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.”
The complete record
Every one of 741 lines we hold for Paschal Donohoe, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 15.
“Vote 7 — Office of the Minister for Finance (Revised Estimate). Vote 8 — Office of the Comptroller and Auditor General (Revised Estimate). Vote 9 — Office of the Revenue Commissioners (Revised Estimate). Vote 10 — Tax Appeals Commission (Revised Estimate). Vote 20 — Garda Síochána (Revised Estimate). Vote 21 — Prisons (Revised Estimate). Vote 22 — Courts Service (Revised Estimate). Vote 24 — Justice (Further Revised Estimate). Vote 25 — Irish Human Rights and Equality Commission (Revised Estimate). Vote 31 — Transport (Revised Estimate). Vote 35 — Army Pensions (Revised Estimate). Vote 36 — Defence (Revised Estimate). Vote 37 — Social Protection (Revised Estimate). Vote 38 — Health (Revised Estimate). Vote 40 — Children, Disability and Equality (Revised Estimate). Vote 44 — Data Protection Commission (Revised Estimate).”
“I move: That, notwithstanding Standing Order 222 of the Standing Orders of Dáil Éireann relative to Public Business or the Resolution of the Dáil of 1st April, 2025, the following Revised Estimates and Further Revised Estimate for Public Services for the year ending 31st December, 2025, be presented to the Dáil and circulated to members on 20th May, 2025, being a date later than that prescribed for the presentation of Estimates: Vote 1 — President's Establishment (Revised Estimate). Vote 2 — Department of the Taoiseach (Revised Estimate). Vote 3 — Office of the Attorney General (Revised Estimate). Vote 4 — Central Statistics Office (Revised Estimate). Vote 5 — Office of the Director of Public Prosecutions (Revised Estimate). Vote 6 — Office of the Chief State Solicitor (Revised Estimate).”
“I move: That Dáil Éireann hereby refers the carbon budget prepared pursuant to section 6A of the Climate Action and Low Carbon Development (Amendment) Act 2021, copies of which were laid before Dáil Éireann on 19th May, 2025, to fulfil the requirements of section 6B(1)(a) of the Act, to the Joint Committee on Climate, Environment and Energy, which shall report its recommendations to both Houses of the Oireachtas by 6th October, 2025.”
“Despite the storm clouds that are clearly gathering, I wish to emphasise to the House that we are approaching the current challenge from a position of strength and we will use this to our advantage in the weeks, months and years that await. We have weathered many storms now in recent years. We have done this by working with our partners in the European Union, by managing our public finances in a sensible way, by creating a pro-enterprise economy and by keeping our economy and our society open trade. In a very changing world, I am convinced these elements will continue.”
“The Government is determined to protect our economy, to support and protect jobs and to keep our public finances safe. We will evaluate the steps necessary to do this, but we need to avoid doing anything that could create further difficulties for us down the line. In other words, the actions the Government needs to take are ones that also need to be sustainable during this major period of change. This is why we will continue to engage extensively with all who are affected, building on what has made our economy resilient to recent shocks, while investing to further boost our competitiveness for the next wave of international and domestic investment.”
“The policy decision announced last week marks the end of the many mutually beneficial decades of free trade enjoyed by the US and the EU. The global economy benefited enormously from this trade, and hundreds of millions of people in the least developed economies were lifted out of absolute poverty owing to the opportunities created by more trade and deeper integration into the global economy. We are one country that has seen its living standards grow significantly from how we participated in this trading system. At an EU level, two-way trade now amounts to just over €4 billion per day, highlighting the importance of the EU-US economic relationship. We will continue to make the case for free trade and for the benefits it brings for all sides, a case the Tánaiste is undoubtedly making today.”
“We must focus on how we can best protect ourselves against the current uncertainty by exploring how we could potentially diversify our trading relationship across the world. We must continue to support the largest employers in the State and small- and medium-sized domestic enterprises up and down the country. We must focus on the factors within our control and influence. This means investing in human capital, and infrastructure for the future, which the Minister, Deputy Chambers, will refer to. It also refers to the funds we have in place to help us build up safety in our public finances and respond to the challenges we are now confronting. We are now in a deeply uncertain period for the international economy and the implications for Ireland in the coming years are not yet fully clear.”
