Donohoe: Brexit denting consumer confidence
Finance Minister Paschal Donohoe is to warn his Cabinet colleagues tomorrow that domestic demand for goods has weakened because of Brexit.
In an interview with the Irish Examiner, Mr Donohoe said that while the economy is still growing, Brexit and the ongoing chaos in London has impacted on consumer confidence and the amount people are spending day to day.
“So at this point, we have seen other institutes who are involved in assessing the performance of the Irish economy, they still say the Irish economy is performing strongly but they are noting that consumer confidence is having an effect on domestic consumption,” he said.
“We are in the process of assessing what kind of impact that is going to have on our forecasts. Our forecasts show we still have an economy which is growing strongly but I will be updating Cabinet on Tuesday as to the strength of growth.”
Mr Donohoe said the indicators he is bringing to Cabinet are going to show an economy that continues to do well but the change in the Brexit prospect has changed the timeline of uncertainty but it has not removed uncertainty.
“One of the things I will be talking about is ensuring that, in the longer period available to us until the end of October, the foot is not taken off the pedal in getting ready for Brexit,” he said. “We still need Irish companies to register, I’m still going ahead with the work we have started to ensure we have 600 Revenue officers in place for the customs and we are going to complete the infrastructural works.
“Brexit has not gone away. It has receded but the extension period we are moving into is the real deal.”
Meanwhile in the UK, cabinet office minister and prime minister Theresa May’s de facto deputy, David Lidington, said talks on Brexit between the government and Labour would continue.
On BBC1’s The Andrew Marr Show, Mr Lidington said: “They are certainly going to continue next week.
“I had a good, business-like meeting with John McDonnell a couple of days ago, and what we have agreed is a programme of meetings next week on particular subjects, with the ministers and shadow ministers concerned getting together to talk about things like environmental standards, like workers’ rights, like security relationships between the United Kingdom and the EU,” he said.
“And then we would hope to take stock of where we are as soon as parliament gets back after the Easter recess.
“But I don’t think that this question can be allowed to drag out for much longer.”
Labour MP David Lammy defended the comparison he previously made between Brexit hardliners the European Research Group and the Nazi Party and South African racists.
He replied: “I would say that that wasn’t strong enough. In 1938, there were allies who hatched a plan for Hitler to annex part of Czechoslovakia, and Churchill said no, and he stood alone.”
