Bernard Durkan (Kildare North, Fine Gael)
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156. To ask the Minister for Public Expenditure and Reform the extent to which he and his Department can take steps to minimise the impact of Brexit on the economy; and if he will make a statement on the matter. [11019/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Cleary Brexit will pose significant challenges right across the economy.  The Government is committed to addressing these challenges, to mitigating the impacts and to maximising the available opportunities.

In the short term, the Minister for Finance and I were able to deliver a Budget for 2017 setting out our approach to Brexit and to building a national economic response.  For the third year in succession it has been possible to increase resources for public services and infrastructure.  The gross voted expenditure allocation of €58.1 billion in 2017 will be over 3 per cent higher than the 2016 allocation.  Resources have been allocated towards areas that may be significantly impacted by Brexit, in particular enterprises dealing with the impact of Brexit and our regional and rural communities.

In the longer term, the design of this year's Spending Review reflects the changed economic and fiscal context, including Brexit.  Of course, while moderate and sustainable expenditure growth is planned over the medium-term, increasing and competing public service demands will mean managing expenditure will prove challenging.

The Capital Plan Building on Recovery sets out a €42 billion framework to address our priority infrastructure needs up to 2021.  This plan is now being reviewed to ensure that capital spending remains strictly aligned with national economic and social priorities, consistent with Programme for Partnership Government objectives.  This includes examining how available capital funds can continue to best be allocated to underpin sustainable medium-term economic growth and future growth potential, in light of recent developments since the Plan was published, including Brexit. 

My Department also has responsibility for the European Structural & Investment Funds in Ireland, including two regional ERDF programmes and three EU-funded programmes with the UK: the PEACE and INTERREG programmes with Northern Ireland and the Ireland Wales programmes.  These EU co-funded Programmes have a significant social and economic impact in the Irish regions.  The Government remains firmly committed to the successful implementation of these programmes and to successor programmes post-2020.