#Budget2020: Minister announces €1.2bn Brexit package with pledge of more in no-deal scenario
A €1.2bn Brexit package has been announced as part of Budget 2020 but further money will be borrowed and pumped into agriculture, tourism and business in the case of a no-deal.
Of the total Brexit allocation, €200m will be made available next year, which will be distributed across a number of departments and agencies to ensure that all sectors are ready.
But Finance Minister Paschal Donohoe has told the Dáil that the country is now preparing for a no-deal and if this happens the Government will intervene to borrow more money to "further protect the economy".
Farmers, businesses and the tourist industry will get €650m of borrowed funds to help protect them from a no-deal Brexit.
Finance Minister Paschal Donohoe will prioritise beef farmers, who have already been hit by plummeting factory prices which sparked protests over the summer, with measures to help them find new markets for their produce.
A rescue and restructuring fund will be set up to assist businesses and more money will be invested in the tourism sector.
Announcing a raft of Brexit related measures, man of which will only be introduced in the case of a no-deal, Mr Donohoe has told the Dáil that Brexit is now the most "pressing and immediate risk to out economy".
While €220m of the total Brexit package would be deployed immediate if Britain crashes out of the EU, Mr Donohoe said the "sequencing and deployment" of the remaining €390m contingency fund would be "determined closer to time".
With just 23 days to go before the Brexit deadline, Mr Donohoe has announced grants, loans and equity investment to help protect against a no-deal, this includes:
- A €45m transition fund
- A €42m rescue and restructuring fund
- An €8m transformation fund for food and non-food businesses
- €5m extra for Micro Finance Ireland
- €5m extra for a Local Enterprise Offices emergency Brexit fund
With almost 50% of our beef exports going to the UK and 22% of our dairy products sold to Britain, Mr Donohoe has stressed the need to find new markets, especially if we are facing a no-deal Brexit.
As a result the Department of Agriculture will receive €110m if Britain leaves the EU without an agreement in place.
Announcing €85m for the beef sector in a no-deal scenario, Mr Donohoe said: "The provision of immediate supports for out beef sector will be out first priority."
Other Brexit measures in the area of agriculture will include €14m for fisheries, €6m for livestock farmers and the mushroom sector as well as €5m for the food and drinks industry.
The number of visitors coming here from the UK has already seen a drop this year compared to 2018.
The most recent Central Statistics Office (CSO) figures show that 985,000 trips were made from Britain between April and June, this was a fall of 3,000 on the same quarter in 2018.
To combat further decline, €40m of funding for the tourism sector will be provided from the €650m Brexit contingency package.
The regions most likely to suffer from a no-deal Brexit, such as the border counties and the south-east, will be specifically targeted for support.
The British Irish Chamber of Commerce has welcomed the announcement of the Government's €1.2bn Brexit contingency fund, to deal with the impact of a no-desl Brexit, if it comes to pass.
Director general of the British Irish Chamber John McGrane said: "“The British Irish Chamber of Commerce specifically welcomes the establishment of the Brexit Contingency Fund... The allocation of €1.2bn to support these businesses will be vital should a disorderly Brexit come to pass...."
The Chamber also welcomed the infrastrcutral investmentr announced today, and the increase in the R&D tax credit.
However, John McGrane said the Chamber had hoped for additional supports to be provided to the higher education sector, and described the lack of such moves as "disappointing".
He said: "Such a lack of funding may result in a further drop in the world rankings of many of our universities. In the face of future global challenges, it is vital for the Irish economy that we have a properly funded and supported higher education and research system that is equipped to compete on an international stage."
The Family Business Network (FBN) of Ireland also welcomed the Brexit contingency fund.
Director general Yve O’Driscoll said: "Many family businesses operate in the targeted sectors of agri-food, manufacturing, tourism and services. These businesses will be at the coal face of any disruption brought about as a result of a disorderly Brexit and will value the Government’s commitment to support vulnerable businesses should the worst come to pass.
"The move by Minister Donohoe today to protect these businesses through the establishment of a €1.2 billion Brexit Contingency Fund is welcomed by our members."
