In this week’s Public Policy news, read about the EU Spring economic forecast and its predications for a rebound for the Irish economy in the second half of 2021; the launch of a public consultation on the Corporate Sustainability Reporting Directive; the publication of the 2020 Annual Report of the Department of Public Expenditure and Reform; and a new “bold and ambitious vision” for the future economy of Northern Ireland. Irish economy predicted to rebound in 2021 The EU Spring Economic Forecast is predicting that the Irish economy will rebound in the second half of 2021 as lockdown restrictions ease and the vaccination rollout takes effect. Although consumer spending is expected to increase sharply, long-term pandemic-related unemployment might cause "scarring effects". According to the report, which published this week, Ireland was the only country to register positive growth in 2020, and exports are increasingly benefitting from an improving external environment. Overall, Ireland’s economy is projected to grow by 4.6 percent in 2021 and 5 percent in 2022, with modified domestic demand, which better reflects the underlying domestic economy, expected to expand by 4.3 percent in 2021 and 7.0 percent in 2022. Public Consultation on the Corporate Sustainability Reporting Directive launches The Government has launched a public consultation on the European Commission’s recently published proposal for a Corporate Sustainability Reporting Directive. The proposal, which revises the current rules on Non-Financial Reporting, substantially increases the detail of the information which must be provided by organisations. Launching the consultation, Minister for Trade Promotion, Digital and Company Regulation, Robert Troy, TD, encouraging all stakeholders to submit their views, stating: “The input received from stakeholders will play an important part in the development of Ireland’s approach in the forthcoming negotiations on the proposal. It therefore is important that the Department hears your views on this significant topic.” The public consultation on the proposal will be open until 23 June and can be found here. “An impressive record of achievement” The Annual Report for 2020 of the Department of Public Expenditure and Reform published this week, with key areas of work including: managing public expenditure better proactively preparing for the end of the Brexit transition period continuing to oversee the management of the 2014-2020 EU Structural Fund Programmes working to agree “Building Momentum” driving civil service renewal and wider public service reform driving the digital agenda implementation of the public procurement reform programme. Launching the report, Minister for Public Expenditure and Reform, Michael McGrath, TD, described it as “An impressive record of achievement during 2020, across a broad range of areas of public expenditure management and reform of the Civil and Public Service, most notably the Department’s work to address the impacts of the Covid-19 pandemic.” The report can be found here. “Bold and ambitious” vision for the Northern Ireland economy Northern Ireland’s Minister for the Economy, Diane Dodds, has described as “purposefully bold and ambitious” her economic vision for Northern Ireland, which includes better jobs with better wages and an improvement in people’s quality of life. In ‘10X Economy: An Economic Vision for a decade of innovation’ Minister Dodds provides 10 guiding principles underpinning the vision, which include supporting a greener economy, inspiring the future generation to thrive, delivering improved outcomes for all and increasing innovation. There will be a focus on priority clusters where Northern Ireland can be a global leader, with workers able to respond flexibly to future skills requirements. Further details of 10X Economy – which has been endorsed by a wide range of business leaders from industry, the hospitality sector, digital, manufacturing and engineering – is available is available on the DfE website. You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre

  In this week’s Public Policy news, read how Exchequer and CSO figures released this week show a mixed picture for Ireland’s economy; the launch of schemes to support retail and businesses in both Ireland and Northern Ireland; the UK’s enshrining in law of its 78 percent target to reduce its greenhouse gas emissions; and the opening of new Europe Direct centres in Ireland to reinforce the connection between the EU’s institutions and its citizens. Exchequer figures show increase in both tax revenues and expenditure Exchequer figures published this week show an increase in tax revenues in April of 20 percent compared to this time last year, with robust income tax receipts and excise duties. Total gross voted expenditure to end-April was €2.2 billion higher than for the same period last year, with spending by the Department of Social Protection to-date up €2.3 billion year-on-year. The 12-month rolling Exchequer deficit stands at just under €12.5 billion. Commenting on the figures, Minister for Finance, Paschal Donohoe, TD, said that while the figures show the continuing impact of the pandemic on public finances, they also point to some of the underlying strengths in the economy, with income taxes and excise duties, in particular, continuing to perform well: “The flexibility and adaptability shown by employers and employees throughout this pandemic has been extraordinary. Today’s figures suggest that as the economy opens up they can look forward to brighter days and a sustained recovery ahead”. CSO publishes April 2021 monthly unemployment statistics Figures released by the Central Statistics Office (CSO) this week show that the ‘COVID-19 adjusted’  unemployment rate for April 2021 was 22.4 percent if all claimants of the Pandemic Unemployment Payment (PUP) were classified as unemployed. This figure is down from 23.8 percent in March 2021, and from 30.5 percent this time last year. The seasonally adjusted figures show that the rate of unemployment in Ireland in April 2021 remains unchanged from the March 2021 figure of 5.8 percent, and 1.1 percent up on the figure for this time last year.  