I propose to take Questions Nos. 1 to 21, inclusive, together.

The Cabinet committee on the economy, trade and competitiveness last met on 2 March and is scheduled to meet on 25 May. Membership of the committee comprises the Taoiseach, the Tánaiste and Minister for Finance, and the Ministers for public expenditure, foreign affairs, climate, enterprise, culture and further and higher education and research. Other Ministers or Ministers of State are invited to participate as required.

The committee oversees the implementation of programme for Government commitments relating to sustainable economic and employment growth, trade competitiveness and productivity, innovation, the national digital strategy and pensions. As with all policy areas, issues relating to the economy are regularly discussed at full Cabinet meetings, where all formal decisions are made. Ireland continues to demonstrate its economic resilience and its ability to adapt to changing global circumstances. The economy is performing well, despite times of enormous economic uncertainty, with record numbers of people in work, low unemployment and real wage growth. We will continue to advance an economic model founded on a pro-enterprise policy framework, a stable and sustainable regulatory and tax environment with sound management of the public finances and investment in the infrastructure, energy and skills required to ensure our future competitiveness and productivity.

The updated national development plan represents one of the largest and most significant capital injections in our economy in the history of the State. It sets out total public capital investment of €275 billion to 2035. Investment in this critical infrastructure will enable 300,000 additional houses by 2030 and expansion of our onshore and offshore electricity transmission and distribution network infrastructure through a €3.5 billion equity investment in EirGrid and the ESB. This will future-proof Ireland's electricity system and ensure it can meet the growing demands of our economy, our homes and our climate targets. The upgrading of our water and wastewater infrastructure will enable social inclusion, environmental sustainability and housing delivery. This funding of €12.2 billion to 2030 represents the largest ever capital investment plan in the history of water services and water quality.

Enhanced road and public transport infrastructure will connect our island and reduce travel times. Transport funding of €24.3 billion for the next five years will deliver a diverse range of transport options including public transport, active travel, roads, maritime and aviation. Approximately €10 billion of this will be used for public transport projects with a further €2 billion from the Infrastructure, Climate and Nature Fund specifically to start construction on MetroLink.

There will be greater opportunities to attract foreign direct investment and support our international competitiveness. There will be delivery of more childcare facilities and school places, investment in children’s disability services and better healthcare for all.

Additional information not given on the floor of the House

We will continue to invest in the future of Ireland while preserving the jobs, stability and prosperity of today. We will also continue to put resources into reserve funds, conscious of the risks of using windfall corporation tax revenues for ongoing current expenditure commitments.

However, the situation in the Middle East remains volatile and highly uncertain. The economic fallout will depend on the depth and duration of the conflict. The Department of Finance has assessed the economic impact of three scenarios, and this was published as part of the annual progress report on 21 April. The first relatively benign scenario is based on the futures market in mid-March, where energy prices were assumed to moderate over the second half of this year.

The second scenario assumes a sustained but contained disruption to energy markets, with oil prices remaining at approximately $100 per barrel over the coming months. The third scenario is based on a more pronounced and persistent disruption to energy supply with oil prices reaching $150 per barrel and staying elevated for an extended time. Under all scenarios, there is a shock to inflation, squeezing purchasing power and lowering the growth rate. While the near-term outlook is clouded in considerable uncertainty, what is clear is that economic fallout is likely to persist given the lasting damage to energy infrastructure in the gulf.

The Government is taking action to help households and businesses with the cost of fuel and energy. We are conscious of the increased financial pressure on households and businesses as a result. To date, over €750 million has been committed to measures to support households and business with increased fuel costs. This response has been possible because we have adopted a prudent approach in recent budgets. We will navigate this period of volatility, but we must remain flexible in our response. We cannot mitigate every increase in costs, and we must retain resources to ensure we can deal with any further deterioration in the global economy. We will continue to monitor the situation closely and respond as appropriate.

There are many questions, so it will be 30 seconds each.

Ireland is uniquely positioned to become a global leader in helping multinational companies achieve their carbon neutral targets. Nowhere is that opportunity greater than in County Offaly with Bord na Móna's landbank and the renewable energy capacity and scale to become one of the most strategically important locations in the country for sustainable industrial and enterprise growth. The Taoiseach recently described Offaly as a powerhouse in renewable energy and I believe that presents a major opportunity for the county and the wider midlands. International companies are actively seeking secure renewable and cost-effective energy to support them in the long term.

