Bernard Durkan (Kildare North, Fine Gael)
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88. To ask the Minister for Finance the extent to which he can make provision for issues arising from Brexit in such a way as to maximise opportunities for the economy; and if he will make a statement on the matter. [31760/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Department of Finance has been assessing and preparing for the impact of a UK exit from the European Union since well before the referendum on 23 June 2016. Work was carried out in the Department to assess the potential economic and financial sector implications arising, including through the ESRI-Department of Finance research programme study published in November 2015 titled 'Scoping the Possible Economic Implications of Brexit on Ireland'. This work was undertaken within the whole-of-Government framework established by the Department of the Taoiseach.

Following the result of the UK referendum and to prepare for the negotiations, work has intensified across the whole of Government, including in my own Department. A Brexit Unit within the EU and International Division was established in July 2016 to oversee and coordinate this work, and to act as a key liaison point with the Departments of the Taoiseach and Foreign Affairs, in particular. In addition, the Department of Finance staff complement in the Irish Permanent Representation to the EU in Brussels has been strengthened.  The challenges which we face as a result of Brexit are mainstreamed across all divisions of my Department and this is reflected in business planning.

We know from our own published research that the potential impact on the Irish economy is significant.  It is important to recognise that the full impact of the UK's exit is only expected to materialise over time. The best and most immediate policy under the Government's control to counter the likely negative economic impacts of Brexit is to continue to prudently manage the public finances. As we cannot control the international environment, we will need to continue to improve our competitiveness, including by focussing on costs we can control, by boosting our productivity, and ensuring sustainable public finances.

As outlined in the Government approach paper ‘Ireland and the negotiations on the UK’s withdrawal from the European Union’, published on 2 May, prudent management of the public finances is a key aspect of the Government’s overall strategy to mitigate the economic challenges. Brexit will be embedded in the Government’s economic decision making and its prudent but ambitious management of the economy. The Government’s paper also underlines that it will exploit fully any opportunities that arise as a result of Brexit.  In this context, Ireland will continue, through the IDA, to promote the attractiveness of Ireland as a location of choice for companies and talented people who are looking to establish or expand operations in what will be the only native English-speaking country within the EU and the Eurozone.

In the Financial Services sector, Brexit will provide opportunities for Ireland to increase its share of financial services based inward investment. Minister of State at the Department of Finance, Michael D’Arcy T.D. has responsibility for Financial Services, including the implementation of the IFS2020 Strategy for driving growth in the financial services sector. The Government has also announced its intention to make a bid for the European Banking Authority when it is relocated from the UK.