A Government minister has admitted Irish jobs are at risk if the UK chooses to open a damaging post-Brexit “trade war” with the EU, writes Fiachra Ó Cionnaith.
Education Minister Richard Bruton said “any arrangement that erects barriers” between Ireland and its nearest neighbour is not in our interests as he accepted the possibility of trade tariffs and corporate tax cuts in Britain is now on the table.
Concern over the prospect of a “hard Brexit” increased at the weekend, after the move was indicated in leaked extracts from a high-profile speech to be given by British prime minister Theresa May on Tuesday.
The issue gained further attention when British chancellor of the exchequer Philip Hammond told a German newspaper the UK would consider slashing corporate tax rates and starting a trade war with the EU if it does not get a deal in its interests.
Such plans raise the prospect of tariffs on Irish exports to Britain, a fresh battle over prized multi-national firms in this country and fresh difficulties over ensuring no hard border returns between the Republic and Northern Ireland.
On Sunday night, a spokesperson for Taoiseach Enda Kenny and the Department of Finance attempted to downplay the significance of the remarks, which they described as “speculation”.
However, speaking to reporters at the launch of schools admissions reforms plans in Dublin city centre on Monday, Education Minister Richard Bruton admitted the latest Brexit development risks costing Irish jobs.
“Of course Irish jobs are at risk in the Brexit process, any arrangement that erects barriers between ourselves and one of our close markets have potential [to do that].
“The sooner we move on from a position which I think is now coming with Theresa May committing to making a fairly comprehensive statement, the sooner we get to a point where we know what Britain is looking to get from the discussion, the sooner we’re into actual negotiation with Britain on actual issues.
“They are, ‘are there going to be tariffs’, and ‘at what level’? Are there going to be some regulations in the service area, and in what areas,” he said.
Despite warning of the risk posed by a hard Brexit, Mr Bruton stressed both British and EU politicians are currently taking part in “a lot of positioning” before formal Brexit negotiations are due to begin in March.
While accepting the seriousness of the situation, he said Ireland “shouldn’t be deflected into following every hare that rises”.
“I think the economic aspects of Brexit is much easier to handle than the politics, and I think we have seen unfortunately a lot of political positioning going on and I think that has created volatility, which has real difficulties for people who are trying to trade in the markets,” he said
