Most company leaders think we are ill-equipped to deal with the fallout from a Brexit

BREXIT WORRIES ARE weighing on Irish businesses ahead of the country’s impending in-out referendum on EU membership, with most company leaders saying we are ill-equipped to deal with the fallout.

A survey of nearly 400 members of the Institute of Directors in Ireland (IoD) found more than 90% were worried about the possibility of the UK leaving the European bloc.

A similar share of those polled believed it would have a negative impact on Ireland’s economy if our near-neighbour turned its back on the EU, while more than four-fifths thought the government here wasn’t properly prepared for a so-called Brexit.

The ESRI has predicted that trade between the two countries would drop up to 20% if the UK went for the leave option after next month’s vote.

Increased trade barriers between the territories and a devalued pound are both expected to hit Irish exporters, particularly SMEs that are poorly equipped to deal with policy changes.

Former London mayor and leading 'Leave' campaigner Boris Johnson, left

A big risk

A separate business sentiment survey out this morning from KBC and Chartered Accountants Ireland showed a notable dip in confidence - although it still remained well in positive territory.

Uncertainty was weighing on the corporate sector, it said, with a large share of those surveyed identifying an increase in downside risks for their businesses.

Some 37% said they thought a Brexit was the biggest risk to their business, although that was behind the share that identified ‘slowing global demand’ as the greatest problem.

KBC Bank Ireland chief economist Austin Hughes said the possibility of Britain leaving the EU and political instability at home were both weighing on business.

“The range of concerns raised in the survey highlights the variety of clouds in the economic sky at present and the diversity of the business circumstances of individual companies,” he said.

Irish effects

Concerns over a Brexit have recently been credited with driving down farm values in parts of the country, among other issues, with the departure of Ireland’s second-largest export destination from the EU likely to weigh most heavily on farmers and food and drink producers.

However the move, which Britons will vote on next month, has also been identified as a possible boon to the financial sector in Ireland, as well as IT and pharmaceuticals, as multinationals may shift operations to the Republic as the only remaining native English-speaking EU member state.

The ‘remain’ side has recently surged in Brexit polls ahead of the referendum – although voter turnout is expected to be key in deciding the policy.