Fianna Fáil Spokesperson on Finance Michael McGrath says the Minister for Finance must follow the Central Bank’s lead and bring forward the government’s short term projections for the Irish economy in the event of a ‘no deal’ Brexit.
He was commenting on the publication of the Central Bank’s latest Quarterly Bulletin.
Deputy McGrath said it was deeply worrying, just two months away from Brexit, that the government does not have its own estimates of the impact of a hard Brexit on the Irish economy.
“Today, we have been told for the first time what the economic impact of a hard Brexit might look like and it is makes for grim reading. The prospect of up to 4% being knocked off economic growth this year will understandably deepen concerns at the prospect of a ‘no deal’ Brexit. The projected fall in the value of sterling would have a devastating effect on many exporters”, said Deputy McGrath.
“By any measure this is the starkest projection yet for the immediate impacts of a ‘no deal’ Brexit. Last week during a meeting of the Budgetary Oversight Committee, I asked the Minister if the Department would be publishing its forecast for 2019 and 2020 of the impact of a hard Brexit on economic growth, tax revenues and employment in Ireland. Remarkably, the Minister said the Department did not have that work done and was now doing work in this area.
“I have consistently called on the Minister to provide the government’s own projections in this regard. It is not good enough for the public to wait until April when the Stability Programme Update is published. By that stage we could already be in a no deal scenario.
“The Minister needs to get on top of this issue without any further delay and inform the public of his department’s estimate of what a hard Brexit would mean for our economy.”