BREXIT SHOCK
WHAT DOES IT MEAN FOR WICKLOW?
TD STEPHEN DONNELLY said that it is imperative that the existing relationship, politically, socially and economically, between the UK and Ireland is maintained.
‘We need to ensure that bilateral agreements are in place to facilitate the free movement of people, including for work, capital and goods between our nations,’ said Deputy Donnelly, pictured, speaking shortly after the result was announced last Friday morning.
His party, the Social Democrats, said that Ireland needs a rapid and definite political and economic response to the UKs vote to leave the EU in light of the fact that the UK is Ireland’s largest trading partner, closest neighbour, host to hundreds of thousands of Irish citizens and regular political ally. ‘We need to work with the Northern Irish and UK political, economic and cultural institutions to ensure minimum disruption in the relationship between Northern Ireland and the Republic of Ireland,’ said Deputy Donnelly. ‘Indeed, we should be actively looking for way of strengthening this relationship in light of the UK’s vote to leave the EU. ‘We also need to ensure there are no negative consequences for Irish citizens living in, working in, and travelling to the United Kingdom.’ Deputy Donnelly said that the precipitous drop in Sterling immediately after the result is an example of the potential dangers to trade that must be acted upon.
‘Hopefully sterling will rebound, but its value at 7 a.m. (on Friday morning) represented a 17 per cent fall in value since this time last year.
‘ That means goods and services Irish firms are selling into the UK market are 17 per cent more expensive today than they were last June.
Should this continue, it would likely have a strong negative impact on many of Ireland’s SMEs. Economic analysis suggests that a 5 per cent Sterling depreciation would see a 1 per cent fall in Ireland’s GDP.’
However with Ireland becoming the only English-speaking country in the EU, there are some benefits to the development. ‘While we regret the UK’s decision to leave, it does present us with opportunities, including the likelihood that some financial services in the UK will want to move to Ireland,’ said Deputy Donnelly.
‘It should also help in our efforts to secure and maintain foreign direct investment, particularly from English-speaking countries like the US and Canada.’
Deputy Donnelly said that his colleague Catherine Murphy spoke in the Dáil last Thursday about the need for the Government to understand and address the growing disconnect between citizens and UE institutions caused by what many see as an unfairness and inequality at the heart of EU decisions.
‘ There needs to be urgent debate in the Oireachtas on the risks and opportunities presented by the UK vote,’ said Deputy Donnelly. ‘We need to know, immediately, what plans the government has in place.’
(Mary Fogarty)