
‘The next critical conversation': chair of Just Transition Commission says it's essential climate action is fair to all
It is inherently, if unintentionally, unjust. And that's exactly what concerns the Just Transition Commission.
'We're very strong in Ireland on what we need to do in terms of climate action,' said commission chair Ali Sheridan.
'But how we're going to do it, who is going to be impacted, how are they going to be supported – that's the next critical conversation.'
The Commission is an independent advisory body established by the government last year with 11 members appointed for a three-year term beginning last October.
They come from a range of backgrounds, representing workers, farmers, business, academia, community organisations and children's rights.
Its forerunner was the one-man Just Transition Commissioner post, assigned to Kieran Mulvey in 2019 specifically to oversee the government's response to the loss of jobs in the Midlands when Bord na Móna announced it would be shutting down its industrial peat extraction operations as part of its 'brown to green' transformation.
But the concept of just transition originates with the international labour movement in the 1970s when employers in polluting industries shut up shop and left workers high and dry rather than bear the costs of new environmental regulations.
Regulations were a benefit to society at large but that was little comfort to unemployed workers who, trade unions argued, should be supported to build new livelihoods rather than be simply sacrificed for the greater good.
Around a decade ago, just transition became more closely associated with fossil fuel industries when countries such as Spain and Germany shut down coal mines to focus on developing renewable energy.
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And then the term entered public conversation in Ireland with the winding down of the peat industry.
Now it is recognised that it has much wider implications.
Whether it's determining which communities get flood protection first, what counties must host the most wind turbines, whose homes should be retrofitted for energy efficiency or where a new public transport service should be developed, Ms Sheridan says the principles of just transition must be central to decision-making.
Government policy supports this view. The Programme for Government states that the Coalition will: 'Support the Just Transition Commission's work to listen to communities, address their concerns and ensure they benefit from the green transition.'
The national Climate Action Plan has many references to just transition and its importance in implementing climate action measures.
Legislation underpins this. The Climate Act states that the Government 'shall have regard to the requirement for a just transition to a climate-neutral economy which endeavours, in so far as is practicable, to maximise employment opportunities, and support persons and communities that may be negatively affected by the transition'.
But Ms Sheridan has concerns around the strength of that wording.
'The current version being used in the Act and being used by Government is potentially very limited and very reactive in nature,' she said.
'Yes, it may soften the negative impacts of just transition, but it runs the risk of missing the much bigger opportunity we have to actually make just transition central to all our climate action going forward and all the co-benefits it can bring.'
In its first report, published today, the Commission stresses the need for a clearer definition and vision for what just transition means in an Irish context.
In meeting communities to prepare the report, the members found enthusiasm for the idea but also 'some level of scepticism and distrust' around it.
'If I was to ask you who is the most vulnerable to the climate transition, what sector, what type of person, what place, I don't think the answers to that are clear enough right now,' Ms Sheridan said.
To that end, the commission has begun 'deep dives' into various sectors – agriculture, transport and energy to start with – and will begin publishing their findings later this year.
Vulnerabilities can be wide-ranging, from the physical impacts of climate change on land and property to the financial burdens of trying to go green.
'We are going to be asking a huge amount of society in the very near coming years,' Ms Sheridan said.
'Every sector, every place, every person is going to be touched by this transition.
'We're only going to build the acceptance and appetite for what's to come if we put people and communities and places at the centre.
'So just transition is not a 'nice to have' – it's a critical part of delivering climate action.'
