Written answers

Tuesday, 4 December 2018

Department of Foreign Affairs and Trade

Brexit Issues

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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114. To ask the Minister for Foreign Affairs and Trade the degree to which he remains satisfied regarding the adequacy of the various forms of infrastructure to meet the challenges arising from Brexit in the context of maximising trading opportunities and innovation; and if he will make a statement on the matter. [50849/18]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Government is under no illusions about the scale of the challenge posed by Brexit. We have already taken important steps to prepare the economy for the change that Brexit will bring, including the Action Plan for Jobs 2018, our Trade and Investment Strategy and Project Ireland 2040.

The Government has taken a number of key decisions to ensure that the necessary customs controls and Sanitary and Phytosanitary (SPS) checks required as a result of the UK’s withdrawal from the EU, are in place to address the impacts of Brexit on trade on an East-West basis. Most recently, on 27 November, I updated the Government on progress on the necessary facilities and infrastructure for such checks and controls at Dublin Port, Rosslare Port and Dublin Airport.

Dedicated measures to get Ireland Brexit ready were announced in 2017, 2018 and 2019. Budget 2019 measures included the introduction of a new longer-term loan scheme of up to €300 million, the Future Growth Loan Scheme, to support strategic capital investment for a post-Brexit environment by business. This scheme will be jointly funded by the Department of Business, Enterprise and Innovation and the Department of Agriculture, Food and the Marine. This is in addition to announcements in previous budgets where over €450 million was allocated in business supports, including Budget 2018’s €300 million Brexit Loan Scheme for Business.

Budget 2019 also included an allocation of €115 million for Brexit measures across a number of Departments. This includes a €25 million allocation for essential customs requirements. There is also increased funding to the Department of Business, Enterprise and Innovation and the Department of Foreign Affairs and Trade to enable them to continue to address the challenges posed by Brexit across a range of headings, including supports for our Enterprise Agencies and for our Global Ireland’ – Ireland’s Global Footprint to 2025 strategy. This strategy will support the opening of new markets for our businesses and a higher international profile. Increased funding to the Department of Foreign Affairs and Trade has already provided for the opening of 13 new diplomatic missions as part of Global Ireland 2025, which will contribute to helping our exporters find new markets. As well as addressing the challenge of Brexit, our trade and investment strategyIreland Connected: Trading and Investing in a Dynamic World has at its core our ongoing commitment to the EU and access to a Single Market of 27 Member States with 450 million people post Brexit, as well as access to a further 53 markets under EU Free Trade Agreements.

The funding provided to Departments in Budget 2019 includes a €78m package for farmers, fishermen, food SMEs and to cover additional costs related to Brexit. This package includes dedicated funds to support infrastructure and innovation, including: €6 million in funding to progress an €8m Food Innovation Hub in Teagasc Moorepark; €13m in supports for food industry competitiveness and innovation; €4m for the commencement of a phased process of recruitment of additional staff to carry out the greatly increased volumes of import controls and export certification arising from Brexit; and an initial provision of just over €3m to address ICT hardware and software requirements.

Good long-term planning supported by investment in Ireland’s public capital infrastructure also has an important to play is ensuring the resilience of Ireland’s economy in the face of Brexit. The National Development Plan (NDP) 2018 – 2027 comprises an investment programme of €116 billion. Investments which will be particularly relevant to Brexit include the integration of transport, energy and communications networks; new resources for tourism development and promotion; and supporting Brexit-exposed firms to diversify to international markets.

The Government and state agencies are also working hard to fully exploit any opportunities from Brexit. This includes promoting Ireland as an English speaking member of the EU with unfettered access to the EU market, and as a preferred destination for inward investment.

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