Co-ordination of the whole-of-Government response to Brexit is being taken forward through the cross-Departmental coordination structures chaired by the Department of Foreign Affairs and Trade. On 18 July the Tánaiste and Minister for Foreign Affairs and Trade presented a detailed memorandum to the Government on Brexit Preparedness and Contingency Planning.
Contingency Planning for a no-deal or worst-case outcome, bringing together the detailed work being undertaken by individual Ministers, and their Departments, on issues within their policy remit, was identified as an early priority and is now well advanced. Its focus is on the immediate economic, regulatory and operational challenges which would result from such an outcome. It assumes a trading relationship based on the default WTO rules, but also examines the possible effects on many other areas of concern.
My Department is actively engaged in this Brexit contingency planning work, which has provided baseline scenarios for the impact of Brexit across all sectors, which can then be adapted as appropriate in light of developments in the EU-UK negotiations. This is enabling the modelling of potential responses under different scenarios, such as one where a withdrawal agreement, including a transitional arrangement, is concluded and where a Free Trade Agreement is the basis for the future relationship between the EU and the UK.
On the basis of this work, relevant Departments, including my own, have now been tasked by the Government to roll out detailed Action Plans with a view to advancing, as appropriate, the mitigating measures which have been identified in the areas of their responsibility from the planning to the implementation phase.
As well as the planning work, the Government has already taken actions to get Ireland Brexit ready. In the past two Budgets, the Government has continued its policy focus of preparing the economy and enhancing the resilience of the public finances to deal with external challenges, including those posed by Brexit. For 2019, our current projections show Ireland complying with both fiscal rules and overachieving on our MTO. Complementing this, the ‘Rainy Day Fund’, will provide an important measure to strengthen the economy’s shock absorption capacity to mitigate the impact of future severe external shocks. Legislation to establish the Rainy Day Fund is currently being prepared and, pending its approval, as indicated in Budget 2018, its capitalisation will begin in 2019.
Within my own Department, the Assistant Secretary, who heads the EU and International Division of my Department, is designated as the lead official in the Department for Brexit matters. A dedicated Brexit Unit within the EU and International Division was established in July 2016 to oversee and coordinate Brexit work across the entire Department and to act as a key liaison point, in particular with the Departments of the Taoiseach and of Foreign Affairs and Trade. There are currently four staff in the dedicated unit which is led at Principal Officer level. Also, an additional staff member has been assigned to the Permanent Representation to the EU in Brussels, specifically to deal with Brexit. The challenges which we face as a result of Brexit are mainstreamed across the divisions of my Department and this is reflected in business planning, with lead Brexit coordinators, at Principal Officer level, appointed across all the relevant divisions. This is also the case for the Revenue Commissioners, where support for the Brexit Unit also involves significant input from areas such as information technology, legislation, international relations, customs, tax and statistics. It is similarly the case for the Central Bank, which has the statutory mandate for financial stability, including resolution, and for reviewing contingency plans of regulated firms, with staff across the Central Bank working on Brexit-related matters in the course of their duties.
My Department and the relevant agencies will continue to work within the whole-of-Government structures to respond to Brexit. The resources needed to respond to specific policy challenges will continue to be monitored on an ongoing basis. It should be noted, that, as an independent agency, the Central Bank has responsibility for its own staffing arrangements.
