Taoiseach says €4bn Covid fund can be raided to help Ukrainians settle in Ireland

Taoiseach says €4bn Covid fund can be raided to help Ukrainians settle in Ireland

A group of people, who have fled Ukraine, stand in a line after arriving at the border crossing in Medyka, Poland, on Sunday, March 13, 2022. Picture: Daniel Cole/AP

A €4bn fund to help the country through the Covid-19 pandemic can be diverted to cover the cost of providing homes and services for up to 100,000 Ukrainians fleeing war, the Taoiseach has said.

Micheál Martin said €1bn of the fund, set aside in Budget 2022, has already been spent, but the remainder is available to use on accommodation and services for incoming Ukrainians. 

Ireland has now taken in 5,500 refugees from Ukraine but thousands more are expected in the weeks ahead. 

Mr Martin said the fund had been earmarked for Covid-related support schemes, but can be reallocated to finance Ireland's response to the war.

"That's a contingency fund that had been provided in the budget for Covid which hasn't been spent,” said Mr Martin.

Some of it has, but not all of it has, and that may be available for us to work on the undoubted increase in expenditure that will occur in areas like education, health, and across the board, and that's something that both the Minister for Finance and the Minister for Public Expenditure are examining.”

The Taoiseach said his own family will discuss whether or not they will be in a position to take in a Ukrainian family.

“I think these are personal decisions that every family has to take and we will respond in relation to that — as a family, we will discuss that," he said.

"We’re obviously reflecting on this, like everybody else.”

A girl fleeing Ukraine looks out of the window of a bus as she prepares to travel to Przemysl after arriving at the border crossing in Medyka, Poland, Sunday, March 13, 2022. Picture: Daniel Cole
A girl fleeing Ukraine looks out of the window of a bus as she prepares to travel to Przemysl after arriving at the border crossing in Medyka, Poland, Sunday, March 13, 2022. Picture: Daniel Cole

Mr Martin had earlier said Ireland is heading towards becoming "a war economy" with prices of day-to-day items to increase across many sectors. 

It is unlikely, he said, that motorists will face costs as high as €3 for a litre of petrol, but he could not rule out the possibility of food shortages if the war drags on.

The fuel industry in Ireland has cautioned against panic-buying of petrol and diesel in order to ensure that supplies can be maintained.

A spokesperson for the industry group, Fuels for Ireland, said that as long as spikes are avoided, there will be enough petrol and diesel for consumers. 

Meanwhile, a once-off €125 fuel allowance payment will be paid to 372,000 households from Monday.

The payment, on top of regular fuel allowance, was agreed as part of the Government’s €505m package aimed at mitigating the effects of rising energy costs.

Households will receive the payment in their bank account this week, depending on their social welfare scheme.

In Ukraine, Russian missiles hit a large base near the border with Nato member Poland yesterday, killing 35 people and wounding 134, in an escalation of the war to the west of the country as intense fighting was reported elsewhere.

The attack on the Yavoriv International Centre for Peacekeeping and Security, a training base just 15 miles from the Polish border that has previously hosted Nato military instructors, brought the conflict to the doorstep of the Western defence alliance.

White House national security adviser Jake Sullivan said any attack on Nato territory would trigger a full response by the alliance.

White House national security adviser Jake Sullivan. Picture: Manuel Balce Ceneta/AP
White House national security adviser Jake Sullivan. Picture: Manuel Balce Ceneta/AP

It has also been reported that Russia has asked China for military ​equipment to ​support its invasion of Ukraine, ​sparking concern that Beijing ​may undermine western efforts to help Ukrainian forces.

The Financial Times said the US is “preparing to warn allies about the situation amid some indications that China may be preparing to help Russia”.

Despite the violence, both sides gave their most upbeat assessment yet of the prospects for progress at bilateral talks that have been held periodically since the start of the invasion, although they gave no details of what might be agreed.

Russia is already beginning to "talk constructively" Ukrainian negotiator and presidential adviser Mykhailo Podolyak said in a video posted online. "I think that we will achieve some results literally in a matter of days."

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