John Curran (Dublin Mid West, Fianna Fail)
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68. To ask the Minister for Foreign Affairs and Trade if his Department has prepared contingency plans in the event of all scenarios in advance of Brexit phase two negotiations; if this work is ongoing; and if he will make a statement on the matter. [3692/18]

Simon Coveney (Cork South Central, Fine Gael)
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The situation with regard to the Brexit negotiations has evolved significantly since the publication of the Government’s comprehensive approach last May and the Government’s preparations have adjusted accordingly. Contingency planning at both a domestic and an EU level is focused on three areas: preparing for a no-deal scenario or so-called “disorderly Brexit”; preparing for a transition period based on the “status quo”; and preparing for the future EU-UK relationship. While the outcome of the December European Council and the move on to Phase 2 has lessened the likelihood of a no-deal scenario, contingency planning for a disorderly Brexit remains a key priority for my Department and for the Government as a whole, because it would have the most serious impact and would occur within a tighter timeframe. This work takes account of the detailed sectoral work carried out by individual Departments and continues to be progressed through cross-Departmental coordination structures chaired by my Department. It is also informed by ongoing stakeholder engagement.It is also important to emphasise the value of this work in providing a baseline, worst-case scenario for the policies and sectors impacted, which can then be adapted as appropriate in light of developments in the EU-UK negotiations.

As concerns transitional arrangements, I welcome that the direction of travel is now firmly towards achieving a “status quo” transition period. Agreement on a “status quo” transition will provide certainty to individuals and businesses while also aiming to avoid any cliff edge effects between the UK leaving the EU and a future relationship agreement coming into force.

The expectation is that the European Council will adopt additional Guidelines at the European Council on 22-23 March 2018 on the framework for the future EU-UK relationship. In this context, the European Council has stressed that it will be important for the UK to provide further clarity on what it wants for the future relationship with the EU.

These guidelines – as well as further clarity on the UK position – will provide a clearer picture of the direction of travel in the negotiations. This will provide a basis on which the Government will, following on from the comprehensive document published last May, further develop our approach to the negotiations and our latest assessment of the economic and sectoral challenges posed by Brexit and how to address them.

This work will, of course, be firmly grounded in the extensive research and preparatory work that has already been undertaken across Government. As the Deputies are aware, a considerable volume of this research and analysis, including on individual sectors, is available in the public domain. I would note in particular the detailed response plan published by the Minister for Business, Enterprise and Innovation last November - “Building Stronger Business – Responding to Brexit by competing, innovation and trading”. A number of further important studies across a range of sectors and issues are underway with a view to publication in the coming weeks and months.

The Government is already acting in order to get Ireland Brexit ready. Dedicated measures were announced in Budget 2018, including a new €300m Brexit Loan Scheme for Business and a €25m Brexit Response Loan Scheme for the agri-food sector as well as additional supports for capital investment in the food industry and Bord Bia marketing and promotion activities, amounting to over €50m in total. Additional capital expenditure allocation of €4.3bn over four years will also allow the State and its agencies to properly plan major infrastructure projects while ensuring that communities and businesses can plan ahead. There was also increased funding provided to my Department for the opening of six new diplomatic missions as part of Global Footprint 2025, which will contribute to helping our exporters find new markets. Our Government’s enterprise agencies continue to work with companies, helping them to deal with Brexit – making them more competitive, diversifying market exposure, and up-skilling teams. Brexit will also be a critical factor in our longer-term economic strategy – a new 10-year Capital Plan is in preparation, we’re revising our Enterprise 2025 policy and we are in active discussions with the European Investment Bank for a potential increase in investment in the country.