The revelation that Ireland suddenly has €14 billion extra Euro to play with as a result of the Apple tax ruling has seen various West Dublin politicians discuss how the money can be best spent.
During the Dáil’s summer recess, Dublin West TD Jack Chambers found himself elevated to the lofty role of Minister for Finance and now has a large say in how Ireland spends the new-found windfall.
Chambers, who will deliver the budget in early October, repeated the government line that the windfall will not be used for day-to-day spending, putting paid to any hopes of Blanchardstown receiving a Simpsons-style monorail or Cabra being transformed into a new Abu Dhabi.
Speaking in the Dáil following its return on Wednesday, Chambers said “the government is committed to identifying the most appropriate use for these funds to benefit the people of Ireland over the long term,” and said that the budget has already been drawn up, meaning that the Apple windfall will not factor into it.
“The appropriate use of these funds needs careful consideration. I and my colleagues in government are having these discussions. Whatever is decided, it is clear this must be treated as a windfall to the Exchequer and not to be used for day-to-day ongoing spending. The funds provide us with a real opportunity to invest in our future.”
In October 2019, when Dublin Central TD Paschal Donohoe served as Minister for Finance, he established the “rainy day fund,” which saw €1.5 billion of public funds put aside in case of emergency and for long-term planning
In October 2020, at the height of the Covid-19 pandemic, part of the fund was drawn down to help the government tackle the financial strains associated with the pandemic
Speaking at the time, Donohoe said “the fact that our public finances were so carefully managed in recent years put us in a good position and allowed us to provide for such contingencies.”
“It is appropriate now that we release the funds that are at our disposal, as we work to meet the needs of our people, support businesses and strive towards stabilising our economy once again.”
With current global headwinds such as the German economy falling into recession, conflict in the Middle East, the Russia-Ukraine war and unease over America’s political future, government parties have reiterated that the sudden windfall should be put aside in case of an emergency or a future black swan event such as a pandemic outbreak.
Minister Chambers said “we remain committed to our strategy of encouraging multinational investment in Ireland, recognising its positive impact across the economy. The ECJ’s judgment means that the Exchequer will receive a significant additional amount in the coming months and work is underway to prepare for these transfers, identifying the best way to use these funds to support the Irish people now and into the future”
Fellow Dublin Fianna Fáil TD Cormac Devlin said “it is right to have a national conversation about how the Apple fund can improve our country.”
“Most people would accept that a once-off windfall of this nature should be spent on capital funding or on paying down the national debt in a way that benefits society today and into the future. Ultimately, a large range of areas are likely to be considered.”
Opposition TDs, who have differing views on fiscal ideology, have discussed how the money should be spent.
Sinn Féin TD for Dublin West Paul Donnelly remarked “the first instinct of this Government is to back big corporations.”
“The first instinct was to waste taxpayers’ money. Millions of euro in legal fees were paid, just like the €320,000 spent on a bike shed. This is no surprise because Fianna Fáil and Fine Gael have always had the backs of big corporations.”
“At the same time they were spending millions to defend this disgraceful tax avoidance scheme, the people of this State were being hammered by austerity.”
Donnelly noted that austerity-era economics (which, some argue still prevails within government) “caused huge damage to communities, individuals, families and children.”
Donnelly said that his party would put €1 billion of funds into an investment communities fund.
“The money would be invested in working-class communities that have been left behind by Fianna Fáil and Fine Gael. We would have a targeted capital investment fund for sports, play, community, youth and arts facilities and public spaces to transform communities that bore the brunt of that austerity.”
He said that some teams in his area – Corduff FC, Hartstown Huntstown FC, Erin go Bragh GAA, Mulhuddart FC, Tyrrelstown GAA – “are still operating out of containers in 2024.”
“St. Oliver Plunketts has no winter training facilities and it is the same for Erin go Bragh. These provide absolutely essential services for our young people.”
“We have utterly inadequate youth facilities throughout Dublin West. I worked in Darndale for a good number of years and I always looked at the Sphere 17 building. I advise people to go and have a look at it and ask why it is not the standard in every community that we have a dedicated youth facility.”
“Community is everything; it is the beating heart of life in Ireland and Sinn Féin is committed to backing communities held back by neglect and cuts to ensure they can reach their full potential,” he said.
Social Democrats TD Róisín Shortall said, “it is ironic that the government is now talking about how it will direct the spending of this money.”
“Having fought this case, having appealed it and said essentially that the Government was not interested in a figure of €14 billion, the Government is now saying it wants to direct how that money will be spent. Decisions around that money and the spending of it will be taken by the next Government. The Government has a neck to talk about directing how it is going to be spent.”
Shortall commented “we could get into a shopping list, as some people have done, in respect of how this money should be spent,” but she said as far as she’s concerned “that money that should have been used at the time to solve the housing crisis.”
“Those 4,000 children who are currently homeless would have been spared that trauma and denial of rights if that money had been spent in 2016.”
“It now has to be spent on correcting those serious errors that the government made and trying to do some kind of catch-up in respect of the provision of social and affordable purchase homes.”
“That is what the bulk of the money must be spent on now, to correct the serious errors the Minister’s predecessors made in 2016″