Written answers

Tuesday, 17 November 2020

Department of Public Expenditure and Reform

Brexit Preparations

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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95. To ask the Minister for Public Expenditure and Reform his views on whether his Department is fully prepared for Brexit; and if he will make a statement on the matter. [36655/20]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Regardless of the outcome of the ongoing negotiations on the future relationship, the UK will leave the Single Market and the Customs Union on 1 January 2021.  This will have significant implications for Ireland.

A whole of Government approach is being adopted to addressing the challenges posed by Brexit, and my Department is playing its full part in responding to those challenges.

Within my Department, matters related to Brexit are coordinated by a dedicated Unit dealing with EU and Brexit issues, with an attaché based in Ireland's Permanent Representation in Brussels.  The Unit leads on EU work across the Department and its agencies, and it represents the Department on the various groups that coordinate the Government's response to Brexit. 

Key elements of Brexit readiness have already been progressed, and work is being intensified across Government on the basis of an updated Brexit Readiness Action Plan that was published by the Government in September. 

While Ireland continues to support the closest possible future relationship between the EU and the UK, the central scenario underlying Budget 2021 assumes the transition period ends without agreement. 

To prepare for this, Budget 2021 provides around €340 million for Brexit measures, through the continuation of existing measures as well as a number of new supports. This is on top of more than €700 million of measures in successive Budgets since 2017.

It provides further funding for a range of sectoral supports, additional resources for regulatory agencies, and a number of enhancements to existing tax-based measures in support of sectors and enterprises most affected by Brexit.

Continued funding is also provided in Budget 2021 for the preparations that have been underway since 2018 at Dublin Port, Rosslare Europort and Dublin Airport to ensure Ireland can effectively manage new requirements for checks and controls on trade with Great Britain from 1 January. 

The twin impacts of Brexit and COVID-19 will have a significant impact on the Irish economy.  Budget 2021 delivers on the Programme for Government commitment to establish a Recovery Fund.  The €3.4 billion Fund will be flexible in its design in order to provide Government with the means to react swiftly to a constantly changing environment.

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