“The Government must be able to understand the likely channels and the possible economic impact to respond as best we can. This is an important piece, although not the only piece, of analysis of this very demanding economic situation. Let me turn to what the Government is doing and will do. We have been a significant beneficiary of free and open trade and foreign direct investment. With this in mind, the announcements, as I outlined, will affect our outlook. However, notwithstanding the current uncertainty in the trading environment, companies have very deep roots in Ireland. They have benefited from the very highly skilled workforce and the pro-enterprise environment we offer, which still make us a highly competitive prospect for investment. However, we must do better.”
“Regarding the effects on the Irish economy, the Government published recent estimates to allow us to better understand the potential impact of tariffs under a range of different scenarios. Depending on the scenario, as well as future countermeasures, modified domestic demand - in other words, measuring the economy excluding the effects of larger companies - is the best measure of economic growth. It would be between 1% to 2% below a non-tariff baseline of growth over the coming years. This would be accompanied by lower than assumed employment growth, which would be around 2% to 3% lower than we had hoped. In other words, employment levels could be around 55,000 to 85,000 jobs lower. This is an important piece of work. It gives us our best guide to where we could be with what we know now.”
“The recent Letta and Draghi reports comprehensively outlined the work we in Europe can do to strengthen our economic foundations and improve our growth. We must now do this work at a time of great uncertainty. This represents opportunities for Europe, including Ireland. These challenges can be overcome if we maintain the commitment to working together and multilateralism that has helped us to achieve so much since we joined the European Community five decades ago. The Irish and European economies have thrived on co-operation. Mutual respect, trade and a rules-based economic order remain the path to improved living standards. The world economy and the European economy can absorb this shock, but only if we adapt and adjust. We can prevail with our fundamental values intact and our economies in a strong position.”
“This is why the European Union and the Government are clear in their message. Through the EU, we stand ready to negotiate with the US Administration on tariffs because we firmly believe that dialogue and de-escalation provide the best path forward. We all hope that this approach can bear fruit and that a more normal trading relationship between the EU and the US can still be restored. However, there is no guarantee of that and, notwithstanding the effect of such negotiations, it is likely that we will not return to the pre-existing rules of trade. International relationships and trading patterns have been fundamentally changed and European countries, including Ireland, must and will adapt.”
“Overnight, the President has also outlined his intention to introduce further tariffs. All this will affect the global economy in both direct and indirect ways. It will reduce trade between the US and other countries, limiting those countries' ability to increase living standards through mutually beneficial trade, and it will increase prices for people, particularly in the United States, lowering real incomes. Finally, the reduction in purchasing power across different countries will inhibit their ability to trade with other countries, indirectly impacting trade elsewhere. The risk is of lower levels of trade, lower living standards and lower growth. That is why all these moves are deeply regrettable. As the Taoiseach said a moment ago, they trigger lose-lose outcomes.”
“It is likely that the fragmentation of trade along political lines will now interact with other structural challenges that are more long-term in nature, including ageing populations, high levels of public debt and other changes involving climate change and the roll-out of artificial intelligence. Against this backdrop, it is essential that we continue to be careful with how we manage budgetary policy to respond to this time of change. On the recent tariff announcements, we are now seeing changes that are historic in nature. Additional tariffs of 50% on Chinese imports to America have been announced, taking the total tariff to more than 100%. To state the obvious, this now means the tax on the import is now higher than the price of the imported Chinese goods.”
“Having said that, we are conscious that the price level remains higher than before the pandemic and we understand the effect this is having on businesses and living standards. The strength of the Irish economy is also reflected in the public finances. Last week, the Minister, Deputy Chambers, and I published the first Exchequer returns of this year. The data show year-on-year growth under all the main tax headings and an underlying Exchequer balance of almost €1 billion. This reflects the Government's efforts to run budget surpluses where possible so that we can respond when needed in more difficult times. While we face into the current challenges from a position of strength, it goes almost without saying that we will not become complacent. We cannot do so. The world is now changing rapidly.”
