Michael Moynihan
Ceist:6. Deputy Michael Moynihan asked the Taoiseach his plans to increase the number of staff in his Department to work and assist on Brexit preparedness. [4353/19]
Amharc ar fhreagraWednesday, 13 February 2019
Ceisteanna (6, 7, 8, 9)
Mary Lou McDonald
Ceist:7. Deputy Mary Lou McDonald asked the Taoiseach if additional staff have been recruited in his Department to work on Brexit preparedness. [5488/19]
Amharc ar fhreagraMichael Moynihan
Ceist:8. Deputy Michael Moynihan asked the Taoiseach the response he has given to the European Commission since its latest call on 29 January 2019 to increase the contingency plans for a no-deal Brexit. [5628/19]
Amharc ar fhreagra
Brendan Howlin
Ceist:9. Deputy Brendan Howlin asked the Taoiseach the number of additional staff recruited in his Department to assist with Brexit preparedness. [6511/19]
Amharc ar fhreagraFreagraí ó Béal (10 píosaí cainte)
I propose to take Questions Nos. 6 to 9, inclusive, together.
My Department works closely with the Department of Foreign Affairs and Trade, which has overall responsibility for Brexit. Within my Department, staff across several divisions contribute to the work on Brexit, including the international, European Union and Northern Ireland division and the economic division. To augment this ongoing work, my Department established a small unit to work on Brexit preparedness and contingency planning. This unit assists a Secretaries General group which oversees ongoing work on national Brexit preparedness and contingency planning. The unit also focuses on cross-Government co-ordination, planning and programme management.
Managing a no-deal Brexit would be an exercise in damage limitation. It would be impossible to maintain the current seamless arrangements between the EU and the United Kingdom or to put in place arrangements equivalent to those provided for in the withdrawal agreement. We are firmly of the view that the best and only way to ensure an orderly withdrawal is to ratify the withdrawal agreement. However, given the ongoing uncertainty in the UK and the proximity of the date of Brexit, the Government is continuing to take concrete steps in preparation for a no-deal scenario. Our contingency plans are now being implemented.
Preparation and planning for a range of Brexit scenarios has been ongoing since well in advance of the UK referendum in 2016. A comprehensive set of Government structures is in place to ensure that all Departments and their agencies are engaged in detailed preparedness and contingency activities. On 19 December last, the Government’s contingency action plan setting out its approach to dealing with a no-deal Brexit was published. The plan includes analysis under important headings, including economic and fiscal impact, security and Northern Ireland and North-South relations. It provides detailed sectoral analyses and approaches to mitigating the impacts of a no-deal Brexit.
On 24 January, the Government published a draft omnibus Brexit Bill as the next in a series of actions to prepare for a no-deal Brexit. It comprises vital legislation needed by 27 March and focuses on protecting our citizens and assisting the economy, enterprise and jobs. On 30 January, an update to the contingency action plan was published, setting out how preparations for a no-deal scenario have intensified since 19 December. This includes key decisions by Cabinet to advance our Brexit-related legislation, and Cabinet review of several important areas such as transport connectivity, including ongoing preparations at ports and airports; supply of medicines; agrifood and fisheries; the common travel area; and impacts on the Irish economy. There were further updates on supports for Irish businesses and the Government’s public information campaign, "Getting Ireland Brexit Ready".
Our preparedness and contingency planning takes full account of and complements the steps under way at EU level to prepare for the UK’s withdrawal, notably as regards the implementation of the European Commission’s contingency action plan. Irish officials discussed contingency planning issues with a delegation of Commission officials who visited Dublin and the Border area on 4 and 5 February as part of a series of engagements with all EU member states.
We were the ninth country to be visited in such a way.
At my meeting with President Juncker in Brussels last week, we agreed that while we will continue to seek agreement on the orderly withdrawal of the United Kingdom, we will also further intensify our preparations for a no-deal scenario given the ongoing uncertainty.
