Mr. Paddy Malone:

I will focus in my comments on the Chambers Ireland position on Brexit. Dundalk has its own view on Brexit, on which I am happy to take questions later if members so wish. There is unanimous acknowledgement that once the UK departs the EU the Irish economy will suffer badly, with many Irish businesses likely to suffer adverse consequences. It is likely that current uncertainty is damaging confidence and delaying decision making and investments, which will have an adverse economic impact into the future.

Chambers Ireland carried out a survey of its members, which found that while Brexit presents some opportunities, its presents far more challenges; it will result in a reduction in trade, the return of a hard border with Northern Ireland and it will also have a negative impact on tourism, particularly tourism from across the Border. The number of people crossing the Border to visit areas such as Carlingford Lough, Bundoran and Ballyshannon has decreased and these communities are feeling the difference. In addition, the value of sterling is dropping. The almost certain reduction in trade between Ireland and the UK will have a disproportionate impact on indigenous firms in that they will be less able to react and find a European market.

We have that problem. Most of the members we represent are SMEs. Their first toe in the water in exporting was to the UK and some of them have never gone beyond it. The Government must ensure businesses are supported to diversify markets, upscale their staff, as required, and ensure the tourism industry remains competitive and continues to attract visitors from the UK. The Government should continue to make funding available through the Brexit loan scheme and to expand the funds to support more businesses that may wish to innovate in response to Brexit.

The Strategic Banking Corporation of Ireland, SBCI, ran a seminar in Dundalk last week and we had 200 people without even having to try to attract an attendance. Last March, 500 people attended when we had a similar joint event with Newry and there is huge concern in the region.

SBCI does not see itself supporting retail or other sectors which have been specifically damaged and it is a point Chambers Ireland has made to SBCI.

The tourism industry is a significant source of employment across every region of Ireland. The UK is the single largest source market for the tourism industry and provides a high percentage of the regional tourism business in Ireland, with 41% of UK visitors staying outside of Dublin in 2016. The problem is that with sterling dropping in value, whether it is cross-Border tourism or east-west tourism, that figure is going to fall.

In a recent survey, Chamber Network found that the impact of Brexit on the tourism industry was one of the top three concerns of members. For that reason, we believe the reduced 9% VAT rate for the hospitality sector should be retained.

In addition, it is now more crucial than ever that we promote Irish tourism abroad and seek to attract new visitors from outside of the UK and traditional sources. We must increase the capacity of State agencies to promote Ireland as a destination for new markets to reduce our reliance on the UK, the US and traditional markets.