“That said, this is not something the Government, or even the European Union, can fully control. It is therefore important to take stock of where our economy is in order to evaluate how well we might absorb this policy-induced shock. It comes on top of a series of unprecedented shocks to the Irish and global economies. Our economy has proven resilient and this resilience looks set to be tested once again. However, its resilience is clear and continued. It is evident in our labour market, where the employment rate has never been higher and the unemployment rate has never been lower. In addition, the inflationary shock has passed and, unlike previous episodes, we are now seeing some signs of the moderation of inflation. Prices are still high, with the most recent data on inflation showing it at just 1.8% in March.”
“With the agreement of the Leas-Cheann Comhairle and the House, I will share my remaining time with the Minister, Deputy Chambers. I am pleased to have the opportunity to address Dáil Éireann today on the issue of where global trade stands. It is now obvious we are facing a trade development that is a major challenge for the global economy and one that casts a dark shadow over prospects for the economy. Tariffs, to put it simply, are taxes on consumption and investment and they are bad for economic growth and jobs. To frame last week’s announcement, it marks the intensification of a dynamic that has been under way for some time. Global economic activity is becoming increasingly fragmented along political lines. The Government’s view is that the priority must be to de-escalate the current situation and to avoid increased trade disputes.”
“For many decades we have we have been supporting our indigenous employers through Enterprise Ireland. We have also diversified the number of international employers we have but we need to continue this work.”
“Deputy Geoghegan has laid out a compelling case, with which I agree, regarding Europe's place in the world and what we have built up in the Single Market and by means of the rule of law. The argument we need to make is that if people invest in Ireland and Europe, if they employ people in Europe and if they want to create new ideas and be entrepreneurs in Europe, they will do so in a very stable environment in which they can be clear about the rules of regulation, trade and taxation. We need to make the case for this and we will do so in the time to come. With regard to Deputy Connolly's point on diversification, we need to continue to diversify our economy. This is not something we will be starting, however, because it is already under way.”
“The measures that have now been instigated will have a significant effect on the world and on Ireland in line with the forecast the Department of Finance published two weeks ago. The only reason the European Union wants to consider measures to respond is in order that we can approach the negotiating table in a strong position. We do so because of the Single Market. We must also be willing to outline the steps we are willing to take. The cause of this is not action taken by the European Union.”
“I propose to take Questions Nos. 11 and 15 together. The Single Market is the best answer we have to this. We are speaking about the need to grow trade to take the place of trade that may be lost. The best place to do this is on our own doorstep. We have on our doorstop this incredible creation, which Irish politicians and diplomats have spent decades trying to craft, which is the Single Market. We need to plough on with realising the potential it still offers. We also need to continue to remind and make the case to the people of Ireland that the cause and catalyst of the difficulty we are now confronting are the decisions that have been taken by President Trump. We acknowledge that there are issues relating to the flow of trade and the impact these can have on communities. We are all aware of them and we all need to engage.”
“I referenced earlier the large number of significant employers clustered in particular parts of our country. This is, for want of a better phrase, because of the ecosystem and their ability to upskill people working in communities who then leave to go to employers in similar sectors located in similar parts of our country. There are some very large employers, and one in particular that Deputy McGrath is referring to. I absolutely understand that. The Government and I have engaged with individual employers on this. We are proud to have them in Ireland. They have contributed to the growth of our country but we also believe we have played a role in contributing to their success here and back home in the US also. Of course we will continue to engage with these very important employers at what is also an unprecedented time for them.”
“I will take on board the point he made and I hope the change in the income thresholds will be of some help to those who find this difficult.”
