Joan Burton (Dublin West, Labour)
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111. To ask the Minister for Public Expenditure and Reform the steps he will take to ensure that spending priorities are sufficiently focused in view of the threat to the economy of Brexit; and if he will make a statement on the matter. [47243/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The exact nature of the relationship that will exist between the EU and the UK following Brexit is yet to be agreed. The impact of Brexit on Ireland will depend on the outcome of the complex negotiations still underway. While this poses challenges in planning our response, it is important to note that Ireland’s economy is in a strong position to deal with these challenges.

In recent years we have seen economic growth becoming more firmly established, and our public finances have remained on a sustainable path. As set out on Budget Day this year, 2018 will be the fourth successive year in which we will be able to increase expenditure on public services and infrastructure. The Government’s priority is to protect and consolidate the progress that has been made to date. Consequently, it is important to maintain a focus not just on the level of expenditure, but also on how public funds are being spent. In this context the Spending Review process allows for the systematic examination of existing spending programmes to assess their effectiveness in meeting policy objectives.

On Budget day in October I announced an additional allocation of capital expenditure of €4.3 billion over the next four years, up to the end of our existing Capital Plan in 2021. This additional allocation is central to our response to Brexit and will allow our State and its agencies to properly plan major infrastructure projects over the medium term, while also ensuring communities and businesses can plan ahead. This additional funding has been allocated following the review of the Capital Plan, with this review providing an evidence base, reflecting sectoral gaps identified by robust analysis.

Supporting the areas of our economy that may be significantly impacted by Brexit will be a key element of the Government’s response. To this end, as outlined in the Expenditure Report 2018, additional expenditure amounts have been specifically allocated to provide for Brexit related measures across a number of Departments including: the Department of Foreign Affairs and Trade; the Department of Business, Enterprise and Innovation; the Department of Transport, Tourism and Sport; and the Department of Agriculture, Food and the Marine.

Education, as well as delivering benefits for the individual and for society, is also vital to keeping our economy competitive and attracting investment in a post-Brexit world. Continued investment in education remains a priority of this Government. The allocation for Education in 2018 of over €10 billion represents a new peak for the sector and over 16½ per cent of total gross voted expenditure.

In addition to expenditure measures, there are also a number of whole-of-Government arrangements already in place as part of our 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, capabilities and expertise to address the issues that may arise as a result of the UK’s withdrawal from the EU.