Dáil debates

Tuesday, 23 May 2023

Ceisteanna - Questions

Economic Policy

4:20 pm

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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15. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [21423/23]

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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16. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22440/23]

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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17. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22445/23]

Photo of Mick BarryMick Barry (Cork North Central, Solidarity)
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18. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22481/23]

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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19. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22483/23]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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20. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22821/23]

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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21. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22824/23]

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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22. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22854/23]

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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23. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22857/23]

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
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24. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22917/23]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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25. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [22921/23]

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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26. To ask the Taoiseach if he will report on the work of the economic policy unit of his Department. [23218/23]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 15 to 26, inclusive, together.

The economic policy unit is part of the economic division of the Department. The unit assists me, as Taoiseach, in delivering sustainable and balanced economic growth and advancing the Government’s economic priorities. The unit also advises me on a broad range of economic policy areas and issues and provides me with briefing and speech material on economic and related policy issues. It assists the delivery of the Government’s economic commitments as outlined in the programme for Government, especially where these are cross-cutting issues affecting multiple Departments. In particular, it assists the work of the Cabinet committee on the economy and investment, which is chaired by the Tánaiste, and several related senior official groups.

The unit is also responsible for co-ordinating Ireland’s participation in the European semester process, the annual cycle of economic and fiscal policy co-ordination among EU member states. This includes preparing each year the national reform programme for submission to the European Commission. The national reform programme provides an overview of economic reforms and policy actions under way in Ireland, including in response to country-specific recommendations received. The unit is also responsible for liaison with the Central Statistics Office.

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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There are 12 Deputies to contribute on this grouping and we only have 11 and a half minutes, so I ask them to keep their contributions as succinct as possible to leave time for the Taoiseach to reply.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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I again emphasise the crucial need for balanced regional development throughout the country, specifically in areas such as Mayo, which I represent. It is imperative we continue to focus on delivery of high-quality jobs in rural communities to bring prosperity and opportunities to every corner of Ireland. While I welcome IDA Ireland's four-year driving recovery and sustainable growth strategy up to 2024, the proposed Castlebar advance building solution is one of three that has not yet completed the site selection process. It is still unclear when the public procurement and planning process will be completed. I appeal to the Taoiseach to give this project his full attention. We have seen the success of Meissner Filtration Products, which is located in such a building in Castlebar.

In addition, I ask that the Government prioritise key development infrastructure projects such as the western rail corridor, the N17 from Knock to Collooney, the N5 from Ballaghaderreen to Scramoge and the N4 motorway from Mullingar to Longford.

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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I wish to ask the Taoiseach about the impact the Ukrainian refugee situation has had on tourism. It is estimated that the current impact is approximately €1.1 billion in terms of hotels tied up with contracts. We in County Clare are very proud to have played a major role so far in providing accommodation. Approximately 6% of the population of the county is made up of Ukrainians or international protection applicants. The many businesses in the tourism industry that are not tied into these contracts are suffering. Surf schools and other visitor attractions, as well as hotels that are not contracted to the Government, are floundering. There should be a Covid-style payment to tide these businesses over this very difficult period because we simply do not have that tourism footfall in the county anymore. Many hotels are contractually tied in. It is lucrative for those hoteliers but there are other hoteliers who will go to the wall without Government intervention.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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Balanced regional development is very important. In light of everything that is happening with the cities, the shortage of housing and everything else, it is the way forward. In that context, there is particular need to prioritise the M20 connection road between Limerick and Cork and beyond. The recent tragedies on the streets of Charleville are a major concern for all those representing the area. It is very important that the M20 gets the go-ahead. It needs to be prioritised in order to address the issues relating to the main street in Charleville and ensure balanced regional development of the Cork and Limerick region. It should be moved through the various stages at pace.

Photo of Mick BarryMick Barry (Cork North Central, Solidarity)
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I live in Blackpool, on the north side of Cork city. Two miles from my house is the European headquarters of Apple, in Hollyhill. Hollyhill is high above the city, as the name suggests. From it, you can look out over the city and see hospitals that are in the headlines every second week because of overcrowding. You can see schools that only get over the line at the end of the year thanks to the help of fundraising by parents, children and staff. They are crying out for public investment, as are hospitals, schools and public services throughout the State. Today, however, the Government is sending legal representatives into a courtroom to fight an attempt to put €13 billion into the coffers of this State. Who would be paying that sum? The biggest company in the world, which paid 0.005% tax in 2014, would be paying it. How can the Taoiseach justify such a stance?

