Tuesday, 9 Dec 2025

Tax Exemptions

Questions (294)

Emer Currie

Question:

294. Deputy Emer Currie asked the Tánaiste and Minister for Finance the exemptions and reductions available for local property tax (details supplied); and if he will make a statement on the matter. [69454/25]

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Written answers

Tánaiste and Minister for Finance

An exemption from Local Property Tax (LPT) applied to properties in unfinished housing estates (commonly called “ghost estates”) for the years 2013 to 2021. LPT was subject to a review in 2019 by an interdepartmental group. Their report noted that, on account of the demand for residential property and the small number of unfinished estates remaining, there was no objective justification for the continuation of this exemption. The group recommended that the exemption be discontinued.

This exemption was ceased in the Finance (Local Property Tax) (Amendment) Act 2021. Since 2022, there has been no exemption from LPT for properties in unfinished housing estates. I have no plans to reintroduce this exemption.

Regarding estates not taken in charge, the proceeds of LPT are largely used in the general provision and maintenance of infrastructure, services and amenities in a local authority area. Accordingly, residential property owners in estates not yet taken in charge benefit from the expenditure of these proceeds in the same way as the owners of other residential properties in the general locality in terms of the provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. LPT is payable, regardless of whether or not an estate has been taken in charge.

A requirement to pay a management fee or service charge to property management companies is not relevant in determining whether a property is subject to LPT. Accordingly, whilst those who are liable for these payments may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement, there is no specific exemption for the payment of management fees, nor is there provision to offset the amount paid on management fees against LPT.

The 2019 review of LPT also looked at this matter but the group did not recommend that persons paying management fees be afforded relief in respect of LPT.

National Asset Management Agency

Questions (295)

Mattie McGrath

Question:

295. Deputy Mattie McGrath asked the Tánaiste and Minister for Finance if he will open a full investigation into the serious matters of fraud within NAMA outlined in Dáil Éireann by this Deputy on 25 November 2025 (details supplied); if he will engage with NAMA on the matter; and if he will make a statement on the matter. [69463/25]

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Written answers

Tánaiste and Minister for Finance

I wish to advise the Deputy that by virtue of Sections 99 and 202 of the NAMA Act 2009, NAMA is legally precluded from disclosing confidential debtor information, including specific details relating to debtors, secured assets or related transactions. I wish to remind the Deputy that NAMA was established as an independent commercial body and the Minister for Finance has no role in its operations or decisions.

Tax Code

Questions (296)

Pa Daly

Question:

296. Deputy Pa Daly asked the Tánaiste and Minister for Finance if the Revenue Commissioners have been instructed by the Department of Social Protection to automatically apply tax to carer’s allowance and carer’s benefit from January 2026; the practical steps Revenue Commissioners will take; if any exemptions or hardship protections will apply for low-income households; and if he will make a statement on the matter. [69553/25]

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Written answers

Minister for Finance (Deputy Simon Harris)

There is a long-standing data sharing arrangement between Revenue and the Department of Social Protection which facilitates the operation of both the tax and welfare systems. Data has been shared in relation to taxable welfare payments such as pensions and long-term benefit payments for a number of years which allows tax to be deducted through the year instead of creating a full year’s tax bill at the end of the year.

Carer's Allowance and Carer's Benefit are subject to Income Tax but are exempt from USC and Pay Related Social Insurance. As this data has not been shared it is the recipient’s responsibility to declare this income to Revenue in a tax return.

I have been informed by Revenue, that in conjunction with the DSP, they met with Family Carers Ireland and Care Alliance Ireland earlier this year to confirm information detailing the taxable amount of carer’s income would be shared in the same way they do for Pensions and other long term payments.

I understand this will mean carers income will be treated in the same manner as many other payments. If an individual stops receiving a carer's payments during the year, DSP will notify Revenue and an amended Tax Credit Certificate will issue to confirm the recipients records have been updated accordingly.

I am advised that Revenue has established a dedicated phone line at 01-738 36 37 to assist with any queries.

Tax Code

Questions (297)

William Aird

Question:

297. Deputy William Aird asked the Tánaiste and Minister for Finance to review the VAT regime for cattle haulage in Ireland to ensure parity with other agricultural services; and if he will make a statement on the matter. [69555/25]

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Written answers

Tánaiste and Minister for Finance

The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.

