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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“The Act will require ATM deployers to be registered with the Central Bank of Ireland and provides the Central Bank with regulation-making powers relating to matters such as reporting requirements, service and other matters such as denomination stocking. The Act was signed into law only in May; work will now begin to commence the legislation. I expect the key regulations to be completed in the third quarter of this year. While I am very much aware of the changing attitudes as regards the use of cash, I understand that for many people in our country using cash is still the main way they want to conduct payments. This speaks to an issue of inclusion within our financial system. I do not see it at all as being a technical matter; I see it as really important.”
“The Finance (Provision of Access to Cash Infrastructure) Act 2025 is the result of a recommendation in the Department of Finance’s 2022 review of retail banking. The objectives of the Act are to ensure sufficient and effective access to cash in the State; to put in place a framework to manage future changes to the cash infrastructure in a fair, orderly, equitable and transparent manner; and to bring cash-in-transit providers, CITs, and independent ATM deployers within the regulatory perimeter of the Central Bank of Ireland. The legislation will do so by allowing the Minister for Finance to prescribe in regulations access-to-cash criteria with regard to December 2022 levels initially, taking account of the exits of Ulster Bank and KBC. The regions used will be the eight regions of our country as defined by Eurostat.”
“To answer the Deputy's question about how we deal with investment overall, it is through authorising the long-term strategy and that process is under way.”
“I would expect those kinds of issues to be considered carefully by those involved in investing this money, which we are now building up. We had a debate last night on this topic in the Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach where I said that I am reluctant to put in place lots of legislation and restrictions regarding how decisions are made by the NTMA because it does a really good job on our behalf in managing the various funds we already have in place. Instead, officials in my Department are responsible for engaging with the NTMA on strategic and operational matters and do so regularly. My Secretary General sits on the board of the NTMA along with the Secretary General from the Department of public expenditure. We work with the NTMA on those two levels.”
“The day-to-day management of the funds is done by the National Treasury Management Agency. The NTMA is preparing long-term investment strategies for both funds that will then be subject to consultation with the Minister for Finance and the Minister for Public Expenditure, National Development Plan Delivery and Reform. These strategies are being reviewed and will then be signed off on by the two Ministers. The current investment strategies are being managed in a low-risk way. The funds are only invested in highly rated liquid securities with a low level of inherent risk such as the bonds of countries, as we develop these strategies.”
“Both funds are to be capitalised by annual transfers from the Exchequer - 0.8% of GDP per annum from 2024 onwards in the case of the Future Ireland Fund and €2 billion per annum from 2025 onwards in the case of the Infrastructure, Climate and Nature Fund. Over €10 billion has already been transferred to the funds in 2024. This year's transfer to the funds was announced during budget 2025. By the end of this year, the Future Ireland Fund will hold approximately €12.5 billion and the Infrastructure, Climate and Nature Fund will have €4 billion - a total of €16.5 billion.”
“The Future Ireland Fund and the Infrastructure, Climate and Nature Fund were established in 2024 following the passage of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act through the Oireachtas. The majority of the Act commenced on 30 July 2024. The funds seek to future-proof the public finances and deal with future challenges such as our country growing older, decarbonisation and the use of new technologies. As the Future Ireland Fund is a long-term savings fund, drawdowns from the fund will only begin from 2041 onwards. The purpose of Infrastructure, Climate and Nature Fund is to support the economy in times of exceptional need and support the funding of designated environmental projects. Funding can be drawn down from 2026. The drawing down of this fund is managed by the Department of public expenditure.”
“That is why we put in place the social measures to which I referred but if we want a greener future, we must find some way to pay for it.”
“I was careful in my answer. I said that the increases in carbon taxes since I introduced this measure in the Finance Act 2020 have been ring-fenced. Before I put in place the increases to which we are referring, there had been a base carbon tax, which was the foundation for all of this and the revenue from which goes to pay for public services. The Deputy stated that it said something about my motives that we are using these increases in carbon tax to pay for measures that can help with the greening of our economy and country. Likewise, his lack of commitment to these carbon tax changes raises questions about how he would pay for these measures. I understand they have an effect and that there are many who find it hard to pay these taxes.”
“This is a revenue-collecting measure that pays for public services and improvements in those things that can make a difference to a greener future for Ireland. Annual increases in carbon tax have been ring-fenced to ensure that this money is used to fund the development of better infrastructure across our country, help with the cost of fuel poverty and fund things we know our country needs to become greener and healthier. Budget by budget, I have made changes in social welfare payments to ensure that those on the lowest income levels are not affected the most by changes in carbon tax.”