“To bring to life the figures and move them beyond percentages, the overall number of properties that accessed the deferral option was between 11,800 and 12,500, so it is indeed a low number. The Deputy made a point about the ability for LPT to be varied upward by 25%. One of the things I have learned from watching how this tax operates is this. I believe 25 out of 30 local authorities have increased their LPT beyond the base rate, but the average level of increase is 9%, which is a fair bit below the 15%. Many local authorities, many of which are governed by coalitions between our two parties, have been successful in persuading voters that paying a bit more can lead to better services and amenities within their community. I know the Deputy appreciates that. That is why we put in place the change of going up by 25%.”
“The evidence is the vast majority of people look to pay their LPT bill on time. I know it is a big bill but those who find it difficult to pay upfront can spread the payment across the year. The number is low but we are looking to deal with the issue the Deputy raised by increasing the income thresholds instead.”
“Property owners who are experiencing financial difficulty may avail of a wide range of flexible payment options in respect of current local property tax, LPT, liabilities and for any previous years. To answer the Deputy's question on those accessing it, the number is quite low: 0.6% of all taxpayers are accessing it across the years 2023, 2024 and 2025. Ahead of the revaluation in 2021, I reduced the interest that applied to deferred LPT from 4% to 3%. Given I reduced the rate last time, I do not propose do so again. What I have done is increased the income thresholds at which deferrals can be accessed. We have seen income growth in our economy, despite the cost-of-living pressures many have faced, and I want to ensure the ability of hard-pressed homeowners to access those deferral options is maintained.”
“On the point Deputy Tóibín made, we of course want a negotiation or de-escalation but I make the point I have made a number of times this morning: it is difficult to see how such a negotiation could take place unless the European Union is willing to outline that we would, regrettably, have to respond to the tariffs put in place and respond in a proportionate way to what the administration of President Trump has done. We will engage with the US and within the EU to make the case for the medicine and life science sector.”
“I thank the Deputies for the questions they have raised. The very important companies the Deputy Neville mentioned, Kerry Group and Intel, form an excellent example of making the case for trade because they are also present in the United States of America. They sell there and have a large presence there. I will, on behalf of the communities the Deputies represent and that other colleagues have raised, engage heavily within the EU. I outlined to the House earlier that a meeting of finance ministers of the European Union would take place on Friday. Deputy Moynihan asked what I would do in advance of that. I will engage with colleagues from tomorrow on this. Responding via the EU is the best way for the Irish people and Government to influence what is happening at a global level.”
“As we become clearer on what the EU will do, we will publish a revised economic update, probably indicating additional scenarios. We will do that in the next few weeks as part of the budget process we normally instigate. We will publish what is called an annual progress report, which will outline scenarios, giving our best answer to the question the Deputy is pointing to.”
“To reconfirm to the Deputy, we have already raised the different sectors within the economy. The food and beverage sectors he raised are a really important part of the communities he represents and contribute to his local economy. Those issues have been raised. The Tánaiste formally communicated with the Commission, I believe on Monday, on this, making the case on the food and beverages sector and aligning ourselves with other economies that have been affected in a similar way. To be candid with the Deputy, however, that has really been moved on by the decision the United States have made to apply in effect universal tariffs to all that is coming out of the European Union. We have indeed modelled that and published the modelling a week ago.”
“On Monday, the Tánaiste will be meeting trade Ministers of the EU. I know the Taoiseach has engaged with the Commission on this and will be doing so with other Heads of Government. That is all under way. It has begun and will only intensify in the days and weeks that await all of us.”
“With regard to the cause of any long-term harm that we could face or the economy of Europe could face, the first instigator of that has been what has happened in the US, not measures that we may have to very regretfully consider here in Ireland and Europe. In the absence of those measures that have been announced by President Trump, as the Deputy well knows and as he inferred in the point he put to me, we would not even be considering actions that the EU needs to take with regard to trade. To answer the question he put to me regarding my engagement, on Friday of next week there will be a meeting of all finance Ministers of the European Union in Warsaw. In advance of that meeting, beginning, I hope, tomorrow, I will be talking to my colleagues about the issues the Deputy raised.”
