Apple €13bn tax windfall must be used to tackle child poverty, charities say

Children’s Rights Alliance and Community Foundation Ireland said the €13bn paid by Apple in tax to Ireland must be ringfenced and invested in children and young people.

The government must use the Apple windfall money to invest in the children of Ireland, charities have urged, as a new report from the Economic and Social Research Institute (ESRI) highlighted an “unacceptable number” of children living in poverty across the island.

With the programme for government finalised and a new coalition set to take office shortly, the Children’s Rights Alliance and Community Foundation Ireland said the €13bn paid by Apple in tax to Ireland must be ringfenced and invested in children and young people.

“These funds completely eclipse the total spend in many of the key areas of children and young people’s lives and the public services that they engage in,” Children’s Rights Alliance chief executive Tanya Ward said.

“Even a portion of these funds could have a transformational impact on their future. The government has been gifted this unprecedented opportunity that should inspire innovative and ambitious thinking.

However, discussions on how we can invest this in the future of our country — our children and young people — have taken a complete backseat in the debate. 

Following a protracted legal case, the European Court of Justice ruled in September that Apple must pay the hefty bill to Ireland in taxes, despite the Irish State arguing  the figure did not need to be paid.

Ahead of the general election, parties put forth their own view on what the money should now be spent on, with housing touted as one of the areas earmarked for investment.

Ms Ward said the Government must think beyond water supply and electricity grids, and consider how investment on a large scale in areas like education and early years infrastructure could help bring children out of poverty.

The call came ahead of an event on Thursday to call for increased investment in children, coinciding with the launch of a new ESRI report into child poverty on the island of Ireland.

The ESRI found Ireland and Northern Ireland showed similar trends in terms of material deprivation, which is when families are unable to afford two of five basic essentials, like paying their bills on time or keeping their home warm.

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Throughout 2010-2023, child material deprivation rates were higher than in Ireland than in Northern Ireland. But, in 2022-23, deprivation in Northern Ireland rose to the same level as that in Ireland, to stand at 24% in both jurisdictions.

“An unacceptable number of children on the island of Ireland are experiencing poverty and reducing this must be a priority for governments on both sides of the border,” report author Professor Helen Russell said.

“The report highlights the range of welfare, educational, and labour market supports that impact and are needed to address this issue. 

"It also highlights the need for clear targets, and political accountability to tackle child poverty effectively, as well as the scope for greater cooperation and learning on a North-South basis.”