Don’t panic! We are well prepared for this, insists the Taoiseach
THE Government is set to review its economic outlook as part of a Brexit contingency plan which has spent the last number of months preparing.
The Summer Economic Statement, which was unveiled earlier this week to much fanfare, will now be reviewed.
That economic forecast promised that Ireland would have an extra €1billion available for tax cuts and for extra spending.
The measure is just one of a series of actions which will now be put in place following Britain’s shock decision to leave the EU.
The Government have said that the Central Bank of Ireland already have pre-established contingency plans ‘to deal with potential market volatility surrounding the referendum result’ and said the Central Bank will now engage with the Department of Finance in relation to future potential risks.
In terms of contingency plans for trade, Enterprise Ireland will be central to the Government’s plans.
Key measures will include a new hotline for Irish exporters and an ‘intensification of UK market support’ which will also see the Government seek to identify and evaluate ‘key business opportunities’.
The contingency plan notes that a decrease in exports to the UK will negatively affect industry, but it also highlights potential opportunities, stating that marketing will be ‘intensified in key sectors where newlymobile FDI (foreign direct investment) flows may be available, including financial services, arising from companies who wish to be based in an EU member state.
Other key actions identified include a possible early meeting of the British-Irish Council.
Furthermore, Tourism Ireland and Fáilte Ireland will be tasked with spreading the message that while the UK are still members of the European Union, travel between the UK and on the island of Ireland remains free of any additional barriers.
On Northern Ireland, it says political and official contacts will continue but co-funded infrastructure projects may be affected.
The contingency plans states: ‘The North-South Ministerial Council is due to meet in July and consideration is being given to an earlier date for the next meeting of the BritishIrish Council. The short-term impact on enterprise and trade in border counties will be monitored closely.’
The plan also says that the task of disengaging from the UK should not be underestimated: ‘The complexity of disengaging the UK from the shared policy and legal framework built up over 40 years of common EU membership should not be underestimated.’
Speaking about the contingency plans last night, Taoiseach Enda Kenny said: ‘The result of the referendum means that the people of the UK have declared their wish to leave the EU. It is important to be clear: the UK has not actually left the EU. Until it formally withdraws from the Union, the UK remains a full Member, with all of its existing rights and obligations.
‘Today’s result marks the beginning of a new phase of negotiated withdrawal – one that is expected to take place over at least two years and possibly longer.
‘Businesses can continue to trade as normal and people can continue to travel as normal between Ireland and the UK, including Northern Ireland.
‘In the meantime, the Government has adopted an initial Contingency Framework to map out the key issues that will be most important to Ire- land in the coming weeks and months. This will be an iterative process as issues emerge and recede in the course of negotiations.’
There will also have to be contingency plans in terms of social welfare, the ‘Plan B’ documents reveal.
According to the document, ‘appropriate customer information will be made available to those who are concerned about continuation of ongoing payment of welfare benefits on a reciprocal basis with the UK.
‘All payments made by the Department of Social Protection, including those to recipients who are resident in Britain and Northern Ireland, and payments from the UK to residents in Ireland, will continue to be paid.
‘In addition, liability for the payment of social security contributions in the case of people who have been posted to work in the UK or who are working in the UK and in Ireland will continue under the current arrangements.’
In terms of justice, the plan indicates there are as of yet no detailed plans in place, although there will have to be measures put in place soon to deal with issues around cross border security and policing.
The document states: ‘Given that the UK has not left the European Union at this point, there is no impact to ongoing close cooperation on cross-border/UK-Irish security and policing.
‘In the lead-in to the UK’s withdrawal from the EU, security and
‘Trade will be monitored closely’
policing issues will be addressed in future meetings between law enforcement agencies on the island of Ireland and the UK.’
The Government’s contingency plans also indicate that there will be ‘threats’ to research projects and to their funding. It states that ‘a full assessment will be undertaken of the opportunities and threats arising from the future disengagement of the UK from the EU, includHe ing in relation to Horizon 2020 funded research.
‘This will include the threat of a reduced overall fund if and when the UK’s contribution to the EU is withdrawn at some point. Balanced against this, there may also be new research opportunities for Ireland as a remaining member of the EU and participant in the Horizon 2020 programme to build new collaborations with industry.’
Foreign Affairs Minister Charlie Flanagan is also set to convene a series of meetings to address challenges for his department.
said yesterday: ‘I have initiated a round of contacts with British counterparts and with party leaders in Northern Ireland. I have asked Irish Ambassadors from key EU capitals to travel to Dublin to discuss next steps, which will include high level political contacts with the EU.
‘Yesterday, I addressed all EU Ambassadors to Ireland and outlined the government’s priorities for both possible outcomes of this referendum.’
The priorities identified in the Government’s new plan include the negotiations on a British departure from the EU; British-Irish relations; Northern Ireland; trade; investment; North-South Border impacts; competitiveness and macroeconomic issues and research/innovation funding and energy.
More areas will be added ‘as the terms and conditions of the new UK/EU relationship evolve’, a Government statement said.
A senior official in each Government department has already been appointed to have responsibility for the contingencies. ‘It is based on preparations over many months including inputs by Government departments to identify the key strategic and sectoral issues arising from the UK disengaging with the EU,’ the statement added.
‘Threat of a reduced overall fund’