Written answers
Tuesday, 21 November 2017
Department of Jobs, Enterprise and Innovation
Brexit Issues
Micheál Martin (Cork South Central, Fianna Fail)
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114. To ask the Minister for Jobs, Enterprise and Innovation the preparations her Department is making in the event of there being a hard Brexit, in particular following Michel Barnier's comments on same; and if she will make a statement on the matter. [48895/17]
Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Minister for Foreign Affairs and Trade, Minister Coveney has responsibility for coordinating the whole-of-Government response to Brexit. In this capacity, he is working closely with his colleagues across Government to address the many challenges resulting from Brexit. This cooperation 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 the Department of Business, Enterprise and Innovation and 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 remains uncertain, 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.
On 9 November, I published “Building Stronger Business: Responding to Brexit by competing, innovating and trading”. This paper sets out work underway and planned by the Department of Business, Enterprise & Innovation and its Agencies in response to Brexit.
The paper summarises impacts of Brexit across key policy areas within the Department and outlines the policy and operational mitigation measures underway and planned by the Department and its Agencies to minimise risks and maximise opportunities associated with Brexit, including supports available to companies to help them prepare for Brexit. It also describes the research programme designed to inform that response as well as new structures put in place to ensure a coherent approach across my Department and its Agencies.
Clearly, a disorderly exit would be very damaging, particularly for Ireland, and Michel Barnier’s recent call for EU Member States to plan for such a contingency is fully in line with the Government’s approach.
The Deputy will be aware of the various research projects underway in my Department to help build an understanding of the possible implications of Brexit on Ireland for enterprise, consumers and trading relations. These studies examine a range of scenarios and will provide an evidence base to inform Ireland’s policy positions as part of the wider negotiation on the UK’s future relationship with the EU and further mitigation measures to respond to Brexit. The research projects considering a hard Brexit scenario are:
| Title | Summary |
|---|---|
| Sectoral implications arising from Brexit: Most exposed sectors | This research examines the firm level implications of the UK being outside of the European Single Market and Customs Union for Ireland’s most exposed enterprise sectors. |
| Strategic Implications arising from EU-UK Trading Patterns | Profile trade and investment to highlight dependence at sectoral and product level; Quantify impact of various scenarios on trade and investment; Develop policy options for Ireland – negotiations and enterprise (mitigation) policies. |
| Import Content of Irish Exports and Implications of Brexit | This study examines the Import Content of Irish Exports: Implications of Brexit for Inputs and Competitiveness and the extent to which Irish firms source intermediate inputs from the UK. This research will provide empirical evidence on the import content of Irish firms’ exports, how firms may be exposed to changes in the trading environment after Brexit and the impact of Brexit on inputs, and competitiveness. |
| *The Potential Impact of WTO Tariffs and other key relevant issues on Cross-Border Trade | The first topic in the research programme examined scenarios on how trade flows between Ireland and Northern Ireland might be affected in the event of the imposition of WTO-level tariffs and other non-tariff barriers on cross-border trade in manufactured products. That report was published earlier this Summer. Two remaining phases will be carried out - The second phase will assess some important aspects of how this cross-border trade is structured at a firm level and how flexible firms are in the face of trade shocks. It will also look at the integration of supply chains. The third phase will look at wider ecosystem trade issues and will assess trends and developments relevant to trade in Services (as opposed to manufactured products), between both jurisdictions. |
| **Financial impact of Brexit on consumers in Ireland | Analysis of impacts on Irish consumers due to price changes on UK imports under a number of potential post Brexit trade scenarios |
** Project being carried out by the Competition and Consumer Protection Commission in consultation with the Department of Business, Enterprise and Innovation
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