Paschal Donohoe
Dublin Central · Ireland
“I raise the importance of our economy and funding of public services, and a particularly vital public service referenced in the programme for Government. I do so from the seat in Dáil Éireann that I first pursued and held in 2011.”
“I am proud of the investment we have made through our local authorities in recent years in the funding, and opening, of new libraries. They are cradles of decency. They are beacons of light in a world in which things are changing so much.”
“I thank my own team, who have worked so closely with me over so many years to allow me to do my work as a Minister and a representative of Dublin Central. I acknowledge that this is a complex and tough week for them, and I thank them for all they have done for me to allow me to do the work I have been trusted and privileged to do.”
“I thank the Leas-Cheann Comhairle for his support in the many committees I have appeared in front of that he has chaired and the relentless but always fair way in which he has discharged his duties. I wish everybody in this Dáil happiness, health and success in representing their constituents.”
“31 of 1999), which provides for a stamp duty to be levied on health insurance contracts that are entered into or renewed between authorised insurers and their customers in each quarter, be amended in the manner and to the extent specified in the Act giving effect to this Resolution. 19.”
“39 of 1997), which provides for tax exemptions for a unit trust which neither is, nor is deemed to be, an authorised unit trust scheme, be amended in the manner and to the extent specified in the Act giving effect to this Resolution. 7. THAT section 291A of the Taxes Consolidation Act 1997 (No.”
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“I thank the Deputy for this question, particularly as maintaining a variety of payment options in the State is important for the economy and for ensuring the financial inclusion of consumers who are older, on fixed or lower incomes or at risk of digital exclusion. The availability of non-digital payment options ensures that certain vulnerable groups are not excluded from participating in our society. This is why cash access has been ensured via the recently passed Finance (Provision of Access to Cash Infrastructure) Act 2025 and why cash acceptance was recommended in the national payments strategy of 2024. Launched in October 2024, the strategy recommended cash acceptance or cash facilitation in the public sector where a public body levies fines or fees or where it provides goods or services for a charge.”
“With regard to motor insurance, it is the case that the figures in the year to date are up 9.7%. If you look at where it was for the month of April, they were up 0.2%. The figures are now 34.4% lower than they were at their peak in 2016. If you look at motor insurance, prices are now down by 2.2% since the implementation of the personal injuries guidelines and down 5.1% since the Cabinet sub-committee on insurance reform was set up. We have seen some developments there. The Deputy is at it again. He is inferring that the Government is doing nothing, when I have laid out what the Government is doing. What we will be doing now is that I and the Minister of State, Deputy Troy, will be working on the new further action plan for reform. We will also be engaging with the insurance sector and looking at what further options we need to consider.”
“There are various measures the Government brought in: the personal injuries guidelines; the reform of the Personal Injuries Resolution Board Act 2022; the banning of price walking; the establishment of an office to promote competition; the publication by the Central Bank of its national claims information database; the work that has been done by the CCPC; the establishment of an insurance fraud co-ordination office; and the work done by the Garda, Insurance Ireland and the Alliance for Insurance Reform. All that work was not done to create higher levels of profitability. It was done to create a more competitive sector for those who depend upon it. I want to see that translated into lower prices.”
“I thank the Deputy for raising that issue and acknowledging the scale of the reforms the Government has brought in, and his own role in that regard, which I acknowledge. I also acknowledge the Consumer Insurance Contracts Act 2019, which was the subject of a motion the Deputy brought forward. Part of that Act has not yet been commenced, but most of it has.”
“That is why the Government is developing a new action plan for insurance reform that will prioritise further competition in the market. It will include further work, including with insurers, to enhance transparency and promote affordability across all types of insurance. My Department has concluded the public consultation and is reviewing the various submissions.”
“After a number of years of losses, the National Claims Information Database data shows that the insurance market was profitable again in 2023. For liability insurance, the operating profit was 13% in 2023, and the long-term average operating profit was 2.1% between 2009-2023. The motor insurance market had an 8% profit in 2023, with a long-term average profit of approximately 5 % between 2009-2023. Globally, 2023 was characterised as a hard market with higher premiums, stricter underwriting conditions and higher reinsurance costs. In contrast, industry insights suggest that 2024 showed a softening market with increasing competition and falling rates which have translated into lower premia in some market segments, but further work is needed.”
