Conor Lenihan interviewed Minister for Finance, Jack Chambers on the eve of his first budget
Jack Chambers assails Sinn Féin policies that would turn Irish economic success “to dust” and says Trump policies are a “present risk” to Irish growth; Conor Lenihan sees Chambers as heir apparent to Micheál Martin and says few in Fianna Fáil would consider opposing Martin if he runs for the Presidency next year.
In his office on Merrion Street, Chambers told Village Magazine that Irish economic success would “turn to dust” should Sinn Féin be allowed into government.
Describing Sinn Féin’s alternative budget as “reckless and dangerous”, Chambers said their policies would seriously risk and jeopardise the country’s progress.
“We are in line to receive around €30bn in corporation tax this year – much of which is from multinationals operating here. Sinn Fein’s proposals would not only discourage any from setting up here but would drive the existing companies away”, he said.
Chambers was surprisingly trenchant: “Worst of all, Sinn Féin have said they would raid the Future Ireland Fund which will be essential in providing for current and future generations”.
His comments will be read as his first shots in the election campaign with a general election now expected by political pundits for 15 November.
Both Fianna Fáil and Fine Gael are expected to target Sinn Féin which they perceive to be weak on a number of fronts.
“Worst of all, Sinn Féin have said they would raid the Future Ireland Fund which will be essential in providing for current and future generations”.
His comments will be read as his first shots in the election campaign with a general election now expected by political pundits for 15 November.
The new Finance Minister professed admiration for some of the new initiatives on clean energy being carried out by the Starmer Labour government in the UK.
Chambers acknowledges that Ireland must now pay attention to the risks we face due to the retreat from globalisation from which Ireland greatly benefited.: “The country must be prepared for potential disruptions to global trade, especially with key trading partners like the US and China. Managing these risks will require a careful balancing of domestic and international interests”.
Not mincing his words, Chambers cites a Donald Trump presidency as one of the key risks we face: “It certainly presents risk and possibilities of disruption, as it did on his previous term, but some of the risk didn’t necessarily crystallise. However, some of the Trump policies in lots of areas are a present risk”.
He intends to use the €8.3 billion available to him on budget day to promote growth: “Our primary focus is on providing tax relief to workers, promoting enterprise, addressing the housing crisis and securing long-term sustainability through strategic investments”. “”.
Chambers has insisted that the tax package in his budget will be targeted at lower and middle income earners. He admits that the average worker on approximately €50,000 still carries a “significant tax burden”.
“Beyond tax relief, a core aspect of our economic policy is fostering enterprise and innovation. These are the driving forces behind the future productivity and competitiveness of the Irish economy”.
In Fianna Fáil circles his meteoric arrival in Finance and his appointment by Micheál Martin as Deputy Leader of Fianna Fail makes him the heir apparent to Martin if the latter moves on following the General Election. With Michael McGrath gone to Brussels it is hard to detect any serious opposition to him becoming leader. Of course Darragh O’Brien, Jim O’Callaghan and more recently Norma Foley have also got their supporters.
Chambers, not unlike other colleagues, will not be drawn on what the future for his party will be beyond the leadership of Micheál Martin. There has of course been intense recent speculation that Martin may be a candidate in the Presidential election which will happen towards the end of next year when Michael D Higgins stands down.
Few would presume to oppose Martin should he decide to run for the party.
Fine Gael under Simon Harris are enjoying a huge opinion poll boost to their support. It remains to be seen if this will be sustained. Clearly Fianna Fáil are hoping that a strong budget performance from Jack Chambers will even out the extraordinary surge in support that Simon Harris has brought about.
A distinct feature of the recent European and local elections was the strong rate of transfer between Fianna Fáil and Fine Gael candidates when one or the other dropped out. This is clearly giving hope to Martin and Fianna Fáil that the General election will not fare out to be bad for them.
Jack Chambers (33) has been Minister for Finance since June 2024 when he was also appointed deputy leader of Fianna Fáil. He previously served as a Minister of State attending cabinet from July 2020 to June 2024, and as Government Chief Whip from July 2020 to December 2022. He has been the Dublin West constituency since the 2016 general election. He was educated at Belvedere College; Trinity College where he studied Law and Political Science; and the College of Surgeons where he completed a medical degree.
He is the youngest Minister for Finance since Michael Collins and a likely successor to the leadership of Fianna Fáil.
In the first part of the interview, former Fianna Fáil Innovation Minister and journalist, Conor Lenihan, discussed the budget and the Sate’s finances. In a second part, to appear in Village magazine later this week, Michael Smith talked to him about his political outlook.
He gave Village over an hour of his time the week before the budget, remaining characteristically upbeat, solid and sober throughout the interview.
Here’s the interview, lightly edited for length:
Economic Statement on Tax, Expenditure, and Growth
Since I became Minister in June, I’ve been working on the Summer Economic Statement and latterly Budget 2025.
The Statement outlines a comprehensive plan to use €8.3 billion in tax and expenditure measures for sustainable economic growth. Our primary focus is on providing tax relief to workers, promoting enterprise, addressing the housing crisis, and securing long-term sustainability through strategic investments. We are committed to balancing immediate needs with future growth, ensuring fiscal responsibility while fostering social cohesion. To a progressive approach.
