Tuesday, 1 October 2019

Questions (101)

Barry Cowen


101. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the anticipated cost of borrowing funds for the Exchequer in order to fulfil expenditure requirements under a no-deal Brexit scenario; the effect this will have on the national debt; and if he will make a statement on the matter. [39613/19]

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Written answers (Question to Public)

Dedicated measures to get Ireland Brexit ready were announced in Budgets 2017, 2018 and 2019 to help ensure Ireland is in the best possible position to respond to the challenges that Brexit will bring. This work will continue in Budget 2020.

Given heightened uncertainty around Brexit, two budgetary scenarios were set out in the Summer Economic Statement. The first involved an orderly exit by the UK, while the second involved a disorderly Brexit. The Government has now decided that Budget 2020 will be based on the assumption of a no-deal Brexit.

In particular, it is envisaged that there will be a number of temporary, targeted supports for sectors of the economy hardest hit, while capital supports will be required, primarily in relation to infrastructure required at Dublin Port, Rosslare Europort and Dublin Airport.

Any extra borrowing that might arise would cause an increase in national debt. The NTMA is continuing with its strategy of pre-funding to meet future redemptions. It adopts a prudent approach to the Exchequer’s funding requirement which gives it confidence that it can meet the Exchequer’s funding needs, irrespective of the risks – such as a no-deal Brexit – that might emerge.