From Department of Public Expenditure, NDP Delivery and Reform
By: Minister for Public Expenditure, NDP Delivery and Reform; Michael McGrath
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Go raibh maith agat Jacqui.
Is mór an phribhléid dom a bheith anseo anocht le muintir Chorcaí agus cairde Chorcaí. Tá go leor le ceiliúradh againn i saol gnó, cultúrtha agus spóirt ár gcathair agus ár gcontae agus is iontach an rud é bualadh le chéile go pearsanta tar éis 3 bliana a bheith as láthair. Is onóir é a bheith i do aoichainteoir.
Good evening ladies and gentlemen, and that you Jacqui for your very kind words.
It is a great pleasure to join you all here for the Cork Chamber Dublin Dinner - it's an event I've attended on many occasions. It's taken me almost 16 years as a TD to make it to the podium but it guess it shows the value of never giving up.
Tonight, I'm going to talk a little about the bigger picture and our economy, a lot about Cork of course and leave you with some key messages.
I do want to acknowledge our Lord Mayor Cllr Deirdre Forde, Deputy County Mayor Deirdre O’Brien, my Oireachtas colleagues here this evening – Minister Coveney, Deputies Padraig O’Sullivan, James O’Connor, Colm Burke, Donnchadh O’Laoghaire and Senator Jerry Buttimer, Ambassadors and members of the Diplomatic Corps, Chamber Presidents, and if we can agree to call everyone a most distinguished guest.
Our Taoiseach is unable to be here but he does send his best wishes.
I would like to begin by thanking the Chamber President Ronan Murray, the CEO Conor Healy, and the entire team at Cork Chamber for asking me to be the guest speaker, and all the work in organising this event.
We are so fortunate in Cork to have a Chamber team of the highest quality. The engagement they have with government is frequent, sometimes robust, and always honest, about what is needed to support businesses in Cork.
I want to pay particular tribute to the Chamber for their advocacy during the dark days of COVID-19. I can tell you that – when it came to designing initiatives such as the wage subside scheme, CRSS scheme, rates waivers, tax debt warehousing, the restart grants, and more - Cork Chamber make a real difference.
I would like to thank the President of the Chamber during the COVID-19 period for the incredible work she put in during her term – so much of it unseen - and I know you will all want to join with me in thanking her and also congratulating her on her recent appointment to the board of the Dublin Airport Authority.
Paula Cogan, thank you.
I want to thank EY, and in particular Managing Partner, Frank O’Keeffe, for making this evening’s event possible through your generous sponsorship once again this year.
This event is important in recognising the strength and the closeness of the relationship between our first two cities and counties. Of course, we will always have banter and promote healthy rivalry between Cork and Dublin. But the truth is we are interdependent. Ireland needs a strong and vibrant Dublin, but it also needs a strong, a successful and a growing Cork to act as a counterbalance.
But before I talk about my beloved Cork, I want to reflect for a moment on where we are as a country. This year marks 100 years since we gained our independence. We celebrate a century of unbroken democracy – a parliamentary democracy that has served us well. We are respected internationally and we play a full role in international affairs. By any measure – life expectancy, health outcomes, educational attainment, economic opportunity, quality of life, – the Ireland of today is a very successful country.
The 1st of January next will mark 50 years to the day when Ireland was led into what has now become the European Union by then Taoiseach Jack Lynch.
Our membership of the EU, combined with the major shift in Irish industrial policy in the 1950s & 60s that Ronan referred to - to being an open, trading economy, that sells its goods and services to the world has allowed Ireland to prosper. Of course we face challenges, but so does every country in the world and we should not forget that the Ireland of today is unrecognisable from the country of just a few decades ago.
As I stand here tonight, the global economy is experiencing a period of real challenge. In a short few years, we have faced a series of economic shocks from Brexit, COVID-19 and war in Europe. You might expect to have to deal with one such seismic event in a lifetime, but three in succession is without precedent, and it has tested our collective resolve.
All of our challenges pale into insignificance when you consider the devastation of war that has been visited on the people of Ukraine through no fault of their own. From the depths of adversity, their resolve and fortitude is an inspiration.