“For the record, I used the words of Deputy McDonald yesterday. That was the word she used. Despite everything, I still try to respect Deputy Doherty's good intentions in spite of the many reasons I should not. I simply ask the Deputy to do the same of me. In relation to the very important matter he raises here, I recognise the concerns on profitability levels in certain segments of the market. Structural reform and ensuring the long-term affordability and sustainability of the Irish insurance market, while ensuring a viable insurance sector, are priorities for this Government. The insurance market’s profitability in 2022 and 2023 was supported by significant reserve releases following the Covid-19 pandemic.”
“I can stand up for what I believe but I can do so in a way that is respectful of the views of others. I can make the case for what I believe in without constantly interrupting and demeaning the good intentions of others.”
“I want to call out the behaviour of Deputy Doherty. His language and the way he is attempting to treat this issue, which is so serious, is thuggish. His behaviour is thuggish. Yesterday, the leader of Sinn Féin referred to harassing the Government on this issue.”
“-----that we also deal in the truth. In relation to the final allegation that was made by Deputy Doherty, let me again state to the House that no such call was received by me. I have made that very clear. I find it very interesting that the Deputy is more willing to accept the word of the department of finance of Israel than me.”
“In the Deputy's contribution on Tuesday night, both Deputy Doherty and the leader of Sinn Féin referred to the bonds being sold through the Central Bank of Ireland, which is not the case, and he referred to the Central Bank of Ireland trading in bonds, which is not the case. It is so important, as I attempt to continue to-----”
“The words of Deputy Mary Lou McDonald were that the Irish Central Bank is trading in bonds. They are his words and I invite him to correct the record.”
“I am glad Deputy Doherty has restated his view because it is important to be precise about the role of the Central Bank. The Deputy's exact words on this issue, which he has just restated, were that the bonds are being sold through the Irish Central Bank. They were his words in this debate on Tuesday night. The leader of Sinn Féin went on to say that we are allowing the Irish Central Bank to trade in Israeli war bonds. The Deputy knows that is not the truth. The Deputy knows that is not the case. The Central Bank of Ireland is neither selling nor trading in these bonds. I invite the Deputy to now correct the record because what he has done is state something that is not the case. His words were very clear. He said that the bonds are being sold through the Irish Central Bank. They were his words.”
“As the competent authority, the Central Bank is responsible for assessing whether a prospectus has been drawn up in compliance with the disclosure requirements of the regulation. Once the bank is satisfied that the issuer has disclosed the required information, in the required manner as set out in the regulation so that investors can make an informed investment decision, there is no discretion and it must approve it. It is important to reiterate that by approving a prospectus, it does not endorse the issuer or the securities. The Central Bank has been clear that it can only refuse the approval of a prospectus once it has the legal basis to do so. The Governor of the Central Bank in his correspondence to the Joint Oireachtas Committee on finance, public expenditure and reform and the Department of the Taoiseach set out this view.”
“As I already outlined in the House earlier this week, the Central Bank does not sell or oversee the sale of Israeli bonds. It is important to be clear as to the role of the Central Bank because it has been misrepresented repeatedly. To be clear again, the Central Bank's role under EU legislation is to assess the bond prospectus to ensure that it includes all the disclosure requirements of the EU prospectus regulation. Neither the issuer - in this case the State of Israel - nor the financial products become regulated or endorsed as a result of the assessment. The Central Bank is designated as the Irish competent authority for the approval of securities prospectuses under the relevant regulation.”
“That does not just relate to the spending of money. I have never met anybody who has gone into business to maximise or get grants. Anybody who sets up a business wants to stand on their own two feet. We need to step away from thinking about it like that to thinking more broadly about how we can have an environment whereby, if somebody is brave enough to set up their own business to employ somebody else, we help them and recognise them in that work. I thank Senators for the opportunity to be here. It is always very valuable to be in the Seanad. I look forward to returning to continue this debate and to be back in the Seanad soon with legislation. I thank Senator Kyne for the invitation.”