“I thank the Deputy for raising this. Just to add to his point, the greatest challenge of all to the livelihoods of those he is raising today is if the changes that happened last night become bigger and permanent and if they fundamentally change how our global economy works. In order to see if we can avoid that happening, we need to have negotiation and engagement with the US, as the Deputy has acknowledged along with many other Deputies today. It is difficult to see how we get to that happening unless the European Union, including us, indicates that we are willing to respond and take action.”
“In truth, a lot of the individual measures the Deputy has raised would not be huge budgetary items. However, in the round, pulling all of these things together sometimes has a big cost. I assure her that I will certainly consider the issues she has raised and see what more could be done to support the roll-out of EVs in Ireland.”
“I will certainly take on board what the Deputy said and make sure officials in the Department consider it. I am not doubting for a single moment the impact of the various measures she has suggested or what they could do to enhance the further take-up of EVs. We will certainly consider all of that in the coming weeks and months. I do, however, need to relate it back to the broader environment we are in, which she very well understands. We are at a point at which we are seeing a very big change take place in the economy of the world, which will have effects here in Ireland. We need to ensure that any changes we make in the tax code are affordable and, in particular, support jobs and enterprise in Ireland. I will offer that as the general point.”
“I thank the Deputy for acknowledging the measures that are in place, particularly with regard to motor tax. I know the Deputy wants this to go lower but all these things will be considered in October.”
“I appreciate the case the Deputy is making for the further support of EVs. It is interesting to see the growth that has taken place and I hope it will continue in the coming years as EV technology improves and as we do a better job of rolling out the charging network needed to facilitate those who use EVs. We have made reasonable progress but it is very obvious that we need to do even more, particularly in some cities, as Deputy Gogarty raised with me last week. I have outlined the different measures in place. I will of course consider whether any further steps are needed, and I thank the Deputy for raising this. I have to remind the Dáil again that this is all subject to budget decisions. All of these options will have costs and we have look in the round at all the decisions we make in budget 2026.”
“New proposals are considered and current vehicle tax policies are kept under review as part of the tax strategy group which is the transparent process we have in place to advise myself and the Government on the taxation options that are available to the Government in advance of the budget, the policy merits and demerits and what the costs of those options would be.”
“A number of tax measures are in place to support the uptake of EVs, including preferential rates of BIK; BIK tapering relief of €35,000 in 2025 to €10,000 in 2027; a BIK exemption where an employer provides a facility for the charging of an EV; VRT relief of up to €5,000; and the introduction of an emissions-based VRT system for light commercial vehicles that will apply from 1 July 2025 in the Finance Act 2024. Other measures are in place such that EVs also benefit from low rates of annual motor tax.”
“The existing vehicle tax structures in the State have a strong environmental rationale, with the more pollutant, fossil-fuelled cars paying higher rates of tax, between motor tax, benefit in kind, BIK, vehicle registration tax, VRT, and the nitrogen oxide, NOx, charge. In contrast, low-emission cars and electric vehicles, EVs, are subject to lower rates of tax. I know the Deputy will be aware of it but it I want to emphasise the point that our tax code already recognises the differing contributions that those vehicles make to carbon emissions in our economy and society. The current policy approach aims to incentivise the uptake of zero- to low-emission vehicles, which will help to reduce Ireland’s transport emissions.”
“On the substantive issue that is being raised here today, I reiterate the clear view of the Government on what has happened in Gaza and the Middle East. However, there are a particular number of responsibilities that the Central Bank is obliged to discharge that are rooted not just in national and EU law and it discharges those responsibilities. The Governor of the Central Bank has outlined that the other extremely important issues that are being raised here are not ones that in his view allow him to effect the discharge of those duties. That is a matter of law as laid out and how the Central Bank discharges its duties is so important to our economy and to the financial markets it regulates in turn for the benefit and stability of our economy.”
“His language consistently looks to demonise those who are acting in good faith. He, in turn, in his own way is a contributor to the decay of standards and how we can engage with each other and debate issues in a way that is respectful. Every time he contributes on such a matter, he does it in a way that seeks to demonise an opponent or deny good faith.”