Supplies of services of a kind normally intended for use in agricultural production are included in Annex III. In accordance with the Directive, Ireland applies its reduced rate of 13.5% to the supply of agricultural services listed in Schedule 4 of the VAT Consolidation Act 2010 which matches the list in Annex VIII of the EU VAT Directive. This list does not include haulage. Therefore, haulage services are subject to VAT at the standard rate, which in Ireland is currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to haulage services.

Business Supports

Questions (298)

William Aird

Question:

298. Deputy William Aird asked the Tánaiste and Minister for Finance the steps being taken to improve access to affordable credit for small and medium-sized enterprises, especially in regional towns; and if he will outline how Government schemes such as the credit guarantee scheme are being utilised by businesses in Laois; and if he will make a statement on the matter. [69556/25]

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Written answers

Tánaiste and Minister for Finance

Small and medium-sized enterprises (SMEs) play a significant role in the Irish economy and access to credit for SMEs is an important policy issue in many departments, including the Department of Finance who works closely with the relevant departments.

In 2010 the Credit Review service was established to provide an independent appeals service for business borrowers who have had their credit facilities refused, reduced or withdrawn by an Irish bank. Current participating banks are AIB, BOI and PTSB. Credit Review’s mission is to assist SMEs and farm businesses which are viable or potentially viable, to access bank finance they require for growth into the future.

Credit Review also monitors credit and banking conditions for small businesses and farmers in the Irish market, reporting regularly to the Minister for Finance. In addition, it provides information notes and reports on banking and credit issues.

Furthermore, my Department monitors the demand for and availability of credit to SMEs, including primary producers. The most recent Credit Demand Survey published by my department can be found here: [link].

The results from these surveys provide important information on the financial issues and challenges facing Irish SMEs. This information is used to inform the development of government policy to ensure that SMEs have sufficient access to appropriate finance.

In 2014, my Department established the Strategic Banking Corporation of Ireland (SBCI). The strategic mission of the SBCI is to facilitate Ireland’s economic development by offering SMEs and other borrowers targeted financial solutions that drive sustainability, growth and innovation. Since the SBCI commenced operations in March 2015, it has supported more than €4.4 billion in lending to more than 62,000 SMEs (up to the end of December 2024).

The current loan scheme in the market for SMEs is the 'Growth and Sustainability Loan Scheme' (GSLS), a €500 million long-term loan guarantee scheme jointly developed by the Department of Enterprise, Tourism and Employment and the Department of Agriculture, Food and the Marine. The scheme is underpinned by resources from the European Investment Bank Group and delivered by the SBCI in partnership with a number of bank and non-bank on-lenders.

This scheme is targeted at SMEs, including primary producers i.e. farmers, fishers and foresters. The funding available under the scheme is provided for investment in business growth and sustainability. The scheme provides for loans ranging from €25,000 to €3 million, for terms of 7 to 10 years. Loans of up to €500,000 can be provided on an unsecured basis.

Given the high demand for the GSLS (some of the lenders have reached their capacity under one or both elements of the Scheme), the Department of Enterprise, Tourism and Employment and the Department of Agriculture, Food and the Marine are negotiating with the EIB Group and SBCI on the potential to expand the capacity and extend the duration of the GSLS.

Detailed information on the utilisation of the GSLS, including regional activity, can be found on the Department of Enterprise, Tourism and Employment's website: https://enterprise.gov.ie/en/publications/growth-and-sustainability-loan-scheme-quarterly-reports.html[]

The Government has also in place a broad range of policy measures aimed at supporting SMEs to thrive. Most recently, under Budget 2026 Government agreed a package of actions intended to reduce costs for SMEs. More details of these measures can be found on the Department of Enterprise, Tourism and Employment's website: https://enterprise.gov.ie/en/news-and-events/department-news/2025/october/20251008.html

Finally, the National Enterprise Hub is a single source of information on the range of government business support programs available to Irish businesses of all sizes: https://enterprise.gov.ie/en/what-we-do/supports-for-smes/which-support-is-for-you/

Departmental Funding

Questions (299)

William Aird

Question:

299. Deputy William Aird asked the Tánaiste and Minister for Finance the way in which his Department is supporting investment in green infrastructure and sustainability projects through tax incentives or funding mechanisms; and the opportunities for counties such as Laois to benefit from these initiatives; and if he will make a statement on the matter. [69557/25]

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Written answers

Tánaiste and Minister for Finance

The Programme for Government set out the clear ambition to prioritise the delivery of transformative, critical and growth-enhancing infrastructure over the next five years. Ensuring this infrastructure is resilient to our changing climate is a key consideration. In the recently published National Development Plan (NDP) 2026-2035, Ireland's long-term strategic investment plan, sets out a total public investment of €275.4 billion over the period to 2035, with significant efforts made to ensure that the Plan will support the Government’s climate ambitions. Government has prioritised increased investment levels in green infrastructure, with particular focus on water, energy, transport and housing to meet the housing needs of our population and economy – all aiming to support future economic growth and to improve the living standards of the people across the country.

