Pearse Doherty (Donegal, Sinn Fein)
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262. To ask the Minister for Public Expenditure and Reform the measures included by cost, description and Department in the €8.1 billion in temporary spending for 2022 outlined in table 4 of the Summer Economic Statement 2021. [43182/21]

Pearse Doherty (Donegal, Sinn Fein)
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263. To ask the Minister for Public Expenditure and Reform the measures included in the employment wage subsidy scheme by cost, description and Department in the €5.3 billion in Covid-19 measures and contingency for 2022 outlined in table 8 non-core expenditure trajectory of the Summer Economic Statement 2021. [43183/21]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 262 and 263 together.

The Summer Economic Statement (SES) laid out up to €8.1 billion in 2022 for non-core, temporary spending under the overall expenditure ceiling. This €8.1 billion under ‘temporary spending’ heading in Table 4 of the SES is made up of the non-core expenditure areas listed Table 8, intended to address the specific challenges of Covid-19 and Brexit. This comprises €7 billion for measures in response to Covid-19 and Ireland’s €1.1 billion Brexit Adjustment Reserve allocation.

In addition to the €1.5 billion indicated for automatic stabilisers, primarily job-seekers payments, €5.3 billion is indicated as Covid-19 measures and contingency. This combines the €2.5 billion included in the Stability Programme Update to meet pressures that may remain in delivering public services in line with any continued public health requirements and the €2.8 billion contingency reserve set out in the SES.  Given the continued uncertainty in relation to Covid-19 and the requirement to ensure that supports are carefully withdrawn in a manner that supports recovery in the economy, this contingency reserve will allow Government flexibility to respond as the situation with the virus evolves.  A further €0.2 billion relates to funding under our National Recovery and Resilience Plan expected to be spent in 2022.  

Further to this, Ireland has been allocated €1.1 billion under the EU’s Brexit Adjustment Reserve, to fund measures to address the negative impacts of Brexit across the eligible period of the fund. The full allocation has been assigned to 2022 on a technical basis. However, this funding will likely be allocated across Budget 2022 and Budget 2023.

Decisions on specific measures to be covered by this funding, including the Employment Wage Subsidy Scheme, and allocations to Departments will be made as part of the Estimates process. As in 2021, it is intended that all expenditure allocations related to Covid-19 will be separately identified in the Expenditure Report to ensure transparency.