The Government estimates that it will cost €2.5bn to look after 100,000 Ukrainian refugees next year.
Minister for Public Expenditure Michael McGrath briefed the Cabinet this morning on the projected expenditure of hosting refugees from Ukraine.
It is understood that Mr McGrath cautioned that it is unclear how many Ukrainian refugees will ultimately travel to Ireland or how long they will remain and, consequently, there was a lot of uncertainty over the figures.
The minister said the cost of welcoming Ukrainian people to Ireland will be high but they are costs that have to be met.
Speaking on his way into Cabinet this morning, Mr McGrath said it will depend on the nature of the accommodation that is provided.
He confirmed that catering for all the needs of about 10,000 refugees will cost €400-500 million.
The minister said any estimates are just that.
"There will be significant costs but there's also a high degree of uncertainty," he said.
"We don’t know how many refugees will come here, how many will stay, how many will want to work in the Irish economy, we think that many will, so we will manage these costs."
Mr McGrath said the costs will be paid for from the contingency fund set aside for Covid-19, but that some of that reserve may still be needed to deal with the pandemic this year.
€4bn reserve was agreed in the Budget last year, and €1.5bn has been accounted for, so there is around €2.5bn left available to meet the additional costs of Covid but also looking after Ukrainian refugees, he explained.
Meanwhile, a tented facility at the Defence Forces' Gormanston camp in Co Meath might be needed in the near future to accommodate people arriving from Ukraine.
The Cabinet heard today that if the current trajectory of arrivals continues then short term emergency accommodation could be required.
From 18 April, there will also be accommodation in place for 400 people at the Millstreet Arena in Co Cork.
So far 14,611 Ukrainians have arrived in this country with around 600 people travelling here from Ukraine each day.
It is expected that 21,000 people fleeing the war will come here by Easter and that number will rise to 30,000 by the end of April.
Some 22,657 offers of accommodation have now been pledged by the public.
Additional reporting Mícheál Lehane