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RTÉ News
19 hours ago
- RTÉ News
First kite of pre-budget season flew over Leinster House
Bird watchers sometimes herald the sighting of the first swallow of the year as the start of spring. And, not to be outdone, political anoraks have a similar phrase too. The first kite of the pre-budget season flew high and mighty over a quieter than usual Leinster House this week, as the beginning of the Dáil's summer recess was interrupted by a potentially serious political row gliding into view. Not for the first time, it involved a once cast-iron pre-election promise whose carefully choreographed landing now risks becoming a victim of some not exactly unexpected post-election economic turbulence. And, not for the last time, the planned flight trajectory could yet be replaced by an all too public nose dive as the Coalition checks its political radar for signs of how to navigate its way between two competing financial priorities. Hospitality tax cut The reason for the situation is a Programme for Government promise which is now at real risk of being delayed. In the January document, which outlines what Government intends to do in power, the Fianna Fáil-Fine Gael-Independents Coalition confirmed that the existing 13.5% hospitality VAT rate would be reduced. That commitment, which was one of Fine Gael's key commitments in last November's General Election, was widely seen as indicating but did not explicitly point to this October's Budget as the moment the 13.5% rate would be cut to 9%. Such a move would support struggling restaurants, bars, cafes, pubs and hotels, and therefore help protect jobs. "Our Budget decisions could change depending on the economic environment we find ourselves in." But its near €1 billion price tag would mean less financial space for cost of living supports for the wider pubic, an issue that was made crystal clear as Government outlined its immediate economic plans this week. During a press conference at Government Buildings on Tuesday, Taoiseach Micheál Martin, Tánaiste Simon Harris, Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers announced the Coalition's National Development Plan and Summer Economic Statement. The former outlined a €275bn capital projects war chest for the coming decade, including aspirational promises and dazzling numbers like €36bn for housing, €22bn for transport infrastructure such as the long-delayed Dublin Metro, and almost €10bn for health. But the latter was more pragmatic, detailing in practical terms how much money Government actually has to play with in its coffers right now - and, specifically, space for €1.5bn worth of tax cuts in Budget 2026. The figure may seem like a lot, and it is, but it still does not pay for everything voters want. And, inevitably, that means difficult choices for the coalition to make, including when it comes to promises previously given. Despite both Mr Martin and Mr Harris saying in recent months that the cut will happen, Mr Donohoe told reporters that the expected hospital VAT reduction from 13.5% to 9% was not as certain as previously indicated. Rarely one to misspeak, Minister Donohoe explained that if the hospitality VAT rate is reduced it is important "to be open" about the fact "trade offs" with other sections of society may be necessary. "I have always made clear my intention with regard to that [the hospitality VAT cut]," he said. His use of the word "intention" rather than anything stronger peaked the interest of attending reporters. "But I have also said there are trade offs, and there are consequences to that," he said. "And there are therefore other things that we are not going to be able to do. "If you were to bring forward a tax package that was to fund a full year measure that was in relation to the VAT, the cost of that would be nearly a €1bn." "And then if I was to add to that other measures we've done in the past, we would have a tax package that is far bigger than what I believe would be safe," he said. He added: "Our Budget decisions could change depending on the economic environment we find ourselves in." A pre-budget kite, in other words. And one that has caused if not a split, then certainly some friction, within the Coalition as competing political priorities have emerged. Internal Coalition friction While Minister Donohoe's comments were likely designed to point out the reality of the dilemma for Government rather than specifically rule out the hospitality tax cuts this year, they did open the door to the prospect within at least some sections of the coalition. By Wednesday, several Government sources had indicated privately that the cut should be delayed until July 2026, with Fianna Fáil members - including the wily long-time Limerick City TD Willie O'Dea - among those to publicly nudge forward the argument. Speaking on Friday on RTÉ's Morning Ireland programme, Deputy O'Dea said given the limited scope for tax reductions in the upcoming budget, he would "like to see it [the €1.5bn in available tax cuts] more equitably divided", with "an increase in tax credits and tax bands in line with inflation" his priority. Asked if this is because it would be difficult to convince voters to support helping the hospitality sector first, given a disputed reputation for price gouging by some businesses in that sector, Deputy O'Dea said: "It's not just a question of would it be hard to sell to the public, it's would it be good for the economy." Responding to suggestions of friction in the Coalition over the situation, he added: "I wouldn't describe it as friction, people have different views and that's what Coalition government is about." "I don't understand what kind of kites the Government are flying in relation to this cut for the hospitality industry, the Government are sewing massive seeds of confusion on this yet again." Deputy O'Dea's view was echoed privately by numerous Fianna Fáil TDs, and a smaller number of Fine Gael colleagues, who questioned how prioritising help for businesses instead of cost of living supports for the wider public might play out. And senior Government sources did little to kill off the suggestion when asked. But Fine Gael TD and Minister for Enterprise and Tourism Peter Burke - the politician responsible for the sector - had a different view during a hastily organised press briefing at Government Buildings on Thursday. Asked if he would acknowledge the hospitality VAT tax rate cut will now be delayed until next summer, Minister Burke responded: "Absolutely not acknowledging that, any negotiations will form part of the