Dáil Éireann Debate, Wednesday - 17 April 2019
95. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied regarding the preparations undertaken by his and other Departments for Brexit notwithstanding the ongoing delays; and if he will make a statement on the matter. [18032/19]
Amharc ar fhreagraThe Government welcomed the decision of the recent European Council to an extension of the Article 50 process until 31 October 2019. The extension includes giving the UK flexibility to leave before that date should the Withdrawal Agreement be ratified.
The European Council decision made clear that the Withdrawal Agreement, including the backstop, cannot be re-negotiated and that any unilateral commitments by the UK Government should be compatible with the letter and the spirit of the Withdrawal Agreement. We welcome these important assertions.
If the UK stays in the EU beyond 22 May and holds EP elections, it will continue to be a full EU Member State. We welcome the UK’s commitment to act in a responsible and constructive way during the extension. This is important to safeguard the effective functioning of the EU as we make decisions on our future and for our citizens, and the EU27 can therefore discuss matters related to long term decisions without the UK.
The European Council also agreed that should the UK’s position on the EU-UK future relationship evolve, the EU is prepared to reconsider the political declaration on the future relationship.
The Government remains focused on the ratification of the Withdrawal Agreement as the best way to ensure an orderly withdrawal of the UK from the EU and to fully protect the Good Friday Agreement. The decision of the European Council provides the UK with more time, until 31 October, to ensure an orderly withdrawal, however while it means that the immediate risk of a no deal Brexit has receded it has not been fully averted. The preparations, that have been taking place since before the Brexit referendum took place for all possible scenarios are therefore continuing. Brexit in all scenarios will have negative consequences and as a Government we are determined to be as ready as we can be.
The Government’s Contingency Action Plan, published on 19 December 2018, sets out comprehensive, cross-Government preparations that have been taking place since even before the referendum. The Government has been taking key decisions to advance the implementation of our Brexit preparations.
This includes the preparation of Brexit related legislation, the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act, which has completed all Oireachtas stages and was signed into law by the President on 17 March.
The Act complements legal measures at EU level and focuses on measures protecting our citizens and supporting the economy, enterprise and jobs, particularly in key economic sectors. It makes provisions for continued access to healthcare, social security protection, student support and justice and security measures. The Act is primarily intended for a no deal scenario, and most of the Act will not be commenced should the Withdrawal agreement be ratified.
The legislation which I proposed in the areas of Taxation and Financial Services is an important part of the whole of Government response to Brexit, as it will ensure continuity of access for business and citizens in relation to certain taxation reliefs and allowances, as well as enabling insurance undertakings to continue to fulfil contractual obligations to their Irish customers, in a no deal scenario.
The Government has also taken important steps to prepare our economy, including through dedicated measures announced in Budgets 2017, 2018 and 2019, supported by long-term planning through the National Development Plan and the National Planning Framework which will provide significant investment in Ireland’s public capital infrastructure.
As Minister for Finance, my objective is to protect the economic and financial interests of the State and to support the work of the Revenue Commissioners so as to minimise the Brexit disruption to trade, to the greatest extent possible. I am satisfied that my Department and its relevant agencies will continue to work to ensure that they are as prepared as possible to limit the inevitable disruption to consumers and trade, post Brexit.
As a Government we will continue to strongly encourage businesses and citizens to do the same. For instance businesses that trade with the UK should apply now to the Revenue Commission for their customs number (EORI). The Government website gov.ie/brexit is an important resource in this regard and contains information on a range of Brexit supports and advice, as well as an overview of the institutions offering financial assistance to businesses such as the SBCI, microfinance Ireland, Intertrade Ireland and Enterprise Ireland.