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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We know wholesale electricity prices fell 42% in the year to April and, as Professor Edgar Morgenroth of DCU noted, it is likely that some, if not most, of the future contracts purchased last year are now largely finished, yet the cost of electricity in Ireland is the highest in Europe, with a unit cost that is nearly twice the European average. It is astonishing that consumers are being warned not to expect electricity and gas prices to return to 2021 levels, as if we should all sit back and accept price gouging at an eye-watering level. It is concerning that the response of the Commission for Regulation of Utilities, CRU, was that it merely expects consumer prices to fall by the end of the year. That is not good enough. It is not enough for the CRU to monitor wholesale and consumer prices while energy companies make supernormal profits off the back of struggling families and micro and small businesses. What consideration has the Taoiseach given to introducing new regulatory powers for the CRU to include a statutory remit to investigate hedging practices and price gouging? What we need here is transparency accompanied by a reporting mechanism.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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How much money has the Government spent on the lawyers who are representing the Government in supporting Apple to stop the people of this country getting €13 billion in additional tax revenue? It beggars belief that the Government is backing the richest company in the world, a company that was paying less than 1% tax, in a case where it claims it was paying its fair share of tax, as against the view of the European Commission, which clearly and correctly identified the fact that Apple was getting favourable tax treatment. Some of us argued that if we forced such companies to pay more by removing things like the double Irish or increasing the corporate tax rate, they would not run out of the country. We can now see that they did not run out of the country when those things were done.

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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Public liability insurance is a significant issue for those involved in adventure tourism, community centres and community organisations, many of which are facing possible closure. They are very lucky if they can get ridiculously high premiums. When will the Courts and Civil Law (Miscellaneous Provisions) Bill 2022, which will address the duty of care and occupiers' liability, be dealt with in the Seanad and enacted? We need IDA Ireland and others to bring more players into the market. We then need to ensure we can keep insurers honest. We know they have not passed on the savings relating to the personal injury guidelines. We need all this to happen as soon as possible because we are behind time.

Photo of Gary GannonGary Gannon (Dublin Central, Social Democrats)
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Dublin is one of the only capital cities in Europe or the world that operates without a municipal market, yet on both sides of the Liffey, north and south, there are large infrastructural buildings lying idle. For many decades, markets were where generations of working-class people throughout the city made their money.

Yet, in the hands of Dublin City Council, certainly on the north side of Dublin - it is more complicated on the south side - these buildings are lying idle. It would benefit the State as a whole if we could rejuvenate these markets and it would be to the economic benefit of the city. For the best part of half a decade I have implored Dublin City Council to get these open. If it does not, I encourage the Taoiseach to intervene on behalf of the State to take the buildings into State ownership, potentially with the OPW, to reinvigorate them for the benefit of the capital city.

4:30 pm

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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Right now, lawyers are being paid large amounts of money, paid for by the public, arguing in the European Court of Justice, incredibly, that the public should not receive €13.1 billion from one of the richest and largest corporations in the world. If the court finds against the Irish Government and the money is paid, that €13.1 billion could be used to build 70,000 homes. It could be used to provide extra hospitals or to increase the numbers of beds. It could be used to fund a just and rapid transition to a zero carbon economy. Instead, the State and the Government is using public money to say this money should stay with Apple and it should stay on Apple's cash pile, which already sits at more than $200 billion. Does this not illustrate that the entire purpose of the economic policy of this Government is not to serve the interests of ordinary people but instead is to serve the interests of rich corporations?

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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For several weeks we have raised the issue of price gouging in the retail sector. In the two weeks since the retail forum met, nothing has changed. My colleague Deputy Ged Nash has published a Bill to address the lack of enforcement powers for the Competition and Consumer Protection Commission, CCPC. We ask the Taoiseach and the Government to take up our Bill, adopt it, and ensure we have proper, strengthened powers to take on the retailers.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I thank the Deputies for their questions. Deputy Dillon's was the first question, and it related to balanced regional development. I really want to echo his words in that regard. It is a Government objective to make sure we have job opportunities in all parts of the country. We are making some real progress in that regard. More than half of all of the investments by IDA Ireland companies last year were outside Dublin. Some two thirds of Enterprise Ireland-supported jobs, which are Irish companies exporting, were outside of Dublin last year. I was delighted to see Dexcom creating 1,000 jobs in Athenry. I was in Clonmel on Friday to announce 400 jobs by Boston Scientific. There was also a major jobs announcement in Limerick recently. I was present with Deputy Dillon to visit Meissner some years ago. I will take up the issue of the advanced technology building in Castlebar. That is one I was personally involved in with Deputy Dillon back when I was the Minister for Enterprise, Trade and Employment. I want to make sure that is available as a potential site for investment and job creation in Mayo into the future. We will continue to invest in infrastructure in the county. I am looking forward to opening the Castlebar to Westport road, which I believe is the biggest infrastructure investment by the State in Mayo. We will continue to invest in roads and broadband and infrastructure in the county, including the Ireland West Airport at Knock.

