Dáil Éireann Debate, Thursday - 1 June 2017
140. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which his Department monitors the impact of Brexit on the public and private sectors with a view to addressing such issues; and if he will make a statement on the matter. [26371/17]
Amharc ar fhreagraBrexit issues in my Department are coordinated centrally by the Department's Brexit/EU/North South Unit. The Unit oversees Brexit work across the Department and acts as the contact point with the Department of the Taoiseach and other Government Departments. It is represented on the Inter-Departmental Group on Brexit and related groups, and supports me in my work as a member of the Cabinet Committee on Brexit. Brexit issues are also addressed by staff in relevant areas across the Department.
Clearly Brexit will pose significant challenges right across the economy. The Government is committed to addressing these challenges, to mitigating the impacts and to maximising the available opportunities. The Government is using a highly consultative approach – through the All-Island Civic Dialogue Process and other stakeholder events – and this will continue as the process moves into the negotiations stage.
In the short term, the Minister for Finance and I were able to deliver a Budget for 2017 setting out our approach to Brexit and to building a national economic response. For the third year in succession it has been possible to increase resources for public services and infrastructure. The gross voted expenditure allocation of €58.1 billion in 2017 will be over 3 per cent higher than the 2016 allocation. Resources have been allocated towards areas that may be significantly impacted by Brexit, in particular enterprises dealing with the impact of Brexit and our regional and rural communities.
In the longer term, the design of this year's Spending Review reflects the changed economic and fiscal context, including Brexit. Of course, while moderate and sustainable expenditure growth is planned over the medium-term, increasing and competing public service demands will mean managing expenditure will prove challenging.
The Capital Plan Building on Recovery sets out a €42 billion framework to address our priority infrastructure needs up to 2021. Government has already committed to increase capital expenditure under the plan by €5.14 billion in the 2016 Summer Economic Statement (SES). This plan is now being reviewed to ensure that capital spending remains strictly aligned with national economic and social priorities, consistent with Programme for Partnership Government objectives. This includes examining how available capital funds can continue to best be allocated to underpin sustainable medium-term economic growth and future growth potential, in light of recent developments since the Plan was published, including Brexit.
As signalled with the recent publications of its position paper on Brexit, the Government is intensifying its focus on the economic implications of Brexit and will produce a further paper on the economic implications of the Brexit challenge.
