Pearse Doherty (Donegal, Sinn Fein)
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76. To ask the Minister for Finance the preparations being undertaken with regard to customs in the event of a no-deal Brexit. [30972/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government are negotiating to avoid a hard border on the island of Ireland. Co-ordination of the whole-of-Government response to Brexit is being taken forward through the cross-Departmental coordination structures chaired by the Department of Foreign Affairs and Trade. This includes ‘no deal’ contingency planning. This planning provides base line scenarios for the impact of Brexit across all sectors. This approach is also enabling the modelling of potential responses under different scenarios, such as one where a withdrawal agreement is concluded and where a Free Trade Agreement is the basis for the future relationship between the EU and the UK.

My Department, along with the Revenue Commissioners, is actively engaged in this planning work which has intensified in recent months and is well advanced.

Revenue’s priority to date has been on upgrading relevant IT systems to have the most advanced systems possible to support and facilitate smooth and efficient trade flows. In the event of a no deal Brexit there will be a significant increase in the number of customs declarations received by these systems. Performance testing is well advanced and I am assured by Revenue that based on the work completed to date they are confident that the various IT systems will support the expected additional load arising from Brexit, ensuring customs processes can continue to operate effectively and efficiently post-Brexit.

Allied to this upgrading of IT systems, I am advised by Revenue that it continues to examine the full range of simplifications provided for within the Union Customs Code. There are several customs authorisations and simplifications that traders may avail of when completing their customs formalities. Revenue is meeting with representative groups and attending industry seminars to discuss the potential issues resulting from Brexit. Revenue has advised and continues to advise and encourage businesses to examine the possible impacts of Brexit on their supply chains and to consider applying for one or more of the authorisations or simplifications available that best suit their business model. Advice and assistance on customs authorisations and simplifications is available on the Revenue website and Revenue is ready to support businesses that wish to apply to avail of them.

As well as the planning work, the Government has already taken actions to get Ireland Brexit ready.

In the past two Budgets, the Government has continued its policy focus of preparing the economy and enhancing the resilience of the public finances to deal with the challenges posed by Brexit.

Specifically, it is currently projected that Ireland will achieve its medium-term budgetary objective of a balanced budget in 2019. Complementing this, Budget 2018 further established the ‘Rainy Day Fund’, which provides an important measure to strengthen the economy’s shock absorption capacity to mitigate the impact of future external shocks. Legislation to establish the rainy day fund is currently being prepared and, pending its approval, will begin capitalisation in 2019.

Budget 2018 also announced further dedicated Brexit responsive measures including a new €300 million Loan Guarantee Scheme for Brexit-impacted business and a complementary €25 million Agriculture Brexit Loan Scheme – targeted at enhancing the competitiveness of the businesses most exposed to Brexit.