I speak regularly to sole traders, farmers, tradespeople and small business owners who are under immense pressure from rising costs, irregular income patterns and administrative burden. Many also remain concerned about the level of protection available to them if illness strikes or if business slows. Will the Taoiseach look seriously at strengthening supports for the self-employed, including areas such as simplified tax compliance, improved income protections and measures that recognise the reality of the risks they are taking to provide employment across the country?

I call Deputy O'Rourke.

Will the Government support the VFI proposal to-----

Eurostat has again confirmed that Ireland has the highest electricity prices in Europe, meaning that on average, consumers are paying in the region of 40% more than their European counterparts. What measures is the Taoiseach taking to reduce the cost of electricity to households and businesses, and to address the root causes of the high cost of electricity here?

The recent report by the ISME noted that there was a decline in SME credit balances from €62 billion in 2011 to €17.8 billion in 2023, despite headline economic growth in Ireland during that period. That is a stunning drop of 70% in capital to indigenous companies since the Taoiseach was last in government. He says he is a pro-enterprise Taoiseach but the evidence points to the contrary. What will he do to improve the conditions for indigenous enterprises in Ireland?

It is 18 years since CIÉ pensioners received an increase in their pensions. There was agreement between CIÉ and the unions in May of last year. A year later the Government has still not signed off on this increase. When I asked the Taoiseach about this in February, he said that the sign-off was imminent. We are now in May, and it has still has not been signed off. When will the CIÉ pensioners get the increase for which they have been waiting for 18 years?

It is absolutely necessary that we look at the fact that Irish people are paying 40% more for electricity. We need to find the solution to this. It is not okay.

Recently, a number of us met the House of Commons business and trade committee. A particular issue that I brought up, which I raised with the Taoiseach previously, is cross-Border taxation, particularly for those who are remote working or who cannot remote work, or companies which cannot facilitate cross-Border remote working. It requires a bilateral agreement with the British Government. It should be on the agenda of Government. I also said we should actually deal with the biggest issue, which is the Border, but the Taoiseach has a bit of work to do on that himself.

The prospect of 720 job losses at Covalen has caused enormous anxiety for workers and their families and our existing legislation on statutory redundancy is no longer adequate. After losing their jobs, Covalen workers are worried about whether they will have meaningful access to retraining and reskilling pathways and alternative employment. They are concerned about cooling-off periods and non-compete arrangements preventing redundant workers from potentially taking up employment with rivals. Will the Taoiseach ask the Minister for Enterprise, Tourism and Employment to meet the Communications Workers Union and ensure that the consultation process delivers meaningful change and fair outcomes for Covalen workers?

The Taoiseach recently alluded to the historic success of the social partnership model in the country and the impact and role it had in maintaining living standards, social cohesion and limiting industrial action. In alluding to that, I was hoping that we might be in a position to say that we are to commence a new period of social partnership between the employers, employees, and the Government as well. I ask the Taoiseach to update the House on whether such efforts can be made real.

I welcome the recent discussion about nuclear power but, economically, would it not be more viable for us to decentralise our grid with the private wires Bill and bring in long-duration energy storage and alternative energy storage abilities, be it gravity, green hydrogen or any of the newest things that are coming to the market? We saw how much the UK project went over its budget and I would love to see the cost-benefit analysis of nuclear compared with renewables.

It is economically illiterate for this country to sit on €500 million that has been set aside for climate action and not spend it while at the same time looking at funding renewable energy projects in other countries to make up for the fact that we have not done enough on climate in this country. It is crazy. Will the Taoiseach please explain his rationale on that?

It is an absolute disgrace that Jack Chambers and this Government are threatening essentially a return to austerity and cutbacks across Departments and trying to imply that because extra money had to be found for special needs, this has to be done. That is a cynical divide-and-conquer tactic when there are alternatives. The Government had underfunded special needs and was forced to acknowledge that. It could find extra money rather than cutting other Departments by taxing wealth and profits in this country. That is the elephant in the room that is never discussed.

We need retrofitting as quickly and as much as possible. It is part of the answer to the cost-of-living crisis and the climate crisis. The problem is that the way the Government has gone about it with its privatised model is now beginning to result in significant problems. I will give a few examples from my constituency. Philomena Doran, a 92-year-old widow in Oldbawn, got a 100% grant to get wraparound external wall insulation, but the external wall insulation was put on during Storm Chandra, when the building advice states clearly that it cannot be put on when it is raining. She went to the SEAI and got nowhere.