Risk from Sinn Féin
Chambers told Village Magazine that Irish economic success would “turn to dust” should Sinn Féin be allowed into government.
Describing Sinn Féin’s alternative budget as “reckless and dangerous”, Chambers said their policies would seriously risk and jeopardise the country’s progress.
But we cannot take economic stability for granted in this country.
Sinn Féin’s alternative budget is reckless and dangerous. Their policies would seriously risk and jeopardise the country’s progress.
We are in line to receive around €30bn in corporation tax this year – much of which is from multinationals operating here. Sinn Fein’s proposals would not only discourage any from setting up here but would drive the existing companies away.
Worst of all Sinn Féin have said they would raid the Future Ireland Fund which will be essential in providing for current and future generations.
Income Tax relief for workers
A key component of this budget is easing the tax burden on workers, particularly lower and middle-income earners. The average income for a worker in Ireland is approximately €50,000, and many carry a significant tax burden. Our approach to taxation is designed to be progressive, offering meaningful relief to these workers while maintaining a robust revenue base for public services.
Designing a progressive tax system
The goal is to create a tax structure that supports those who need it most without excessively levying workers. We have carefully crafted an income tax package that provides progressive relief, particularly for lower and middle-income earners. This ensures that the benefits are targeted at those who need them the most while supporting the broader economic framework.
Promoting enterprise and innovation
Beyond tax relief, a core aspect of our economic policy is fostering enterprise and innovation, the driving forces behind the future productivity and competitiveness of the Irish economy.
Enterprise as a pillar for future growth
The tax system will be used to incentivise productivity and drive the capacity of enterprises to innovate and grow. By doing so, we aim to create an environment that supports both indigenous businesses and multinational companies. This ensures that Ireland remains an attractive destination for foreign direct investment (FDI) and positions the country as a leader in enterprise development.
Housing remains a central challenge, especially with continued pressure on the rental market and home affordability. The Department, in collaboration with Minister Darragh O’Brien, is taking direct steps to address these issues
Addressing the housing crisis
Housing remains a central challenge, especially with continued pressure on the rental market and home affordability. The Department, in collaboration with Minister Darragh O’Brien, is taking direct steps to address these issues through tax measures and targeted investments.
Ensuring Affordability for Renters and Homebuyers.
A large portion of the population still struggles with rental affordability, and we aim to address this through tax incentives and supports. The government is also focused on increasing homeownership opportunities, ensuring that younger generations can aspire to own their homes.
Investing in Arts, Culture, and Sports
Investing in arts, culture, and sports is another important component of this budget, recognising that quality of life is integral to a thriving society.
Supporting Cultural Sectors.
We continue to support the arts and culture sector, which has made significant strides, particularly in film production. There is always more work to be done, but the progress seen in recent years is encouraging. In sports, the work initiated by Minister Michael McGrath on sports and philanthropy is progressing, with a focus on creating a stronger infrastructure for sport across the country. I’m particularly into sport, having been Minister for Sport before this role.
The government has taken a strategic approach to windfall tax receipts from sources such as corporation tax. These funds will be directed into long-term investments like the Infrastructure, Climate, and Nature Funds.
Long-Term Sustainability and Strategic Investment
This budget represents a forward-looking approach, ensuring that today’s decisions benefit future generations. We are especially focused on securing the long-term financial health of the country through prudent use of windfall tax revenues.
Windfall receipts and the Future Ireland fund
The government has taken a strategic approach to windfall tax receipts from sources such as corporation tax. These funds will be directed into long-term investments like the Infrastructure, Climate, and Nature Funds. By setting aside substantial amounts into these funds, we are safeguarding the country’s economic future and ensuring that future generations can continue to benefit from today’s economic successes.
Strategic outlook on social infrastructure
We are committed to addressing key social infrastructure issues, such as housing, through long-term investment. The focus is not just on immediate fixes but on building systems that promote social cohesion and sustainability for the medium to long term. These investments will help foster a more equitable and inclusive society.
Three Gs
Giving the recent Whittaker lecture the IMF’s Gita Gopinth recently advised a focus on ‘Three Gs’: growth, guardrails, and grassroots.
She said higher growth is essential because it improves prosperity and living standards; reduces debt durably; and creates policy space to tackle mounting spending pressures.
Guardrails to protect against political expediencies and optimism bias. They help reduce fiscal policy uncertainty and strengthen transparency”, she said.
Gita Gopinth said “the third ingredient of the strategy” calls for a focus on “grassroots” by engaging with civil society and other key stakeholders to help shape the public discourse towards more sustainable fiscal policy.
Fiscal Discipline: Guardrails for sustainable growth
Maintaining fiscal discipline is essential to ensuring that public spending remains sustainable. As a government, we must respect independent institutions such as the Central Bank and the Fiscal Advisory Council, which act as vital checks on fiscal decisions. These guardrails help ensure that spending decisions are well-considered and sustainable in the long run.
