Cathal Crowe (Clare, Fianna Fail)
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179. To ask the Minister for Finance the main policy achievements of his Department since 27 June 2020; and if he will make a statement on the matter. [27961/24]

Jack Chambers (Dublin West, Fianna Fail)
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Since the formation of the Government on 27 June 2020, the Department of Finance has delivered a number of policy achievements which include:

Budget 2021, 2022, 2023 and 2024

The unforeseen challenges of Ukraine, the ongoing recovery from the pandemic and the continuing fallout from Brexit were addressed from a position of strength with record levels of employment and a budget surplus.

Cost of living challenges

By responding swiftly and decisively to the cost of living challenges, government supports have helped to mitigate the impact of inflationary pressures on both businesses and households. Budget 2023 was a ‘Cost of Living Budget’ focused on mitigating inflationary pressures. Budget 2024 provided €2.7 billion in once-off cost of living measures for 2024, which built upon some €12 billion in direct relief made available to households and businesses since the beginning of 2022.

Covid-19 related support schemes

The range of unprecedented proactive and pro-cyclical interventions to support the economy during the pandemic, all of which were made possible by the prudent management of the public finances in the pre-Covid years.

International Tax Reform

The agreement reached by Ireland with approximately 140 other jurisdictions through the OECD Inclusive Framework 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 was 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 that work being finalised shortly and the opening of the MLC for signature in due course.

Retail Banking Review

The review of the Retail Banking sector was completed in 2022 and 2023 saw the move to work on 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 and work on the drafting of legislation is well underway in close collaboration with the Office of Parliamentary Counsel.

Another related issue was a recommendation for the Department to lead on the development of a National Payments Strategy (NPS) that will take account of the changing landscape and determine how best to adapt to it as per the terms of reference published in June 2023. The NPS will set out a roadmap for the future evolution of the entire payments system, taking account of developments in digital payments, cash usage and how future changes should be made to the legislative criteria relating to Access to Cash. The NPS will also take account of the EU legislative landscape, including existing proposals on instant payments, payment services, legal tender and the Digital Euro. One of the aims of the NPS is to ensure that the Irish payment system is resilient and it can be trusted both by its retail participants and consumers alike. The final strategy will be published in late summer 2024.

Funds Sector Review

A review of the Funds Sector commenced in 2023. “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 a progress update, published on 21 December 2023, highlighted the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030, as identified in the responses. The review is due to report in Summer 2024.

State’s Shareholding in the Banking Sector

The Department manages the State’s remaining investments in the banking sector. In relation to the shareholdings in the three domestic banks, the State exited its shareholding in Bank of Ireland during 2022 recovering almost €6.7bn in cash from its €4.7bn investment in and support for the bank. In the case of AIB, share sales resumed at the beginning of 2022 for the first time since the IPO in 2017 and since then the State’s shareholding in AIB has reduced from c. 71.1% to c. 25.5% currently, a total of c. €16.1bn has been recovered from the State’s investment in AIB so far. The shareholding in PTSB has reduced from 75% to 57.4% currently.

Insurance Reform Agenda

A key focus has been the implementation of the pro-consumer Action Plan for Insurance Reform, which set out actions across several departmental policy areas. The vast majority of the actions are now complete, including all 13 principle actions, and all those assigned to the Department of Finance.

Climate Agenda

My Department is committed to contributing to the Government’s Climate agenda. A dedicated Climate Unit was established in 2021. The unit manages the Department’s overall engagement on climate at national and international level, including inputting to the development of the Climate Action Plan.

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