“On generational renewal, the Minister, Deputy Heydon, has a commission under way on that issue, which he thinks is very important. I completely understand the point the Senator made about the age profile in farming and what that means for the sustainability of farming, so I look forward to receiving that report. In regard to infrastructure, nearly every Senator touched on this issue during his or her contribution. Senator Casey referred to the external threats and how, in many ways, the way in which we can try to build resilience to those external threats relates to how we can invest in our own infrastructure. I support Senator Byrne's final point, on domestic businesses, a subject in which Senator Casey also has a great background. We need to look at ways in which we can make their environment within simpler and try to support them more.”
“In fairness, the Government's stance on Mercosur has been reasonably clear in that we have grave concerns about it as it is being negotiated and presented. With regard to the Comprehensive Economic and Trade Agreement, CETA, though, the Government has made the decision to bring forward legislation related to it. We do need to have this debate. We cannot on the one hand make the case for the need for greater economic integration and greater diversity and, on the other hand, say that in a free trade agreement with a country such as Canada, which is so aligned to us from a values point of view, we are willing to shy away from looking at how we can deepen our trade. I will certainly make a case for that, along with the Tánaiste, very shortly. With regard to Senator Cathal Byrne's points, I noted the three priorities he concluded with.”
“I met with the Senator's successors in the Northern Ireland Executive via video conference a few weeks ago. We were trying to understand what would be the impact of the tariff decisions on North-South trade. Since then, I am really pleased to say, particularly with the announcement made between President von der Leyen and Prime Minister Starmer, that we now have the policy tools available to us to make the most of trade on this island. On his point about how we can use the shared island fund to invest in education, this is something to which the Taoiseach and Tánaiste, because of their commitment to higher and further education, are fully committed. Senator Stephenson is 100% right that the situation is changing globally. I agree we need to support local industries if that change happens.”
“The point I would make back to him is that approximately two thirds of the jobs within our economy come from the small and medium-sized enterprises sector. At times, we underestimate how many jobs are in the small and medium-sized part of our economy, which we must make further efforts to support. I entirely agree with his concluding point that the strengthening of trade on a North-South basis will be a cause for economic diversification in the future. I can see that myself, particularly when I meet with owners of small and medium-sized businesses located in the north west of the country and in County Louth. I see the trade that is now happening there and the efforts and collaboration under way between our universities. How we harness that will be really important.”
“Where I totally disagree with the Senator is in his suggestion that any of the decisions made then were made with a deliberate intent to harm people. I am not sure even he believes the idea that any former Minister, including Brian Lenihan and Michael Noonan, who were in the very middle of trying to get our country back to a safer place, made any decision to cause deliberate harm. Those kinds of allegations steadily erode an assumption of good faith in politics and I fear we will all reap a bitter harvest from them over time, even colleagues like Senator Clonan who are making those points for the right reasons. It is good to see Senator Conor Murphy again and I wish him good luck in his term in the Seanad. He made a point about the vulnerability of our economic model and the need for action in that regard.”
“He is of the view that the wrong decisions that were made were never made with bad intention. I agree with him. Now that I have had the privilege to hold office, I am one of a small few who know what it is like for those who have gone before me with the many competing demands they faced. When decisions were made that we now know in retrospect were not right for the long term, I am certain that as those people were making those decisions, they did not do so with a view to causing any harm in the future, let alone at the time they were making them. The very best of intentions can still lead to terrible outcomes in the long run. The great responsibility we all have is to try to get that balance right.”
“I think she is right about that but it also fair to say that what is really different is the degree to which the current American President is challenging all elements of the global trading system. Other US Presidents have made the case for their views on the impact of Chinese trade but this is the first time we have seen America consider that nearly everybody it trades with in some way creates a difficulty for it. That is a really big difference. Senator McCarthy talked about the need not to overreact and to be careful. I entirely agree. Having that tone is right for many different reasons. The Commission, particularly Commissioner Šefčovič, has worked hard to maintain that tone at difficult times. It is the right thing to do. I agreed with much of what Senator Clonan said until he reached the middle of his contribution.”
