Oireachtas Joint and Select Committees

Tuesday, 24 February 2015

Joint Oireachtas Committee on European Union Affairs

Possible Exit of UK from European Union: Discussion (Resumed)

2:00 pm

Photo of John HalliganJohn Halligan (Waterford, Independent)
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From speaking to people in the British Labour Party, my impression is that there will be a referendum no matter who is in government after the election. I would go so far as to say there will undoubtedly be a referendum. Although the majority wanting to leave the EU has reduced and now stands at some 53%, 82% of British people want a referendum on the question. None of the parties will be able to ignore that.

IBEC has argued that in the event of a UK exit from the EU, a margin of businesses in Ireland could cede to a more attractive credits-based tax regime in Britain, as set out under Conservative Party proposals. That party seems determined on having a referendum and on a UK exit.

It is already beginning to offer tax incentives to businesses to establish operations in Britain. I imagine Ireland is probably Britain's biggest competitor in this area.

With respect, I do not believe the influence of the Irish Government will make a bit of difference in this matter. I base my view on the results of opinion polls, what is stated in the UK press and the actions of those in the Conservative Party and some in the British Labour Party who seem to be hell-bent on having a referendum held and who will probably support an exit from the European Union.