Written answers

Tuesday, 21 November 2017

Department of Foreign Affairs and Trade

Brexit Issues

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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236. To ask the Minister for Foreign Affairs and Trade his views on the comments on 12 November 2017 by Michel Barnier regarding preparing for a hard Brexit. [48892/17]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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237. To ask the Minister for Foreign Affairs and Trade the preparations his Department is making in the event of there being a hard Brexit. [48893/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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239. To ask the Minister for Foreign Affairs and Trade the preparations made in his Department in the event of no agreement being reached between the United Kingdom and the European Union on the terms of the UK's exit from the EU; if such preparations involve the drawing up of detailed and specific contingency plans in the event of a hard Brexit and a trade regime based on WTO tariffs; and if he will make a statement on the matter. [48778/17]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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241. To ask the Minister for Foreign Affairs and Trade the preparations his Department is making in the event of there being a hard Brexit and in particular following Michel Barnier's comments on doing same; and if he will make a statement on the matter. [48894/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 236, 237, 239 and 241 together.

As Minister for Foreign Affairs and Trade with special responsibility for Brexit, I am working closely with 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. All relevant Departments are providing 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.

An important focus of planning and preparation is deepening the Government’s analysis and understanding of the exact consequences of a range of different possible scenarios, including one in which no Withdrawal Agreement is concluded. This represents an intensification of the Government‘s previous contingency planning. All Departments are assessing in a very concrete way the immediate legal or practical consequences of a no-deal Brexit in their areas and what mitigating measures might be possible. It will then be necessary for the Government to consider the situation in the round and discuss whether specific actions are required at that stage.

Aside from its wider co-ordination responsibilities, the Department of Foreign Affairs and Trade has lead responsibility for planning for, preparing positions on, and following the EU-UK negotiations. This requires research on and analysis of very many legal, institutional, and political issues. The eventual outcome of negotiations will of course be decisive in determining the shape and effects of Brexit. Our Permanent Representation in Brussels, and our Embassies in all Member States, send in a constant stream of reports describing and analysing the concerns and priorities of the EU Institutions and our partners.

This work is reflected in the Government’s policy positions and public statements, such as the comprehensive document on the Government‘s approach to the Article 50 negotiations and our response to Brexit which was published on 2 May as well as through in depth analysis such as the series of Department of Finance/ESRI research papers on the implications of Brexit. The Government will continue to consider how best to present further work. We are also communicating through public consultations and stakeholder engagement, such as the All-Island Civic Dialogue and the Brexit Stakeholder Forum.

Furthermore, the Government is already actively responding to the implications of Brexit and putting measures in place to mitigate the adverse effects for Ireland. We have already taken important steps to prepare the economy, including in Action Plan for Jobs 2017 and the Government’s Trade and Investment Strategy.

Significant measures were announced in Budget 2018 including a new €300m Brexit Loan Scheme for Businesses and a €25m Brexit Response Loan Scheme for the agri-food sector as well as additional supports for capital investment in food industry and Bord Bia marketing and promotion activities, amounting to over €50m in total. There is also increased funding for Department of Foreign Affairs and Trade to support our Brexit related work as well as to support the opening of six new diplomatic missions as part of Global Footprint 2025 to help our exporters find new markets and diversity their exports.

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. And while we are not at the cliff edge yet, our preparations and contingency planning for such an unwelcomed outcome will continue. However, our primary focus remains on making the negotiations a success and working with EU partners and UK to ensure an orderly withdrawal that protects the peace process, maintains the Common Travel Area and agrees a transitional arrangement which leads the way to the closest possible relationship between the EU and the UK.

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