Cabinet Committees

1. Deputy Jennifer Whitmore asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [71954/26]

2. Deputy Roderic O'Gorman asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [72060/26]

3. Deputy Barry Heneghan asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [72033/26]

4. Deputy Conor D. McGuinness asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [71997/26]

5. Deputy Sinéad Gibney asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [71968/26]

6. Deputy Sinéad Gibney asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [71966/26]

7. Deputy Liam Quaide asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [70192/26]

8. Deputy Cian O'Callaghan asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [69993/26]

9. Deputy Paul Lawless asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [69988/26]

10. Deputy Peadar Tóibín asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [69964/26]

11. Deputy Peadar Tóibín asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [69963/26]

12. Deputy Darren O'Rourke asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [69883/26]

13. Deputy Ged Nash asked the Taoiseach when the Cabinet committee on economy and investment will next meet. [68629/26]

14. Deputy Cian O'Callaghan asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [67182/26]

15. Deputy Paul Murphy asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [66943/26]

16. Deputy Richard Boyd Barrett asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [66938/26]

17. Deputy Rose Conway-Walsh asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [66921/26]

18. Deputy Malcolm Byrne asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [66897/26]

19. Deputy Ruairí Ó Murchú asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [66852/26]

20. Deputy James Geoghegan asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [66688/26]

21. Deputy Louis O'Hara asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [64831/26]

22. Deputy Shay Brennan asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [64292/26]

23. Deputy Albert Dolan asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [64289/26]

24. Deputy Tony McCormack asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will meet next. [64285/26]

25. Deputy Naoise Ó Cearúil asked the Taoiseach when the Cabinet committee on the economy, trade and competitiveness will next meet. [64280/26]

I propose to take Questions Nos. 1 to 25, inclusive, together. The Cabinet committee on the economy, trade and competitiveness last met on 25 May and is scheduled to meet next on 23 November. In addition, I chaired a competitiveness summit in July where Ministers were briefed by the National Competitiveness and Productive Council, IDA Ireland and Enterprise Ireland. The committee oversees the implementation of the 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. The economy is performing well despite times of great economic uncertainty, with record numbers of people in work, low unemployment and strong Exchequer returns. As set out in budget 2027, we will continue to advance an economic model founded on a pro-enterprise policy framework, a stable and sustainable regulatory and tax environment and sound management of the public finances. It is essential that we continue to protect our economic success and future-proof our economy through competitiveness. Mindful of all this, we are investing 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 €275.4 billion out to 2035. Total capital infrastructure investment in 2026 is estimated at close to €19.1 billion by year end, with €20.3 billion allocated for 2027. This represents the highest annual spend to date and is in line with the objectives of the revised national development plan. We are continuing to implement our action plan on competitiveness and productivity, which focuses on economic areas within our domestic sphere of control. Through budget 2027, we are supporting Irish SMEs to grow and scale successfully through a €1 billion investment programme by the Ireland Strategic Investment Fund, ISIF. Enterprise Ireland will establish startup Ireland as a national entrepreneurship initiative and single-entry point for founders, while the growth and sustainability loan scheme will assist Irish companies to develop their businesses. We are also extending a range of tax supports, such as the employment investment incentive, the start-up capital incentive and the start-up relief for entrepreneurs, among others. We are providing further enhancements to the research and development tax credit through more attractive sub-contracting provisions, increased first-year payment thresholds and a reduced administrative burden. The reduction in the capital gains tax, CGT, rate from 33% to 31% will also support entrepreneurship and investment. A new AI Office of Ireland has been established. This office will play an important strategic role as it works with regulators, businesses and the public to not only promote the safe, responsible adoption of AI but also to support innovation and wider competitiveness. Last week the Government hosted the International AI Summit in Dublin, in conjunction with the European Commission's AI innovation month. Additional information not given on the floor of the House The summit offered a platform to demonstrate how Ireland and Europe can harness AI to drive competitiveness, innovation, investment, productivity and sustainable growth. More importantly, it showcased Ireland as the place to apply AI, as a global tech nation with the people, economy and ecosystem that will allow us to benefit from and take advantage of the changes AI will bring. We are building up fiscal reserves for our future with a further €1 billion allocated to the Future Ireland Fund in budget 2027. Outside of our domestic control the situation in the Middle East remains volatile and highly uncertain. The Government understands the significant pressure being felt by individuals, families and businesses across the country due to the impacts this is having on the cost of living and the cost of doing business. We have taken action to help households and businesses but we cannot mitigate every increase in cost. The package of Government support measures is helping to reduce the cost burden at the petrol pump, supports those most at risk of energy poverty and assists key sectors such as agriculture and haulage that are critical to keeping our economy moving. Under budget 2027 we are reducing the carbon tax on home heating oil and natural gas, increasing the fuel allowance by €5 per week and extending the current fuel excise reductions to 28 February 2027. We will continue to make critical investments to secure our economic future while preserving the jobs, stability and prosperity of today.

