Dáil Éireann Debate, Thursday - 12 July 2018
114. Deputy Billy Kelleher asked the Minister for Finance the contingency plans the Revenue Commissioners has in place for a no deal hard Brexit scenario; and if plans have been made to date or estimates computed for the increased customs officials that may be needed and higher level customs clearance training and advice for third country trading for a hard Brexit scenario. [32138/18]
Amharc ar fhreagraCo-ordination of the whole-of-Government response to Brexit is being progressed through the cross-Departmental coordination structures chaired by the Department of Foreign Affairs and Trade. This includes ‘no deal’ contingency planning. Such planning provides base line scenarios for the impact of Brexit across all sectors. This approach is also enabling the modelling of potential responses under different scenarios, such as one where a withdrawal agreement is concluded and where a Free Trade Agreement is the basis for the future relationship between the EU and the UK.
My Department, along with the Revenue Commissioners, is actively engaged in this preparatory work which has intensified in recent months and is currently well advanced.
Revenue’s contingency planning includes examining the full range of scenarios that may apply including a ‘no deal’ Brexit. This work includes an assessment of the potential number of additional staff that will be required as a result of Brexit. However, given the uncertainty that exists as to the ongoing Article 50 negotiations and the future customs arrangements that may apply, it is too early to be definitive on the potential resources that may be required.
I am also advised by Revenue that their preparations include a review of existing customs technology required for processing the entry and exit of goods to and from the State. This consists of a suite of IT systems through which traders submit customs declarations and supporting documents.
Brexit has the potential to result in a significant increase in customs transactions which necessitates performance testing and tuning of those IT systems. At present, approximately 1.4 million customs declarations are processed each year, representing import and export trade with non-EU countries. In addition, some 57,000 transits are processed. While there may be an increase in processing requirements, after Brexit, estimation of the increase in demand is difficult and unreliable because of the possibility of accompanying changes of behaviour in terms of logistics and supply chain arrangements, and uncertainty about the exact arrangements that will be negotiated between UK and EU.
In addition to performance testing for Brexit, I am advised by Revenue that work is ongoing to deliver on the ambitious IT programme related to the implementation of the Union Customs Code, introduced in 2016. This programme of work is also reflected across all of the EU Member States. The new systems will be scaled to accommodate maximum possible demand and contingency planning is being designed if customs procedures are required between Ireland and the UK in the short term.
Revenue has a presence at the ports, airports, mail and parcel depots, and is in ongoing discussion with the relevant stakeholders, including on the implications of a much higher proportion of traffic requiring customs clearance.
