Bernard Durkan
Ceist:217. Deputy Bernard J. Durkan asked the Minister for Finance if Ireland is adequately protected from the worst aspects of Brexit; and if he will make a statement on the matter. [39466/20]
Amharc ar fhreagraThursday, 26 November 2020
Ceisteanna (217)
Freagraí scríofa
My Department has been participating in whole of Government preparations for Brexit since before the UK referendum in 2016 and, in line with the Government’s overall approach, has intensified work ahead of the end of the transition period on 31 December in order to minimise the impact of Brexit on Ireland.
Without prejudging the outcome of ongoing negotiations between the EU and the UK, the central scenario underlying Budget 2021 assumes the transition period ends without agreement and that a widespread vaccination for Covid-19 will not be available before the end of next year.
On this basis, Budget 2021 focussed on providing support to the economy through this challenging period, with regards to prioritising management of the Covid-19 crisis and the threat of a ‘no trade deal’ Brexit. Budget 2021 provides €340 million for measures to prepare for Brexit, through the continuation of existing measures and new supports for sectors and enterprises likely to be most affected. This comes on top of over €700 million in successive Budgets since 2017. In addition, the Recovery Fund of €3.4 billion will allow specific, targeted measures to be introduced when and where the need arises in response to both Brexit and Covid-19. Budget 2021 targets an improvement in the headline fiscal position while allowing deficit-financed spending to continue in the short term to ensure that our economy and the most affected sectors and households are adequately supported.
Regarding financial services, my Department is working closely with the Central Bank of Ireland and the NTMA to ensure the sector is adequately prepared to cope with the possible effects of Brexit, with as little disruption for consumers, investors and markets as possible. On the basis of its work and engagement across the sector, the Central Bank has been able to assure me that, while some level of market disruption is inevitable, the financial system as a whole should be resilient enough to withstand a hard Brexit and that the most material ‘cliff edge’ financial stability risks arising from Brexit have been largely mitigated.
Regarding preparation for the customs checks that will be necessary for goods travelling between Ireland and the UK, excluding Northern Ireland, at the end of the transition period, the Revenue Commissioners are undertaking an extensive body of work including stakeholder communications and training, staff recruitment and systems and infrastructure enhancements.
Finally, my Department is continuing to make Ireland’s position on the €5 billion Brexit Adjustment Reserve known to the European Commission. The publication of a proposal from the Commission is expected in the coming days and Ireland will then begin negotiating with other Member States to ensure we receive a significant share of the Reserve to support and enhance the steps which I have outlined above.