Jimmy Deenihan (Kerry North-West Limerick, Fine Gael) | Oireachtas source

I thank the Deputy for raising this issue. As the House will be aware, the United Kingdom's membership of the European Union is a matter of strategic importance for the Government. We believe the United Kingdom's continued membership of the European Union is highly important to Ireland's interests and the interests of the European Union as a whole. All research to date, including the excellent report by the Oireachtas Joint Committee on European Affairs, suggests the overall implications for Ireland would be negative. Obviously, the exact consequences of a UK exit from the European Union would depend on what arrangements were subsequently put in place between the United Kingdom and the European Union.

We do know from various published assessments, not least that published today by the ESRI and commissioned by the Department of Finance, that there would be very significant strategic and economic risks for Ireland if the United Kingdom were to leave the European Union. The ESRI's research has found that, second only to the United Kingdom, of all EU member states, Ireland would suffer the most negative consequences of a British withdrawal, which could be extremely disruptive to the Irish economy, even if the United Kingdom was to maintain a preferential trade agreement with the European Union. The research identifies four key areas where the effects of a Brexit could be significant - trade, foreign direct investment, energy and migration. It also suggests there could be particular impacts on SMEs, certain sectors and regions, including the Border area. The negative implications are not just economic, they would also arise in respect of Northern Ireland and, more broadly, our positioning within the European Union.

The Government is well aware of the challenges and we will continue to deepen our analysis and understanding of the issues at stake. The best way to mitigate these risks is to work hard, with EU partners, to ensure a British exit does not happen.

This Government's overriding focus, therefore, is on helping to keep the UK in the Union, not preparing for its departure. This position has been elaborated many times by the Government, including by the Taoiseach and the Minister for Foreign Affairs and Trade, in this House and in keynote speeches such as the Taoiseach's address to the British-Irish Association in Cambridge in September, and the address of the Minister, Deputy Flanagan, at Chatham House in London later that month.

Therefore, as regards the UK's EU reform agenda, from the outset our position has been that we will be as constructive as possible in the negotiations. There are a number of areas where we share British concerns and where we also see room for improvement in how the Union operates. Precise proposals have not yet been put on the table. The Prime Minister is, however, expected to set out some further thinking very soon and a negotiating process will get under way after that. We will play a constructive role in these negotiations, though of course the detail will require careful examination. We want to work with the British Government and all our EU partners in that process so as to find a consensual basis for the UK's continued presence in the Union.

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