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

I propose to take Questions Nos. 11, 15, 40 and 73 together.

Like all Government agencies, Revenue is actively engaged in examining a range of scenarios in order to support Ireland's objectives. This work is being undertaken within a whole-of-Government framework led by the Department of Foreign Affairs and Trade. While the precise customs arrangements that will apply after Brexit will depend on the outcome of negotiations between the EU and UK, it is clear that political solutions must be found before technical resolutions can be applied. I am informed by the Revenue Commissioners that it is not possible, at this juncture, to assess what specific arrangements would be required if the UK left the customs union or what post-Brexit checks would be carried out. The Chairman of the Revenue Commissioners has previously confirmed that Revenue is not looking for sites for customs posts.

In respect of the Revenue report referred to, I am advised that this was a draft working document that was subsequently published on Revenue's website on 11 October 2017. The paper was a preliminary analysis compiled internally by Revenue in September 2016 to support its scenario examination and deliberative process following the UK vote in June 2016 to exit the EU. However, it is important to note that matters have moved on significantly since then and, in particular, since Article 50 was triggered. As such, this document remains in draft form and was not finalised as it was overtaken by consequent major developments and policy statements and does not reflect Revenue's current view on Brexit. Their current view was set out clearly in the chairman’s opening statement to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach on 25 May 2017.

The Government's priorities in respect of the unique concerns that arise for Ireland are very clear - to maintain the common travel area and to protect the gains of the peace process and the Good Friday Agreement in all its parts, including avoiding a hard border. The Government welcomes that these priorities have been reflected in the EU's negotiating position and further welcomes and supports the task force's paper, Guiding Principles on the Dialogue for Ireland/Northern Ireland, which was published on 7 September. The paper builds on the European Council guidelines and reflects the priority Irish issues identified by the Government, including that, in view of the unique circumstances on the island of Ireland, flexible and imaginative solutions will be required to avoid a hard border, including any physical border infrastructure. This must be achieved in a way which ensures that Ireland's place within the Internal Market and customs union is unaffected. The paper also makes it clear that it is the UK's responsibility to propose workable solutions in this regard. It is the Government's view that the UK staying in the customs union and Single Market, or as close as possible to that, would be the best solution.

However, it is important that internal analysis continues in the meantime. Several helpful reports and working papers have been published by the ESRI, InterTradeIreland and business representative bodies. Most recently, my Department and Revenue co-sponsored an ESRI study, working paper 573 on Ireland's international trade and transport connections, which was published on Thursday, 12 October 2017.

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