Oireachtas Joint and Select Committees

Thursday, 25 May 2017

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Brexit - Recent Developments and Future Negotiations: Discussion (Resumed)

10:00 am

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Thus far this has been a very useful exercise for us in terms of the degree of enlightenment on the dynamics at play vis-a-visthe customs union, tariffs, the tax code and so on. However, we need to look at the matter in the context of the ongoing political discussions which are an iterative process, notwithstanding the rhetoric and the fact that there is a general election under way in the United Kingdom. This is a very useful exercise for us, particularly in gleaning the level of readiness of individual businesses or sectors for Brexit. Following on from the submissions made by Mr. Keegan and Ms Lynch, it appears that the level of readiness is poor. Ms Lynch has said 4% of Irish companies have sought external advice and support in meeting the implications of Brexit and that only one in 20 firms has a plan in place to deal with a potential customs border with the North following Brexit. Is it possible for businesses to do more? We do not yet know what the final outcome of the political negotiations will be and so there are all sorts of scenario in that regard. For example, there could be a hard Brexit, for which every business has to prepare, but we could also have a political solution, comprising outcomes of a lesser degree, including European economic area status and so on. I am trying to get a sense of what businesses need to do to be more ready. Is there more State organisations such as Enterprise Ireland, IDA Ireland, Revenue, Departments, local enterprise offices, LEOs, could do? In other words, is there more that needs to be done from the State's point of view to assist businesses to be ready for what is inevitable?