€50m That’s how much extra funds Foreign Affairs sought this year
Rent for diplomats and Brexit passports among reasons given
INCREASED rents for diplomats, the rising dollar, and a Brexitinspired passport boom were among the reasons given by the Department of Foreign Affairs as it sought an extra €50million in funding for this year.
The department was granted an extra €21million, with the possibility of a further €2million if Ireland gains a seat on the UN Security Council this June – another reason for it seeking €50million.
Records obtained under
FOI reveal how it had originally looked for €50.1million to respond to Brexit, pursue the Government’s Global Island strategy, and for paying contributions to international bodies like the UN.
Correspondence with the Department of Public Expenditure shows how Foreign Affairs was cautioned this amount would be ‘challenging’ especially given the ‘extremely tight fiscal position’ ahead of Budget 2020.
In a submission last September, Foreign Affairs had said it was looking for €7.3million to maintain a ‘strong and adequately resourced’ network of embassies and missions around the world. It explained how it had been badly hit by foreign exchange losses with the value of the euro against the dollar falling by almost a quarter over the past five years.
‘The department buys the equivalent of €50million US dollars annually,’ it said, ‘this change has resulted in cost increases of circa €12million [annually].’
The department said the decline in sterling could have balanced it out but that much of their passport income comes in pounds. It had not therefore ‘got the full benefit’ of the ‘favourable movements’ of sterling.
The department also said it was paying rent of €17.5million for ambassadors and diplomats across the globe and was faced with increased lease costs in many countries.
Local staff costs were also rising with an ‘average cost of living pay increase of 3%’ predicted. Of the €7.3million they had looked for overall in this category, €3million was allocated in the budget.
The department also wanted €6.5million to cover the cost of increased passport demand due to Brexit with applications from the UK and the North predicted to continue growing.
It wanted to avoid a repeat of major passport delays in 2018 which ended with ‘an appearance’ before the Public Accounts Committee to explain what had happened.
Operating costs were also rising, and the department said that any increase in the budget for the passport service would be cost neutral as income from applications rose. Of the €6.5million that was looked for, €2million was granted according to figures provided by the department.
Another €4million was requested to continue running citizen and business information campaigns surrounding Brexit and its aftermath. The department said: ‘Following review internally in the department and emerging clarity on Brexit timelines this request was reviewed and €2million was provided in the budget allocation.’
A one-off payment of €4million was granted in full for Ireland’s participation in EXPO 2020, which will be held in Dubai this October.
According to the submission, this will involve ‘delivering a facility and event space in Dubai with appropriate activities to promote Ireland in this significant international forum’.
The department also looked for €2million to bolster Ireland’s bid to become a member of the UN Security Council. It said this would be used to support embassies in New York, Geneva, and also in Dublin to help mount a ‘strong and vigorous campaign’.
In a statement, the department said these costs would only arise if Ireland was successful in its bid.
‘As we will not know whether this funding will be required, it was agreed that this should not be provided at this stage,’ they said.
A significant increase in Ireland’s contributions to international organisations was also predicted with the country’s fast-growing population and economy partly fuelling the rising costs.
The department said the UN peacekeeping budget was particularly volatile with operations getting expanded and reduced. In a statement, it said the budget for 2020 reflected the best estimate of how much Ireland would have to pay in contributions this year.
Hit by foreign exchange losses
Participation in EXPO 2020