“The natural gas carbon tax rate increases up to 2029 will add just under €15 each year to the average household natural gas bill, based on annual usage of 11,000 kWh. The annual solid fuel carbon tax increases up to 2029 will add 80 cent to a 40 kg bag of coal.”
“There are three separate legislative frameworks within tax law to apply the carbon taxation regime across liquid fuels, natural gas and solid fuels, namely, the carbon component of mineral oil tax, MOT, the natural gas carbon tax and the solid fuel carbon tax. The carbon components of MOT on petrol and auto-diesel are legislated to increase each October up to and including 2029. The MOT rates for other liable fuels such as heating kerosene and marked gas oil, along with the natural gas carbon tax and the solid fuel carbon tax rates, will increase annually in May up to and including 2030 to allow for the winter heating season. The mineral oil tax rate increases up to the final year will annually add 1.7 cent to a litre of petrol, and approximately 2 cent to a litre of diesel, heating kerosene and marked gas oil or farm diesel.”
“The Finance Act 2020 legislated for annual increases in the carbon tax rate of €7.50 until 2029, along with a final increment of €6.50, bringing the rate to €100 per tonne of carbon dioxide in 2030, with current rates based on charging €63.50 per tonne of CO2 emissions. Under the programme for Government, it has been agreed to continue with the planned carbon tax increases, which align with recommendations from the Climate Change Advisory Council, and to continue to use the additional revenues to fund social welfare measures, agri-environmental schemes and retrofitting. This approach encourages a shift away from fossil fuels and ensures those who are most vulnerable receive targeted support, making the transition to a sustainable future fair and equitable.”
“I have given the view on the scheme as clearly as I can. I completely understand where the Deputy is coming from and why he is raising the issue. As I said, it is really important that any changes we make at a time in which supply is still not increasing at the speed we want do not add to inflationary difficulties. I will take on board what he said.”
“I thank the Deputy for raising the issue and I will take on board what he said but I want to do him the courtesy of giving him my view on the issue at the moment.”
“The Deputy is raising the strong views of his constituents on this issue. One of the many points of questions like this is for the Deputy to raise issues his constituents want him to raise and for me to do my best to explain why we are doing or not doing what he wants. As I said, the concern I have is that in addition to the difficulties we have with building more homes, we need to ensure that as we build more homes, they are built in a way that is affordable. My considered analysis of this scheme is that any change that would make it available to homes that are already built could have a real risk of adding to house price inflation in our country, given how many second-hand homes are bought every year.”
“The big concern I have, and I would appreciate his views on this, is that if the scheme were to be made available to homes that have already been built, it could run the risk of making those homes more expensive and, in turn, less affordable. I do not want to see that happen. I welcome the Deputy's views on this. The help to buy scheme plays a very important role, and I am committed to its retention, but I want to ensure that by having it available, it not only helps with a deposit but also helps with new homes being built.”
“It should, of course, be borne in mind that the Government has put in place many other measures in addition to the help to buy scheme to support first-time buyers. They include the first home scheme and the local authority affordable purchase scheme. The programme for Government commits to the retention and revision of the help to buy scheme. As the Deputy will appreciate, any revision to the scheme would have to be considered as part of the annual budget and Finance Bill process and take into account the effective operation of the scheme and the impact any changes could have on the broader housing market. That cuts to the core of the point I made in response to an earlier question. I thank the Deputy for raising this issue.”
“It must be a new building that was not at any time used or suitable for use as a dwelling. If the building was non-residential but has been converted for residential use, it may qualify for the help to buy scheme. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for the scheme. Regarding second-hand properties generally, an increase in the supply of new housing remains a crucial aim of the Government. As I mentioned, the help to buy scheme is specifically designed to encourage an increase in demand for affordable new-build homes to encourage the construction of an additional supply of such properties. The scheme includes a claw-back provision where the minimum occupation period of five years is not met.”
“I propose to take Questions Nos. 9 and 20 together. The primary aim of the help to buy scheme is to encourage additional supply of new houses by supporting demand. It also assists first-time purchasers with the deposit they need to buy or build a new home. The scheme provides a refund of income tax and deposit interest retention tax paid in Ireland over the previous four years, subject to the limits outlined in the legislation. Based on the latest available data from 31 March, it has supported almost 55,000 individuals or couples to buy their own home. In addition to the conditions laid down in the scheme, including that the property be occupied as the sole or main residence of a first-time purchaser, the scheme defines a qualifying residence. The legislation is very specific as to the definition of a qualifying residence.”
