- Call on Government to fast-track plans
- New enterprise fund sought for short-term financing
- Members can contact Ibec for information
The inability of the UK government to get parliamentary support for the Brexit withdrawal agreement is a massive concern. Last week, Ibec called on Government and the EU to escalate Brexit ‘no deal’ planning.
This is still not the most likely outcome, but time is short. If the UK crashes out of the EU, there will be immediate and far-reaching negative economic consequences for Ireland and Irish business. Efforts must focus on avoiding this outcome. In the meantime, the Irish government and the EU institutions must set out in detail their plans for a possible disorderly UK exit.
An extended transition period is vital in all circumstances, including ‘no deal’. Ireland’s unique economic exposure to Brexit will also demand very specific treatment. Ibec has set out a series of key measures that Government would need to introduce in the case of ‘no deal’, these include:
• A new enterprise stabilisation fund, to provide short-term financing support for affected companies
• Direct capital, marketing and innovations support for firms reorienting into new markets beyond the UK
• Allowing companies to claim VAT as an input credit, at the same time as declaring their liability, to minimise cashflow needs
• New trade support measures, including further export trade financing and export credit guarantees
We are facing into a period of enormous uncertainty for businesses exposed to Brexit risks. Ibec is working to represent your interests and support you as you plan for all eventualities. Our guide to Brexit, which includes an updated issue tracker, sets out the many issues that a ‘no deal’ scenario presents.
Companies looking for more information on how a ‘no deal’ would affect their trade to and through the UK in a ‘no deal’ scenario can email Ibec Trade and International Affairs Executive Doreen Burke at email@example.com