“If I were to do a quick hands-up survey in the Chamber asking how many Members use artificial intelligence every day and how many have AI on their phones, the answer to the question will have a bigger impact on how we deal with AI than will the availability of data centres within our country. It is about the use of the technology, not just where it comes from, in terms of the impact it can have on our country's future. In response to Senator Keogan, I was at pains in my contribution to acknowledge that the world is changing. She outlined the different reasons for that change and fairly made the point that the theme we are now seeing from a trade point of view from President Trump is one we saw in earlier Presidencies.”
“While I very much hope he is correct, and we certainly are working to represent our country as best we can in the trade negotiations that are under way, to keep what we have is not enough. The success we have had is because our larger companies have managed to win additional investment across the world at each point in their history. What we must consider is how we can prepare ourselves such that if the global economy is changing in the way Senator Keogan suggested, our larger companies will still be in a position to prosper and do well. I entirely agree with the Senator's point regarding artificial intelligence. There is a lot of focus on data centres and where we are with the grid. The larger factor in how our country will respond to AI is the distribution and dispersion of AI within households and businesses.”
“I have taken careful note of all the points Senators made. I will deal with each of them in turn and offer a few thoughts in response. Senator Joe O'Reilly made the important point that anything achieved by this Government or previous Governments, let alone the Oireachtas, is nearly entirely due to the buy-in of the Irish people. I go a stage further and say it is nearly entirely due to their hard work. Whatever resilience we have in our economy, which I believe is real, is a reflection of a number of things. One of them is the quality of the entrepreneurs and workers within our economy. The Senator gave his view that it is likely we will keep what we have from an FDI point of view.”
“To end on a positive note that I believe is justified, if we build on the work we have done, in turn we will build up the capacity to absorb these shocks and the ability to protect jobs and help with living standards in the country we are all privileged to serve.”
“It is crucial that we redouble our efforts to boost the competitiveness of our economy. In the current environment, competition for inward investment is intensifying, and work is now under way across the Government to improve our attractiveness as a location for those decisions. Improving our energy and water infrastructure, boosting our transport and housing stock and making our regulatory environment a little simpler will all be necessary to achieve this goal while at the same time investing in our education, skills and training. We need to ensure we will have budget policies that recognise the more challenging environment we are in. Work is now under way in the Government on this because it is clear that we live now in a world full of more uncertainty and that uncertainty is creating a larger frequency for shocks.”
“I sound a note of caution, however, that this buffer could be quickly used up if the more difficult scenarios being contemplated at the moment for the economy of our world and for the relationship between the EU and the US were to come to pass. Thankfully, however, it is projected that by the end of this year we will have €16 billion set aside in our Future Ireland Fund and the Infrastructure, Climate and Nature Fund, giving us the money we will need to respond to any change in our economic outlook and to help with any transition that may be needed if the world or our tax receipts begin to change significantly. The potential impacts on the Irish economy from a change in world trade are evident. That is why the negotiations happening now are so important.”
“It goes without saying that if we ended up in a position that US tariffs on EU goods were to increase to 50%, the consequences would be very real and serious for the EU and Ireland. The EU response would also cause challenges and difficulties for the US. That is why the engagement that will happen after the discussion between President von der Leyen and President Trump is so important. Turning to our public finances, we expect a surplus of €8.7 billion this year. Nearly all of that is created by our corporate tax receipts, and many of those receipts are created by a small number of taxpayers. I have had the privilege of making the case for many years in the Seanad for running those budget surpluses. Having them in place now gives us a buffer in the event of any significant change in the taxes we collect here in Ireland.”
