Noel Rock (Dublin North West, Fine Gael)
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1276. To ask the Minister for Jobs, Enterprise and Innovation if she has read a report on Brexit (details supplied) which indicates that Ireland is among two countries whose GDPs will suffer the biggest drop as a consequence of Brexit as indicated in pages seven, eight and ten of the report; and if she will make a statement on the matter. [13247/17]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I am aware of the CEPS research and welcome this contribution to the ongoing Brexit debate.

The report recognises that Ireland faces unique challenges from Brexit, especially given the all-Ireland issues that arise.

The extremely close nature of our trading relationship with the UK means that the scale of the overall economic impact is probably greater for Ireland than for many other partners. The direct trading relationship between Ireland and the UK is enormous: €1.2 billion is traded between the two countries every week, with a considerable volume transiting through the UK onward to other EU Member States.

The UK is the most important market for Irish goods and services and we are Britain's fifth largest export market.

As a consequence of the importance of this issue, there is a whole of Government approach in place focusing on Brexit issues and my Department and its agencies are to the forefront of this effort.

In advance of the Referendum my Department conducted a contingency risk assessment of the potential impacts of Brexit across policy areas of my Department. We have refined our analysis post-Referendum and we have been working with Agencies to put in place actions to mitigate risks and maximise opportunities.

We have also been working with colleagues across Government to analyse potential sectorial impacts and consider the implications of various scenarios which may emerge as a result of the UK leaving the EU.

With regard to sectorial impacts, specifically my Department is currently undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy, and the ongoing response by Government and the Enterprise Agencies.

As the Deputy is aware, the Enterprise Agencies are playing an active and vital role in our response to Brexit. For example, Enterprise Ireland has engaged in extensive outreach with each of its 1,476 client companies that export to the UK - critically these companies employ 100,000 full time employees across all regions of Ireland. EI is driving competitiveness in Irish companies through a suite of supports to reduce supply-chain costs and increase efficiencies as a means of improving operating margins.

IDA Ireland is constantly engaged with clients across its entire portfolio and continues to actively pursue any opportunity for mobile investment following the Brexit announcement. FDI opportunities are likely to be found along differing timelines, partially influenced by sector. The potential sources of FDI are likely to come from:

- existing IDA Clients with a presence in Ireland who also have a presence in the UK;

- overseas clients (US, European and Asian) who have a presence in the UK but not in Ireland;

- UK companies operating in the UK who now need certain access to the European Market; and

- International clients without a presence in Europe seeking a European home.

Further, my Department is also funding a project through InterTrade Ireland on the North-South trade implications of Brexit. This project will provide an understanding of the impact of different trade and tariff regimes which might be imposed following Brexit. 

Finally, my Department is leading consideration of the trade and investment impacts arising from Brexit and will reflect the CEPS research in its ongoing programme of research and analysis.