Thursday, 25 October 2018

Ceisteanna (106)

Bernard Durkan


106. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which inward investment is likely to be affected by Brexit; and if he will make a statement on the matter. [44582/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

There have been a number of studies of the economic impact of Brexit, a number by my Department, some in conjunction with the ESRI. Recent analysis in an OECD staff working paper found that the boost to the Irish economy from additional Foreign Direct Investment would be modest with a 0.1 per cent increase in GDP compared to a no Brexit scenario.

The Government is taking the following approach to mitigate the economic impact of Brexit and to maximise opportunities:

- prudent management of our economy and the public finances to enable us to meet future challenges;

- negotiating effectively, as part of the EU27, with the objective of reaching an agreement that sees the closest possible relationship between the EU and the UK while also ensuring a strong and well-functioning EU; 

- supporting business and the economy through a broad range of Government measures, programmes and strategies;

- exploring existing and possible future EU measures that could potentially assist Ireland in mitigating the effects of the UK’s withdrawal on specific Irish businesses and economic sectors while also, in the light of developments, making a strong case at EU level that the UK’s withdrawal represents a serious disturbance to the Irish economy overall and that we will require support; and

- maximising any economic opportunities arising from the UK’s decision to leave the EU.

While the future trade path between the UK and EU is still unknown, it is nevertheless crucially important that we prepare our economy for the challenges and opportunities ahead. The Government has already taken a number of important steps both to prepare our economy for the challenges of Brexit and to maximise any opportunities that arise, including in Budgets 2017, 2018 and 2019, the Action Plan for Jobs 2018, our Trade and Investment Strategy and Project Ireland 2040.

In particular, Government and state agencies are working hard to exploit any opportunities from Brexit, including promoting trade and investment opportunities in Ireland, as an English speaking member of the EU with unfettered access to the EU market.

At the sectoral level new opportunities have also been identified – particularly in the international financial services sector which is heavily reliant on the need for access to the Single Market and ongoing compliance with EU regulatory standards. Brexit has already seen opportunities for Ireland to increase its share of financial services based inward investment. Public announcements to establish or expand operations have been made by a number of companies. In addition the Government will continue to leverage our IFS2020 Strategy to maximise those and other opportunities.