, over €716 million is being provided next year for those participating in agri-environmental schemes, such as ACRES.

CARBON TAX

Alongside this, the application of our carbon tax remains an integral part of our climate action response as a Government. It will increase by €7.50 per tonne as part of this budget. What this will mean is that it will bring the total carbon tax revenue that is available for investment to €951 million. Half of this amount will go to paying for the improved energy efficiency of our homes, which is an additional €89 million next year compared to this year. In addition, the carbon tax will fund €306 million of social protection spending next year. An additional €44 million for targeted measures, namely, changes to the qualified child payment and an increase to the income eligibility threshold for the working family payment, will ensure that the most vulnerable are protected from unintended impacts of the tax increase.

As we seek to build on this and identify ways to reduce our carbon footprint, one of our clearest avenues to doing this is our transport system.

TRANSPORT

A strong transport system is necessary for our climate ambitions and for our connectivity. A connected Ireland is a forward-facing Ireland. That is why, today, I am announcing €3.9 billion for the Department of Transport, with over €1 billion in current funding and €2.9 billion in capital funding. This will deliver:

- more capacity on the public transport routes we have;

- ongoing investment of almost €1 million per day in cycling and walking infrastructure;

- continuation of temporary fare reductions on public transport to the end of 2025, including the young adult card for 19 to 25-year-olds and the 90-minute fare;

- free public transport to be extended to children aged five to eight years of age; and

- a new and modern Coast Guard search and rescue contract.

Additionally, I am pleased to announce that a financing agreement has been reached between the Port of Cork and the Ireland Strategic Investment Fund to extend the port’s quay-side berth at Ringaskiddy.

This agreement, a €99 million financing package, will allow the Port of Cork to develop the multi-purpose infrastructure that can help to meet the needs of the offshore renewable sector. It will be and is a significant milestone in our ongoing commitment to deliver a greener and more sustainable future.

AGRICULTURE, FOOD AND THE MARINE

A key driver of that greener future will be our agrifood sector, a driving force that supports communities across the country. This is why I am allocating over €2 billion for the Department of Agriculture, Food and the Marine for next year. This shows the broad support of the Government to all the sectors, ensuring that we support our farmers, fishers and foresters. This is because the agrifood sector is a core part of our rural communities and our largest indigenous industry. Budget 2025 will support an innovative and sustainable sector that enriches our biodiversity, protects our landscapes and contributes to our economy. It will provide additional funding for a range of supports across sectors, including: €30 million for a new tillage scheme to support farmers to plant their field crops; €10 million for animal health measures improving biosecurity; €22 million for the continuation of the national sheep welfare scheme into next year; and €8 million to enhance payment rates on the national beef welfare scheme.

Some €143 million of carbon tax funding will be provided to the Department of Agriculture, Food and the Marine. This will help to continue to support our farmers as they work to improve our biodiversity, climate, air and water quality. This Department will also administer over €1.2 billion of EU funding in direct payments to farmers.

RURAL AND COMMUNITY DEVELOPMENT

This Government believes that the development of sustainable communities is necessary to drive enterprise growth, increase remote working capability and also, and most importantly, to support our people in growing and flourishing. I am providing €472 million for the Department of Rural and Community Development. This will help deliver important commitments set out in Our Rural Future and the national development plan and will promote social inclusion in both urban and rural areas. The Department will have total capital funding of €235 million in 2025 to support the revitalisation of rural Ireland through schemes including the rural regeneration and development fund, the LEADER programme, the town and village renewal scheme, the outdoor recreation infrastructure scheme and the CLÁR programme.

ENTERPRISE AND SKILLS

Our ability to fund these schemes and all else in this budget depends on a growing economy. The enterprise sector lays the foundations for economic growth, our well-being in the future and our prosperity. We must also recognise the difficulties businesses have been facing. To support them we are investing over €1 billion in the Department of Enterprise, Trade and Employment’s jobs and enterprise development, innovation and commercialisation and regulation programmes in 2025; capital funding to enable IDA Ireland and Enterprise Ireland to provide additional environmental aid to their clients; and almost €7 million in additional funding to the Department’s regulatory bodies and agencies.

Recognising that rising energy costs continue to have an impact for hospitality and retail businesses, I am today announcing an energy subsidy scheme for these businesses, worth €170 million. This will provide support to approximately 39,000 firms.

FURTHER AND HIGHER EDUCATION, RESEARCH, INNOVATION AND SCIENCE

This budget will also provide over €4.5 billion to the Department of Further and Higher Education, Research, Innovation and Science. This is a further demonstration of the Government's commitment to investing for our future.

NATIONAL TRAINING FUND

In my budget speech last year, I spoke about the role of the National Training Fund in providing vital funding for skills and lifelong learning and I committed to further work on how we can build on this opportunity. As the House knows, the fund is in surplus due to the growth in the numbers at work and also the increased contribution employers are making through their PRSI receipts.

Today, I am announcing an almost €1.5 billion package over a six-year period to 2030, comprising both current and capital investment to better fund research, further and higher education, skills, development and decarbonisation. This multi-annual commitment will include an increase in core funding to higher education by €150 million per annum. The main focus of this will be on meeting the funding requirements of our universities, as set out in the Funding the Future framework. This in turn will deliver additional healthcare and veterinary places under the expressions of interest expansion programme and an increase in certain PhD stipends.

The funding for further education will support: €78 million for the continued growth of our craft apprenticeship system, a system that is vital to the future growth of our economy, and will provide 6,800 apprentice registrations in 2025; skills requirements in micro, small and medium-sized enterprises to build business for the future, as well as upskilling for the community, voluntary and social enterprise sector; and the development of construction and the talent we need for a greener future in providing the people and skills to address Government priorities, such as Housing for All and the climate action plan.

SAFETY AND SECURITY

JUSTICE

This Government is committed to building stronger, safer communities. With this in mind, I am announcing a package of over €3.9 billion for the justice sector. The record allocation available for next year will allow for a significant increase in funding for the Irish Prison Service, with recruitment of up to 350 additional staff and investment in areas such as prisoner care and rehabilitation; recruitment of a further 1,000 gardaí and up to 150 Garda civilian staff; a significant expansion in the international protection processing system, providing 400 additional staff in this area; and an additional €7 million for organisations providing supports to victims of domestic and gender-based sexual violence.

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