Every single time we raise concerns on this side of the House in relation to data centres and the enormous amount of electricity they are using, the Government and its Ministers just talk about jobs, the tech jobs that Ireland has. Of course, that is very important but let us look at other countries in Europe. In Ireland we are using 23% of our electricity at the moment for data centres.

Seriously?

There are not 25 Members here at the moment.

Sweden has 9% of its workforce in the tech sector and only uses 3% of its electricity for data centres. In Finland, 8% of its workers are in the tech sector but it uses 2% of its electricity for data centres. In Ireland, 6% of our workforce is in the tech sector-----

-----and we are using 23%. Can the Taoiseach explain the discrepancies there?

Battery e-cars now lead the market in new car sales in Ireland. They are ahead of hybrids, petrol and diesel cars but just when Irish consumers are looking to buy e-cars that are cheaper to run, the EU is moving in the exact opposite direction. There is a proposal from the German and French Governments to water down the EU's CO2 emissions cuts for new cars by 2035 from 100% to 80%. It is an historic mistake. It is bad for Irish consumers, for EU industry and for our carbon targets. Will the Taoiseach oppose this in the European Council?

Can we have 45 seconds?

We are losing time now.

The recent regional strategy for prosperity and connectivity launched by the Waterford Chamber of Commerce targets a €45 billion economy for the connected south-east region over the coming decades. Has the Taoiseach read the report? What will he do to promote regional economic growth so that decisions taken in Dublin work for regions outside Dublin and ensure that areas like the south east and Waterford city can live up to their potential?

IBEC has repeatedly called on the Government to put the enormous surplus in the National Training Fund, NTF, to work. That is money contributed by employers specifically to develop the skills of our workforce, yet approximately €2 billion has accumulated in that fund. The Social Democrats have consistently called for this money to be invested in apprenticeships, upskilling and retraining and to protect against the threats posed by AI to many jobs. Beyond the €360 million announced in budget 2027, how much of the accumulated NTF surplus does the Government intend to release over the next three years? Will the Government commit to accelerated investment in apprenticeships, training and retraining, with clear targets for the number of workers who will benefit?

We are in a cost-of-doing-business crisis here and the Government is actively pushing up costs. This month the CRU will put another €41 on bills. That is on top of €500 per year on network charges. Electricity bills in this country are the highest on the planet at the moment. We are trying to get people to move from fossil fuels to electricity. How is that going to happen if we keep putting up the price of electricity? We are the dearest country in Europe in terms of housing, health and energy. Will the Government commit to reducing network charges on the system in Ireland?

I welcome the establishment of the AI office. At the AI committee and at a number of conferences last week, we discussed with trade union members their role in the roll-out of AI. We discussed its potential to improve productivity but there are real concerns that the voices of workers will not be heard. One of the central asks from the trade unions is for collective bargaining. Is that something the Taoiseach sees as a priority in terms of competitiveness?