In the area of tax incentives, there are two accelerated capital allowance schemes within the tax system with a specific focus on green investments. Section 285C of the Taxes Consolidation Act (TCA) 1997 provides for an accelerated capital allowances scheme for capital expenditure incurred on gas and hydrogen propelled vehicles and refuelling equipment used for business purposes. Section 285A of the TCA 1997 provides for an accelerated capital allowance scheme for capital expenditure incurred by businesses on energy efficient equipment.

In addition, following amendments to Annex III of the VAT Directive, agreed in April 2022, the Government introduced a zero rate for the supply and installation of solar panels on private dwellings. It subsequently extended this to the supply and installation of solar panels on schools. The amendments also provided scope for Member States to reduce the VAT rate for the supply and installation of highly efficient low emissions heating systems to a reduced VAT rate. Ireland introduced a reduced VAT rate of 9% with effect from 1 January 2025 for heat pump systems.

There are no geographic limitations on these reliefs, they are equally available across the State.

The Deputy may also be aware that, in order to incentivise the uptake of more sustainable and renewable fuels, the legal frameworks for Mineral Oil Tax, Natural gas Carbon Tax and Solid Fuel Carbon Tax provide that biofuels are relieved or exempted from carbon taxation.

The additional yield raised by Carbon Tax is ring-fenced for climate action and just transition measures. Budget 2026 provides for a €1,114 million allocation toward such measures, an additional €163 million on 2025’s allocation.

As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax.

EU Meetings

Questions (300)

William Aird

Question:

300. Deputy William Aird asked the Tánaiste and Minister for Finance if a date has been confirmed for the informal ECOFIN meeting to be held during Ireland’s presidency of the Council of the European Union in 2026; and if he will make a statement on the matter. [69558/25]

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Written answers

Tánaiste and Minister for Finance

I am looking forward to chairing the informal meeting of the Economic and Financial Affairs Council (ECOFIN) next year. The date of the informal ECOFIN meeting forms part of the preparation of a high-level calendar that will span the full six months of Ireland's EU Presidency in the second half of 2026. Provisional dates for the meeting have been identified by the Department of Foreign Affairs and Trade and will be confirmed by that Department in early 2026, once the event-planning process has further progressed.

The Department of Foreign Affairs and Trade is leading on the work to schedule meetings of the European Political Community, European Council, formal and informal Council meetings and meetings of high-level Council preparatory bodies. As is tradition, a draft version of the high-level calendar is circulated to Member States and to the EU institutions several months before the start of the Presidency, which begins on 1 July next year.

Officials in my Department are collaborating actively with the Department of Foreign Affairs and Trade as well as the Department of Taoiseach to prepare for the informal ECOFIN and the wider EU Presidency.

The full official calendar, which will include all meetings and events forming part of the official programme for Ireland’s EU Presidency, will be published in June 2026 with the launch of Ireland’s EU Presidency website.

Departmental Reports

Questions (301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 312, 313, 314, 315)

The Central Bank during that time adopted a principles based approach to supervision. This approach to supervision placed an emphasis on regulated firms abiding by good governance and on the responsibilities of the boards of such firms to have and maintain in place appropriate governance as well as controls and risk management measures in order to appropriately manage their institutions.

This approach was not without rules. The cornerstone of banking regulation at that time were the capital adequacy directive, later the capital requirements directive, the Central Bank Acts and the Building Societies Act. A key supporting document at that time was the Licensing and Supervision Requirements and Standards for Credit Institutions (dating from 1995), with a non-statutory and non-enforceable basis. It was supplemented by additional requirements relating to, for example, managing liquidity and credit, and the Consumer Protection Code.

The then Government was determined to uncover the cause of the banking crisis in Ireland. A key mechanism to achieving this was the establishment of a formal inquiry into the banking crisis which built on a number of previous reports.