Adhering to the 5% spending rule
We have not adhered to the 5% spending rule, but we have used it as an anchor ensuring that public expenditure does not grow excessively. This rule acts as an anchor for holding public spending in check and ensuring that government investments are sustainable. While it is tempting to increase spending for short-term gains, this approach would undermine fiscal stability in the long term.
Grassroots and Cohesion: building a united Society
Economic growth must be paired with social cohesion. Policies that benefit all segments of society, especially the disadvantaged, are essential for maintaining unity and purpose. This budget reflects a commitment to promoting grassroots cohesion and ensuring that economic policies align with the broader goal of creating a fairer, more inclusive society.
We do pre-emptive assessments of the impact of the budget not just on GDP or GNI but on the environment and equality, using a combination of the Gini Co-efficient and decile-oriented measures. I get a readout before decisions are take.
Connecting economic growth with social wellbeing
We must ensure that growth benefits everyone. Social enterprise, community development, and business initiatives should all contribute to improving quality of life across the country. We are focused on ensuring that growth translates into real, tangible benefits for all members of society, from jobs and business opportunities to improved social services and infrastructure. We do pre-emptive assessments of the impact of the budget not just on GDP or GNI but on the environment and equality, using a combination of the Gini Co-efficient and decile-oriented measures. I get a readout before decisions are take.
The tax measures this government has taken have been highly progressive. 20% of the population pay 80% of the tax.
Although progress towards 51% emissions by 2030 is difficult we are using the levers within our gift; for example we have engaged the Department of Transport and other departments and are trying to make progress.
Although progress towards 51% emissions by 2030 is difficult we are using the levers within our gift; for example we have engaged the Department of Transport and other departments and are trying to make progress. I think what’s being really important for this government where we’ve come from. If you think of the institutional structures that have been established, changes and carbon limits for all departments and the changes we’ve made around ring fencing of the carbon tax for example. But we haven’t yet achieved the full emissions profile and I accept that.
I put it to him that at 52% our personal taxation is the highest in Europe but he won’t be drawn.
Growth as the engine for future progress
Promoting growth is the cornerstone of this budget. Without growth, the government cannot address poverty, inequality, or social disadvantage. Economic expansion unlocks the resources needed for meaningful intervention in these areas.
Supporting industrial policy and innovation
Growth must be sustainable and supported by sound industrial and enterprise policies. But it must be infused with building a new green and digital economy. Ireland’s ability to remain competitive depends on fostering industries that are innovative and resilient to global economic changes, and that are sustainable. I look to what Britain’s Labour government is doing with Great British Energy (GBE), a new, publicly-owned clean generation company, that is intended to harness the power of Britain’s sun, wind, and waves to cut energy bills. We must also be mindful of the challenges posed by deglobalisation and geopolitical tensions, which require careful planning and strategic policy implementation.
Housing and infrastructure: investing for the future
Housing remains a top priority, with a particular emphasis on providing young people with opportunities to own homes. We are committed to solving the housing crisis through a combination of direct measures and reforms that improve affordability and supply.
National Development Plan and public transportation
In parallel with housing, infrastructure investment is a central component of the National Development Plan. The government will continue to invest in public transportation systems, promoting sustainability and ensuring that all regions of the country are well connected. Significant progress has been made in improving the capital allocation for transportation projects, although there are challenges with planning delays that we are working to resolve.
The onshoring and tariffs being proposed by Donald Trump “certainly present risk and possibilities of disruption but it did before and some of it didn’t necessarily crystallise but some of the Trump policies and lots of areas are a present risk”
Risks in the global economic landscape, including Donald Trump
The global economic landscape presents risks that Ireland must navigate carefully. The rise of protectionism and geopolitical instability creates uncertainty, particularly for an open economy like ours that relies heavily on international trade and foreign direct investment.
I put it to him that the onshoring and tariffs being proposed by Donald Trump are a threat.
It certainly presents risk and possibilities of disruption but it did before and some of it didn’t necessarily crystallise but some of the Trump policies and lots of areas are a present risk.
Managing global disruptions
While Ireland has benefited from a strong relationship with both the EU and global markets, the current trend toward deglobalisation presents new challenges. The country must be prepared for potential disruptions to global trade, especially with key trading partners like the US and China. Managing these risks will require a careful balancing of domestic and international interests.
Strategic approach to Foreign Direct Investment
Foreign direct investment (FDI), particularly from the United States, has been a critical driver of Ireland’s economic success. However, we must ensure that our tax and economic policies provide stability and predictability for investors, particularly in the face of global economic uncertainty.
Balanced approach: economy and society; sharing the benefits of growth; resilience
This budget represents a balanced and forward-looking approach to economic policy. By focusing on progressive taxation, targeted investments in housing and infrastructure, and fostering enterprise and innovation, we aim to build a more sustainable and equitable economy. Fiscal discipline remains at the core of our approach, ensuring that spending decisions are made responsibly and with long-term goals in mind.
As we navigate the challenges of a changing global economic landscape, this budget positions Ireland for continued growth and success. By investing in both the economy and society, we are ensuring that the benefits of growth are shared by all and that the country remains resilient in the face of future challenges.