We stand in solidarity with the people of Ukraine and we thank the Ukrainian Ambassador Gerasko Larysa for being here with us tonight.
The economic recovery in Ireland from the pandemic has been rapid and broad based. Ireland now is one of the best performing economies in the developed world.
We now have more people working in Ireland that ever before – at 2.55 million people, 9% greater than pre pandemic levels.
Eight weeks ago today, Minister Donohoe and I introduced a Budget with €11 billion of new measures primarily aimed at supporting businesses and households through this period of exceptionally high inflation. We did this with no borrowing, while at the same time we are putting €6 billion into a National Reserve and projecting a Budget surplus for this year and next.
These are outcomes we should not take for granted, or put at risk. Careful management of the public finances matters. It gives us the capacity to respond further in the event we need to across next year and beyond.
For an economy whose lifeblood is international trade, we are far from immune from the global economic headwinds - rising interest rates, the cost of energy and inflation generally, weakening external demand, supply chain difficulties and labour shortages, are all realities that you and indeed the government have to confront every day.
As a direct consequence of the war, inflation now is running at rates not been seen in 40 years and we know this is putting many households and businesses under serious pressure.
That is precisely why the Budget provided for a series of once off and permanent measures. Since Budget day, we have already paid €1.2 billion in exceptional supports, with much of it going to the most vulnerable.
We are working now to implement the Temporary Business Energy Support Scheme . Qualifying businesses will receive a payment covering 40% of the increase in their electricity and natural gas bills relative to last year, with a monthly payment cap of €10,000 per business per month, which may increase to up to €30,000 per month where the business has multiple premises.
The scheme will be administered by the Revenue Commissioners, with payments backdated to September 1st.
It is expected that the Revenue Commissioners will open for registration for this scheme on 26 november and receive claims from 5 December. Once the Finance Bill passes through the Oireachtas, we expect payments will issue before Christmas.
The current plan is that the Scheme will run until the end of February 2023. We will keep the duration and the payment caps under review, but the priority for now is to get the scheme up and running, and the payments issued.
We’ve announced a range of other schemes including the Ukraine Enterprise Support Scheme to assist companies in manufacturing and internationally traded services which have seen substantial increases in energy costs as a consequence of the war in Ukraine.
As we face in to a difficult period in the time ahead, we do so from a position of strength in the Cork region where we have a broadly based and diverse economy. Cork generates approximately 19% of our national GDP.
As well as vibrant small indigenous firms operating locally, we have a significant ecosystem of well-established companies across Technology, Life Sciences, International Financial Services, and Engineering & Industrial Technologies.
We have 200 IDA supported firms in Cork employing over 45,000 people and a further 25,000 employed across 446 Enterprise Ireland supported firms. I commend both agencies for their outstanding work – both had a record year in 2021.
I saw their excellent work at first hand again this weekend just gone when I met their teams in the mid-West of the United States, winning investment for Ireland and for Irish firms.
As a country with a growing population and inward migration, we simply have to keep investing in our infrastructure, and we will. Our National Development Plan is underpinned with €165 billion in funding out to 2030.
This long-term commitment gives certainty to government departments, public bodies and the construction industry, that we will stand behind our public capital programme – with spending levels among the highest in the EU.
Next year, we are increasing our capital programme to over €12 billion – to build more homes, schools, healthcare facilities, to invest in transport, and climate action.
Cork is and will continue to be a major beneficiary of our National Development Plan. I want to commend Cork City Council and Cork County Council for partnering with government and State bodies in delivering transformative projects.
We are seeing major investment in our road infrastructure. The Dunkettle interchange is a remarkable feat of design, engineering and construction. Phases are opening as they are being finished, and the project will be fully completed in the first half of 2024.
The N22 Macroom to Ballyvourney road project commenced will reach a milestone on the 9th of December when An Taoiseach will open the first 8 kilometre section including the bypass of Macroom.
The M28 motorway to Ringaskiddy is a strategically important project not just for Cork, but for the region. It will open up a large IDA-owned land bank for further development, it will enable the full relocation of the Port of Cork downstream, which will in turn free up land in the city for truly transformative urban regeneration. The advance works on the M28 project are well underway.
