Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

53. To ask the Minister for Public Expenditure and Reform the steps he will take to ensure that spending priorities are sufficiently focussed in view of the threat to the economy of Brexit; and if he will make a statement on the matter. [40458/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Planning for the withdrawal of the UK from the EU poses a significant challenge, particularly given that the precise nature of the relationship that will exist between the UK and the EU is yet to be agreed. The impact of Brexit will depend on the outcome of the complex negotiations that are currently taking place.

However, Ireland’s economy is in a strong position to deal with this challenge. Economic growth has become more firmly established in recent years, and our public finances remain on a path towards sustainability. The period of 2015 to 2017 has seen an average annual increase in gross voted expenditure of 3 per cent. This means that 2017 was the third successive year in which we were able to increase expenditure on public services and infrastructure. The Summer Economic Statement, published earlier this year, set out planned average annual growth of gross voted expenditure of 3.5 per cent over the three year period 2018 to 2020.

This Government’s priority is to protect and consolidate the progress that has been made in recent years. In this context, expenditure has been allocated in 2017 to areas that may be significantly impacted by Brexit. This includes support for our agrifood industry, through continued investment towards Foodwise 2025, as well as support for our rural and regional communities through funding for the Rural Development Programme and the Action Plan for Rural Development, which was published in January. Additional resources have also been allocated this year to Enterprise Ireland and the IDA, specifically in the context of Brexit, in order to grow the number of jobs supported by our enterprise agencies.

Negotiations are still ongoing around allocations for Estimates 2018. While it would be premature to discuss any specific expenditure decisions at this time, I wish to reassure the deputy that the potential impacts of Brexit are a key feature of Budget deliberations.

In addition to expenditure measures, the Government has also put in place a number of whole-of-Government arrangements in response to Brexit, such as the Cabinet Committee chaired by the Taoiseach. We are also strengthening our relevant Departments, agencies and overseas missions to ensure that they have the necessary capacity, capability and expertise to address issues that have the potential to arise as a result of Brexit.