These figures classify claimants of the PUP as employed. Supports continue for Irish retail and business Minister of State for Business, Employment and Retail, Damien English, this week launched a new round of the Covid-19 Online Retail Scheme, under which €5 million will be made available to help Irish businesses upgrade their websites and improve their competitiveness in online retail. Separately a report was published by Bank of Ireland on credit card data revealed that overall consumer spending dropped by 5 percent in April, and showed a ‘mixed picture’ of spending levels. Commenting, Christian Pierce, Group Chief Data and Analytics Officer at Bank of Ireland said that while April spending saw a slight dip overall, “a more detailed analysis reveals that people are looking forward to a brighter summer ahead.”  Minister English also invited entrepreneurs and entrepreneurial teams to apply for Enterprise Ireland’s €1m Competitive Start Fund (CSF),which aims to increase the number of diverse High Potential Start-Ups (HPSUs) that have the potential and ambition to succeed internationally. This fund is now open for applications from founders of early-stage start-ups from all sectors with an eligible innovative product or service set for global markets. Schemes to support retail and holidays-at-home in Northern Ireland          Further supports for retail in Northern Ireland were announced this week, as Economy Minister Diane Dodds revealed that every person in Northern Ireland aged 18 and over will be eligible to apply for a pre-paid card worth £100 to spend in their local high street under the High Street Stimulus scheme. The Minister made the announcement as retail outlets re-opened under the recent Coronavirus guidelines. Part of the Economic Recovery Action Plan, the High Street Stimulus (HSS) is designed to stimulate local businesses, including retail and hospitality sector outlets, following the pandemic. Under the scheme, eligible individuals aged 18 and over will be asked to apply for the pre-paid card through a dedicated online portal. The card must be used in ‘bricks and mortar’ businesses within Northern Ireland and cannot be used online. The Minister also revealed that, if conditions are right, the HSS scheme will open at the end of the summer. Also announced was the Holiday at Home Voucher Scheme, which will allow Northern Ireland households to claim back 50 percent off a stay of two nights or more in certified accommodation, up to the value of £100. The scheme will be launched in the autumn to drive demand after the summer season. Further details will be released in due course. UK enshrines in law its record-high targets for emissions reductions The UK government has enshrined in law one of the world’s most ambitious climate change targets:  its new target under the sixth Carbon Budget to reduce the country’s greenhouse gas (GHG) emissions by 78 percent by 2035 from 1990 levels.  If achieved, this target would bring the UK more than three-quarters of the way to ‘net zero’ by 2050. The UK is required under the Climate Change Act 2008 to issue carbon budgets which provide Ministers with advice on the volume of GHG emissions the UK can emit during the period 2033-2037. The government set the target following advice published in December 2020 by the Climate Change Committee (CCC). Under the sixth Carbon Budget the government will incorporate the UK’s share of international aviation and shipping emissions for the first time. Policies to meet the carbon budgets – and the Net Zero Strategy – will be published before COP26, the United Nations Climate Change Conference to be held in Glasgow in  November 2021. Seven EUROPE DIRECT centres open in Ireland Seven new generation EUROPE DIRECT centres opened in Ireland this week following an announcement by the European Commission that it would be revamping its network of information and communication points around Europe. The centres are part of a community of 424 Europe Direct centres around Europe whose purpose is to reinforce the connection between EU institutions and citizens. Their role will be to help explain how Europe is combatting the COVID-19 pandemic, boosting recovery through NextGenerationEU, and tackling the green and digital transitions. The centres will offer information on EU policies and priorities to local media and will help the Commission keep track of local sensitivities linked to EU policies. They will also promote active European citizenship in schools, and coordinate with other EU networks in the regions, ensuring easier local access to information for citizens, organisations and businesses. The centres are in Ballinasloe, Blanchardstown, Clones, Letterkenny, Portlaoise, Sligo and Waterford.   You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre

  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.   You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre. Read all our updates on our Public Policy web centre