Deputy Crowe mentioned the issue of the tourist towns that have been impacted adversely by the refugee crisis. We acknowledge this is a problem. There are people from Ukraine and from all over the world in all parts of the country. I believe that has more than any other individual county, but on percentage terms the biggest number is down the western seaboard, including counties like Clare, Donegal, Kerry and Mayo. We need to acknowledge that. We have done this in part through the community recognition fund, which is the €50 million to help communities that have accepted a large number of people from overseas. This was very well received. The Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Martin, is looking at how she might be able to help some of the business that have been adversely affected. The accommodation providers are fine but the pubs, restaurants and attractions are losing out. This is clear. We have some data on that. Some will be able to pivot and adapt and some will not. Either way, they will need help. The Minister, Deputy Martin, is working on proposals to do exactly that.

Deputy Moynihan raised the issue of the M20. I reaffirm the Government's commitment to building the Cork-Limerick motorway. It is a very important infrastructural project in the national development plan. It is significant from a balanced regional development point of view, connecting Cork and Limerick and then on to Galway. It is also very important for towns such as Charleville and Buttevant, but as is often the case with these big projects, they take time and this one must go through planning and design.

Deputy Barry mentioned the whole issue of Apple, as did a number of Deputies. I have had the pleasure of being to Hollyhill on more than one occasion. I visited Apple and I saw the work they do there and the thousands of jobs provided by people there. I believe the Apple state aid case is being misrepresented, quite frankly. Let us not forget what this is about. This is the view taken by the European Commission that, about 20 years ago, Ireland had a special tax arrangement with Apple that was not available to other countries. That is simply untrue. The European Court that heard the case found in favour of Ireland and agreed there was no such special arrangement in place. We will see what the European Court of Justice says.

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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The Taoiseach is over time.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I do not see how the State could do anything other than reaffirm the fact there was no special arrangement with Apple and that the allegations made by the Commission are untrue in that regard. Even if the case goes against us and we find ourselves in the possession €13 billion, it will not be ours to spend. Other countries will want their share of it too.

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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The Taoiseach is well over time.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I have seven more questions that I do not have time to reply to.

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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We will face the same challenge with the next group of questions.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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If the Cathaoirleach Gníomhach wants to take time off the next round of questions I do not mind but it is up to Members.

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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We are already very much against the clock on the next questions as well.

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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What of the public liability insurance?

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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And the electricity prices.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Let us have two minutes.

Photo of Marc Ó CathasaighMarc Ó Cathasaigh (Waterford, Green Party)
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If Members are happy we will have to be very brief with the final round of questioning. Do Members agree to afford the Taoiseach another two minutes? Agreed.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I will be as brief as I can. We plan to enact the duty of care legislation this year. We want to rebalance it or at last say to people that there are inherent risks taken in engaging in certain activities. We hope this will help to bring down the cost of insurance.

Deputy Gannon raised the issue of a municipal market. He is spot on in raising that issue. It is something that is really missing from the city of Dublin. If you go to Madrid or Barcelona, you will see some really beautiful markets. They are good for business, good for tourism and, most importantly good for local people. Such places as the Milk Market in Limerick and the English Market in Cork are very missing from Dublin. There are options there, with the Iveagh Market in Dublin 8 and the Smithfield market. We should seize that opportunity. I will take this up with the city manager the next time I am speaking to him.

On electricity prices, I probably dealt with this in some detail earlier today in response to Deputy McDonald. Suffice it to say, the prices of petrol and diesel have come down and electricity prices will come down. The Minister, Deputy Coveney, is meeting with this CCPC next week to establish that it has sufficient powers to carry out any investigations that are necessary.

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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If it does not, will the Government look at their statutory remit?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We will. We strengthened its powers and increased its resources only last year, but we will.