Last week we saw that it is public sector workers and ordinary workers in this country who make society run, not the likes of Michael O'Leary. The Taoiseach's response has been to say that there must be productivity elements. How can one squeeze blood from a stone? Our workforce is already enormously productive. The Taoiseach is talking about worsening public services. Also, the €1.6 billion he is talking about is an absolute insult. It will be rejected by workers because it amounts to 4%. Inflation is currently running at 4.1%. People are striking and taking action for real, long-term, significant pay increases.

Tomorrow postgraduate researchers, of whom there are many thousands, who actually do the research in our third-level institutions will be out protesting. They are continuing with their planned protest action because most of them are living on stipends that are below the minimum wage. It is outrageous when they are in our third-level institutions. In the budget, the Government found €118 million to give to the big multinational corporations, that are worth billions and whose CEOs are on extraordinary salaries, in research and development tax relief. Why does the Government not give it to the postgraduate researchers instead of the millionaires?

I ask the Taoiseach to have a comprehensive, independent cost-benefit analysis of data centres for sustainable growth on the island of Ireland, examining their economic contribution, infrastructure demands and opportunity costs and to establish how many centres Ireland actually needs and where they should be located. Approximately 23% of Ireland's electricity is now consumed by data centres. This raises serious questions about sustainable growth, economic competitiveness and the increasing capacity constraints on our electricity and utility infrastructure. We cannot have a situation where data centres secure grid connections while new homes and businesses cannot be connected.

I welcome the establishment of the Cabinet committee on artificial intelligence, which the Taoiseach will chair. I commend the Government on the hosting of the International AI Summit last week, and particularly our colleague, the Minister of State, Deputy Niamh Smyth, for all of her work. Given the success of the summit, will the Taoiseach commit to it becoming an annual event for Ireland to host?

Infrastructural developments such as the western rail corridor are key to economic growth in the west of Ireland. That is why it is very disappointing to read reports that following the Taoiseach's intervention, Iarnród Éireann, has permitted the development of a greenway on the Collooney to Bellaghy section of the rail line. This is extremely short-sighted and puts the integrity of the corridor at risk. Once a greenway is put on the line it will prove very difficult to ever remove it to restore the rail line. A greenway will not drive the kind of economic development we want to see in the west and that a reopened rail line can deliver. The Taoiseach has made a serious miscalculation here. There has been a huge backlash against this decision and I am asking him to recognise that it is the wrong decision.

The action plan on market diversification committed to a new trade and investment strategy this year. The action plan states that this must be guided by Global Ireland 2040. When will Global Ireland 2040 be published and will it set measurable diversification targets with ring-fenced agency resources for growth markets in order to develop Ireland's trade resilience?

Mishnóc leather, a Galway business, has highlighted that it can no longer sell across Europe because of the regulatory burden associated with packaging compliance. Under the EU's packaging waste regulations, small retailers face separate extended producer responsibility registration requirements in different member states. Will the Taoiseach push for a single EU-wide, one-stop shop for packaging compliance similar to the VAT system so that small Irish businesses can genuinely benefit from the Single Market?

FDI has been an extraordinary success for Ireland but a strong indigenous business sector is vital for our long-term economic security. Generations of Irish people have gained world-class skills and expertise working in multinationals. We have an opportunity to turn that talent into Irish-owned global businesses. I have always believed that if we are going to do something we should aim to do the best. If startup Ireland is implemented with that ambition, there is no reason the next Intel or Google cannot be from Ireland.

