Thursday, 6 December 2018

Ceisteanna (90)

Michael McGrath


90. Deputy Michael McGrath asked the Minister for Finance if the moving of assets here by international banks in anticipation of Brexit will have a substantial impact on Ireland's gross domestic product, gross national product, and gross national income or GNI* figures; if he will quantify these impacts; and if he will make a statement on the matter. [51480/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

As Minister of Finance, I cannot comment on the potential corporate decisions or operations of any individual financial institution, or their financial position. However, in terms of the overall economy, the movement of assets to Ireland by international banks in anticipation of Brexit, would be expected to have some impact on Ireland's economic output as measured by gross domestic product (GDP), if also matched by substantive operations. The impact on gross national product (GNP) and modified gross national income (GNI*) would depend on the overall corporate structure of the firms, in particular where the parent is located.

As the movement of assets to Ireland by financial institutions would largely involve financial assets, that movement would not be expected to impact on our national accounts to the same extent as the relocation of capital assets that we have seen in recent years, particularly in respect of intangibles. Indeed, it is worth noting that any movement of financial assets to Ireland would be expected to be largely offset by corresponding financial liabilities that fund the assets.