This evening, I can confirm that the Prior Information Notice for this project will be published next week. This is essentially a way of giving advance notice to the construction industry of an impending procurement process for the main construction contract. That procurement will get underway next year.
Coupled with this, over €400 million in funding has been made available under the Urban Regeneration and Development Fund to further advance the development of Cork City Docklands and for a major renewal project at Grand Parade Quarter. The face of our city is changing. The private sector has delivered state of the art new buildings to kickstart the Docklands project in recent years.
Through partnership of government, the local authority, the LDA and the private sector, we will deliver on the immense potential that we know is there.
In terms of transport links, the Cork Area Commuter Rail Programme will transform Cork’s rail network, increasing frequency and capacity. A new through platform at Kent Station will facilitate the running of services from Mallow to Cobh and Midleton and vice versa.
Irish Rail received a final grant of planning permission for the project from Cork City Council on 2nd November and it is expected a contract will be awarded early in 2023 with completion of works expected by end 2024.
The evaluation of tenders for the upgrade of the signalling and communications infrastructure in the Cork area is due to conclude shortly with the awarding of a contract in Q1 2023.
The upgrading of the Glounthaune to Midleton line to a twin track is a major part of the Commuter Rail Programme. The Railway Order application was recently lodged with An Bord Pleanála and the public consultation runs until mid-January. A contract award will proceed on approval of the Railway Order.
The success of Ireland as an open, trading economy depends on our ports and airports.
The Port of Cork makes an immense contribution to the economy, bringing jobs and investment to Cork and the southern region.
It is also a major contributor in the tourist sector bringing cruise liners to Cork and the thousands of visitors that comes from them.
Recently, I spoke at the official opening of the Port of Cork’s Container Terminal which was the largest investment in marine infrastructure in the Port’s 250 year history. I can now confirm that positive engagement is underway between government departments and the Port on a Border Control Inspection Post which would open up vast new trade opportunities.
2022 has been a hugely successful year for Cork Airport. Increased passenger numbers means that the Airport is now approaching its pre pandemic levels of 2.6 million passengers.
Over €15 million in public capital investment has facilitated a major reconstruction of the runway and will see the introduction of new passenger screening equipment in 2023.
Cork Airport is increasing its connectivity to major European hub airports such as Heathrow, Amsterdam, Paris and Frankfurt. This not only increases passenger choice it also further opens the Cork and southern region to business opportunities throughout the world.
The Crawford Art Gallery is the only National Cultural Institution based outside of Dublin. They have an incredibly exciting plan to redevelop the gallery. It is a major project that will attract local, national and international visitors. The Board of Crawford will this week be given approval to proceed to lodge the planning application with Cork City Council.
Ladies and gentlemen, ensuring that people have access to an affordable and secure home is a top priority for Government. We know it is also a critical issue for businesses.
Housing for All was launched just over a year ago and over €4.5 billion in public money is being made available next year to provide more social, affordable and cost rental homes.
We are making progress, but it is clear that much more needs to be done.
We have seen the highest number of home completions in over a decade, the largest number of first time buyers in fifteen years and over 27,000 homes have been commenced in the 12 months to September.
The newly launched First Home Scheme is designed to make it easier for first time buyers to buy new build homes. The Help to Buy Scheme has been extended to the end of 2024.
We are also beginning to see the first cost rental and affordable purchase homes coming online this year – including in Cork, and we need many more of them.
A new consolidated Planning Bill will be brought to Government next month which will greatly improve the functioning of the planning system through a whole range of measures, which will involve imposing statutory timelines for all consent processes – including by An Bord Pleanála.
We know that many sites with planning permission – especially for apartments - are not being activated because they are simply not viable.
A new Croí Cónaithe (Cities) Fund has been established to help bridge the gap between the construction cost of apartments and the market price.
The Land Development Agency or LDA is also working to accelerate the delivery of homes on sites with full planning permission where no construction has taken place due to financing or other constraints.
I am confident we will see apartments being built in Cork City next year with the support of the State.
Last year, in Cork City and County, nearly 2,300 homes were completed which is over double the number in 2016. The number will be higher this year, and we need to maintain momentum.
