Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I thank the Senator for the proposed amendment. I will provide some context as to where we are at. As has been discussed throughout the debate on the Infrastructure, Climate and Nature Fund, there are two purposes provided for under this Bill, namely, to support State expenditure in any year from 2026 where there has been, or is likely to be in the subsequent year, a significant deterioration in the economic or fiscal position of the State, and in the years 2026 to 2030, on designated environmental projects. Where the Minister for Finance of the day has determined that there is a significant deterioration in the fiscal or economic position of the State, up to 25% of the value of the Infrastructure, Climate and Nature Fund can be drawn down to the Exchequer.

It is the intention that these resources would help offset any reductions in capital spending which might arise as a result of a fall-off in Government income. It is not intended to determine the types of projects which would benefit as these will be a matter for the Government of the day, but it would be possible to use this funding as substitute finance to allow an infrastructure project to be completed or, indeed, commence a new infrastructure project to ensure the stop-start approach of the past is not repeated, whereby capital expenditure is reduced in an economic downturn. Thus, the primary motivation is to support the completion of the national development plan. I want to be very clear that the mechanism proposed in the legislation is that the resources will be transferred from the fund to the Exchequer and will be allocated through the normal budgetary process.

As regards the specifics of the Senator’s amendment, it is not clear as to its intention. However, this legislation cannot tie the hands of the Government of the day and this would not stop other resources from being able to be used to support companies if such was required. Given the intention is to provide resources to the Exchequer for onward allocation, where there has been or is likely to be significant deterioration in the economic or fiscal position of the State, I maintain that the decision will rest with the Government of the day and, as such, I do not propose to accept this amendment.