In this week’s Public Policy news, read about developments in Ireland’s transition towards a circular economy, as well developments in Ireland’s pension reform, along with the publication of Ireland’s summer legislative programme. Also covered is the growth in Northern Ireland’s sales and exports.
Transition towards a circular economy for Ireland
The Government has published a draft national strategy on how Ireland can transition to a Circular Economy. The draft strategy sets out what a circular economy is, why Ireland needs to achieve it, and how national policy will support that goal. Businesses, communities and citizens are invited to contribute their views through a public consultation which can be found here until 11 June.
Also launched recently was the Circular Economy Innovation Grants Scheme (CEIGS), under which social enterprises, voluntary and community organisations and businesses with fewer than 50 employees can apply for funding of up to €50,000 for projects that support innovation and circular economy initiatives.
Finally, a consultation has launched on Ireland’s new Circular Economy Programme. This new programme, which is led by the Environmental Protection Agency (EPA), aims to provide leadership and maintain a competitive programme of supports and knowledge to businesses about the opportunities afforded by the circular economy. The public consultation on the Programme is open until 17:30, 11 June 2021.
Major study published on opportunities for Ireland from EU free trade agreements
A major new trade study was published this week on the economic opportunities and effects for Ireland arising from EU Free Trade Agreements (FTAs) recently concluded with Korea, Canada, Mexico and Japan. The study, which was conducted by Copenhagen Economics, found that the FTAs will raise GDP by 2.3 percent by 2030. This increase will be driven by a 3.3 percent increase in Irish exports, and an equal increase in imports, which will continue to become cheaper for consumers and Irish firms with global value chains. The study also found that wages are expected to rise by between 2.6 and 4.4 percent in 2030, especially for low-income workers.
Speaking at the publication of the study Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, stated that “trade deals open up new and exciting markets, make doing business easier removing bureaucracy, tariffs, quotas and regulatory barriers. This is particularly important for SMEs, given that trade barriers tend to disproportionately burden smaller firms.” Minister of State with responsibility for Trade Promotion Robert Troy TD added: “As a small, open economy trade and investment is crucial to our recovery and future prosperity. The more we trade, the more jobs we support and the better the living standards for all.”
You can read the full report here: Four EU Free Trade Agreements – Opportunities and Impacts for Ireland.
Pension reform in Ireland with “IORP II Directive”
This week Regulations were formally signed which had the effect of transposing the “IORP II Directive” into Irish law. While many of the provisions of the Directive have already been transposed into Irish law, the over-arching objective of this Directive is to facilitate the development of occupational retirement savings in the European Union.
The requirements of the Directive (in keeping with Ireland’s Roadmap for Pensions Reform) will now apply to all schemes and trust Retirement Annuity Contracts (RACs), including small schemes and one-member arrangements, where possible and as appropriate, in order to ensure that all members and beneficiaries are afforded equal protection irrespective of size. IORP II investment and borrowing rules will apply only to new investments or borrowings entered into by such arrangements, and not to existing one-member arrangements, to which a 5-year transitional period will also apply to in respect of new IORP II requirements (other than investment and borrowing-related requirements).
Speaking after signing the Regulations, Minister for Social Protection, Heather Humphreys, TD, said the regulations “will provide for a number of improvements within the area of occupational pensions in Ireland such as – enhanced governance standards for schemes and trust RACs in Ireland - better protections for pension scheme members and beneficiaries - enhanced information provision to scheme members and beneficiaries including the introduction of a Pension Benefit Statement on an annual basis - the removal of obstacles for cross-border provision of services and transfers, and - promotion of long-term investment in growth, environment and employment enhancing economic activities”.
Ms Humphreys described many of the provisions in the IORP II Directive as “support[ing] positive reform of the Irish occupational pension sector in keeping with the Government’s Roadmap for Pensions Reform.”
Summer Legislative Programme 2021 published
A programme containing 43 bills for prioritisation by Government ministers and has been approved by Cabinet, following consultation with all government departments, officials and the Attorney General. Among the Bills to be considered is the Statutory Sick Pay Bill, to deliver a statutory sick pay scheme for workers, is also being prioritised. Chartered Accountants Ireland contributed to a public consultation on this Bill, which can be found here.
Statistics show growth in Northern Ireland’s sales and exports
Total sales by companies in Northern Ireland were estimated to be worth £71.9 billion in 2019, an increase of 4.6% (£3.2 billion) over the calendar year, according to a ‘Broad Economy Sales and Exports Statistics’ report published this week by the Northern Ireland Statistics and Research Agency (NISRA).
The Broad Economy Sales and Exports Statistics (BESES) is an experimental annual measure of local businesses’ sales to markets outside Northern Ireland. The report, which was originally scheduled for December 2020 was published this week as it was necessary to extend the data collection period and delay the publication due to the COVID-19 pandemic.
Among its findings, the report stated that sales within Northern Ireland are at their highest level since the survey commenced in 2011, and had increased by £2.4 billion to £48.9 billion, up 5.2 percent over 2019. Great Britain remains the most significant single market for external sales from Northern Ireland, having increased by £0.7 billion to £11.3 billion, up 6.6 percent over the year. However, Ireland remains Northern Ireland’s single largest export market with exports increasing by £404 million (9.9%) over the year, to £4.5 billion.
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