Bernard Durkan
Question:66. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he can take steps to minimise the impact of Brexit on the economy; and if he will make a statement on the matter. [40745/17]
View answerTuesday, 26 September 2017
Questions (66)
Written answers
The Government’s Brexit priorities are clear: minimising the impact on trade and the economy, protecting the Northern Ireland Peace Process, maintaining the Common Travel Area and influencing the future of the European Union.
In relation to the economy, the Government’s paper ‘Ireland and the negotiations on the UK’s withdrawal from the European Union’, published in May 2017, sets out the twin goals of securing the closest possible economic and trading relationship between the EU and UK post Brexit and preparing the economy to cope with economic turbulence of coming years and the structural shift of new realities, including Brexit. It also sets out the five-pronged approach which is being taken to mitigate the economic risks of Brexit: This involves, at a macro-economic level, the continued prudent management of our economy and the public finances to enable us to meet future challenges in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds; effective negotiation, as part of the EU 27, with the objective of reaching an agreement that sees the closest possible relationship between the EU and the UK while also ensuring a strong and well-functioning EU; continued support for business and the economy through Government measures, programmes and strategies; the exploration of existing and possible future EU measures that could potentially assist Ireland in mitigating the effects of the UK’s withdrawal; and exploiting fully any opportunities that arise as a result of Brexit.
The Department of Finance has been to the fore in producing and funding a number of important macroeconomic and sectoral studies on Brexit, both before and since the UK's referendum decision in June of last year. These studies are an important evidence base for the development of the overall Government approach to Brexit. On Budget day last October, the Department of Finance published a paper that examined exposure of different sectors to the UK. Following on this study, Budget 2017 included a range of ‘Getting Ireland Brexit ready’ measures targeted at the most exposed sectors. These include measures to support SMEs, entrepreneurship, agrifood and Irish exporters.
More recently, my Department has recently published a wider in-depth analysis of the possible sectoral impacts that Brexit may have on Ireland's trade relationship with the UK by comparison with the possible impacts in other EU Member States.
As regards the overall macroeconomic strategy, the best and most immediate policy under the Government's control to counter the likely negative economic impacts of Brexit is to prudently manage the public finances in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds. It is important also to recognise that the full impact of the UK's exit is only expected to materialise over time. As we cannot control the international environment, we will need to continue to improve our competitiveness, including by focusing on costs we can control, by boosting our productivity and ensuring sustainable public finances. This approach is confirmed in the Summer Economic Statement which reaffirmed that improving the resilience of the economy against the backdrop of heightened uncertainty is the key focus of our macroeconomic strategy. Budget 2018 will continue to support prudent budgetary policy to help prepare for the economic risks that we face, including from Brexit.
In terms of opportunities, Brexit will provide opportunities for Ireland to increase its share of financial services based inward investment. Minister of State at the Department of Finance, Michael D’Arcy T.D. has responsibility for Financial Services, including the implementation of the dynamic and evolving IFS2020 Strategy for driving growth in the financial services sector. The Government has also made an attractive bid for the European Banking Authority when it is relocated from the UK and will continue to leverage our IFS2020 Strategy to maximise opportunities arising as a result of Brexit.
The Department of Finance will continue to carry out the necessary research, analysis and consultations, and to develop budgetary policy in the context of Brexit.