Ireland promises 'Brexit-proof' Budget amid border closure fears

Ireland (Other OTC: IRLD - news) 's government is promising to "Brexit-proof" the economy when it delivers its Budget tomorrow, amid growing fear about the impact of a hard British exit on the soft Irish border.

It is understood Britain may ask Ireland to share immigration data from its ports and airports to keep the only land boundary between the UK and EU open.

Ireland's Deputy Prime Minister says it is vital the EU understands the consequences of closing the border.

Frances Fitzgerald TD said: "It would be very bad in terms of the Northern Ireland ongoing peace process. It would be very bad in terms of trade.

"It would be bad in terms of that free movement which is so important.

"We have so much trade with the UK.

"We are now going to be, if you like, the frontline border for the EU.

"Immigration issues will have to be dealt with so there are many, many detailed discussions that will need to take place."

In food and drink alone, there is €8bn in trade between Britain and Ireland annually.

East Coast Bakehouse went into biscuit production in Drogheda during the week of the Brexit vote.

Chief (Taiwan OTC: 3345.TWO - news) executive Michael Carey said: "This industry is really important to the Irish economy.

"It's the largest indigenous industry in Ireland.

"It employs about 250,000 people so it's a major issue if there's any restriction in the current position, the current trading, or even restriction in the current level of growth in the British market."

Business leaders hope the budget will address the immediate issue of the drop in sterling and the longer-term issue of Ireland's tax competitiveness once the UK has left the EU.

But there is real concern that the EU may not appreciate the unique relationship between Britain and Ireland and demand some kind of restriction at the 300 mile long border.

Patricia Callan, director of the Small Firms Association, said: "We had been focused in trying to get our island economy much more integrated so you have many businesses that might have operations in the south and the north, you have many workers that will travel each day across what was the border.

"So you have the issue of both people but also then goods and services and trying to figure out how you would even re-establish customs and the delays that that might cause is a big barrier for us."