There are currently 760 affordable purchase properties in the pipeline in Cork City & County and there have already been over 100 First Home Shared Equity Scheme applications approved in Cork.
We know the private sector is facing challenges and the outlook for supply next year and beyond is not as positive as we would like. I want to assure you we will work with the industry in a spirit of cooperation to unlock the blockages that are there.
I also want to highlight the work of the Housing Commission which was established last year. It has been tasked with taking a deeper look at some of the issues affecting the provision of housing, and I look forward to seeing their recommendations shortly on how we can boost supply.
The cost of energy and security of supply is now centre stage as a result of the war in Ukraine. The role of renewable wind energy is key to fulfilling our ambitious climate action targets and ensuring energy security. In October, for example, wind energy provided 47 per cent of Ireland’s electricity.
While Ireland is a leader in onshore wind, energy, extensive work is now well underway to develop our huge offshore wind potential including the connection of at least 5 GW of offshore wind, based on competitive auctions, to the grid by 2030.
In Cork, we have a once in a generation opportunity to become a leader in floating offshore wind. It is an opportunity we must seize.
The new Maritime Area Regulatory Authority is scheduled to be fully up and running from early 2023. This Authority will manage consenting, licensing and enforcement activities in our marine space and will be central to the development of offshore wind.
Marine Area Consents are used in Ireland to permit the use of Irish marine space for offshore wind in return for a fee that is paid to the Irish State. A significant milestone was reached earlier this year, with the receipt of MAC applications for the first phase of offshore renewable energy projects. Decisions on the first MACs will be issued later this year.
In addition, at least three offshore auctions are currently planned for this decade under the Offshore Renewable Electricity Support Scheme. The first Offshore Renewable Electricity Support Scheme, ORESS 1, has been approved by Government and has now opened with the remaining two to be opened in the coming years.
The government recently agreed to set up a new division of the High Court to deal with planning and environmental issues.
We know so much needs to be done to achieve the potential that floating offshore offers including port capacity, and grid capacity.
Eirgrid is working to upgrade our grid and construction is set to commence next year on the €1.6 billion Celtic Interconnector which will link the south coast of Ireland to the north-west coast of France. Once completed, this enable electricity to be imported from and exported to mainland Europe further enhancing our energy security. It is expected this critical piece of infrastructure will be operational in 2026.
A fundamental component of Ireland’s industrial policy is a strong, motivated and highly trained workforce. Through investment in our schools, colleges and Universities we are providing young people with the opportunity to meet their potential.
Having a standalone Department of Further and Higher Education underscores our commitment to the sector.
I want to acknowledge the important role University College Cork, the newly established Munster Technological University and the Further Education Colleges in Cork play in producing top class graduates in a wide range of areas from science to engineering to finance. These institutions are critical to attracting Foreign Direct Investment into Cork and the entire southern region.
I want to assure you we will continue to support higher education by investment in exciting new projects such as the new Cork University Business School, the new Tyndall Institute facility, and the apprenticeship building in MTU.
Cathy Kearney
Before I conclude, I want to give a special mention to Cathy Kearney, who will receive the Outstanding Contribution to Business Award for 2022. I would like to congratulate Cathy on a wonderful and well deserved achievement. I know Conor will say much more on this in a moment.
Conclusion
In so many ways, we are living in extraordinary times. The world is facing enormous challenges and there is much uncertainty. Despite all of this, I am confident that the future of our economy is bright.
Every week, I meet businesses with a presence in Cork from different sectors who are constantly innovating, who are at forefront of adopting and, in many cases, creating new technologies to drive efficiencies and find new solutions.
We can never take success for granted, never stand still. We must always look for opportunity, maintain the sense of community that binds us together and look out for one another. We do this so well in Cork.
Our city, our county and our people have character and spirit in abundance.
Those of us who want to see Cork reach its true potential have to work together with a sense of unity and common purpose. Ní neart go gur le chéile. The strength is in the collective.
Let’s continue to work together to build a better and a fairer Ireland, inspired by a partnership between the two great cities that we celebrate here tonight.
Enjoy the rest of your evening.
Go raibh mile maith agaibh go léir.