“The progress we have tried to make in the affordability of childcare has essential social benefits in delivering equality within the workplace and within the home, which is important. There are also important additional economic reasons for doing so. At a time of full employment, it becomes even more important to look at how we can help those living in and contributing to our country to return to the workplace, and childcare is an essential way in which we will do that. We have an array of different measures in place that are making a difference but I will work with the Minister, Deputy Foley, on this. I know she will be approaching me on these issues to see what further progress we can make. I thank the Deputy for raising this important matter.”
“I will raise these issues with the Minister, Deputy Foley, but I know she is aware of them already. I will discuss with her the measures we can put in place now to further increase the supply of new homes and the new childcare places that accompany those new homes. We have measures in place now with regard to helping with the recruitment and retention of staff and with the provision of childcare facilities within places of employment. We also have schemes available to help with capital costs to encourage the private sector to provide more childcare places. As Deputy Currie has said, we need to look at the role the State itself can play in more actively supporting the sector in terms of the provision of places.”
“From a core funding point of view, what we are aiming to do now is to work with the childcare sector to put in place the funding to try to help with the hiring and retention of staff. I understand that for the 2025 to 2026 programme, a further €45 million has been allocated, resulting in a combined core funding allocation of €390 million. I hope this, along with the implementation of the third employment regulation order, which is all about having the right levels of pay and the right standards within the sector, will lead to improvements in recruitment and retention. Regarding the buildings themselves, we have in place a grant scheme that is overseen by the Minister for Children, Disability and Equality, Deputy Foley, the aim of which is to deliver an additional 1,500 places. I thank Deputy Currie for raising this.”
“I will deal with the different issues that have been raised. I take on board the overall point that the Deputy is making regarding the efforts that we have to put in place to fund supply. That is being done in two different ways at the moment. At local authority level, the guidelines for planning authorities in respect of childcare facilities aim to make clear the minimum number of childcare places that should be provided for a certain number of dwellings that may be available in a new community or on a new site that is being developed. The planning dimension of this is getting clearer and clearer in terms of laying out our expectations regarding what should be built.”
“This scheme provides for 100% capital allowances in the first year in respect of expenditure incurred on qualifying equipment and for an accelerated industrial buildings annual allowance and qualifying expenditure of 15% per annum for six years and 10% in the seventh year. We also allow, subject to certain criteria, income of up to €15,000 being exempt from income tax and USC.”
“The Deputy will be aware of the work the Department of Children, Disability and Equality is doing on this and the important work that the Minister, Deputy Foley, is doing to try to support the ongoing development and resourcing of core funding. Her Department has a programme in place - the building blocks extension grant scheme - under which she has announced a further €25 million to deliver an additional 1,500 early learning and childcare places for one-to-three-year-olds across our country. I understand that 49 community and privately operated services have been now shortlisted for that funding. It may be of interest to Deputy Currie, given the very important matters she has raised, that employers have access to an accelerated capital allowance scheme that includes, for example, childcare services.”
“I propose to take Questions Nos. 8 and 73 together. Deputy Daly just referred to the regional Independents turning up. I just want to refer to how there is not a single member of the Opposition present despite its focus on speaking rights and the operation of the Dáil. Regarding the important issue that has been raised by Deputy Currie, I appreciate its importance. Without the increase in the supply of childcare places, the efforts we have made as regards affordability have not had the effect we want. There is little point in making something more affordable if the places are not there to allow homes and households to avail of them.”
“People will be getting more and more confused by the Sinn Féin policy here today. The Deputy is saying there should not be any more carbon taxes and there should be a refund of what happened in the past while at the same time Sinn Féin Deputies come to the House every day of the week and want more retrofitting, more cycleways and more measures to help with fuel poverty.”
“What we are aiming to do is display a greater degree of honesty to them than Deputy Daly is. Is it Sinn Féin policy now - I am really struggling to understand this - that it wants a refund of the last two years of the carbon tax increases? Is that its policy?”
“All the Deputies on the Government benches here today visit homes that use solid fuels. We all represent people in homes that are struggling with the higher cost of energy and who know the cost of living is high. We understand that as well.”
“What we need to do, and will do, is look at measures that can help with that transition, but I do not believe it is responsible to spend money we may not have in the future.”
“Am I hearing the sands shifting in Sinn Féin's policy on climate again? The Deputy refers to the Government pushing renewables. Does he not think renewables should be playing a larger role in our energy sector? I would appreciate in the exchange we have if he could clarify that issue. I accept that the cost of energy and the way in which our energy market is structured are causing issues and costs for households and businesses. We are looking at regulatory decisions to see if we can change it in any way. Overall, however, the decarbonisation of our energy sector is one of the biggest prospects we have to try to reduce our carbon emissions and give us a greener, healthier and, in the very long run, a more competitive Ireland.”