The Banking Inquiry was able to build on the information provided in the Honohan report, the Regling and Watson report and the Nyberg report. The witnesses that were called and the documents provided were able to provide a complete picture of the events leading to the financial crisis.

The Banking Inquiry provided an expansive review of the crisis, drawing on significant amounts of documents and evidence from senior officials across Government, the Central Bank, and the banking sector. The documents utilised in preparing this comprehensive main report of the Banking Inquiry can be found at the following Oireachtas link, https://inquiries.oireachtas.ie/banking/hearings-evidence/.

It comprises several elements; witness statements, hearing transcripts and core books of documents from institutions or participants collated by Participant, Theme and Line of Inquiry. Relevant material held by the Department of Finance from that period was considered by the Banking Inquiry.

The Banking Inquiry provides as much information publicly available as possible in respect of the actions taken in respect of the supervision of financial institutions in the period referred to by the Deputy.

These reports outlined the many failures relevant to the impact of the financial crisis in Ireland. The Honohan report specifically (authored by the former Governor) presented five root causes specific to the collapse of the Irish banking system:

• A comprehensive failure of bank management to maintain safe and sound banking practices;

• A regulatory approach which was too deferential and accommodating, insufficiently challenging and not persistent enough;

• An under-resourced approach to bank supervision that, by relying on governance and risk management procedures, neglected quantitative assessment and the need to ensure there was sufficient capital to absorb the growing property-related risks; and

• An unwillingness to take on board sufficiently the real risk of a looming problem and act with sufficient decisiveness and force to head it off in time; and

• Macroeconomic and budgetary policies that contributed to the economic overheating, and which relied to an unsustainable extent on the construction sector and other transient sources for Government revenue;

Financial regulation has transformed significantly since then. This is because of changes introduced through domestic legislation / reform and also in light of the changing nature of the European architecture of financial regulation.

The Central Bank of Ireland has undergone significant organisational change in terms of structure, culture and resources 2004 to 2008 period and the financial crisis.

The former Central Bank of Ireland and the Irish Financial Services Regulatory Authority were re-amalgamated into one body, the Central Bank of Ireland (the Central Bank). The approach to banking supervision has radically changed to one that is more assertive, risk-based, and challenging, and one which is underpinned by new legislation, predominantly the Central Bank Reform Act 2010 and the Central Bank Supervision and Enforcement Act 2013.

The 2010 Act also increased the transparency and accountability of the Central Bank. For example, the Central Bank will soon publish its annual performance statement, which will be laid before the Houses of the Oireachtas. The Act includes a requirement for the Governor and the Deputy Governors to appear before an Oireachtas Committees if requested and to provide information regarding the annual regulatory performance statement.

The Central Bank and Credit Institutions (Resolution) Act 2011 provides the necessary mechanisms to enable the Central Bank to intervene where a credit institution gets into serious difficulty and is in danger of becoming destabilised or otherwise failing.

The Central Bank (Supervision and Enforcement) Act 2013 further strengthens the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely regulatory interventions.

The Government further strengthened the Central Banks powers in 2023 with the enactment of the Central Bank (Individual Accountability Framework (IAF)) Act 2023, which aims to improve governance and culture in the financial services sector by increasing the accountability of individuals, particularly senior executives.

It was developed in response to the retail banking tracker mortgage issue and has the following four main components: (1) the Senior Executive Accountability Regime (SEAR), which clarifies responsibilities for senior roles; (2) the Conduct Standards, which set expected behaviours for all staff; (3) enhancements to the Fitness & Probity (F&P) regime, requiring firms to certify staff competence; and (4) strengthened ASP that allow for direct action against individuals for misconduct. The IAF supports the delivery of the Central Bank’s mandate of safeguarding financial stability and working to ensure that the financial system operates in the best interests of consumers and the wider economy.

A comprehensive review of the Consumer Protection Code was carried out to ensure it remains fit for purpose and continues to protect consumers of financial products today and in the future. The revised Code (published in March 2025 and will take effect from 24 March 2026) delivers an updated and modernised Code that reflects developments of recent years and the services and delivery channels being accessed today.

Since November 2014, the Single Supervisory Mechanism (SSM) has placed significant institutions in participating countries under the direct supervision of the European Central Bank (ECB). The new European Supervisory Authorities, namely the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) commenced operation in January 2011. At the same time, the European Systemic Risk Board (ESRB) was established.

