Dáil Éireann Debate, Tuesday - 3 July 2018
19. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if the budgetary expenditure projections for 2017-2021 in the summer economic statement 2018 include provisions for possible Brexit outcomes; and if he will make a statement on the matter. [28987/18]
View answerPlanning for the withdrawal of the UK from the EU poses a significant challenge, particularly given that the precise nature of the relationship that will exist between the UK and the EU is yet to be agreed. The impact of Brexit will depend on the outcome of the ongoing negotiations. While this poses challenges in planning our response, it is important to note that Ireland’s economy is in a strong position to deal with these challenges. As set out in the Summer Economic Statement the central scenario for fiscal and economic planning purposes in Ireland is that a transition arrangement will be agreed that will cover the period from end-March next year until end-2020.
Supporting the areas of our economy that may find themselves significantly impacted by Brexit has already been a key element of the Government’s response. To this end, Budget 2018 provided for additional expenditure amounts specifically for Brexit-related measures across a number of Departments, including the Department of Foreign Affairs and Trade; the Department of Business, Enterprise and Innovation; the Department of Transport, Tourism and Sport; and the Department of Agriculture, Food and the Marine.
Taking into account risks in the external environment, in particular Brexit, the Government will prioritise spending that mitigates risk, enhances resilience of the economy and raises our growth capacity. This is the context for Project Ireland 2040 and the capital expenditure allocations set out in the National Development Plan 2018-2017 (NDP). The increases in investment set out in the NDP will move Ireland’s public capital investment, as a share of national income, from relatively low levels following the recent recession to amongst the highest in the EU. €5.8 billion has been allocated to gross voted capital expenditure this year. This is to be increased by an additional €1.5 billion next year to €7.3 billion. Further increases in the coming years will bring the annual investment up to €8.6 billion in 2021.