“In addition to the relief for electricity for household use, there is also a relief from taxation for electricity generated from renewable sources. In most cases, this is claimed at source by the supplier. This is intended to accelerate the decarbonisation of our grid and bring down the price of electricity for the consumer. Recently, the Government approved an extension of the 9% VAT rate currently applied to gas and electricity until 31 October 2025 at a cost of €85 million. The programme for Government is clear in recognising that we will consider and then take further decisions in this area to see what we can do to deal with the cost of energy. However, I need to caution against using money we might not have available in the future to pay for measures our country will see as becoming permanent.”
“I thank the Deputy for raising this matter. As I said in response to questions from his colleague, I, and everybody in this Government, is well aware of what higher energy costs mean for all sectors of our society. The electricity and gas retail markets in Ireland operate within a regulatory regime that comes from within Europe. These markets are commercial and liberalised. They aim to be competitive and they are overseen by the Commission for Regulation of Utilities. At the moment, the Government is considering, insofar as we can, regulatory decisions that could add to the cost of energy within our country. Regarding taxation, households are currently exempt from the electricity tax while businesses per €1 per unit or megawatt hour for business and non-business use.”
“I do not have too much more to add what the Deputy said. There is a European background to this. There is so much in savings in Ireland and Europe more widely and we need to look at how we can use those savings in a way that helps to invest in our future and fund the big changes we need. The funds sector has a role to play in that. For so long, the way in which many of us saved was to put our money in a bank account or post office account or, as Deputy Gogarty referenced a few moments ago, we used it to buy a home or other property. These were understandable decisions. However, if we compare the way we save and invest to other parts of Europe, we can see that they make investment decisions. They invest in equities, stocks and companies, all of which helps companies to grow and employ more people.”
“My aim is that we will be able to do this over multiple budgets and try to make progress on these matters. As the Deputy stated, this is a part of our economy that is growing. There is a case for it growing faster within the EU overall. The sector raised multiple issues over a few years that we considered in a more careful and systemic way in the Funds Review 2030, which the Deputy just acknowledged. There are 42 recommendations within the review and some of them could be quite costly. Few of them are simple. We need to look at how, over a number of budgets, we can make progress on them. It is very encouraging to hear Deputies raise the sector today, as it is now employing people in many constituencies across the country. This is a considerable change and one of the reasons I will consider the points raised by the Deputy.”
“There is a possibility that, due to the changes happening in technology, younger citizens of our country will find it easier to make investment decisions about their own futures, which will help with their own economic futures. We need to take a step back and assess whether we have the right taxation regime in place and whether the regulatory environment around it and, in particular, the way we implement that regime, are clear enough. We are going to consider all of this. It is likely that because there are so many recommendations within the Funds Review 30 report that the delivery may have to take place over many different Finance Bills and budgets. I recognise the growing importance of the funds sector as an employer within our economy and I recognise that the products it has available are being considered by more and more citizens.”
“I thank Deputy McCarthy. The parliamentary question he refers to deals with the funds review and recommendations on the taxation of funds and policies. My predecessor, the Minister, Deputy Chambers, published the Funds Sector 2030 review, which was an important and wide-ranging piece of work. The programme for Government committed to progressing and publishing an implementation plan for consideration in budget 2026 because what we now know is that new technologies, the use of phones in particular, is offering retail investors easier access to investments at lower cost. I have heard the feedback about the need for modernisation of the existing taxation regime, and I acknowledge the complexities in the current regime for an average investor.”
“I am familiar with the needs of home buyers on the northside of Dublin, including within the Deputy's constituency. We will give consideration to this issue as part of the work we do for the budget. I emphasise that, at a time in which supply is not being built as fast as the Deputy or I want, we need to be careful that we not make a change to a scheme that could inadvertently add to the cost of homes. We will take the Deputy's points on board and consider the issue he raised. In the context of our exchange, I will examine the issue of the frequency of board meetings to ensure that it is not creating undue delay in decisions that lead to homes being built.”
“The issue of the threshold change is a matter that will be considered budget to budget. I caution that any changes could affect the price of a home, particularly at a point when we still have so much we need to do to increase supply. Regarding the important point that the Deputy made about the Housing Finance Agency meeting, I believe that refers to meetings of the board. The Deputy is concerned that, by only meeting once a month, it could be delaying important decisions. I will follow up on that. It is appropriate that a board meet approximately once a month, but that should not delay important decisions at a time when we need all the finance we can get to build more homes. I will raise that matter.”
