Written answers

Tuesday, 7 November 2017

Department of Finance

Brexit Negotiations

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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211. To ask the Minister for Finance the details of all planning and research work under way on the impact of the result of Brexit negotiations in his Department or related State agencies; if this analysis is intended for publication; the expected completion and publication date respectively of this research, in tabular form; and if he will make a statement on the matter. [46120/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Foreign Affairs and Trade with special responsibility for Brexit, Minister Coveney has responsibility for coordinating the whole-of-Government response to Brexit. In this capacity, he is working closely with colleagues across Government to address the many challenges resulting from Brexit. This co-operation also involves the relevant State Agencies.

Work at Cabinet level is being prepared through cross-Departmental coordination structures. These represent a frequent and active channel through which all relevant Departments are providing their research, analysis and overall policy input to the Government’s wider response to Brexit, including its priorities for the ongoing Article 50 negotiations between the EU and the UK.

As the outcome of the negotiations is not yet known, an important focus of the planning and preparation being undertaken through these structures is on deepening the Government’s analysis and understanding of the exact consequences of a range of different possible scenarios. This represents an intensification of efforts to build on the Government‘s contingency planning.

The Department of Finance has been preparing for the impact of Brexit since well before the referendum on 23 June 2016, with this work now intensified. The regular updates of the Department's Macro-Economic forecasts take account of the impact of Brexit. In addition, the Department has been to the fore in producing and funding a number of Brexit-related studies, both before and since the UK's referendum decision, including:

- 'Scoping the Possible Economic Implications of Brexit on Ireland' – Scoping study of scenarios for the future relationship between the UK and the EU. Published under the Department of Finance-ESRI research programme in November 2015;

- ‘An Exposure Analysis of Sectors of the Irish Economy’. An in-depth analysis of the possible sectoral and regional impacts of Brexit arising from Ireland's trade relationship with the UK, published by Department of Finance in October 2016 (Updated March 2017);

- 'Modelling the Medium to Long Term Potential Macroeconomic Impact of Brexit on Ireland' - Published under the Department of Finance-ESRI research programme in November 2016;

- ‘Trade Exposures of Sectors of the Irish Economy in a European Context’ – An analysis of trade exposure to the UK in comparison to other EU Member States, published by Department of Finance in September 2017.

The Department will continue to monitor the economic impact of Brexit, to carry out and publish relevant analysis and to frame policy advice in the context of Brexit.

Like all Government agencies, the Revenue Commissioners are also actively engaged in examining a range of scenarios in order to support Ireland's objectives. This also includes supporting relevant research, including:

- ‘Ireland's International Trade and Transport Connections’ - An ESRI study co-sponsored by the Department of Finance and the Revenue Commissioners which looks at the transport patterns of Irish international trade, examining in particular how trade flows in weight differ from those measured by value, and the implications that this has for transport mode and cost. Published in October 2017;

- “Ireland and the UK – Tax and Customs Links” - The paper examines the links between Ireland and the UK that may impact on tax and customs matters. Two primary topics are examined – flows between the two jurisdictions that may carry customs implications and the links of Irish based businesses to the UK and their tax contributions to the Irish Exchequer. The paper was published by Revenue Commissions in October 2017.

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