Dáil Éireann Debate, Wednesday - 21 February 2018
72. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the Copenhagen economic report; the role his Department officials will have in responding to same; and the plans they are working on and co-ordinating across Departments. [8467/18]
View answerAs Tánaiste and Minister for Foreign Affairs and Trade with special responsibility for Brexit, I have responsibility for coordinating the whole-of-Government response to Brexit, which is being advanced through the cross-Departmental coordination structures chaired by my Department which bring together the results of the detailed work which is being undertaken by individual Departments.
This work draws on the analysis of the economic and sectoral impacts of various Brexit scenarios being taken forward by individual Departments and agencies, as well as by stakeholder organisations, academics and others. This includes the Copenhagen Economics report on Strategic Implications for Ireland arising from changing EU-UK Trading Relations, which was commissioned by the Department of Business, Enterprise and Innovation. This authoritative and independent report sets out the possible economic consequences, both macro-economic and sectoral, of various Brexit scenarios. It will help in the further preparation of our priorities for the negotiations and the consideration of possible additional mitigation actions over and above the many which are already in train.
Achieving the best possible outcome for Ireland in the negotiations remains a central dimension of Ireland’s strategic response to Brexit. In this regard, both I and my officials are continuing to work closely with EU partners and the European Commission Task Force, and with the UK, to ensure the commitments made in phase one are delivered in full and that Ireland’s interests are advanced in the EU’s position for the negotiations on transitional arrangements and the future relationship. In the course of these engagements, as has been the case to date, Ireland will continue to make proposals to seek to deliver on our objectives and priorities for the Brexit negotiations.
In parallel, intensive work on a no-deal or worst-case outcome is also ongoing. Its focus is on the immediate regulatory and operational challenges which would result from such an outcome. It assumes a trading relationship based on the default WTO rules, but also examines the possible effects on many other areas of concern. This work is therefore providing baseline scenarios for the impact of Brexit across all sectors, which can then be adapted as appropriate in light of developments in the EU-UK negotiations, including in regard to transition arrangements and the future relationship. It also takes account of the planning being undertaken at EU level by the new Commission Preparedness Unit, which is issuing information notes aimed at different business sectors.
The Government is already acting in order to get Ireland Brexit ready. Dedicated measures were announced in Budget 2018, including a new €300m Brexit Loan Scheme for Business and a €25m Brexit Response Loan Scheme for the agri-food sector as well as additional supports for capital investment in the food industry and Bord Bia marketing and promotion activities, amounting to over €50m in total. Additional capital expenditure allocation of €4.3bn over four years will also allow the State and its agencies to properly plan major infrastructure projects while ensuring that communities and businesses can plan ahead. There was also increased funding provided to my Department for the opening of six new diplomatic missions as part of Global Footprint 2025, which will contribute to helping our exporters find new markets. Our Government’s enterprise agencies continue to work with companies, helping them to deal with Brexit – making them more competitive, diversifying market exposure, and up-skilling teams.
Our longer-term economic strategies will also be critically important in addressing the challenges of Brexit, notably Ireland 2040 –the National Development Plan. The Enterprise Strategy 2025 is also under review, and we are in active discussions with the European Investment Bank for a potential increase in investment in the country.