Through the European System of Financial Supervision (ESFS), the above European authorities, together with the national supervisory authorities (including the Central Bank of Ireland), work to ensure harmonised financial supervision within the EU Single Market.

These legislative reforms have been supplemented by a significant increase in regulatory activity by the Central Bank, with a corresponding increase in staff numbers and skill levels.

The Central Bank now has a regulatory strategy of “assertive risk-based supervision underpinned by a credible threat of enforcement.” A credible threat of enforcement means that the Central Bank will pursue evidence of wrongdoing through the deployment of intensive enforcement investigations and inquiries where there is evidence of wrongdoing.

The Central Bank’s post-crisis “credible threat of enforcement” was supported through the enactment of legislation which bolstered the Central Bank’s powers and the establishment of a dedicated Enforcement Directorate. The Central Bank today has a sophisticated range of statutory powers to intervene as part of its regulatory toolkit, ranging from information gathering powers, skilled person reports and directions, up to customer redress and restitution powers and High Court enforcement orders.

The granting of these powers also came with the attendant political and public expectation that the Central Bank would utilise them to address wrongdoing, which it has done to good effect over the last decade. In order to credibly supervise firms, market participants must understand that, once commenced, the Central Bank will see its enforcement processes through to their conclusion.

The Central Bank recently completed two Administrative Sanctions Procedure (ASP) inquiries relating to the financial crisis and the tracker mortgage scandal and have concluded over 160 enforcement outcomes in total across the sanctioning regimes since 2006 to present day.

In the case of the ASP in particular, the Central Bank has, for over a decade, deployed its sanctioning powers to strategically and proportionately promote compliance and to deter misconduct at firm and individual level.

The Financial Stability Group has facilitated and strengthened communication and coordination between the relevant State institutions i.e. the Central Bank, the Department of Finance and the National Treasury Management Agency.

As Minister for Finance, I am satisfied that the national and European reforms implemented since 2010 represent a fundamental transformation of the supervisory system and that weaknesses identified in the reports no longer characterise the modern regulatory environment.

Given the comprehensive coverage of these reports and the inquiry, the significant pool of evidence and testimony composed for the Banking Inquiry (which is still accessible to the public) and the fundamental transformation discussed above, I do not feel it is an appropriate to begin another historical review of this period and that the focus needs to be on the existing system of supervision and enforcement.

As regards the approach to supervision, this was in line with the principles based approach and was primarily desk based for the period you are referring (2004 to 2008). It comprised of desk based reviews of regulatory and financial returns, regulatory approvals such as capital instruments, on-site reviews and inspections.

In May 2005 the Financial Regulator (FR) adopted a formal risk-based framework whereby a single cohesive approach across all sectors of activity was applied. The system evaluated risk using such factors as supervisory complexity, corporate governance, business and reputational risk and so on, based on regular statistical reports provided by credit institutions on their activities and financial condition. The risk-based framework was used to draw up a schedule of on-site inspections focusing on a smaller number of large banks, for example large institutions should be inspected on-site once a year, with a one-every-two-years schedule for the next tier of institutions and the remainder to be inspected on a longer rotation depending on available resources.

I understand that the Banking Inquiry was to the extent possible in receipt of papers from the Department as part of the deliberations of the Inquiry.

In terms of your questions related to costs: the total recapitalisation of the domestic banks amounted to €64.1bn, of which €34.7bn was invested in Anglo Irish Bank and Irish Nationwide Building Society (INBS) which became Irish Bank Resolution Corporation (IBRC). The remaining €29.4bn was invested in Allied Irish Banks (AIB), Bank of Ireland and Permanent TSB (PTSB).

In recent years, the State has recovered the full amount of this investment (c.€29.7 billion) by way of disposals, investment income and liability guarantee fees and retains a further c. 57.4% stake in PTSB (valued at c. €1.0bn). The Board of PTSB is currently undertaking a Formal Sale Process (“FSP”), which presents the State with the opportunity to exit its last remaining shareholding in an Irish bank after 17 years.

The IBRC was placed into special liquidation in February 2013. All admitted unsecured creditors at the date of liquidation (including the State) have been fully repaid. To date, the State has received approx. €1.7 billion from the special liquidation in respect of its unsecured creditor claims, interest on these claims and its holding of the preference shares in the Bank. Any remaining funds left in the liquidation once all remaining tasks are completed will be returned to the State as the owner of the equity in the former bank.