In respect of data centres, for the past five years we have essentially had a moratorium on data centres, which does not get acknowledged at all. That is not sustainable because data centres are a part of the digital economy. It depends on the prism through which you look. I accept fully that there is an energy issue. Obviously, there was good news this morning in the interesting commentary from EirGrid that there was less possibility of outages this year compared with last year and the year before. The grid is expanding. Some of that is due to rooftop solar, to go back to Deputy Heneghan's point, and some of it is due to more onshore renewable solar and wind coming on stream, but we need an awful lot more. There is a need for debate. We do not have heavy industry. We do not have steel or an automotive industry, but we have a digital industry. In terms of FDI, we do not get to say to companies that we just want a bit of their operation and we do not want anything else. You can say that, but if you look at other countries around Europe, the big investments on data centres in the past three or four years have not actually been here. An Irish ecosystem of expertise and skills has developed for data centres globally. Some Irish SMEs have been bought out now, they are so strong in their expertise and capacities in building high-quality data centres. The debate is a bit broader than it is being reduced to. I acknowledge fully that it grew exponentially over a decade, and we need to reflect on the balance between energy demand and the creation of further data centres. That is why the large energy users connection policy was outlined by the CRU to create a pathway for new data centre applications through the electricity system. The large energy user action plan, LEAP, is aimed at enabling sustainable growth in strategic energy-intensive industries, including data centres, over the medium term. The other big users will be semiconductors. We have a strong position on semiconductors in Ireland. It has been hugely transformative with companies like Intel and Analog. We have a very important sector in Ireland. The growth of AI is creating a new wave of investment on the semiconductor side, which could be beneficial to Ireland. The challenge is how we deal with the energy question. We had a Cabinet subcommittee yesterday on PR6. We are now looking beyond PR6, which is an approximately €18 billion enhancement of the grid out to 2030, to a substantial expansion of the grid well into the future. That will need buy-in from everyone in the House because it means proper overhead lines and every kind of enhancement of the grid if we want to maintain jobs. I know Deputy Whitmore did not mean it, but she said that we "just talk about jobs".

The Government does not take any other factors into account.

Jobs are key to people's livelihoods.

Data centres do not create jobs.

I come from an era where when I came out of college in the 1980s, it was a disaster. There was 17% unemployment. A lot of people left the country. I still have that in my head. It is deeply embedded in my consciousness. I never thought we would see these days when we have close to full employment. That can change, so we have to be competitive all the time. Maybe that is the difference between this side of the House and the other side. We are still competitive for growth. We are almost hungry for economic growth. It is a fundamental difference and outlook on life, but that is where we are.

It needs to be sustainable growth.

Deputy Heneghan spoke about plug-in solar. I hear him loud and clear. I have been engaging proactively - I was going to use a different word - with the Minister in respect of this. He told me it was imminent. I think it went to the ESB, which was meant to come back, because the ESB is worried about making sure it is done safely and in accordance with proper procedure, but it is important. Plug-in solar, like solar in general, could be very impactful. That is a big change that is under way. Regarding Deputy Conor McGuinness, I met the Waterford Chamber of Commerce on a number of occasions and am familiar with its reports. I think it is very go-ahead and forward looking. We will respond as we have on a number of initiatives that it has asked us to respond to. Deputy Quaide is not here, but he raised the National Training Fund. The origin of the National Training Fund was not a new PRSI levy. A slice of the existing PRSI base was earmarked for training. The Ministers at the time, Charlie McCreevy and Mary Harney, engineered that. I was in Cabinet. It has now grown to approximately €2 billion but it was part of the broader PRSI base. The problem is that it is part of the national Exchequer balance, and that creates some challenges. In this budget, the Minister was able, with the Minister, James Lawless, to create a specific fund for AI training. The latter has a substantial fund over the coming three years, which will make a significant difference. Deputy Tóibín asked about the costs of doing business. We are doing everything we can to reduce the cost of doing business. Electricity is a problem across Europe and in Ireland. Renewables are key to getting costs down, as is structurally looking at how energy prices are set generally with a view to the gas dimension of electricity prices. Deputy O'Rourke welcomed the establishment of the AI Office. I am establishing a group under the Labour Employer Economic Forum, LEEF, with trade unions in respect of the roll-out of AI. That is important. People, including Deputy Paul Murphy, raised the issue of the public service and productivity. I acknowledge the incredible work that the public service is doing. I attended a Civil Service award ceremony two years ago where I saw growth in productivity through system change or the use of technology. It is not about the emotive phrase "blood out of a stone". That is not what I am talking about at all. Workers are enthusiastically doing these things in the public service all the time. They come up with new initiatives and new ways of doing things. Revenue has been very efficient. Education and teachers have been efficient. Teachers have been innovative and are leaders in their classrooms and schools and they keep doing things. That is the context, but the bottom line is that we have expanded the public service. I do not think anyone can query that. Deputy Boyd Barrett criticised the tax credits on R and D. That helps us to bring research-----

I want to contrast it with PhD researchers.

