Oireachtas Joint and Select Committees

Wednesday, 5 December 2018

Committee on Budgetary Oversight

Fiscal Assessment Report November 2018: Irish Fiscal Advisory Council

2:00 pm

Mr. Eddie Casey:

We have looked at this a few times and the Deputy has put this question to us before. What we have noticed when we have used the models that are typically run to estimate the effects is that they treat the UK like any other trading partner, as though the labour intensity and the number of people working for each sector exporting to the UK is the same as any other export market but we know that there is way more labour involved in the types of sectors in question such as agrifood, machinery and equipment. Many more people work for each item exported to the UK and because of the way the models are set up, they work on averages and representative markets, and that means the models could be underplaying the extent of the impact that might happen because those labour channels are so much more important for the UK.

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