“It showed that on the basis of modified domestic demand, which is a way of measuring our economy that strips out the influence of very big companies on our accounts, and if we assumed there were no transatlantic tariffs in place, our economy will grow by approximately 2.5% per cent this year and 2.75% per cent next year. We also published alternative scenarios in this document. One scenario, in particular, outlines the impact of 10% tariffs on our economy, which would reduce the rate of growth in our economy to approximately 2% this year and 1.75% next year, with the economy growing by approximately 1.5% less than we would have expected by the end of 2026. Unfortunately, that particular alternative scenario shows signs of being overtaken by events as we see debates about tariffs that are considerably larger than 10%.”
“The unemployment rate stood at just over 4% in the first quarter of this year while the number of women at work in our country is at a record level. As expected, inflation continued to moderate and it is continuing to come down. I know prices are still high but the rates of increase are coming down. In the first quarter of this year we saw the growth of real earning beginning to accelerate. All of this, I hope and believe, will help with the pressures households and businesses face. While I am encouraged by this resilience, it is also crucial we do not become complacent. The reasons for this risk were outlined in the annual progress report the Government published a few weeks ago.”
“A 10% tariff on that trade is something that not only would have a real effect on the economies involved in that trade, it would have a real effect on the performance of the world, from an economic point of view, in the time ahead. That is why we are making the case for all efforts with regard to negotiation. That is why Ireland will continue to pursue an outward looking, open, rules-based approach to trade policy. We have been in continued discussion at EU and US levels in this regard. That is how the world looks at the moment. Where does Ireland stand? Overall, the latest data shows that we are currently in a strong position. There were 90,000 jobs created last year with a record high of 2.8 million people at work in our country.”
“They drive up the cost of doing business. They put upward pressure on prices for households, creating real difficulties for standards of living and they do all of this by then creating uncertainty for how companies invest their money. This is a lose-lose environment that could harm everybody. I therefore really welcome the recent decision by President Trump's Administration to introduce a three-month pause in the implementation of widespread reciprocal tariffs. I know there has been a change in this approach to the EU in recent weeks but in recent days a further opportunity appears to have been created to allow engagement between the US and the EU. This is really important. Trade between the US and the European Union is worth billions of euro per day.”
“While we have become used to concepts such as friendshoring, that is, moving the supply chains of large companies to countries that are friendly to them, and de-risking, which is spreading how goods and services are made all over the world, the imposition of tariffs represents a real acceleration in a turn inwards. Unfortunately, there is growing evidence of fragmentation and change in the global economy along political lines and there is a real risk to the gains we have made from cross-border trade and the greater flow of investment throughout the world. As Ireland is a major beneficiary from those kinds of dynamics, our economy is exposed to the changes under way. As I have made clear on many occasions, the recent introduction of widespread tariffs is deeply regrettable. They are economically and socially harmful.”
“I thank the Cathaoirleach for the opportunity to speak in the Seanad this afternoon on the economic outlook for our country. As a former Member of this House, it is always an honour to be here. Before I discuss the Irish economic outlook, it is important to underline the global environment we are in. As all Senators will be aware, uncertainty is now the dominant feature of the world economy. In particular, there is uncertainty regarding the rules that have, I believe, served us well with regard to trade. Recent developments in policies in that area represent a real shift away from economic integration.”
“What they cannot do is afford a distraction from the detail of a Bill that is not able to deliver on the claims that have been made about it. They are asking the Dáil to support a measure that we as a Government believe and have been advised is ineffective.”
“Finally, the advice I have received on the Private Members' motion is that for the reasons I have outlined, it is in conflict with the treaties of the European Union and our obligations as a member state.”
“-----would still be available to retail investors across the EU and further afield. Let me repeat that: even if this Bill were to be enacted, Israeli bonds would still be available to retail investors across the EU and further afield.”
“-----is intended to prevent the sale of Israeli bonds throughout the European Union. However, we cannot promote or even propose national legislation that prohibits the sale of something at EU level. Any actions taken by Ireland must recognise the distinction between policy areas at a national level and those at an EU level.”
