Oireachtas Joint and Select Committees

Wednesday, 3 July 2019

Committee on Budgetary Oversight

Summer Economic Statement: Minister for Finance

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

If a disorderly Brexit happens, it is possible that this country could be in a deficit position. I have outlined the figures for that. In such circumstances, a new capital project like the national broadband plan would be funded by part of the deficit as an additional commitment on top of our existing commitments. The context for the national broadband plan would change considerably in such circumstances. This committee has acknowledged the analysis setting out which parts of the country would be most adversely affected by a disorderly Brexit. The analysis in question tends to focus on those parts of the country and the economy that are outside the larger cities. Parts of the country like the north west would benefit most from the roll-out of the national broadband plan. While I accept that the national finance background to going ahead with the national broadband plan would change in the event of a disorderly Brexit, I have to point out that the parts of the country and the economy which would be most adversely affected by a disorderly Brexit are those which would be most positively affected by the roll-out of the national broadband plan. The Deputy and I have been exchanging views on the use of corporation tax receipts of €14 billion or €15 billion. I have no doubt that the accurate position will be established after this meeting comes to a conclusion. The figure to which the Deputy has referred may include the cost of servicing our national debt. That may well account for the difference between our two figures.

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