I am aware the Taoiseach briefed party leaders last evening about the Government’s plans on how to deal with Brexit. There is no doubt it is the single biggest challenge that all of us on the island of Ireland face. What we need is a coherent and multilayered response to deal with this issue. In the Taoiseach’s announcement yesterday, there were plans for forums and lots of dialogue, all of which are important. We also need, however, practical measures in the short term to assist businesses dealing with the fallout from Brexit.

This morning, the euro is trading at 88.2p sterling. Before the referendum in June, it was trading at 77p sterling. That means for Irish businesses exporting to the UK, their goods and services have, in relative terms, become 14% more expensive. That makes us 14% less competitive in our trade with the UK. Many analysts predict that sterling will fall further, with some even predicting it will reach parity with the euro in the next year or so. This already has cost jobs and will cost many more in the period ahead if this trend continues. On top of that, inbound tourism from the UK is inevitably going to be affected because it is more expensive. We are all well aware of the impact on Border communities of the fall in sterling and the deep uncertainty that now prevails about the Border post-Brexit. In addition, the very terms on which we will be able to trade with the UK post-Brexit are unclear and mired in uncertainty.

We must accept and prepare for the fact that Brexit is going to happen, possibly within a two and a half year period. We must also prepare for the fact and the possibility that it may not happen in an orderly way. Certainly, the UK Prime Minister's comments over the weekend have heightened the risk of a so-called “hard Brexit”. Next week’s budget presents an ideal opportunity to help businesses address the major challenge posed by Brexit. Fianna Fáil would like to see the 9% VAT rate on tourism and hospitality fully retained, unlike our colleagues, Sinn Féin.

We would like to see an improved capital gains tax regime for entrepreneurs and a real focus by Enterprise Ireland and other agencies on supporting exporting firms, which are very dependent on the UK market, to achieve greater market diversification. We want to see investment in infrastructure in the Border region to make us more competitive in that part of the island. The Government should establish a national hedging strategy, as recommended by the Irish Exporters Association. I ask the Taoiseach to read the association's budget submission because it addresses the very specific issue that has now come to the fore in terms of SMEs. It wants a strategy managed by the NTMA offering a discounted exchange rate to qualifying businesses. There must be a renewed focus on reducing costs - costs that the State can influence, be they insurance, transport or energy costs - to make us more competitive and to deal with the inevitable headwinds that Brexit will produce. There is an opportunity within a week to set out our stall and to help up to 800,000 employees who work in SMEs to deal with these major challenges.

I thank Deputy Michael McGrath for his comments. We had a very good meeting with the leaders of the different parties yesterday in respect of Brexit and a number of other matters. The Deputy will have been briefed by the Minister for Finance in respect of the general situation as we approach this budget. The issues raised by the Deputy are real, important and very urgent. Clearly, the question of Brexit will not become the central focus from a European point of view until the British Prime Minister triggers Article 50 at the end of March. At least, we have clarity on that now.

In the meantime, the Government outlined at some length yesterday a series of agendas to deal with the issues arising. The Deputy mentioned a number of them. Obviously, the VAT rate was reduced from 13.5% to 9% a number of years ago to stabilise an industry that was in seriously bad shape. That industry has recovered and has been a catalyst in creating thousands of jobs. That decision was followed by the decision to remove the travel tax which had a further impact in terms of the numbers of people being brought to Ireland by the different air carriers. That is an issue the Government will consider in the context of the budget. The Minister referred to the question of capital gains tax for entrepreneurs. He introduced the first initiative relating to that from an Irish point of view last year. We did not have the resources to match what was done in Great Britain but the Minister is conscious of that.

This morning, I opened the Irish Exporters Association conference in the RDS to which Enterprise Ireland has brought back all its overseas staff to talk to hundreds of entrepreneurs and SMEs in Ireland about diversification into new markets in the US, Canada, the EU and so on. The Credit Guarantee (Amendment) Act was introduced in February 2016. I can confirm to the Deputy that the Department of Finance, the Department of Jobs, Enterprise and Innovation and the Strategic Banking Corporation of Ireland are looking at the options that might be open in terms of financial supports or access to credit for businesses that are suffering because of the decline in the strength of sterling. I will read the report mentioned by the Deputy. All these matters are very important in the context of employment growing, unemployment dropping, a steady growth rate here and a very bright opportunity for many Irish firms to continue to expand. This is a matter of urgency and I hope the budget will have a number of what we might call "Brexit-proofing" measures in respect of the issues raised by the Deputy.

I thank the Taoiseach for his response. The reality is that thousands of businesses operating in Ireland today are very dependent on the UK market. Many mortgages and salaries are dependent on having access to the UK market on reasonable terms. The fall in sterling and the possibility of tariffs and customs being reinstated is a doomsday scenario for many businesses. The message they want to hear next week is that the Government is prepared to provide tangible supports to help them work through these difficulties.

We all know of the dependence of the agrifood sector on the UK market. For example, Deputy Brendan Smith has recently been raising issues around the mushroom industry. They must be practical measures that will make a difference. This will involve providing extra supports through the taxation system and through funding for Enterprise Ireland.

The challenges are acute. While there are opportunities for Ireland regarding Brexit, particularly in inward investment, from an exporting perspective it is about damage limitation and assisting firms to work their way through a very uncertain time. Many of them will be going to banks seeking working capital and support at a time when banks cannot be sure those firms will have access to the UK market in two and a half years' time without tariffs and customs charges. We must provide support, and next week will be a very important first step.

Some 200,000 jobs are dependent on exports to the UK. The figure of over €7 billion in exports, much of it in the agrifood sector, speaks for itself. The Minister for Agriculture, Food and the Marine, Deputy Michael Creed, has commented on it and has met with different groups. We have already had evidence of jobs in the agrifood sector being lost due to the situation regarding exports to Britain and currency fluctuations. It is important we reflect on the capacity of Enterprise Ireland in terms of companies exporting and IDA Ireland in terms of attracting foreign direct investment, in the context of the personnel numbers they have. The Minister will reflect on it very carefully before next week's budget.

This is a matter of the greatest urgency. As the Deputy pointed out, so many jobs are dependent on it for repayments of mortgages, building houses and maintaining family life in Ireland. It was brought very much to the fore this morning. It was a very opportune time for Enterprise Ireland to say innovation means business. It is very optimistic and is looking to the future where real opportunities exist and talking to people who, despite all the difficulties, are making significant progress. While the Government cannot do everything here, given the scale of what we have to contend with, we intend to put in a number of measures in so far as we can to Brexit-proof and support in a tangible way Irish firms exporting to the UK.