Pearse Doherty (Donegal, Sinn Fein)
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10. To ask the Minister for Finance the work his Department has carried out in examining the potential benefits of an all-Ireland economy; and if he will make a statement on the matter. [23356/17]

Pearse Doherty (Donegal, Sinn Fein)
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I ask the Minister about any work the Department of Finance has carried out in examining the potential benefits of an all-Ireland economy and if he will elaborate on the matter. He mentioned, in the context of the earlier question on Brexit, that 27 leaders of member states across Europe had discussed this issue in the context of the negotiating guidelines. What work, if any, is the Department of Finance doing in the context of an all-Ireland economy and preparing for Irish unity which I believe is inevitable? Is the Department considering ensuring some scoping work will be done on an all-Ireland economy?

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the economic benefits of a united Ireland. As he will be aware, the principle of consent and the possibility of a change in the constitutional status of Northern Ireland are fundamental parts of the Good Friday Agreement which was endorsed by the people of this island, North and South. The calling of a Border poll under the terms of the Agreement would fall to the Secretary of State for Northern Ireland. The test to be applied is that he or she considers it likely that a majority of those voting would express a wish that Northern Ireland should cease to be part of the United Kingdom and form part of a united Ireland. There is no convincing evidence to suggest a majority of the people of Northern Ireland would opt for a change in its constitutional status. The Taoiseach has been clear in his view that this is not the time for such a process and that the conditions necessary to trigger it do not exist.

Given that there is a very low probability of reunification in the medium term, my Department has not estimated the potential positive, or negative, impacts of an all-Ireland economy and does not have plans to do so. However, given that both jurisdictions are currently part of the Single Market for goods, services, capital and labour, it is likely that many of the benefits of an all-Ireland economy are already in place. In any such study the full range of impacts would have to be considered; in other words, the costs and benefits. By way of example, it would be important to consider the fiscal impacts. As the Deputy will be aware, the state currently accounts for over two thirds of the Northern Irish economy and Northern Ireland currently runs substantial fiscal deficits. There are also material differences in public sector conditions, welfare systems and the overall economic structure of both jurisdictions, all of which would need to be taken into account. The Government is very supportive of North-South economic linkages which are advanced through the North-South Ministerial Council and by Ministers, North and South, collaborating outside that framework on an ongoing basis.

Pearse Doherty (Donegal, Sinn Fein)
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5 o’clock

The Government needs to grasp the potential for the all-Ireland economy, which already exists and has grown organically because business people and entrepreneurs have recognised the benefits and value of that economy in growing jobs and businesses while taking advantages on both sides of the Border. They are ensuring they can tap into both markets and we know the significance of that. We have seem much of the good work done by InterTradeIreland in scoping sectors that are ripe for all-Ireland development, including pharmaceuticals, medical devices and software. As per InterTradeIreland's detailed report, these channels are ripe for all-Ireland development and economic integration, and they could clearly facilitate a large increase in expertise capacity and capabilities to the benefit of both North and South.

The Minister mentioned it in the context of the Good Friday Agreement and Irish unity and a Border poll - that is not what we are talking about. I believe it is inevitable and this is a step towards it but the all-Ireland economy can exist even without a change to the constitutional status of the North. What is required is an intergovernmental strategy to ensure the full potential of the all-Ireland economy is maximised, that it is supported and developed, that indigenous businesses are at its core and that we have a successful economy. This is really relevant to the constituency that I represent and that the Leas-Cheann Comhairle represents, where businesses need to be able to work on that basis and we need to harness that.

Michael Noonan (Limerick City, Fine Gael)
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On an all-Ireland economy, two currencies apply. There is sterling North of the Border and the euro down here. The most salient factor that should be considered is the deficit position, as I mentioned in my reply. For the years 2013 and 2014, the total public sector revenue collected in Northern Ireland is estimated at €14.9 billion. The total public sector expenditure for the same two years was €24.1 billion, so there is a deficit of over €9 billion.

Pearse Doherty (Donegal, Sinn Fein)
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There is not.

Michael Noonan (Limerick City, Fine Gael)
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The deficit is €9.2 billion. Anyone advocating an all-Ireland economy would want to tell us where the €9.2 billion will come from if the UK authorities turn off the tap.