No Brexit pre-tremors yet: Paschal
IRELAND’S economy is not showing signs of ‘the pre-tremors of a Brexit effect’, with tax returns and economic activity holding up well, Finance Minister Paschal Donohoe has said.
Brexit uncertainty has stifled growth in the UK and has already led to thousands of job losses in sectors such as the motor industry, but has caused little tangible economic damage in Ireland as of yet, he added.
However, it came against the backdrop of a warning from Tánaiste Simon Coveney yesterday that a no-deal scenario will put a ‘huge strain on Ireland’s economy’.
Mr Donohoe told reporters that while Brexit could be having an impact on future investment decisions, the numbers suggest its effects haven’t bitten just yet.
He said: ‘Looking at the quarter four [of 2018] figures, I couldn’t say for now we are looking at the pre-tremors of a Brexit effect.
‘If I look at what happened in quarter four, particularly in terms of full-time employment as a share of overall employment, it’s still pointing to an economy that is performing well. And if you look at those figures and combine them with our January tax returns... it shows that up to this point, it may be a case that Brexit is affecting future investment decisions, but the figures don’t indicate at the moment that’s having an effect on current consumption.’
It came as the Cabinet signed off on the so-called Brexit Omnibus Bill, a cross-departmental piece of legislation that aims to maintain the status quo, insofar as is possible, should the UK crash out of the EU without a deal.
The Government hopes to have the legislation passed through all stages in he Dáil by March 15, and be signed into law by the President on March 29 – the deadline for the UK to leave the EU.