Government considering post-Brexit credit facilities, says Kenny

The Government is considering putting in place long-term low-interest credit facilities for businesses in the aftermath of Brexit, Taoiseach Enda Kenny has said.

“We have our people working on that,” he said.

Mr Kenny said the Government had been planning for possible contingencies long before the Brexit vote.

“What is the Brexit issue? Is it a hard Border, is it a soft Border . . . is it a situation the UK want access to the single market?” he asked. Mr Kenny said the situation would be fluid until the British prime minister moved on Article 50, triggering withdrawal from the EU.

Fluctuations

He said the Government was conscious currency fluctuations might have a serious impact on businesses here.

Personnel from Government departments, and the Strategic Banking Corporation, he said, had been to Brussels to make arrangements for credit at long-term low interest for businesses that would suffer here. He added €1 million had been ringfenced for that in the budget.

Mr Kenny was replying to Fianna Fáil leader Micheál Martin who asked if the Government was going to provide a currency crisis package for Irish industry. One of the most disappointing aspects of the budget was the lack of a substantial response to the Brexit challenges, said Mr Martin.

What emerged, he said, was mere tokenism and pathetic.

“It is really extraordinary because people were promised in advance that this would be a Brexit-proofed budget,” Mr Martin added. “However, the reality is that it is empty with regard to Brexit.”

He said the Government should be planning for a hard Brexit, rather than praying and wishing for a soft Brexit and that everything would be all right on the night.

Mr Martin said the Government was assuming an exchange rate of 85p to the euro next year. But on Tuesday, the exchange rate was 91p.