Michael McGrath (Cork South Central, Fianna Fail)
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To date in 2023, the Department of Finance has delivered a number of policy achievements which include:

-Budget 2024

The distributional impact of Budget 2024 is progressive, with lower income deciles experiencing the largest gains from both the Cost of Living package and from the core Budget 2024 measures. The establishment of two new funds was announced in Budget 2024:

• the Future Ireland Fund will help to protect living standards and public services for current and future generations, and,
• the Infrastructure, Climate and Nature Fund which will allow for sustained levels of investment in infrastructure in the event of economic downturns and to support climate and nature related projects.

In line with the Department’s strategic goals of ‘balanced, sustainable and economic growth’ and ‘sound public finances’, in 2023 my Department continued to monitor emerging domestic and international trends. In managing the challenges presented by Brexit, the pandemic, the war in Ukraine and elevated rates of inflation, the economic position remains strong. This is most clearly evident in the labour market, where the number in employment has expanded to record highs.

-International Tax Reform

The agreement reached by Ireland with approximately 140 other jurisdictions in 2021 represents an important step towards resolving the issues brought about by the digitalisation of the economy and is intended to provide certainty for multinational enterprises whose business models are so important for the Irish economy. There are two pillars to this agreement. The EU Minimum Tax Directive will be implemented through the Finance (No.2) Bill 2023 making good on Ireland’s commitment to deliver Pillar Two of the OECD agreement. Ireland welcomed the publication of the Multilateral Convention (MLC) by the OECD, demonstrating the substantial progress made on all aspects of Pillar One. I look forward to the opening of the MLC for signature in due course.

-Retail Banking Review

Government approved the publication of the Retail Banking Review in 2022 and the implementation of its 34 recommendations, which are now Government policy. A key issue identified by the Retail Banking Review was access to cash, both the ability to withdraw and deposit cash, and a number of recommendations address this. There is a dedicated team in place working on this issue that is currently developing legislation and preparing heads of bill, which I expect to bring to Government for approval to draft shortly.

Another related issue was a recommendation for the Department to lead on the development of a National Payments Strategy (NPS) in 2024 that will take account of the changing landscape and determine how best to adapt to it as per the terms of reference I published in June this year. The NPS will also take account of the EU legislative landscape including the shortly to be adopted instant payments regulation and the proposals on payment services, the digital euro and legal tender. The NPS is also looking at how to tackle fraud domestically and the acceptance of cash by both the private and public sectors. A public consultation will be issued shortly.

-Funds Sector Review

A review of the Funds Sector commenced this year. “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets” is a wide ranging review of an important part of the financial services sector, both in Ireland and globally. A public consultation has been conducted and the review is due to report in Summer 2024.

-Ireland for Finance Strategy

Action Plan 2023, the first action plan under the Update to Ireland for Finance strategy, was launched in March 2023 and contains 12 priority action measures. Priority themes are sustainable finance and digital finance and fintech.

-Advancing the Government’s Legislation Agenda

• Regulation of Lobbying and Oireachtas (Allowances to Members) (Amendment) Act 2023
• Finance Act 2023
• Central Bank (Individual Accountability Framework) Act 2023
• Finance (No. 2) Bill 2023, which gives legislative effect to a number of announcements made in Budget 2024 as well as a number of other tax-related changes, will be enacted by end December 2023.
• Credit Union (Amendment) Bill 2022
• Financial Services and Pensions Ombudsman (Amendment) Bill 2023
• Finance (State Guarantees, International Financial Institution Funds and Miscellaneous Provisions) Bill 2023
• Motor Insurance Insolvency Compensation Bill 2023

In addition to these highlights, the Department has worked collaboratively on achieving positive results across the Divisions on policies in Economics, Climate Finance, EU and International Affairs and Financial Services. More details on these achievements will be available in the Department’s annual report for 2023. The report will provide more information on initiatives such as Insurance Reform, the selling down of the State ownership in AIB and PTSB, and the Credit Union policy framework review as well as on events such as the National Economic Dialogue.

Work will shortly commence on the Department’s 2023 annual report which will be published and available on the gov.ie website. Further detail on the strategic framework that underpins the policy achievements in 2023 is available in the Department of Finance Statement of Strategy 2023-2025 on the gov.ie site.