Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

80. To ask the Minister for Finance the ongoing effect of Brexit on the economic performance in this jurisdiction as well as in other EU member states; and if he will make a statement on the matter. [46044/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The implications of Brexit continue to play out despite the UK having voted to leave the European Union over 8 years ago. Following the end of the Brexit transition period on 31 December 2020, the EU applied non-tariff import controls on goods moving from the UK to the EU, including Ireland. The UK authorities did not apply their controls at the same time.

After a number of years of postponements however, the UK has introduced its own import controls under the UK government’s Border Target Operating Model, which has applied - on a phased basis - to qualifying goods from the EU since 31 January of this year. The new processes will have important implications for EU exporters to Great Britain, particularly agri-food exporters. Importantly, however, the most recent phase of physical checks on qualifying goods have not applied to Irish exports. This is because checks have not yet been introduced by the Welsh government at Holyhead through which the bulk of Irish exports enter into Great Britain. Thus the full economic impact is yet to be felt for Ireland.

However, given the postponement of border checks on multiple occasions, the economic fallout will likely be much less adverse than had initially been assumed following the Brexit referendum. The long lead-in time will have given Irish exporters a number of years to diversify their export portfolios, lessening the ultimate impact of non-tariff barriers. Indeed, between 2015 and 2023, the share of total Irish food and beverage exports going to Great Britain has decreased from 37 to 26 per cent. In addition, agencies and departments have had extensive engagement with affected Irish stakeholders, coupled with communications and advertising campaigns, with the effects of raising awareness of changes in trade policy. This has been informed by continued engagement with the UK authorities, to better prepare for the changes.

We cannot ignore, however, that many SMEs will face a significant administrative burden associated with the import controls when they become effective. Government departments will continue to engage with those impacted by these checks and any other relevant stakeholders to minimise associated costs and my Department will continue to monitor the economic fallout.