Richard Bruton: Irish jobs at risk in any trade war

A government minister has admitted Irish jobs are at risk if the UK chooses to wage a damaging post-Brexit “trade war” with the EU.

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 were now on the table.

Mr Bruton said “a lot of political positioning” is taking place before negotiations begin between Britain and the EU in March.

However, he admitted any decision by Westminster to pull out of the single market and the EU customs union poses potential serious issues for Ireland’s corporate tax rate and export market — and crucially Ireland’s ability to hold onto multinational-created 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’re into actual negotiation with Britain on actual issues.

“Are there going to be tariffs, are there going to be some regulations in the service area?”

Concern over the prospect of a “hard” Brexit has increased since extracts from a speech due to be given by Ms May today were leaked at the weekend.

The issue gained further attention when British chancellor of the exchequer Philip Hammond told a German newspaper Britain may slash corporate tax rates and start a “trade war” with the EU if it does not get a deal in its interests.

While the Department of Finance and a spokesperson for Taoiseach Enda Kenny sought to downplay the issue at the weekend, today’s cabinet meeting is expected to see officials discuss the prospect of tariffs on Irish exports to Britain, a fresh battle over prized multinational firms and hard border difficulties.

Speaking at a separate EU foreign ministers meeting in Brussels yesterday, Foreign Affairs Minister Charlie Flanagan said Britain needs to “clarify” its plans for a hard Brexit, with a particular focus on how they will impact on Ireland’s economy and the border with Northern Ireland.

Last night Mr Kenny spoke by phone with Ms May. The Prime Minister also took the opportunity to discuss the speech on Brexit which she plans to deliver today.

The Taoiseach reiterated key concerns for Ireland, covering the economic and trading relationship, the common travel area, and the Northern Ireland peace process including border issues.