I call Deputy McGuinness.

Another woman, Clare Hayes, got in touch, where the provider did not provide the necessary declaration for her to get the grant.

Everybody is being treated the same. I call Deputy McGuinness.

She did not get anywhere with the SEAI. Where are people meant to go?

The scenes in Tycor in Waterford over the weekend have been devastating for residents, businesses and workers. I commend the firefighters, emergency services and front-line workers who responded. On Sunday morning, my colleague, Deputy David Cullinane, and I visited the area to meet those residents, the workers and the businesses affected. While the immediate danger has passed in many respects, enormous concerns remain around livelihoods, the clean-up operation, asbestos, air quality and long-term safety. I welcome the response under way by Waterford City and County Council and the local enterprise office, but once the national attention moves on, Government support cannot move on too. Will the Taoiseach commit to ensuring sustained Government support for affected residents?

The current public sector pay deal is due to expire over the next few weeks. Trade unions looked at the Government response to the fuel protests in recent weeks and understood that the package that was developed for those who were protesting did nothing whatsoever for PAYE workers, despite the Taoiseach's protestations to the contrary. He is opening the Fórsa conference this week. What will he say to the public sector workers represented by Fórsa and other trade unions, both in regard to their expectations about a new public sector pay deal and what he plans to do for PAYE workers in October's budget?

We are losing nurses, teachers and tradespeople because they cannot afford housing in this city and across the country. Our businesses and public services cannot get workers because of the rents. We are seeing the main supply is vulture fund apartments at €3,500 a month. Who can afford that? Not one affordable house for sale was built by the State in Dublin city last year. What is the Taoiseach doing to ensure workers can afford to live in our city and can afford the rents and house prices? It is a crisis that is threatening our economy and destroying our society.

I agree entirely with Deputy McCormack about the potential for the midlands for renewable energy. There have been some very good developments and announcements there over the last year, with various Ministers attending. I attended one recently with the Deputy. The Bord na Móna land resource has very significant potential for both energy renewables and industry to go along with that. We will do everything we possibly can to capitalise on that for the benefit of the midlands. A transition and transformation is happening there, which is very positive.

Regarding sole traders, small farmers and the self-employed more generally, Deputy Dolan is looking for a more streamlined Government approach and simplified tax compliance mechanisms. A cost of business forum has been established which has worked with the small business sector with a view to endeavouring to identify cost pressures on SMEs in particular. That is one strategy that has been deployed. A capacity is being developed within the Department of enterprise around simplification of regulation nationally. Across the European Union, significant work is also under way relating to the simplification of regulation for small businesses in particular. One of the initiatives coming on is a 28th regime, whereby SMEs can establish online and, within a number of days, would be European SMEs, without having to negotiate all the various national borders and so on. That is a focus of Government and of the European Commission.

Regarding Clare family-owned pubs, we will examine what the VFI has put forward. There is no question that family-owned pubs, particularly in rural Ireland, provide a social network and enhance socialisation, which is an important dimension of human health and the development of community ethos and spirit. I am not sure about the specific proposal. I will have to examine that, but we can see what can be done.

On the issue of our electricity prices being the highest in Europe, we are also the fifth highest in terms of purchasing power parity, but, nonetheless, they are too high. One of the key issues is grid dispersal. We are a peripheral island nation and we rely too much on imported fossil fuels. Those are the fundamental drivers of the high cost of fuel, as well as the volatility that arises when war starts. When there is conflict like in the Middle East and in Ukraine, and going back over the past number of decades, wars and conflict in oil-producing areas have created the greatest degree of volatility, so we have to move to renewables. That is the medium-term strategy. About 50% of electricity generation last February was through renewables. We achieved a lot in onshore renewable wind and solar is moving fast. The key challenge for us over the next number of years is offshore renewables, and then to work with the European Union on whether there are ways to deal with the regulatory framework governing the setting of energy prices. The link to gas is a particular factor in how energy prices and electricity prices are determined.

Regarding capital, the support for enterprise is very strong. From Enterprise Ireland, for example, it is growing and continues to do so in respect of most indigenous enterprises for export.

The Deputy did not distinguish whether it was indigenous enterprise for export or domestic service companies, but in terms of indigenous enterprise for export, the feedback has been very positive regarding Government supports, not just financial supports but also soft supports, market access supports, market intelligence, R and D grants and so on. Through the budget, we reduced VAT on hospitality. That measure, which was attacked by the Deputy and his party, is supporting SMEs.

