Fiscal Policy
Dail Éireann — 2026-04-21
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Thomas Byrne (FF), Meath East

I thank the Deputy for raising this issue at a time when Ireland's contribution to the global financial ecosystem has never been more vital or more visible. I welcome the opportunity to discuss the importance of the funds industry in Ireland and the need for competitiveness.
I apologise; copies of my script are on the way. We thought they had already been sent down.
The latest estimate from IDA Ireland and Enterprise Ireland indicates that just over 20,000 people are directly employed in the funds sector. Furthermore, in terms of those working in the financial services industry - domestically and internationally focused - in Ireland, there are over 120,000 people employed, and these jobs are regionally spread throughout the country, employing highly skilled workers in almost every county. We know how important this sector is to our economy.
Work is under way on a successor strategy to Ireland for Finance, the whole-of-government strategy for the development of the international financial services sector in Ireland. Anticipated for launch later this year, the new strategy will be informed by a wide range of national and international stakeholder engagement, public consultation and research. The funds sector will be a key aspect of this new strategy.
The Department of Finance undertook a review of the funds industry in 2023 and the resulting funds review 2030 was published in October 2024. The review issued 42 recommendations to continue to grow this important sector of our economy. An implementation plan was published in October 2025. This includes a full breakdown of the recommendations and those responsible for their implementation. Of the 42 recommendations, the most substantive were categorised into four cohorts. The first was to grow exchange-traded funds, ETFs; the second was to grow private assets; the third was to grow retail investment; and the fourth was to address the risks and enhance transparency in structured finance.
The recommendations to grow ETFs have been delivered by the Central Bank. The recommendations to grow private assets involve legislative, regulatory and tax changes. These are on track for completion this year. There is ongoing engagement in train with the industry and the Department of Enterprise, Tourism and Employment on changes sought to the Limited Partnerships Act.
On retail investment, the Tánaiste has announced the Government's intention to introduce the legislative framework for an investment account this year. We want to make investing simpler, clearer and more accessible for ordinary people and to help their hard-earned money work harder for them over time. The aim is to legislate this year to allow accounts to be offered next year.
In budget 2026 we provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38%. This took effect from 1 January this year. In addition, in the same budget we committed to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment. The roadmap, which will be published in the coming months, will take into consideration developments at EU level in respect of the savings and investments union. This is a major project for the Presidency this year.
As home to the second largest funds industry in the EU and the third largest in the world, lreland does not just facilitate capital flows, we help to shape the architecture of the EU's savings and investment future. This is all-the-more crucial given the current challenges faced by the EU. These funding demands will continue to grow as we look to address our common goals, including security, competitiveness, digitalisation and a just and equitable green transition. It will be our responsibility to ensure we have the tools required to meet these challenges and continue to thrive.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-04-21/debate/main
Retrieved: 2026-09-21T01:01:08+00:00
Sitting date: 2026-04-21