We would not have PhD researchers if we did not have the tax credits to bring in the R and D investment in the first place, along with our investment in public universities, which is substantial under the INSPIRE programme and the earlier programme for research in third level institutions, PRTLI, of the late 1990s that I introduced. We created, with Science Foundation Ireland, a research ecosystem in this country, which we never had before the late nineties.

Below the minimum wage.

The tax credits are important to the companies to sustain investment in the country and to bring new investment that will benefit people. I turn to Deputy Conway-Walsh, who raised the cost-benefit analysis. Various cost-benefit analyses have been done. There was a recent KPMG report that did not find favour with everybody, but I am open to continuing analysis of the situation. Deputy Byrne raised the AI summit. It was a great success story. I thought there were some great speakers, and it helped to demystify some elements of AI as well as raise the frameworks within which AI should be developed. The reality is that AI was here a long time ago. It is a developing situation, and it is welcome that Ireland was in a position to host that summit. As to whether it becomes an annual event, I am open to that, but we need to be careful that we do not try to repeat the same thing twice. There could be other things we could do and other initiatives. We could do something different in the AI space, building on an evaluation of this AI summit. That is something we will certainly consider and will work the Deputy and others in the House in respect of that. Deputy O'Hara raised the greenway. Deputies representing Sligo are supportive of this, certainly on the Government side. The Deputy is wrong to say that, just because something is identified as a greenway, you cannot have a railway in 20 years' time. That is not true. It is not as simple as that. I think the greenway could be beneficial in the fullness of time. The all-island rail review did not suggest that anything could be done there from a railway perspective for another 30 years, and that is a problem. People need to be realistic in terms of what we can do. We are investing-----

Iarnród Éireann said it.

We are investing in rail, very substantially, across the length and breadth of the country.

Did I?

Electric cars.

I offer my sincere apologies to Deputy O'Gorman. The question was on the battery e-cars. Germany and France are very concerned about their automotive industry. There are real serious issues for Germany and France. There has to be a degree of realism about that. To be fair to both countries, they are supporting emissions trading system, ETS, 1 and ETS 2, despite huge opposition from other countries on the east against that. Everything is in the round at an European Council meeting. We are making great progress. I am minded to cut some slack for the German and French economies because they are under huge pressure from China but I will see. We have not come to a definitive position yet on it to see how it manifests itself with the Commission as well. Deputy Dolan raised the Mishnóc leather packages compliances. I would support the single EU-wide one-stop shop approach to it. I will follow up. I am not familiar with the specific elements of the company case here and the degree to which the European scene is impacting on anyone. We are trying to get simplification of EU regulations, not complication. Deputy McCormack is right about the national hub. The real solution is that parallel with FDI - and they are not mutually exclusive - that we develop an indigenous enterprise base of strength in the country. One of the key areas there is not only starting up companies - and the national start-up hub will be helpful - but to scale those companies and create our own global companies, which we are. I mentioned data centres. There are Irish companies all over the world building data centres. Some people might hate that. I do not. They are needed around the world in terms of the digital world. Can we build companies of scale? We have done it in the food industry, in construction and in other areas. Smurfit Westrock would be one of the great examples. CRH would be another example, the Kerry Group, etc. We have done it. Many SMEs in Ireland depend on and grow on the back of the FDI sector in terms of developing their expertise, which can then be used all over Europe and all over the world.