Dáil Éireann Debate, Tuesday - 26 September 2017
42. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which his Department has noted negative or positive impacts from Brexit; the steps required to be taken to address such issues; and if he will make a statement on the matter. [40416/17]
View answerI am seeking to evaluate the extent to which the Minister has had an opportunity to address the opportunities and challenges arising from Brexit and whether it is likely to be possible to intervene in a positive way to minimise the challenges and to take full advantage of the opportunities.
Clearly Brexit will pose significant challenges for Ireland. The Government is committed to addressing these challenges, mitigating the impacts and taking the best advantage of available opportunities. Last May, the Government published a document setting out in detail its approach to Brexit and the structures it had put in place to ensure a strategic and whole-of-Government response to it. This identified the key priority issues for the negotiations between the European Union and United Kingdom and also mapped out the wider domestic response.
The significance of the risks arising from Brexit is reflected in the Government's national risk assessment for 2017, which identifies areas where Brexit poses a specific risk, particularly to the economy. In my Department, this approach is reflected in our statement of strategy for the period from 2016 until 2019 and our risk register. The challenges posed by Brexit are kept under constant review. A dedicated Brexit EU North-South unit is responsible for co-ordinating the response to Brexit across the Department and plays a full role in the cross-Department structures that support the work of the Government.
The Government is using a highly consultative approach through the all-island civic dialogue process and other stakeholder events. This has enabled us to hear from stakeholders about the Brexit impacts they are experiencing.
Across Government, work is continuing on Ireland's wider response to both the challenges and opportunities posed by Brexit. This builds on ongoing research and analysis by all Departments.
I thank the Minister for his reply. Arising from the review and ongoing assessment of the position, has it been possible to balance the positives and negatives of Brexit as part of an effort to ascertain the extent to which it is possible to intervene to meet the challenges? To what extent has the possibility of infringing state aid rules been considered with a view to dealing with the more sensitive challenges that may present in the shortest term?
In terms of the broader action the Government is taking, this is the reason we are aiming to introduce a budget that will increase capital investment in a number of important areas of the economy. While we intend to do this work in any case, the challenge posed by Brexit makes it even more necessary. We will follow up on the budget with a ten-year national capital plan to be published in December.
The Deputy asked what the position was in respect of the balance sheet of potential gains and losses from Brexit. In recent months, I have noted that the opportunities in financial services and banking arising from Brexit are very significant for the economy. The entire economy, not only Dublin, can benefit from this development. I continue to be aware of the great risks posed to the economy and export competitiveness, in particular the risks posed to agriculture by currency shifts and possible future trading arrangements.
Is the Minister confident it will be possible to meet these challenges? Reference has been made to transitional arrangements. Is it possible that such arrangements will result in a loss of bargaining position that may not be to our advantage at a later stage?
The British Prime Minister, Ms Theresa May, articulated recent developments in her speech on Friday last. While a significant amount of work remains to be done and there will be difficult negotiations later this year, the renewed focus of the British Prime Minister on a transitional period and its duration and the focus the United Kingdom is now placing on customs policy are important matters for Ireland and the economy. A longer transitional period and a customs policy that is close to current customs arrangements would mean the opportunities would remain but the risks could begin to decrease. All of this must be viewed in the context that the overall challenge Brexit poses to the economy will continue. It is significant that our largest trading partner is exiting the European Union in the manner proposed. The Government is under no illusion as regards current and potential challenges.