“I do not believe the scheme should be extended to second hand homes. I appreciate this can sometimes be a difficult argument to make but a criticism and risk of a scheme like this is that we have to avoid adding to the cost of new homes being purchased by home purchasers. There is a risk that if the scheme was made available for homes that have already been built the money we are making available at the moment would simply go into making the homes more expensive as opposed to what I believe it does overall, which is to help with the supply of homes within a certain price bracket. Beyond that, I look forward to hearing the Deputy's views on the future of the scheme.”
“I thank the Deputy for raising this. The help to buy scheme is a plan to assist first time purchasers with the deposit if they need to buy or build a new house of apartment. It also has as an aim to encourage additional supply of new homes by supporting demand. The Deputy knows what the help to buy scheme is so I will not go into the detail of it. The scheme has supported almost 55,000 individuals or couples. The estimated value of it has been €1.2 billion and the scheme has now been extended until 2030. It is reviewed in accordance with the Department of Finance’s tax expenditure guidelines on a regular basis and any revision to the scheme would have to be considered as part of the annual budget and finance Bill process. I look forward to hearing the Deputy's view on the scheme. I reiterate my thinking on the future of the scheme.”
“Referring to being short-changed, if the Deputy looks at the measures the Government has brought in recent years, the various one off measures brought in on budget day did make a difference to people at a time during which the cost of living was so high and inflation was going up. In regard to the carbon tax the Deputy referred to, it is also the case that carbon tax funded the allocation of €951 million to various measures that are helping not only with fuel poverty but with the transition to a lower carbon future. Every day of the week, Members from the Deputy's party look for more of these measures while being against the taxes that pay for them. I have to be honest in acknowledging that if we want to invest more in a greener and lower carbon future, we need to have a way of paying for it. The Deputy does not take the same approach.”
“However, I make the case that if we accept that corporate tax receipts are absolutely at risk, because of the global issues we now confronting and that have not been raised yet in the Dáil today but which we discussed at the finance committee last night, it would not be proper for me to use receipts and money I know may not be permanent to fund measures that could become permanent.”
“It is not the case to say that some inflation is caused by forces outside our control. Looking at the inflation we have gone through in recent years most of it has been caused by issues outside of our control. What has happened with the cost of food and energy has been cause by the awful war on the people of Ukraine and the huge changes that have happened in supply chains and the way goods are supplied across the world after the pandemic. I accept there are issues that definitely contribute to the cost of living and that develop within our own economy.”
“What the Government will aim to do is to provide the support we normally do through, for example, social welfare measures that feature in every budget as opposed to the repetition of measures which if they became normal, I would be concerned they would not be affordable.”
“The reason I say we cannot do the one off measures we have done in the past again is that while the cost of living is still high, the rate of inflation we have seen that justified us doing those packages has fallen dramatically. When we brought in the various large cost-of-living measures, it was done in anticipation they would be one-off. That turned out not to be the case but what has turned out to be the case is that inflation has fallen. We were in a situation where inflation was well in excess of 10% and growing so quickly but now it will be, I hope, between 1% and 2% and growing at a far more normal level. I accept prices are high and that this is a challenge for so many people but the rate of price increases has fallen dramatically.”
“When it comes to inflation, it is important to emphasise the reason so many people are still struggling with it, and I accept it is a challenge for many, is not because of the actions of the Government. Inflation within our economy and the way it has gone up has not been caused by the Government of Ireland. It has been caused by factors that are outside of our control, in many cases. I refer to the cost of energy and what has happened with supply chains across the world. To answer the Deputy's question, we are currently - and I say "currently" - projecting a general Government surplus for this year of €8.7 billion, nearly all of which is caused by the corporate tax receipts most Members of this House, including I believe Deputy Doherty, have always acknowledged are highly volatile and that we cannot depend upon them.”
“I will raise that matter with the Minister for housing. The information I have does cover off where we are with our State agencies but does not deal with the local authorities at the level the Deputy has just referred to, and, in particular, the specific case to which he referred. I accept that for our more elderly citizens who need to use local authorities and other services, not being able to use cash broadly can be, for them, more than an issue of convenience. As I said, I will follow up on this with the Minister for housing and will revert to the Deputy.”
“If a body cannot accept cash directly, it must arrange for the facilitation of cash payments via third party. In November, the Secretary General of my Department wrote to all other Secretaries General notifying them of this recommendation. Departments and bodies under their aegis will be required to confirm, via their annual reports, that they are in compliance with this recommendation. It is my view that postal orders fall within the scope of facilitating cash payments via a third party. Postal orders are accepted by a number of local authorities and State agencies such as the Revenue. If the Deputy would like more information on the volume, use and operation of postal orders, An Post is the appropriate body to ask. I will certainly raise this matter with an Post because I accept that the point the Deputy raised is important.”