Claire Kerrane (Roscommon-Galway, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

277. To ask the Minister for Public Expenditure and Reform if he will provide an update on Ireland's transfer of the Brexit Adjustment Reserve to the REPowerEU fund; if a timeline can be provided; and if he will make a statement on the matter. [22774/23]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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.

The Government has made significant allocations across a range of sectors to counter the effects of Brexit, both before and during the 4-year BAR period. In order to be eligible for BAR funding, the expenditure must fall within the BAR eligibility period for expenditure runs from the 1st of January 2020 to the 31st of December 2023.

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 Government has therefore, over a series of budgets, allocated BAR funding across a number of impacted sectors in order to mitigate those adverse effects of Brexit and to adapt to regulatory changes.

REPowerEU is the EU’s response to the global energy market disruption caused by Russia's war on Ukraine and provides the potential for further funding via the Recovery and Resilience Facility. Ireland expects to receive almost €90m in grants for REPowerEU projects, and the Government has recently requested a transfer of €150 million of Brexit Adjustment Reserve Funding to REPowerEU.

To avail of the REPowerEU funding, a new chapter will need to be added to Ireland’s National Recovery and Resilience Plan (NRRP). My Department is considering potential investment and reform proposals that could be funded under REPowerEU in consultation with a number of Government Departments. These proposals will be subject to negotiation and assessment by the Commission. Final funding decisions are a matter for Government.

Following agreement to transfer €150 million to the National Recovery and Resilience Plan, Ireland’s allocation from the reserve will be €1.015 billion. This transfer is to be made from Ireland’s overall BAR allocation. Ireland’s allocation now represents approximately 30% of the overall BAR fund, following transfers by other Member States to their National Recovery and Resilience Plans.