“The article is very clear that the Bill conflicts with Article 215 of the Treaty of the European Union, which is intended to preclude individual member states from issuing their own restrictive measures, which could undermine the integrity of how the EU conducts its external affairs policies. The reason for that, again, is that the EU has shown its ability to make progress when it acts in a collective way. Statements that have been made by Deputy Doherty in particular, indicate that the Bill, which I am going through-----”
“-----to ensure the outcome is effective. Furthermore, the clear advice that has been provided to me is that it is not about hiding behind the law, it is as a government and a Member of Parliament, being subject to the law.”
“They are an important tool to promote the objective of the EU's Common Foreign and Security Policy. Sanctions are stronger and more effective when done collectively. Rather than be seen to do something, it is far better-----”
“For the first time in the State, what this Bill aims to do is to introduce a national sanctions regime. Let us step back and acknowledge the huge suffering that is the cause of this debate but let us look also at how Irish diplomacy has worked. How it has worked is that the sanctions that we have implemented have been ones that have been negotiated, agreed and introduced at EU and UN level.”
“However, by seeking to permit the Central Bank to step outside the financial services legislation in the area, I am advised that these measures will be judged to be inconsistent with EU law and therefore subject to legal challenge. I hope the Dáil this evening can appreciate that any attempts by the Government to introduce measures outside the agreed legal framework in the area pose a significant policy risk.”
“Neither the issuer - in this case the State of Israel - or the financial products - in this case the Government bonds - become regulated or endorsed as a result of this assessment. They are the facts. I will move on to deal with some issues relating to the Bill. I will go through it section by section, which did not happen in any speech made here this evening. Section 4 sets out restrictive measures that may be taken. It is important to note that many sections will not prevent the Central Bank from carrying out its role under the prospectus regulation. Section 4(c) seeks to provide the means of restricting or prohibiting the Central Bank from fulfilling its obligations under the regulation.”
“While Opposition Members made many general points, many of which I agree with, about the suffering, harm and awful violence being endured by the people of Gaza, the speeches were notably absent on detail regarding the Bill, which I will turn to now. On the point about detail and precision, it is important that we are precise in our language. Let us be clear on the role of the Central Bank. It does not sell or it does not oversee the sale of Israeli bonds. The Central Bank of Ireland does not sell these bonds. This evening, I have heard the Opposition refer to the Central Bank trading them, selling them, dealing them or bonds being sold through it. That does not happen. Its sole role is to assess the bond prospectus in front of it to ensure that it includes all the requirements it is meant to under the EU regulation in this area.”
“This is a step that Ireland and Spain first called for in February 2024. This is an important decision taken through diplomacy and taken in no small part, due to Ireland making the case for international law and our recognition of the suffering of the people of Gaza. In contrast to the interventions we have made in a collective way with many other countries, the Bill represents a unilateral effort to attempt to curtail the ability of Israel to raise financing on the international markets. Let me explain why the Bill does not do that and why the Government is opposing it. I want to note that the bonds being referred to are not listed on the Irish Stock Exchange. In fact, they are not listed on any EU stock exchange. They are targeted at retail investors who purchase the bonds through promoters based in London, Paris and Frankfurt.”
“Let me begin by emphasising Ireland's absolute respect for international law. Our view is that this is at the core of our foreign policy. I emphasise our track record in what we have done and what we have called for on behalf of the people of Gaza. Let me make the Government's stance really clear. We condemn Israel’s illegal annexation of the occupied Palestinian territories and we condemn the catastrophic humanitarian situation arising from Israel’s war in Gaza. That is why we have taken an active role in the preparations and conduct of the forthcoming UN high-level conference on implementing the two-state solution. It is why we have pushed for action at an EU level. It is why we have welcomed the announcement that the EU will conduct a review of the association agreement with Israel.”
“Vote 45 — Further and Higher Education, Research, Innovation and Science (Revised Estimate). provided that the following Revised Estimates and Further Revised Estimate shall not stand referred to the relevant Select or Standing Committee, as the case may be, pursuant to Standing Orders 103(1)(a) and 222(2): Vote 24 — Justice (Further Revised Estimate). Vote 25 — Irish Human Rights and Equality Commission (Revised Estimate). Vote 40 — Children, Disability and Equality (Revised Estimate).”