Written answers

Wednesday, 31 March 2021

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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348. To ask the Minister for Finance if his Department has assessed the likely impact of the EU–UK trade agreement on the public finances in 2021. [1870/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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A key assumption underlying Budget 2021 was that there would be a disorderly end to the Brexit transition period.

It was in that context that my Department predicted a deficit of €20.5 billion, or 5.7 per cent of GDP for 2021.

Budget 2021provided a further €100m to Departments in 2020 for Brexit preparedness measures, and €340 million in 2021. The allocation was to ensure the continuation of existing measures along with new supports for sectors and enterprises likely to be most affected. This was in addition to over €700 million in successive Budgets since 2017.

The Recovery Fund of €3.4 billion was also set up, and designed to allow for specific, targeted measures to be introduced when and where the need arises in response to both Brexit and Covid-19.

Since Budget 2021 last October, the situation has evolved. The EU-UK Trade and Cooperation Agreement is now in place. This will likely have a positive impact relative to the ‘no-deal’ scenario upon which the Budget projections were based. However, it is important to bear in mind that while the worst form of Brexit – involving tariffs and quotas on trade with the UK - has been avoided, Irish firms will still be impacted by the change in trading arrangements.

Updated medium-term macroeconomic and fiscal forecasts will be published in April with the Stability Programme Update.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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349. To ask the Minister for Finance the measures being taken by revenue and customs officials to help businesses adjust to the new procedures for trade with the United Kingdom since 1 January 2021. [1867/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The trading environment between Ireland and Great Britain changed irrevocably on 1 January with customs and SPS formalities now an integral part of trade with Great Britain. The Protocol on Ireland and Northern Ireland means that no new procedures apply to goods moving between Ireland and Northern Ireland. The Government and State Agencies have been providing, and continue to provide, a range of advisory, financial and upskilling supports to assist businesses in moving goods, to, from or through Great Britain. Further information is provided on Gov.ie/Brexit.

It is clear from the first three months trading under the new conditions that some businesses had undertaken extensive preparations and have adapted well to the new requirements. This is evident in that currently over 80% of freight vehicle movements are being green routed and are therefore permitted to leave the ports without any interaction with Customs or the other regulatory authorities on arrival in Ireland.

It should be noted that, due to the nature of the goods traded with the UK e.g. high levels of foodstuffs, there will always be a level of documentary or physical examination of goods movements required as part of Ireland’s obligation to protect the Single Market and the Customs Union. In practical terms this means that there will never be a scenario where all goods (i.e.100%) arriving into Ireland from Great Britain will be green routed.

I am advised by Revenue that some businesses were less well prepared or underestimated the level of preparations required and have found compliance with the new requirements challenging. Additionally, the tight timeframes involved in the just-in-time business model, which underpins trade with the UK, puts additional pressure on the supply chain to gather the detailed information required to complete customs and SPS declarations.

Revenue is aware that some goods movements are being ‘orange routed’ due to unfamiliarity with the new requirements. In such instances, Revenue and other State Agencies actively work with the relevant responsible parties in the supply chain to overcome and rectify the issues as quickly as possible. In time, dealing with the customs and other regulatory formalities that now apply to goods moving to, from or through Great Britain will become routine for importers, transport companies and truck drivers. Revenue is continuing to work closely with individual businesses and business representative bodies to assist them in building capability and understanding so as to be able to complete the relevant customs and other regulatory requirements.

The EU-UK Trade and Cooperation Agreement (TCA) was agreed very late last year which did not allow much time for businesses to tailor their preparations, particularly in relation to rules of origin requirements, which are fundamental to allowing tariff free trade with the UK. Where additional guidance was needed this has been provided by Revenue via eCustoms Notifications. 30 such notifications have been issued so far in 2021. These are available on the Revenue website and are also emailed to anyone who has subscribed to the mailing list. Information is also available through Revenue’s Brexit Latest News.

I am advised that since 1 January 2021 Revenue has:

- provided important Customs advice to hauliers and truck drivers moving goods from Great Britain (GB) into Irish ports regarding creating a Pre-Boarding Notification (PBN) and the channel routing look up facility.

- issued a detailed step by step guide (including screenshots from the systems) on how to create and, if necessary, edit a PBN for import and export declarations.

- provided information and clarification on the correct procedure for completing an Entry Summary Declaration (ENS) for Roll-On Roll-Off ferry movements.

- provided, on a temporary basis, an administrative easement and support service for businesses who are experiencing difficulties in lodging their safety & security ENS declaration.

- engaged with representative bodies for freight forwarders.

- engaged with shipping companies in relation to companies having difficulties in boarding ferries in Great Britain.

- issued stakeholder group updates.

- engaged with individual businesses to resolve matters specific to their business models.

- provided significant support to businesses through its range of support services including our 24/7 Customs telephone helpline ((01) 7383685).

Additionally, since 1 January Revenue has participated in 36 events aimed at providing additional supports to businesses and trade representative bodies. This engagement has been extremely positive, and Revenue has been able to work with businesses in identifying solutions to their specific issues and to help mitigate some of the impacts of the UKs departure from the EU. Revenue will continue to work with trade and business, on both a collective and individual basis, to assist them in addressing the challenges and issues arising from the UK’s departure from the EU. Customs and other State agency officials are working on a 24/7 basis at Dublin and Rosslare ports and in Dublin Airport, and will work with businesses to resolve issues as quickly as possible.

Revenue is actively working with the Department of Agriculture Food and the Marine (DAFM) and the HSE’s Environmental Health Officers (EHO) to improve interagency communication, to increase the opportunities to share data thereby reducing the requirement for trade to submit the same data to multiple State Agencies and to streamline processes in as far as is practicable. However, additional data requirements apply to SPS and controlled goods movements beyond those required for standard customs clearance purposes and in such circumstances documentary requirements can and will arise which have not previously been supplied as part of the engagement with Customs in any particular instance.

I know that Revenue continues to work to optimise the efficiency with which legitimate trade can be processed, subject to the need for Ireland to play its part in protecting the integrity of the Single Market and the Customs Union and compliance with the overarching UCC legal framework and other similar frameworks such as the Official Control Regulations.

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