Bernard Durkan (Kildare North, Fine Gael)
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113. To ask the Minister for Enterprise, Trade and Employment the extent to which fuel and energy shortages and immigrants who might be in a position to join the workforce early if admitted is likely to affect economic growth here; and if he will make a statement on the matter. [52860/21]

Leo Varadkar (Dublin West, Fine Gael)
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As the global economy re-opened this year and domestic public health restrictions relaxed, Irish growth numbers are forecast to recover strongly. The Department of Finance forecasts GDP will grow by 15.6% in 2021 and for Modified Domestic Demand (MDD) to grow by 5.2%. This level of growth in MDD implies that real domestic activity will rise above pre-pandemic levels during 2022.

These strong growth numbers are expected even when we are facing cyclically high energy prices.

In relation to energy and fuel, while we are experiencing cyclically high natural gas prices internationally based on reduced strategic reserves in some countries and high demand there has been no adverse impact on gas security of supply in Ireland.

Both Eirgrid and Commission for Regulation of Utilities are actively managing issues related to Security of Supply on Ireland's electricity grid. Eirgrid has confirmed that the Huntstown power station in Dublin is back in operation feeding electricity into the national grid, which should contribute significantly to managing this risk.

The increases in prices of fuel and energy has implications for households and business, by increasing their cost base. In terms of the impacts of current increases in energy and fuel prices on our medium- and longer-term growth we are taking actions to limit the impact volatile energy prices will have on our economy.

We are focused on decarbonising our energy and transport systems and the volatility of international market prices is further impetus to invest strategically in our energy infrastructure to allow for even greater emphasis on domestic renewable generation. Ireland is well placed to be a green energy hub, both to meet our own domestic needs and to be part of a wider European green energy ecosystem.

I expect Ireland’s National Development Plan aligned with our Climate Action Plan to drive significant investment in the low carbon transition in this country, and to mitigate our exposure to the volatility of global fuel prices. Which in turn would limit the impact on our economic growth from volatile energy and fuel prices.

The Economic Recovery Plan sets out the skills policies that we need to ensure that our labour force has the key skills to deliver on the main drivers of economic growth over the coming years- digital transformation, decarbonisation, and housing and infrastructural development.

This will be complemented by Ireland’s continuing attractiveness to international workers, in particular through the continued responsiveness of the employment permits to the needs of Ireland’s labour market.

For example in recent years, the range of Built Environment occupations- which will be central to delivering on our decarbonisation, housing, and infrastructure ambitions- have also been made eligible for Critical Skills and General Employment Permits. This pool of overseas skills will therefore be at the disposal of Ireland’s Built Environment sector as it seeks to deliver on key ambitions in the coming years.

This mixture of ensuring the labour force has the key skills to deliver on the main driver of economic growth along with attracting international workers to Ireland, will help ensure we have a stable and positive economic growth environment in coming years.