Dáil Éireann Debate, Thursday - 11 March 2021
56. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he remains satisfied that the steps taken to date to offset the impact of Brexit remain sufficiently robust to ensure Ireland’s economic future; and if he will make a statement on the matter. [13842/21]
View answerSince the Brexit referendum result in 2016, the Government has taken steps to build up the resilience of the economy. This involved actions across the whole of Government, including supports to businesses to diversify trade beyond the UK market.
More recently, to prepare our economy for the immediate impacts of Brexit, the Government in Budget 2021 allocated unprecedented resources to confronting the twin challenges of COVID-19 and Brexit, with €340 million to be spent on Brexit-related measures. When these measures are taken into account, Brexit related expenditure to date is over €1 billion.
The European Commission’s proposal to allocate €1 billion from the Brexit Adjustment Reserve to Ireland is welcome. The very significant share of the fund initially allocated to Ireland reflects the research undertaken by my Department which shows the disproportionate impact of Brexit on Ireland. The Fund will be used to support the most affected sectors of our economy. Discussions are taking place within Government Departments as to how best to allocate Ireland’s share of the Brexit Adjustment Fund.
The Trade and Cooperation Agreement between the EU and UK was a positive conclusion to the transition period. However, the new agreement still represents a break from the previously existing arrangements and it does not completely mitigate against ‘trade frictions’ in the form of non-tariff barriers. Further import controls will be introduced by the UK on 1 April on certain categories of EU goods, including plant and animal products. A range of Government support is available to Irish exporters, including training and grants, to help businesses deal with these changes. It is vital that business prepare for this next stage.
The successful negotiation of the Protocol on Ireland / Northern Ireland, as part of the Withdrawal Agreement, delivered key economic objectives for Ireland. The Protocol secures Ireland’s place within the Single Market, avoids a hard border on the island, protects the all-island economy, and provides Northern Ireland with unique access to both the British internal market and the EU single market.
The Irish Government remains focused on protecting our economic and financial interests, and will continue to work to minimise the disruption that Brexit will have on the economy and peoples’ livelihoods to the greatest extent possible.