budget. "We're now still in July and it's very important to note the Budget will consider all options in every different sector." Opposition criticism The opposition, it is fair to say, were less than impressed over the apparent confusion over whether the hospitality tax cut would still go ahead on 1 January or be delayed until at least next July. Labour TD Duncan Smith said bluntly: "I don't understand what kind of kites the Government are flying in relation to this cut for the hospitality industry, the Government are sewing massive seeds of confusion on this yet again." That view was shared by other opposition TDs, including Sinn Féin's Donnchadh O'Laoghaire who said the Coalition needs to find a way to help both the hospitality sector and the wider public through cost of living supports. And it was echoed too by non-political groups representing those in the sector, which became locked in a war of words over what should happen next. Responding to the watering down of the previous tax cut promise, Restaurants Association of Ireland Chief Executive Adrian Cummins said: "If the VAT rate doesn't reduce to 9% from January 1, you'll see more and more closures" and resulting job losses, noting more than 200 restaurants have already closed this year. However, the view was countered by the Irish Congress of Trade Unions general secretary Owen Reidy. "The proposal to cut the VAT rate at a time of huge economic uncertainty flies in the face of all available evidence, and would amount to nothing less than economic vandalism," he said. "The Government has identified many laudable priorities as part of its programme for Government: housing, reductions in child poverty, and investment in disability services. "Given that ministers have been giving serious warnings about economic uncertainty, why would they prioritise a corporate handout costing almost €1bn?" Government dilemma That latter point goes to the heart of the difficulty now facing Government, and in part helps to explain the early nature of this week's at times contradictory pre-budget kite flying. While there is a strong argument for the need to protect businesses, and therefore jobs, in the hospitality sector during a period of intense global financial uncertainty, few politicians would want to be seen to be doing so at the expense of supports for households during that same economic turbulence. In that context a calculated delay to the hospitality VAT rate cut plans makes some sense, as it would allow Government to continue to argue it will - eventually - keep its promise while giving itself more short-term financial space to protect the wider public. That plan, however, comes with a significant catch, in that the hospitality sector is insistent a delay to the tax cut will see people lose their jobs. But, more than one Government TD has privately noted this week, not delaying the tax cut in order to have more space for wider public cost of living supports would put households at risk and give opposition parties an obvious line of attack the coalition could do without. The first kite of the pre-budget season has now soared into view. Depending on which way the economic and public wind blows, it could yet lead to an unexpectedly bumpy political ride.

The Journal
2 days ago
- The Journal
New legislation could allow people choose who inherits their estate, say tax group
'CHOSEN RELATIONSHIP' LEGISLATION could allow individuals select one or two heirs to their estate under the same grouping as parent and child, a specialist expert group has told government. The Tax Strategy Group, an expert advisory panel at the Department of Finance, has noted that the point has been made that people who are not related could have 'equally close and meaningful relationships similar to familial relationships'. The tax experts state that there are a number of ways to develop a policy to capture these 'chosen' relationships. 'For instance, legislation could provide for individuals to select one or two heirs to their estate for Group A Threshold,' it states. Currently, Group A deals with the inheritance to a child (including certain foster children) when a parent dies. This threshold was increased in 2024 to €400,000 from a previous value of €335,000. Penalising people with no children However, in the run up to the election, a debate arose around inheritance tax rules favouring parents and penalising someone who is child-free. The net result in this situation, where 'chosen relationships' could be included in this grouping, would be a tax-free threshold, state the experts, however the paper said that this was not possible to cost. 'Therefore, the costings have been calculated on the basis of three separate instances of a tax-free €400,000 threshold for each group. This would create an additional cost to the Exchequer of €390 million based on up-to-date Revenue data,' state the review papers. Advertisement The Programme for Government contains a commitment to maintain a broad tax base of which Capital Acquisitions Tax (CAT or inheritance tax) is one contributory element, state the papers. 'However, it is important to get some sense of the cost of various changes to a particular tax as these are factors which the Minister for Finance must consider when deciding upon his broader budget package. This is particularly relevant this year because of the case being made to expand the scope of Group A to include broader family arrangements,' said the tax experts. Both Fianna Fáil and Fine Gael made a number of pledges in their election manifestos around the expansion on inheritance tax groupings. Fianna Fáil pledged to review the inheritance tax thresholds applicable when the deceased does not have children. The party also said it would increase and adjust the inheritance tax Category A, B and C thresholds in each budget 'to reflect the wider increase in property prices in the Irish economy in recent years'. Meanwhile, Fine Gael will said it would increase Capital Acquisitions Tax thresholds and raise Group A threshold (for children) to €500,000, Group B (for siblings) to €75,000, and Group C (for others) to €50,000, 'building on the progress made in Budget 2025″, it said. The tax review papers directly address whether there is discrimination at play when it comes to the differential tax treatment for direct familial relationships and more distant relationships, stating that this has existed in the Irish legal system since the foundation of the State. 