Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I welcome our guests and thank them for their professionalism and advice. Over the years, the ESRI, as an independent, professional body, has been on the button in terms of informing public policy as well as advising the Government and the Opposition.

Despite the appalling vista it presents, Brexit also gives us the opportunity to change significant policies, particularly with regard to housing. Our guests have made the point that the provision of social and affordable housing should always be a constant and that whatever need exists should be met. As the market changes, Government spending on social and affordable housing should increase. The figure for this year is around 18,000 units which is expected to reach 20,000 next year and 25,000 from 2020 onwards. Notwithstanding the fact that this will not be enough, our guests are identifying a key policy issue on which we can all agree, namely that there must be a model for building social housing as a constant. That must always happen, regardless of the climate.

In the 1930s and the 1950s, significant numbers of very fine, solid local authority houses were built. These houses are still in use today. Economics were very bad at that time and we had an enormous national debt. What was the model at that time? Did the ESRI or the Nevin Economic Research Institute look at that? Are there lessons to be learned from what was done during that period?

The North will suffer more than any other part of the island after Brexit. In terms of the regional development policy and Project Ireland 2040 attention must focus on the Sligo, Letterkenny, Derry axis and the Drogheda, Dundalk, Belfast economic corridor axis. Government investment which is planned for these two regions must be fast tracked because they will suffer the most. In terms of job migration, there is some evidence in County Louth that jobs may migrate from Northern Ireland to that county. I know of two pharmaceutical companies that are considering such a move. There will be job losses in the North because companies that want to invest in Europe that were considering the UK will now look elsewhere, possibly to our benefit. This is particularly true of US companies or those companies that are English language-based and that want to access the European market. That said, most Europeans are very competent and speak English as well as we do. Are there policy change options available in this context? Are there opportunities for us in that area?

A key point is the political instability that could result from depressed economic circumstances. There will also be a requirement for increased vigilance in the context of tax collection. We will need to focus on cross-Border relationships and those towns and cities that straddle the Border including Sligo, Letterkenny, Derry, Dundalk, Drogheda and Newry. These areas will be key in terms of future stability.

Notwithstanding the difficulties to which Brexit will give rise, North and South, there is a case to be made to the European Union that it must recognise the disproportionately negative economic impact on Ireland relative to other member states. We must consider specific issues such as the cost of housing, including that part of it relating to materials and so on.

If the State is paying the cheque the EU, through the European Investment Bank or whatever other route, must recognise our increasing disadvantage in terms of addressing key issues arising from Brexit. There has to be a benefit to Ireland above and beyond what we would normally get and the EU must recognise that in our housing, economic and employment policies.

They are the main issues I see. What is happening in Britain at the moment is appalling. When one reads the newspaper, in some cases one sees demagogues appearing on the political stage, and not just in America. Some are beginning to appear in our own country. The stability that is essential for our economic well-being and our democracy will not be improved by Brexit. I welcome the expertise we have here today. I am grateful for the opportunity to ask questions.