They cannot get access to-----

No.

We have provided various mechanisms for access-----

Deputies, please.

-----to credit as well.

It is not working.

Very often, the take-up is not huge in terms of the various loan schemes going back to Covid-19 right through. They had not been taken up to the same extent, but the Deputy attacked it. The VAT reduction was a very simple, straightforward way to try to help the hospitality industry, likewise on the construction side to try to reduce costs but the Opposition attacked it. They cannot have it both ways, but we will continue to work on the financing of enterprise and improving the venture capital area as well.

Regarding the CIE pensioners, again I will talk to both Ministers. My understanding was that it was coming to a conclusion and hopefully it will be resolved very quickly.

In response to Deputy Ó Murchú, cross-Border taxation is on the agendas of the Department of Finance, the UK Treasury and the Northern Ireland Executive. In terms of resolving the issue, it is easier said than done, but there is no question that it is one that the Minister and Tánaiste is focused on. We discussed it at North-South meetings, ministerial meetings and also in the context of the cross-Border bodies whose workers are directly impacted by the taxation situation vis-à-vis North and South.

In terms of the job losses at Covalen, retraining and reskilling supports will be provided. We do have the National Training Fund, so the agencies should engage with the workers there in terms of whatever supports they need in perhaps finding alternative employment or helping some establish their own businesses if that is what some might want to do.

In response to Deputy Connolly, social partnership is important. The most recent manifestation of it this year has been the Labour Employer Economic Forum that the Irish Congress of Trade Union, the chambers and IBEC attend. I have asked the Secretary General of my Department to draw up a paper and I have consulted with the unions and IBEC, as well as the chambers and others, to see how we can solidify or develop a pathway to a stronger social dialogue and engagement. It will take all involved to participate but people would generally be supportive of some enhanced social dialogue. Whether the various parties want to go back to full-blown social partnership as we knew it is another question.

In response to Deputy Heneghan, I agree with him in the sense that all of what he outlined in terms of private wires - and the Minister is driving that forward - will be pursued and, as I said last week, the cost benefit analysis is part of what we need to examine. Examining a proposal means doing the cost benefit and the leg work to sort of identify what it would entail on the nuclear question. However, all of the others do not fall by the wayside as we develop that.

In terms of the half a billion euro, I have spoken to the Minister and that will be spent. We have spent up to €4 billion from carbon tax revenues on a whole range of measures, including farming, in terms of agri-environmental schemes, fuel poverty and the retrofitting scheme. Since the Minister brought in reforms, the applications have doubled in the first month or two since he announced them.

In response to Deputy Boyd Barrett, someone has to keep an eye on public expenditure and if the Minister for public expenditure is not doing it, then there is something really wrong. The Minister has to alert all Government Departments to stay within their budgetary frameworks.

I did not quite get the import of what Deputy Paul Murphy was saying, in terms of one person not being able to get the grant because it was wrongly-----

That was one of them.

And the other person did-----

The Deputy will have to engage further.

The work was during the storm and they-----

It should not have been but-----

Sorry.

-----that is a specific case. They should get it back and the one-stop shop should be approached-----

The Taoiseach and Deputy can engage further.

-----to engage with the company involved.

In response to Deputy McGuinness's question regarding that fire in Waterford, the Ministers of State, Deputies Butler and Cummins, have been there and met with the key people. The Minister, Deputy Browne, visited yesterday. The Minister, Deputy Burke, visited today and also received Cabinet approval today for a humanitarian scheme for those impacted. We are working to see if we can relocate the social enterprises and in particular the facilities for adults with disabilities which have been wiped out as a result of the fire. We are also working to make sure that full public health protocols are applied in terms of the asbestos. Teams are already down there trying to protect public health.

In response to Deputy Nash's question on the public service pay bill, the Minister will obviously engage with the trade unions on a new public service pay agreement, which will have a bill attached to it. I want to make the point that the package did result in a reduction of 32 cent in diesel and 27 cent in petrol which benefits workers. That cannot be ignored. It happened.

It was accidental.

No.

I am looking forward to opening the Fórsa conference as well, and we might allow them to hear my speech first. Perhaps it would be the best thing to do.

In response to Deputy Hearne, we built about 36,000 houses last year. We need to do much more, and we need to go higher again. We are going to do everything we can to provide social and affordable houses to both buy and rent.