'This is reflected explicitly in the Constitution, most clearly in Article 41. The current CAT legal framework, differentiating between Groups A, B and C takes account of this constitutional framework,' states the review papers, stating that it is the beneficiary of the inheritance or gift and not the person who passes away who has to pay the inheritance tax. 'In this context, it is not clear that there is a case that disponers are being discriminated against. Instead, legal concerns, if any should be viewed from the perspective of those who are liable for the tax i.e. the beneficiary. 'It should be noted that it is not clear that such concerns exist here either, as it is not uncommon for the tax system to tax people in different ways depending on the situation or their circumstances,' states the report. The Department is satisfied that the existing inheritance tax legislation and the taxation benefits are not unconstitutional or otherwise unlawful, states the review. Related Reads Financial advisor: Thinking of retiring? Here are the things to consider... Opinion: Inheritance tax changes in the budget have brought some relief, but not enough Breaking down further costings, the group looked at the cost of giving the same status to aunt, uncle and sibling relationships that currently apply to parental relationships – i.e. equalising Group A and B at a tax-free threshold of €400,000. This would cost the State €305 million based on the most up-to-date Revenue data. 'The likelihood is that in reality the costs of collating Groups A and B would be lower, but in the absence of appropriate data it is not possible to demonstrate this at this time,' it adds. Boosting €3,000 tax-free gift to your child per year The tax papers also looks at the gift threshold that parents are allowed give to their children on a yearly basis. Currently, a parent may give a gift up to the value of €3,000 to a child or anyone else each calendar year without any CAT arising. Two parents can make gifts of €3,000 each to a child, resulting in a gift to the value of €6,000 in any year free of CAT. There is no limit on the number of small gifts a person can receive in a year from different donors. The small gift exemption applies only to gifts and not to inheritances, but if government were to increase the small gift exemption, for example, in the case of giving their child help towards a deposit to buy a house by €1,000 (to €4,000) such a move would cost €0.7 million, states the paper. The cost of increasing it to €5,000 per parent is estimated to be €1.4 million, based on the number of CAT returns filed for 2023. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal


Irish Examiner
3 days ago
- Irish Examiner
High-security intelligence hub to be built at Garda HQ under long-delayed national upgrade
A new multi-storey, high-tech facility for Ireland's internal security service is to be built at Garda HQ, the Irish Examiner understands. The project marks a significant investment in Ireland's security infrastructure and capabilities but comes nearly seven years after the Commission on the Future of Policing in Ireland (CoFPI) urged such investment and prioritisation. The facility is expected to take five years to build and fit out, and will provide high levels of physical and cyber security. The Garda National Crime and Security Intelligence Service (GNCSIS), currently located within the existing Garda HQ complex in Phoenix Park, will move into the new building. It is understood that the service could be expanded as part of the development, though details remain unclear. The GNCSIS is both a security and organised crime intelligence service. It also has a large operational arm, including firearms operations and anti-terrorism investigations. The new facility is being built under the renewed National Development Plan, published this week. The building will be located on the existing Garda HQ site and will comprise a multi-storey, bespoke facility built to high standards of physical and cyber security. The facility is seen as a key element in strengthening the GNCSIS, which serves as Ireland's internal security service. The CoFPI report, published in September 2018, stated that the Garda's security and intelligence capability 'must be strengthened.' It called for a 'ring-fenced budget' and the ability to 'recruit specialist expertise — analytical, technological, and legal — directly and quickly.' It said this was a 'matter of urgency,' as international terrorism and organised crime are constantly evolving, and it assessed the risks to the State as 'serious.' Those particular recommendations have yet to be implemented but are expected to be examined as part of the review of 'national security structures' promised under the Programme for Government. It is believed that this internal review — currently being carried out by the National Security Committee, which includes senior civil servants and top Garda, Defence Forces, and cyber officials — is ongoing. The investment in Garda security structures comes just days after a judge overseeing the use of phone-tapping powers urged that the role and powers of military intelligence in State security be clarified in legislation. Mr Justice Tony O'Connor said the Irish Military Intelligence Service (IMIS) moved into a 'new bespoke secure facility' last March. 'The new facility is a welcome development and affords a modern and professional aspect,' he said. 'The new building is purpose-built to top secret clearances and security specifications.' While An Garda Síochána is responsible for internal security, including State security, the Defence Forces are also tasked with State protection, particularly against external threats. CoFPI recommended the creation of a national security analysis and coordination body under the Department of the Taoiseach. One of its primary tasks would be clarifying the roles of Garda and military intelligence and ensuring 'no overlap' between them. This clarity has not yet been achieved, despite the wishes of Garda and military intelligence. The National Security Analysis Centre (NSAC), set up under the Department of the Taoiseach, never established a coordination function for intelligence agencies. The ongoing national security review is expected to examine this issue. NSAC also failed to produce a National Security Strategy, which was initially expected in 2021 and meant to cover the 2020–2025 period. NSAC was quietly dissolved as a standalone body earlier this year and now operates as a secretariat within the department. It is expected to finally publish Ireland's first National Security Strategy later this year. Read More Gardaí investigating teenage gang attacks on Indian nationals