Bernard Durkan (Kildare North, Fine Gael)
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141. To ask the Minister for Foreign Affairs and Trade to outline the extent to which the business sector here and in the United Kingdom can find common cause to bring about a positive result on the Brexit referendum, having particular regard to United Kingdom citizens living here and Irish citizens in the UK using their respective votes to ensure the continuation of their strong business links; and if he will make a statement on the matter. [12382/16]

Bernard Durkan (Kildare North, Fine Gael)
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149. To ask the Minister for Foreign Affairs and Trade if the business sector can co-operate with the business sector in the United Kingdom to positively influence the forthcoming referendum on its membership of the European Union, given the high degree of mutual dependency; and if he will make a statement on the matter. [12371/16]

Charles Flanagan (Laois, Fine Gael)
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I propose to take Questions Nos. 141 and 149 together.

The outcome of this referendum is, first and foremost, a decision for UK voters to make on 23 June. However, Ireland has a unique perspective and interest in the outcome of the referendum which extends to our business sector and our mutually beneficial trading relationship.

We trade around €1.2 billion of goods and services every week between our two countries and the business sector has made its voice heard in terms of their desire to maintain and grow further the healthy business relationship between Britain and Ireland.

The general consensus is that a British exit from the EU would be bad for business between Ireland and the UK. At the very least there would be a protracted period of uncertainty which could impact on the very positive trading relationship we enjoy with our nearest neighbours. The value of sterling, an important factor for those doing business across the border or across the Irish Sea, is expected to fall considerably following a leave outcome, having a serious knock-on effect on Irish exporters - in particular in the short term.

A number of reports on the economic impact on Ireland, should the UK vote to leave the EU, have been commissioned by the business sector here in Ireland. All of these point to a downturn in economic activity for Ireland, an increase in the administrative burden and a reduction in the number of jobs sustained by the trading relationship.

It is projected that a “Leave” scenario would result in a negative impact of between 1% and 5% in the UK’s GDP and research by the ESRI indicates that for every 1% drop in UK GDP, there would be a corresponding drop of 0.3% in Irish GDP. A very recent study by the UK Treasury forecast that the economic “shock” caused by a UK exit would involve a loss, in the short-term, of over 500,000 jobs in the UK.

I am aware of the active engagement and outreach being undertaken on the part of business groups such as IBEC, the British-Irish Chamber of Commerce and the Irish Exporters’ Association, both with linked organisations in the UK, and in Northern Ireland. Many of the Irish business organisations based in the UK such as the Irish International Business Network (IIBN) are also actively engaging with their membership, encouraging them to register to vote and making them aware of the implications for Ireland.

In the past year, I have engaged directly with most business organisations on the UK referendum, including at the Government’s Export Trade Council which I chair as Minister for Foreign Affairs and Trade. I, the Taoiseach and other members of the Government have also spoken at events organised by Irish business organisations and also by their UK counterparts.

I am coordinating a series of Ministerial visits to the United Kingdom between now and the referendum on 23 June. During these visits Ministers will have an opportunity to engage directly with Irish communities in Britain and my Department will work closely with the various business organisations and networks, and Irish community organisations, when developing the programmes for these visits.

There are approximately half a million Irish born people living in the UK and many millions more of Irish descent. In addition there are some 120,000 British citizens living in Ireland who are entitled to vote in this referendum. The European Movement Ireland is currently running a campaign to encourage all those entitled to vote to ensure that they are registered. This campaign – “Phoneafriend” - encourages those living in Ireland to contact their friends and relatives in the UK to remind them to exercise their franchise.

In addition, a group of Irish people living in the UK have formed an independent group, “Irish4Europe” to encourage the Irish community living in the UK to register to vote, and to vote to remain in the EU.

While respecting that this is a decision for the people of the United Kingdom, every effort will be made in the intervening weeks to ensure that the unique Irish perspective is articulated and understood across a range of sectors including the business community here and their counterparts in the UK.