Pearse Doherty (Donegal, Sinn Fein)
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30. To ask the Minister for Public Expenditure and Reform the contingency plans he has developed to deal with the result of the British referendum on withdrawal from the European Union. [19751/16]

Pearse Doherty (Donegal, Sinn Fein)
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The issue on the lips of many people is Brexit. The summer economic statement warned about the dangers of Brexit, yet last night during a discussion between the Minister for Finance and myself on a parliamentary question regarding data provided in the summer economic statement, the Minister said it was too early to speculate on the potential impacts. How has the Department of Public Expenditure and Reform prepared for Brexit, and what will it mean for the capital programme, given that much of the funding in the capital programme is dependent on EU funding on a cross-Border basis?

Paschal Donohoe (Dublin Central, Fine Gael)
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As I indicated earlier in response to another question, my Department is represented on the interdepartmental group on EU-UK relations which was convened by the Taoiseach in advance of the UK referendum on EU membership. Therefore, my Department contributed to the risk assessment conducted by the Department of the Taoiseach in advance of the referendum. This was included in the Department's own risk register. In addition, the matter was discussed by the Department's management board prior to the referendum. I also engaged with my officials on the issue in advance of the referendum and in the aftermath of it. The matter will continue to be reviewed by me and my Department on a regular basis. The Department's contingency framework sets out the approach being taken to deal with all of the issues consequential on the UK referendum result.

In regard to the Deputy's question about the effect of the result on our capital plans, as I have already stated, the spending plans for 2016 and 2017 will not change, including capital spending. In regard to what will happen after that, the likely UK-EU relationship and the effects of Brexit on the UK and Irish economies will become clear after the UK has triggered Article 50. Any indication that can be formed prior to that will be flagged as part of the preparatory work for budget 2017 in October. On the choices that may be made, I wish to confirm again that the Government views capital expenditure as an appropriate response to the uncertainty that is being triggered by the UK referendum result.

Pearse Doherty (Donegal, Sinn Fein)
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As pointed out by my colleague Deputy Cullinane, capital expenditure in this country is at an historic low, which the Taoiseach pointed out to Mr. Juncker. We are coming from a base that is way out of kilter with the European average. Even with the additional capital expenditure, capital investment by Ireland is among the lowest in Europe. The Government might get away with that if it was for only one year, but ten years of reduced capital expenditure is not acceptable. There is a big issue in this regard in terms of Brexit. The North-South plan, under the heading "Capital plan", states:

The Irish Government reaffirms its support for the EU PEACE and INTERREG programmes....It will continue to work closely with the Northern Ireland Executive to ensure that funding opportunities are maximised under the EU programmes. Almost half a billion euro will be available from EU sources during the period 2016 to 2021.

As stated, €500 million of EU funding is available. The model of capital investment is based on co-funding. We are speaking in this regard of cross-Border EU funding. As somebody who has to cross the Border twice in my travels to and from the House, I want to know the types of project that are at risk as a result of Brexit. I also want to know that the Department has in place a contingency plan to fund those projects. Will the Minister provide a list of the projects that may now be doubtful as a result of the possibility of being unable to draw down the €500 million in funding from the EU?

Paschal Donohoe (Dublin Central, Fine Gael)
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We had a discussion on this point at the plenary session of the North-South Minister Council which took place earlier in the week. I will meet with Deputy Doherty's colleague in the Northern Ireland Executive, the Minister for Finance, tomorrow to discuss this issue. The INTERREG and PEACE programmes provide co-funding for infrastructure projects in this country, including across the Border. The Government is committed to those programmes but uncertainty has been generated as a result of the Brexit referendum result. I am committed to working with the Minister for Finance in the Northern Ireland Executive to do all we can to work with the European Union to maintain funding to cross-Border projects. Much work remains to be done in that area.

The Government's commitments to various infrastructure projects under A Fresh Start will be honoured. However, we will have work with the Northern Ireland Executive and the European Commission to address the consequences of the Brexit referendum on funding and projects that are important to everybody on this island.

Pearse Doherty (Donegal, Sinn Fein)
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The Border region is one of the most deprived on the island of Ireland in terms of the infrastructural deficit that exists in many areas, including in my own home county of Donegal. What we need from the Minister is reassurance followed by actions to ensure that, in relation to these projects, which he mentioned are at risk because of the decision of England and Wales to force Northern Ireland out of Europe, they will be funded regardless of the impact of the Brexit result on these funding programmes. That is what we need to know. In other words, in regard to the cycleway projects, the flood defence programmes that were being funded on a cross-Border basis, the waterways projects and the tourism projects, will the Irish Government step in and ensure that a region that has been underfunded in the past will be funded in the future? This will require a realignment of the capital programme to deal with the consequences of Brexit.

I agree with the Minister that there is a great deal of concern about this issue. I welcome his intention to meet with the Northern Ireland Minister for Finance, Mr. Máirtín O Muilleoir, tomorrow. Is the Government going to do more than just talk?

Paschal Donohoe (Dublin Central, Fine Gael)
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I cannot help but wonder whether this is the European Union that Sinn Féin during all of its existence has campaigned against.

Pearse Doherty (Donegal, Sinn Fein)
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We campaigned against Brexit.

Robert Troy (Longford-Westmeath, Fianna Fail)
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The Minister without interruption, please.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Sinn Féin party campaigned for a "No" vote on the Lisbon and Nice treaties.

David Cullinane (Waterford, Sinn Fein)
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We were proved right.

Paschal Donohoe (Dublin Central, Fine Gael)
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Deputy Doherty's colleague, a Sinn Féin MEP, recently said that the economic and fiscal policies of the European Union had had catastrophic affects on the lives of many of its citizens.

Pearse Doherty (Donegal, Sinn Fein)
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We have all lived through it.

Robert Troy (Longford-Westmeath, Fianna Fail)
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The Minister without interruption, please.

Paschal Donohoe (Dublin Central, Fine Gael)
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This is the same European Union from which Deputy Doherty was lamenting, and was correct to lament, the exit of the United Kingdom. Deputy Doherty and his colleagues have campaigned against the European Union and the treaties of the EU for many decades. As I stated, the European Union has made a big contribution to the kind of projects that we all care about.

Pearse Doherty (Donegal, Sinn Fein)
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Answer the question.

Paschal Donohoe (Dublin Central, Fine Gael)
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What we are now hearing from Deputy Doherty is a change of view on the European Union. As already stated, I am meeting the Northern Ireland Minister for Finance tomorrow in recognition of the uncertainty that has been generated by the UK's decision to exit the European Union.

I welcome hearing Deputy Pearse Doherty acknowledge the benefits of the EU after he and his party have spent decades campaigning against it.