Written answers

Thursday, 9 March 2023

Department of Public Expenditure and Reform

Brexit Supports

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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196. To ask the Minister for Public Expenditure and Reform the allocations to date from the Brexit adjustment reserve; the Department to which funds were allocated; the purpose of the allocation; the funds remaining to be dispersed; and if he will make a statement on the matter. [12101/23]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The European Union’s Brexit Adjustment Reserve (BAR), provides support to counter the adverse economic, social, territorial and, environmental consequences of the withdrawal of the UK from the European Union. €5.47 billion euro was allocated to the fund and Ireland’s allocation is €1.165 billion. The application for BAR funding must set out the negative impacts of the withdrawal of the UK from the European Union and how the measures carried out under the Fund alleviate the adverse consequences.

The BAR eligibility period for expenditure runs from the 1stof January 2020 to the 31stof December 2023.

The Government has made significant allocations across a range of sectors, both before and during the 4-year BAR period. The purpose of these allocations is to mitigate against the negative consequences of Brexit and to adapt to regulatory changes. Following the BAR Regulation coming into force in October 2021, specific funding was provided in Budgets 2022 and 2023, as set out in the Table below, and further funding can be considered for allocation over the remainder of 2023. This would also include consideration of funding in relation to permanent infrastructure at Rosslare port required for customs and SPS checks.

My Department has been engaging with Departments in respect of spending allocated to mitigate Brexit in advance of Budget 2022. A figure of €0.6 billion has been identified in this regard. Work is ongoing to verify for eligibility this significant funding allocated across 2020 and 2021 for inclusion in Ireland’s final BAR claim in September 2024.

Over the course of Budgets 2022 and 2023, some €389 million was allocated, as follows.

Department €m
Agriculture 271
Enterprise 15
Further and Higher Education, Research, Innovation and Science 37.3
Public Expenditure, NDP Delivery and Reform 4.4
Foreign Affairs 2.2
Tourism Culture Arts Gaeltacht Sports and Media 7.75
Environment Climate and Communications 24
Health 5.5
Justice 21.5
Transport 0.1
Total 389

The Deputy will also be aware that since the Russian invasion of Ukraine in 2022, the EU has moved quickly to phase out EU dependence on Russian gas, oil and coal imports and accelerate the green transition. EU Member States are adding specific chapters to their national recovery and resilience plans (NRRPs) to finance key investments and reforms that will help achieve the REPowerEU objectives. These objectives include energy savings, the diversification of energy supplies and the accelerated roll-out of renewables. The EU has provided that member states may transfer a portion of their BAR funding to support these priorities. Given that the timeline under REPowerEU extends to 2026, Ireland has in recent days sent a request to the EU Commission setting out a transfer of €150 million of the BAR funding to support priorities under REPowerEU and is continuing to engage in this regard.


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