Michael McGrath (Cork South Central, Fianna Fail)
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Key objectives and priorities for the year ahead are currently being finalised as part of my Department’s 2024 business planning process. Key policy priorities will include:

Economic and Taxation

A key objective will be the preparation of economic and fiscal forecasts to inform the Government’s policy priorities, along with delivery of Budget 2025. Production and publication of the Stability Programme Update (SPU) 2024 and the Summer Economic Statement 2024 are key priorities next year. The SPU is a key part of the budgetary cycle and one of the first parts of the preparation for Budget 2025. The Summer Economic Statement will set out the government’s medium-term budgetary strategy and outline the fiscal parameters within which discussions will take place ahead of Budget 2025.

Key economic publications will include the Annual Taxation Report 2024 and the Annual Report on Public Debt in Ireland 2023, and the National Economic Dialogue will be jointly hosted by my Department and the Department of Public Expenditure, NDP Delivery and Reform.

Having due regard to the Programme for Government and within the EU Semester and Fiscal Rules Framework, my Department will develop tax options for Budget 2025. Tax Strategy Group papers on options for tax policy changes will be prepared and published and the 2024 Finance Bill will give legislative effect to announcements made in the Budget.

Work will continue on finalising and implementing the OECD Corporate Tax 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 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.

Financial Services and Banking

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.

Work is also well underway in my Department on the development of a national financial literacy strategy. The team, which has secondees from the Consumer Protection and Competition Commission, ran a very successful stakeholder event, which I attended recently. On foot of the survey of stakeholders, the next step is to publish a mapping report in Q1 2024 with the aim to publish the national financial literacy strategy later in the year.

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.

The Department will continue work on establishing and implementing policy and legislative frameworks to support a well-regulated, effectively supervised insurance sector taking account of a range of EU developments focussing on consumer & industry protection. Transposition of the Motor Insurance Directive through the Motor Insurance Insolvency Compensation Bill 2023 is a key priority in 2024.

My Department will continue to contribute to the Government’s climate action agenda and will work collaboratively to pursue Ireland’s priorities on sustainable and climate finance. This will include engagement with, and input to, relevant EU level negotiations and legislative proposals.

Following the announcement in Budget 2024, two new funds will be established. 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.

The 10th Progress Update Report on the special liquidation of IBRC was published in September 2023. As set out in the Report, the timeline for completion of the liquidation remains forecast to be by the end of 2024.

On foot of a review of the policy framework for credit unions, the Credit Union (Amendment) Bill 2022 will be completed and enacted in 2024. The Bill contains a number of targeted amendments to the legislative framework, including the following:

• Credit Unions are free to choose the option most suited to their member’s needs, including:
  • Referral of members to another Credit Union with a wider product offering;
  • Option of loan participation and syndication;
  • Corporate credit unions can now be formed. These are Credit Unions whose members are other credit unions.

EU and International

At EU and international levels, priorities will include:
- Advancing Ireland’s interests at relevant EU Council formations

- Management of Ireland’s interests in regards to the Recovery and Resilience Facility at a European level

- Managing international and EU outreach and alliance-building in support of advancing national objectives, including with the UK in the context of post-Brexit developments and related agreements

- Managing the State’s investment relationship with the European Investment Bank.

Further detail on the strategic framework that underpins my Department’s policy objectives in 2024 is available in the “Department of Finance Statement of Strategy 2023-2025”on the gov.ie website.

In advancing the Government’s legislative agenda, my Department’s priorities will include:
- Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill

- Motor Insurance Insolvency Compensation Bill 2023

- Financial Services and Pensions Ombudsman (Amendment) Bill

- Credit Review Service Bill

- Finance (Tax Appeals) Bill

- Access to Cash Bill 2024

- Finance Bill 2024