The National Asset Management Agency (NAMA) was established as part of Ireland’s response to the banking and property crisis. It acquired land and development and associated loans from participating institutions. NAMA is on track to substantively conclude its operational wind-down by the end of 2025. NAMA had a balance sheet of €32 billion at acquisition. NAMA has made a contribution of €5.2 billion to the State, comprising cash, corporation tax and assets transferred to the LDA. NAMA’s expected lifetime contribution to the Exchequer is projected to be €5.5 billion.

Question No. 302 answered with Question No. 301.

Question No. 303 answered with Question No. 301.

Question No. 304 answered with Question No. 301.

Question No. 305 answered with Question No. 301.

Question No. 306 answered with Question No. 301.

Question No. 307 answered with Question No. 301.

Question No. 308 answered with Question No. 301.

Question No. 309 answered with Question No. 301.

Question No. 310 answered with Question No. 301.

Tax Reliefs

Questions (311)

Carol Nolan

Question:

311. Deputy Carol Nolan asked the Tánaiste and Minister for Finance in view of the significant reduction in birth rates both domestically and internationally, the analysis his Department has conducted with respect to reforming the tax system to incentivise or support an increasing in total fertility rates here; if he is aware of reports that in 2010, Hungary ranked last among EU member states in terms of total fertility rate, but according to Eurostat data from 2023, Hungary has risen to third place and that this significant progress is largely thanks to the targeted government family support policies implemented over the past fifteen years, the result of which is that since 2010, 200,000 more children have been born than would have been expected based on previous demographic trends; and if he will make a statement on the matter. [69682/25]

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Written answers

Tánaiste and Minister for Finance

My Department has recently published two related reports that consider and identify a range of potential risks and vulnerabilities which might jeopardise the sustainability of the public finances, including those related to our future demographic profile.

The ‘Future Forty: Ireland’s Demographic Outlook’ paper, published in September, considers recent trends regarding migration and fertility at global, regional and national levels, and maps out the channels through which migration take place in Ireland. The report demonstrates how alternative scenarios for future net migration and fertility rates can affect projections for Ireland’s population and demographic profile.

The Demographic Outlook paper notes that over the past several decades, global fertility rates have sharply declined in many regions across the world; reflecting a complex interaction of social, economic and health-related factors, alongside changing cultural norms regarding family size.

The report also notes that there is mixed evidence to suggest that pro-natalist policies help to slow declines in fertility rate, citing studies by the United Nations Population Fund (2020) and the OECD (2023).

Following the Demographic Outlook report, my Department published Future Forty: A Fiscal and Economic Outlook to 2065, in November. This report explored a wider range of key drivers of Ireland’s economy and public finances over the next forty years, on a no-policy change basis.

The two publications have highlighted how an ageing population, combined with a slowing economic growth and the cost of tackling climate change while accelerating the green transition will have considerable impacts on our public finances. In particular, the cost of health and long-term care services will rise, as will the cost of pensions, while there is a risk that Ireland will be unable to rely on exceptionally high levels corporation tax receipts in the medium-to-long term.

Key priorities to address these challenges include enhancing long-run productivity growth, particularly for domestic sectors; encouraging continued and efficient capital investment, both public and private, to address infrastructure deficits and increase the supply of housing; and taking a proactive and planned approach to digitalisation, to enhance productivity, while investing in skills to minimise potential negative impacts.

My Department has not undertaken any specific analysis with respect to reforming the Irish tax system to incentivise or support an increasing in total fertility rates. However, the Department will continue to review and assess evidence and analysis undertaken in areas relating to demographics, population ageing and fertility rates as part of its broader role in supporting evidence-based policy making.

I note that the 2024 UN World Population Prospects highlights how, following the introduction of pro-natalist interventions, Hungary has observed small, initial increases in Total Fertility Rates (TFR). However, these increases have not reached the required replacement rate of 2.1 and the TFR now appears to be falling from a peak of 1.6.

This may reflect the ‘deadweight’ risk of pro-natalist policies whereby the policies encourage those already planning to have children to have them earlier but does not incentivise additional births or births in groups who were not planning to have children. Moreover, the cost of introducing such policies is substantial, with estimates that they equate to approximately 5.5% of Hungary’s GDP annually.

Question No. 312 answered with Question No. 301.

Question No. 313 answered with Question No. 301.

Question No. 314 answered with Question No. 301.