“Let me return in a moment to deal with the substantive issue raised by Deputy O’Callaghan but before I do so, I will reply to Deputy Murphy. At a time when we seek to look at how politics can unite people and bring people together, I am reminded again and again that for somebody who claims to be on the left and someone who claims to be part of a movement that is about tolerance and inclusivity, there are few figures who serve that agenda less than the Deputy. His language is consistently poisonous.”
“The Deputies are already aware of it, and the view of the Central Bank governor in relation to it. I am not going to say to Dáil Éireann here today that I can do anything that I do not believe is legal and I am not going to say that I can do something that would imperil or undermine the independence of the Central Bank. We are clear in our condemnation of what has happened in Gaza. We are clear in laying out what we believe should stop and the support we have made available to those who are suffering in Gaza and in the Middle East. I do not accept the language that the Deputy has used in respect of the Central Bank. I have laid out its role very clearly.”
“I absolutely refute the allegations and language used by the Deputies. This Government could not be clearer in our condemnation of the behaviour and loss of life that is taking place in Gaza and the untold suffering those people have endured. We have made that case very prominently within the EU and at a global level. As Minister for Finance, I am obliged to tell the truth about the work that the Central Bank of Ireland does and the legal framework within which it must operate. It must operate in that legal framework because that legal framework and how the bank discharges its duties is fundamental to the work it does and, in turn, to how our economy operates and how it regulates activity here within Ireland and in Europe. I have outlined the legal mandate that the Central Bank should fulfil.”
“It is the position of the Central Bank, as set out by the Governor, that an advisory opinion of the ICJ or, indeed, the processes of the International Criminal Court do not constitute grounds for the Central Bank to refuse the prospectus of the Israeli bond programme. I do not intend introducing legislation that forbids the Central Bank of Ireland to fulfil its regulatory duties.”
“As such, ensuring consistency of application of the rules across the Union is an important aspect of the regulation. Currently, the Central Bank, as the competent authority under the prospectus regulation, is required to assess prospectus documentation on the grounds of completeness, consistency and comprehensibility. The Central Bank does not endorse the issuer or the securities by way of prospectus approval. It can only refuse the approval of a prospectus where it has a legal basis to do so. Where documentation meets the standards of the regulation, the Central Bank is required to approve a prospectus.”
“I propose to take Questions Nos. 7, 60 and 197 together. Regarding the number and value of bonds sold in Ireland, the Central Bank of Ireland does not regulate the bonds as products and does not collect specific data on the number of bonds sold. The regulatory function of the Central Bank is limited to ensuring that the disclosure document for the offer contains all the necessary information required by the EU prospectus regulation. The bonds themselves are not listed for sale on the Irish Stock Exchange. The legislative framework governing the approval by the Central Bank of a prospectus is provided by the EU prospectus regulation. This regulation, which takes direct effect across all EU member states, is not a minimum harmonisation document but a legal framework for all member states to fulfil the requirements as set out.”
“Through their presence in Ireland, those US companies have been more successful in the US. Being in Europe has contributed to their global performance. We will continue to make that case and will take on board the important issues raised by the Deputy about employers in his constituency.”
“May he rest in peace. Many members of the GAA family in Kildare will be feeling particularly sad today. I thank the Deputy for mentioning that. Regarding the Deputy's constituency, employers like Intel have made a magnificent contribution to the employment and growth of our economy, but they also make an important contribution to the European economy through the work they do in semiconductors and a high level of technologically advanced manufacturing. We will of course engage with companies like those because they and many other employers have been in our country for decades and have contributed to the US. By being globally present, they have allowed US companies to become even more successful. Even at this late stage, that is the case we continue to need to make.”
“That is why negotiation is vital, but we will see a big change happening in the global economy and we will need to support employers and firms in moving to that new equilibrium. They know this is happening and we will have to work with them to see how we can continue to support the growth of our economy. As the Deputy notes, our forecasts based on what is currently happening are for a lower level of growth but for our economy to still have very high levels of employment.”