Deputy Micheál Martin is taking Deputy Michael Moynihan's questions.
I thank the Taoiseach for his comprehensive reply. During yesterday's questions, he was prepared to indicate he has no idea how many businesses will be Brexit-ready on 29 March, next month. Given the scale of the threat posed by Brexit, most people were working under the assumption that the Taoiseach would at least have monthly monitoring of readiness and a list of companies, or at least all companies over a certain size, that will be asked by the Government or State agencies to report regularly.
Equally, it would have been expected that the Taoiseach would be receiving weekly responses from State agencies on the uptake of funding schemes. It is quite striking that there is still money being spent on promoting a "start to plan for Brexit grant". With six weeks to go, should the Taoiseach not be somewhat worried that it is a bit late to be starting to plan? It is now 13 months since the Government published its last survey on SMEs' preparedness. Why has there been such a delay in publishing another one? I have never claimed one can ensure every company is prepared but it is absolutely reasonable to expect that we and the Government will know how many are prepared. Yesterday, Allied Irish Banks suggested up to 50% of SMEs are not prepared for Brexit. What percentage of businesses that need to prepare for Brexit will be prepared by 29 March? What are the Government and its agencies saying about that?
I was briefed by the Taoiseach's staff last week to the effect that the Government impressed the Commission's team when it reviewed no-deal preparations. Does the Taoiseach intend to publish the specific data he provided to them regarding the number of staff who will be in place by 29 March? How many of the extra staff announced last year will be trained and in place by 29 March across the various agencies?
Obviously, we are approaching D-Day, 29 March. Comments on Brexit still have us all wondering what Brexit actually means. The UK Prime Minister, Mrs. Theresa May, has reneged on her position on the backstop. In the Taoiseach's engagement with her at the dinner last Friday, did she indicate to him why she had changed her position on the backstop? Did she give any indication that she was willing to revisit our earlier position, namely, the position shared by the Irish Government and all parties in this House?
On preparation for Brexit, a colleague raised yesterday with the Minister for Transport, Tourism and Sport a very simple matter, the ability to travel across the Border, for which we will need a green card. If the Leas-Ceann Comhairle and I want to come to the Dáil, we will have to apply to our insurance company before the end of this month, in two weeks, for a green card. If we do not have one, we could be stopped and fined as we travel through the North. Is it the same for motorists who will be travelling from Strabane across the bridge into Lifford? Do they also require documentation so as not to be in breach of the rules pertaining to their insurance?
In light of the statement by the Minister for Finance, Deputy Donohoe, that there will be no need for a supplementary budget for this year in the context of dealing with a crash-out Brexit, how does the Taoiseach square the circle given that there will obviously be a need for financial supports for sectors and regions that will be hit hard as a result of a no-deal Brexit? Is the Government preparing to leave those sectors without the necessary supports? We know from all the various studies that it is my region, the north west, particularly Donegal, in addition to the Six Counties and the south east, that will be particularly hit. On the Taoiseach's table, as part of his contingency plan for a no-deal crash out, which we all want to avoid, are there proposals for financial supports for the sectors and regions?
I understand the Taoiseach said he now expects the United Kingdom to leave the European Union at the end of March. It is alleged we got some insight into Prime Minister May's thinking through overheard remarks made in Brussels by her chief negotiator, Mr. Olly Robbins. According to a British journalist who overheard the comments, Mr. Robbins said there were two ways for the departure to be achieved: the deal will be approved in time for a March exit or there will be a long delay in achieving Brexit, whatever that means. Does the Taoiseach agree with the analysis attributed to Mr. Robbins? It is said that Mr. Robbins stated the backstop is a bridge to the long-term trading relationship. It is reported that he wants the withdrawal agreement amended to insert "subject to the future trade deal" after the word "necessary". In order to have clarity, could I ask whether the withdrawal agreement is being negotiated? Has the Irish Government been informed of or even sounded out on any insertion to or deletion from the withdrawal agreement? Alternatively, is the position the one the Taoiseach has outlined repeatedly in this House, namely, that the withdrawal agreement is complete, cannot be reopened and will not and cannot be subject to any further amendment?
