Jim Power: Why a Minister for Brexit makes total sense
This was a wise move, and a recognition of the fact that housing is currently one of the biggest economic, social and political issues facing Ireland.
In many ways, housing has subsequently been replaced by an even more significant issue, namely Brexit.
The problem with Brexit is that we really have no understanding of how it will evolve over the coming years and the impact it could possibly have on the Irish economy and every business.
Anybody who claims to know the answers is a charlatan, such is the political complexity of the process at both an EU and UK level.
The first thing we need to do is face up to the fact that we do not understand the complexity of the topic and then to plan on the basis of the worst possible outcome.
The UK prime minister has repeatedly stated that “Brexit means Brexit” and has committed to begin the process of leaving the EU by invoking Article 50 before the end of March.
This will set in train an incredibly complex and protracted period of negotiation led by the EU Council to determine what sort of relationship the UK will have with the EU after it exits the system.
At a recent conference on Brexit, which for me is the gift that keeps giving, I suggested that a UK exit is not a foregone conclusion.
I was put very firmly in my place by a British diplomat who stated categorically that it will definitely happen following the expression of the democratic will of the UK electorate.
Only time will tell if this assertion is correct, but the important point is that Irish business should operate on the basis that it will happen and that it will be a hard Brexit rather than a soft Brexit.
A hard Brexit would mean the UK would leave the EU and that it would not agree to make financial contributions to the EU budget and would not agree to sign up to the rules and regulations of the Single European Market.
Consequently, the UK would not have free access to the EU market. Tariffs and quotas could become a reality of life for UK companies trading with the EU and for EU companies trading with the UK. There are many such companies in Ireland.
The more immediate issue is obviously the weakness of sterling, but the longer-term issue is the possibility that trade will be restricted.
Given how important the UK market is for Irish-owned companies in particular, such a development would arguably pose the most significant challenge to Irish business since the break with sterling in March 1979. We survived that and we will survive Brexit, but we need to prepare.
As well as the obvious threats and challenges for Irish trade with the UK, there are also considerable opportunities. The obvious opportunity is to lure those companies in the UK who will need some presence in an EU country after the exit.
This will be challenging on a number of fronts. Other EU countries will compete aggressively. Secondly, does Ireland have the necessary structures to entice people to come here?
The availability and cost of housing, the creaking infrastructure in Dublin, and the very strained public services such as health and education immediately spring to mind. And the personal tax system in this country is totally punitive for anybody with any ambition.
Maybe, this will present some opportunities for the regions, where the cost of living is lower and the Dublin congestion is less apparent.
If so, a regional strategy should be put in place. This is just a tiny snapshot of the profound challenges and opportunities facing Ireland.
The least we should do is create a government department and appoint a minister with full responsibility for Brexit. A year or two down the road would be too late.
