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Brexit Preparations

Dáil Éireann Debate, Thursday - 14 February 2019

Thursday, 14 February 2019

Questions (19)

Thomas P. Broughan

Question:

19. Deputy Thomas P. Broughan asked the Minister for Finance the key areas administered by his Department in which emergency legislation may be necessary in the event of a no-deal Brexit; if such legislation has been prepared and is ready to be presented to the Houses of the Oireachtas; and if he will make a statement on the matter. [7154/19]

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Written answers

The Government remains firmly of the view that ratifying the Withdrawal Agreement, agreed between the EU and the UK, remains the best way to ensure an orderly UK exit from the EU. A 'no deal' Brexit is the worst possible outcome and would not be in the interests of the UK, Ireland or the EU, and dealing with it would be an exercise in damage limitation.

While ratification of the Withdrawal Agreement is still the Government's preferred outcome, it has also put in place a series of measures, both nationally and in conjunction with the EU, in preparation for the possibility that the UK fails to agree a deal for its departure from the EU on 29 March 2019.

At its meeting on 11 December 2018, the Government decided to give greater immediate priority to the preparations for a no deal Brexit. This work is being co-ordinated by the Department of the Taoiseach in collaboration with the Department of Foreign Affairs and Trade, and involves all Government Departments and agencies. Given the proximity of the date of Brexit, contingency planning has moved to taking actions to mitigate the risks of a no deal Brexit, without prejudice to the Government’s priority of finalising the ratification of the Withdrawal Agreement. This includes putting the necessary legislation in place.

On 24 January, the Government published the General Scheme for the Miscellaneous Provisions (Withdrawal of the United Kingdom from the European Union on 29 March 2019) Bill. The Scheme focuses on those areas that need to be addressed urgently and immediately through primary legislation to protect our citizens and to support the economy, enterprise and jobs, particularly in key economic sectors.

The elements of the General Scheme which relate to my areas of responsibility are parts 6, 7 and 8 as follows:

In Part 6, legislative amendments are proposed for Income Tax, Capital Tax, Corporation Tax and Stamp Duty legislation in order to ensure continuity for business and citizens in relation to current access to certain taxation reliefs and allowances, and the retention of a number of anti-avoidance provisions in the event that the UK is no longer a member of the EU/EEA.

In Part 7, legislative measures are proposed to support the implementation of the European Commission’s equivalence decision under the Central Securities Depositories (CSD) Regulation providing continuity for the settlement of trading in Irish equities.

In Part 8, legislative measures are proposed to provide for a temporary run-off regime, which, subject to a number of conditions, will enable insurance undertakings and intermediaries to continue to fulfil contractual obligations to their Irish customers for a period of three years after the date of the withdrawal of the UK from the EU.

In addition, at the Government meeting on 5 February, the Cabinet also approved a number of further tax proposals including the introduction of Postponed Accounting for VAT in order to alleviate cash flow impacts for business, and amendments to Section 56 VAT relief authorisations to mitigate the potential for abuse.

It is intended to publish the full text of the Bill on 22 February 2019 and as the timelines are tight for the necessary ratification, the Government will work very closely with all Opposition parties in the Oireachtas and all members of the Dáil and Seanad in ensuring that the necessary no deal Brexit related legislation will be in place before the 29 March.

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