Niall Collins (Limerick County, Fianna Fail)
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245. To ask the Minister for Jobs, Enterprise and Innovation her views on the findings of the research commissioned by the Competition and Consumer Protection Commission, CCPC, (details supplied); the steps she is taking to protect consumers from increased costs due to Brexit; and if the action plan for jobs 2018 and the revised Enterprise 2025 strategy has a specific section indicating the actions the Government will take to protect customers in this regard. [14909/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department is central to the Government wide effort underway for almost two years now to respond to the implications of the UK decision to leave the EU. These efforts include extensive contingency planning at a domestic level and influencing the EU approach to the negotiations with the UK. In order to provide an evidence base to inform our approach to our domestic response, and to the negotiations, my Department has led and/or been involved in a broad range of research and analysis. One such study was that commissioned from the ESRI by the Competition and Consumer Protection Commissions (CCPC): this study was designed to provide us with evidence of the potential impacts of particular Brexit scenarios on consumers in Ireland.

The research examined two Brexit scenarios on a “no policy change” basis. The first, where there is a trade deal and tariffs are avoided, but where there still could be significant non-tariff barriers such as costs arising from additional time spent at customs, or due to changes in labelling rules and other regulatory standards. The second, a “harder” scenario with the imposition of World Trade Organisation tariffs in addition to non-tariff barriers.

Depending on the scenario, the analysis finds an increase in the cost of living of between €892 and €1,360 per year for the average household. The increases would be unevenly distributed across households, with lower income households most affected by price rises.

The CCPC has brought the report’s findings to the attention of the relevant enterprise agencies (and other stakeholders) with a view to their consideration of potential future actions. However, it is important to recall that the actual impact will depend not only on the eventual Brexit deal reached, but also on the level of domestic competition, the availability of alternatives to particular products and consumers’ responses to changes in prices.

Government has, of course, already put a whole host of policy and operational measures in place to respond to Brexit including supporting and encouraging companies, including retailers, to plan for Brexit now. A key tool which is available to all companies is the SME Brexit Scorecard which is online and free to access. It is a diagnostic tool which points to areas companies could consider in starting to prepare a Brexit plan. These include operational issues like reviewing sourcing, supply chains, transport and logistics more generally as well as more strategic issues such as lean initiatives, diversification and investing in innovation.

Supporting companies to prepare for Brexit can also ultimately help to protect consumers from possible negative impacts of Brexit as companies make alternative sourcing arrangements to underpin security of supply and cut costs to keep prices for consumers down. The CCPC study points to some opportunities presented by Brexit for domestic business particularly in the area of import substitution. Although the study points to the potential for considerable increased costs arising for consumers as well as the possibility of reduced product choice, it also points to the fact that actions by business and consumer behaviour can help mitigate the actual impact which will also be dependent on the level of domestic competition in various sectors, the availability of alternatives and the willingness of consumers to move away from certain products.

In relation to the Action Plan for Jobs 2018 and Enterprise 2025, neither contain specific consumer related actions as they are primarily focused on job creation and improving the business environment.

One of the most effective mitigation actions we can take in responding to Brexit is to negotiate the closest possible future relationship between the EU and the UK. The Government has been seized of that since the negotiations started and will continue to remain central in shaping the EU approach to the negotiations with the UK with a view to getting the best deal, minimising risks and maximising opportunities associated with Brexit.