Written answers

Wednesday, 20 January 2021

Department of Enterprise, Trade and Employment

Brexit Issues

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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13. To ask the Minister for Enterprise, Trade and Employment if he will address a matter relating to Brexit customs issues (details supplied); and if he will make a statement on the matter. [2463/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Since January 1, following the end of the transition period on 31 December 2020, the UK has been outside the EU Single Market and Customs Union and this means that a range of new formalities apply to goods moving to, from or through the United Kingdom, excluding Northern Ireland.

I am aware that Revenue fully appreciates that the new regulatory requirements and customs formalities present significant challenges and impose additional burdens on businesses. These requirements can be complex, but it is essential that Ireland fulfils its obligations as a member of the EU and that we protect public health, food safety and product standards as well as the integrity of the Single Market and the Customs Union.

The Government has provided a range of supports to assist businesses in adapting to the new rules and procedures that are now in place, including the Ready for Customs Grant scheme and the Clear Customs training programme. Officials and State Agencies have also been providing support and assistance on a 24/7 basis when practical difficulties with the new rules and procedures arise.

I appreciate that some businesses have found that it has taken longer to move goods through our ports, but it is important to note that a significant number of businesses have successfully made the transition to the new trading environment. These businesses are successfully submitting Customs declarations and receiving the associated Master Reference Numbers (MRNs) and are using these MRNs to create and populate the Pre-Boarding Notification (PBN). In recent days, more than 70% of goods being imported through Dublin Port, for example, are being green routed on arrival meaning they can leave the port without the need for additional interaction with Customs or other State agencies.

As regards the performance of Revenue’s Customs IT systems, I am advised by Revenue that in most cases, further investigation of specific issues raised with them has revealed that the actual error has been as a result of incorrect data rather than a systems issue. However, there have also been some systems issues and, in such cases, Revenue issued clear and timely communications that enabled affected businesses to continue to move their goods. These notifications are available on the Revenue website but are also automatically issued to businesses that have signed up to receive Revenue eCustoms Notifications. I am assured by Revenue that it was not a systems issue that led to the introduction of a temporary easement measure provided to trade and business in regard to the import safety and security declaration (ENS) declaration. PBNs are being successfully filed on a daily basis by trade and business.

I am satisfied based on the examination of the issues undertaken by Revenue and the assurance provided to me by Revenue that the customs IT systems are functioning well and are robust and resilient. I do, of course, fully appreciate the difficulties that arise for business when even short-term issues impact on business and the efficiency with which they can move goods. I fully support the Revenue approach of working with individual businesses and with the relevant trade representative bodies to assist them in building the understanding and knowledge of customs formalities and ensuring compliance with same so that goods movements between Ireland and Great Britain can be as efficient as possible, mindful of the fact that the trading environment changed irrevocably following the end of the transition period on 31 December 2020.

Photo of Joe O'BrienJoe O'Brien (Dublin Fingal, Green Party)
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14. To ask the Minister for Enterprise, Trade and Employment if his Department has a role in monitoring retail food prices; and if so, if any discernible increase has been measured due to Brexit. [2466/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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A number of Government Departments and statutory bodies have a role or interest in monitoring the impact of Brexit on retail prices. These include the Department of Finance, the Central Statistics Office, and the Central Bank of Ireland.

In terms of my Department, the Economic the Social Research Institute undertook research at the request of the Competition and Consumer Protection Commission (CCPC) in 2018 on the impact of Brexit on consumers in Ireland to help inform a wider understanding of the potential impact of Brexit and assist in ensuring Ireland’s preparations. The study found that there was likely to be an increase in the cost of living depending on the scenario that would apply after the Brexit process had concluded.

The CSO's most recent data for the Consumer Price Index (CPI) for December 2020 was published on 14 January last and contains detailed information about changes in the average prices of food & non-alcoholic beverages. Prices on average for food & non-alcoholic beverages fell by 0.1% in the month to December 2020 with food prices rising 0.1% and prices for non-alcoholic beverages falling by 1.6%. Over the previous 12-months, the price of food & non-alcoholic beverages fell by 1.6% with food prices falling by 1.1% and non-alcoholic beverages prices falling by 4.4%. The CPI statistics for food and non-alcoholic beverages for January 2021 will be published on 18 February next.

Clearly, it is too early to tell how Brexit is affecting retail food prices. It is likely that there will be some changes in pricing by retailers arising from disruptions caused by Brexit and as supply chains are re-configured to deal with Brexit realities. My Department is in regular contact with retailers to identify if there are any vulnerabilities apparent in their supply chains. This engagement will continue and challenges to supply logistics are actively monitored by my officials.

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