With regard to helping businesses to prepare for Brexit, the Government has a public information campaign, Getting Ireland Brexit Ready, which is designed to warn businesses and stimulate them to take the actions they need to take to prepare for Brexit. In the past two weeks alone, for example, there have been outreach events in eight counties, and more are planned. The all-Ireland civic forum on Brexit will take place on Friday. I will be part of it. An array of financial and practical supports, including the Brexit SME Scorecard and the Be Prepared grant, are available from Enterprise Ireland. There is the Prepare for Brexit regional roadshow and Brexit advisory clinics are being run by Enterprise Ireland and the local enterprise offices. The Brexit Start to Plan voucher is being provided by InterTradeIreland. Brexit Barometer seminars, workshops and training are being run by Bord Bia. The Get Brexit Ready programme for the tourism industry is being run by Fáilte Ireland. There are Revenue trader engagement programmes to assist businesses and familiarise them with customs processes and so on. Also, there is a €300 million long-term loan scheme to assist strategic capital investment after Brexit. More than €450 million was allocated in loans already to businesses in previous budgets.
We also continue to engage with the European Commission on challenges for business. The Commission has acknowledged those challenges exist and states it will stand ready to help us to find solutions. I encourage all businesses and other organisations to take the necessary steps to prepare for a no-deal Brexit, if not already doing so.
To answer Deputy Doherty's question on my dinner with the UK Prime Minister, she indicated the UK Government had changed its position on the backstop for the simple reason that she was unable to secure a parliamentary majority in favour of it.
On insurance, I am afraid I do not yet have certainty on the issues raised by the Deputy. I am trying to get a full briefing on it that I fully understand. I have not yet got one. I understand, however, that it may be possible for some of the insurance companies to waive the requirement for a green card for a period, but that has not been bottomed out yet.
On the budget, budget 2019 was designed with Brexit in mind. It provides for a budget surplus and a rainy day fund. It provides for a €1.5 billion increase in capital spending or record levels of investment in healthcare, housing and education. Therefore, we will not need a mini-budget in the event of a no-deal Brexit but it is likely that, rather than going into surplus, we will go into deficit.
That is the right thing to do, quite frankly, if we end up in that sort of economic scenario as it would allow the automatic stabilisers to take effect. It will not mean a requirement for a mini-budget. It will not mean increased taxes or cuts to spending, welfare, pensions, or any of those measures that people experienced ten years ago. We do not need to enforce those kinds of measures on people again precisely because we have balanced the books and we are running a budget surplus. We will run a deficit if we need to and it will be a modest deficit, as the Deputies have seen from the Central Bank and Department of Finance projections.
We may need Supplementary Estimates for certain sectors, for example, to support the beef industry, agrifood and business that will be adversely affected by Brexit. That will not change. When people hear reference to a mini-budget or a Supplementary Estimate, they think it means the Government will come along and raise taxes or cut services, pensions or welfare. None of that will happen, or is even being contemplated, because the public finances are in such good order. That will not happen in a no-deal Brexit but there will need to be Supplementary Estimates and supplementary budgets to support businesses, agriculture and the agrifood sector in particular, small exporters and others who need funding to restructure and save their businesses and the jobs they provide, in some cases.
I have met Mr. Olly Robbins on many occasions and he is a very capable civil servant. It would not be appropriate for me to comment on words that were overheard in a bar. It would not be right for me to form any conclusions based on it.
Can the Taoiseach assure us there will be no reopening of the withdrawal agreement? That was the question I asked.
There are no plans for that.
There has been no sounding out of people about that.
There has not been with me.
Written Answers are published on the Oireachtas website.