Tuesday, 3 December 2019

Questions (151)

Pearse Doherty

Question:

151. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if the Brexit contingency funding allocated in each of the years 2020 to 2025 as outlined in table 11 of the economic and fiscal outlook in budget 2020 will be allocated in the event of an orderly Brexit. [50100/19]

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Written answers (Question to Public)

The Brexit related expenditure of €1.2 billion for 2020 reflected in table 11 of the Economic and Fiscal Outlook is made up of the following:

- Supports to sectors identified as most affected by Brexit; Agriculture, Enterprise and Tourism, and to help stabilise the worst affected regions;

- Increased Social Protection expenditure on the Live Register and related schemes and labour market activation supports; and

- Costs related to ensuring that necessary compliance checks can be carried out in Dublin Port, Rosslare Europort and Dublin Airport.

As the risk of a disorderly Brexit increased, preparations for essential compliance checks by our regulatory agencies that would be required in the event of a disorderly Brexit were accelerated, with recruitment of additional staff and development of facilities and infrastructure. Consequently, as outlined in Table 1 on page 24 of Expenditure Report 2020, €51 million of the estimated costs, primarily related to staff required to carry out compliance checks at the ports and airport, are included in the departmental Budget Estimates for 2020.

The allocation of the balance of funding available in 2020 in relation to facilities and infrastructure for compliance checks will be assessed taking into account the up to date Brexit position, including the expected form of the UK’s exit from the European Union and future relationship. Table 11 of the Economic and Fiscal Outlook was prepared on the basis that c. €0.2 billion would be required under this heading in 2021 with c. €0.1 billion recurring annually from 2022 to 2024. Similar to 2020, the allocation of this funding will also be informed by the up to date position regarding the expected form of the UK’s exit from the European Union and future relationship.

Regarding the sectoral expenditure of €650 million for 2020, this funding is to be released in multiple tranches in the event of a no-deal Brexit. Similarly, the additional funding for employment supports of €410 million in 2020 would also be made available in the event of a no-deal Brexit.

For the period post 2020, the Brexit contingency amounts include, in addition to the amounts noted above in relation to compliance checks, the estimated funding requirement for employment supports arising following a no-deal Brexit. Similar to the 2020 position, this funding for employment supports would be made available in the event of a no-deal Brexit.

Question No. 152 answered with Question No. 149.