The Irish government has unveiled a series of measures designed to protect the economy from a Brexit shock.
The package aims to protect foreign investment, boost tourism and reduce the exposure of farmers in the wake of the collapse of sterling.
Under the programme that was announced by finance minister Michael Noonan, titled Getting Ireland Brexit Ready, a “rainy day fund” will be built up from surplus budgets for use as a contingency for public services in the event of a shock to the economy after Britain formally leaves the EU, which is expected to be in 2019. The UK is Ireland’s largest trading partner.
A special €150m (£136m) loan fund to help farmers with their cash flow and short-term borrowings is to be established following concerns many are struggling to cope with the sharp decline in the value of their exports to the UK.
A tax relief programme designed to help foreign investors move staff from the US and elsewhere to Ireland is to be extended until the end of 2020. The programme is designed to allow employers to relocate employees from overseas offices with minimal tax complications.
“The measure acts to secure and embed investment, which can lead to sustainable growth,” said the government in its statement.
Hotels and other key parts of the tourist sector, which are heavily dependent on UK visitors, will retain a reduced 9% VAT rate.
At the same time the government has released a sector by sector analysis of the impact Brexit could have on trade with Britain. Agri-food and computer services are among the most exposed sectors.
