United Ireland would cost €3bn in first year, report says
The report published this morning by Dublin City University and Ulster University showed an initial investment of €1bn in public expenditure would reduce the cost of a united Ireland gradually.
It said that a deficit in public finances would last between five and nine years, depending on economic growth.
It is the first peer-reviewed report to calculate the cost of unity over its first ten years.
The public spending deficit that the Republic of Ireland would inherit from Northern Ireland would be around €1.75bn, according to the report.
Implementing a 48% increase in public pay gradually would bring wages in Northern Ireland in line with the Republic's.
Equalising these wages would cost €152m per year, for 15 years. Meanwhile, balancing public sector pensions would cost around €115m a year for 40 years, according to the report.
Looking at three different scenarios, the report said Northern Ireland would be able to reduce its deficit through economic growth.
It said that previous projections have "grossly exaggerated the probable real cost of unity".
One of the report's authors, Vice President for Research in Dublin City University Professor, John Doyle said: "There is no obvious reason why Northern Ireland would remain so much poorer and so much less economically productive that, for example Munster."
Govt 'committed' to United Ireland as SF says reunification a 'huge' opportunity
Minister for Finance Paschal Donohoe earlier reiterated the Government's "commitment" to a united Ireland, after Sinn Féin TD Matt Carthy asked if the Government would commit to planning and preparing to deliver a united Ireland.
Speaking in the Dáil, Mr Donohoe said the coalition and previous administrations have made clear their "commitment" to the cause.
However, they have also made clear the steps that are needed to "bring us closer together and to unite this island," he added.
"That's already happening," Mr Donohoe said, using the example of the Shared Island Fund and the work the Government has done to "deal with Brexit".
He said those who point out "economic consequences" are not necessarily "opponents" of a united Ireland.
"We should be able to have a fair and open debate regarding an issue that is so important," the minister said, and the Government will put forward practical steps to "bring us together".
Mr Carthy had referred to the DCU and Ulster university report in questioning and said that it "highlights the reunification of Ireland is a huge opportunity for us all".
"The cost of a united Ireland has been exaggerated partly because what is called the UK subvention has been misunderstood and misinterpreted," the report said.
"At the same time, the potential for economic growth in an all-island economy, where Northern Ireland is once again inside the European Union, has not received sufficient attention."
Mr Carthy said the report found that the costs of unity would be far lower than had previously been "put forward opponents of Irish unity".
He said the research has delivered a "fatal blow to any economic arguments that might have been presented against a united Ireland".
Mr Carthy said the Government needs to "step up and grasp the massive opportunities for all of the people of Ireland's 32 counties".
"This generation in my view can reunite Ireland but the Government needs to come off the bench and get onto the pitch." he said.
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