Dáil debates

Thursday, 21 April 2016

12:20 pm

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail) | Oireachtas source

In 1973, both Ireland and Britain joined what was then known as the European Economic Community. In the years that have followed, both countries have undergone a dramatic transformation, in many parts thanks to membership of the European Union. In the Republic, Structural Funds have vastly improved our infrastructure, the Common Agricultural Policy has been a key catalyst in the enormous and welcome development of our agrifood sector, while the Single Market opened up new countries in which to trade, study, travel and work. Furthermore, we have benefited greatly from our position within Europe as an attractive location for foreign direct investment.

The Republic has also experienced a social revolution. As a result of our membership, Ireland is now a more diverse, plural and open place to live, study and work. The EU has been at the helm of innovative and transformative policies that have enhanced social, cultural and legal rights in Ireland, introducing measures such as equal pay for equal work and promoting the rights of people with disabilities. The Organisation of Working Time Act, for example, put into law rights for workers in regard to the maximum number of working hours, entitlement to rest breaks and so on, while the Equal Status Act outlawed discrimination on nine grounds, including gender, race and religion. As a consequence of our membership, the Republic of Ireland has been transformed from a primarily agrarian and insular society to a progressive, dynamic and outward-looking country and the EU has played a significant part in the modernisation of Irish social policy.

The benefits of EU membership are also visible in Northern Ireland. Much of the social, cultural and economic functioning between North and South, and between Ireland and Britain, is simplified by the fact that both are EU members, which has allowed us to forge common bonds at EU level and to foster good working relationships. Undoubtedly, the positive relationships and common bonds developed at EU level were and continue to be central to the workings of the Good Friday Agreement and the peace process. I know from my own limited experience as a Cabinet Minister attending Council of Ministers meetings that, in many instances, the British are our closest and best allies. We may have very fundamental differences in some areas, be it CAP or otherwise, but on most issues that come before the EU we are close allies. EU funds have played an integral role in facilitating peace and improving relations on the island of Ireland. These funds have been used to support peace and reconciliation initiatives and cross-Border projects, as well as addressing the disparities that arise from peripherality, which are all the more acute in the Border regions.

It is 43 years since Ireland and Britain embarked on this journey. As I said, much has changed in those years. Now a bloc of 28 countries, Europe as a whole holds considerable sway in international affairs. The EU derives its visibility and influence on the world stage to a large extent from its unity on subjects such as its trade policy but also on terrorism, crime and illegal trafficking. As we know, crime and terrorism know no borders and the EU works collectively to address threats to our peace and security. Unfortunately, we have seen the difficulties in that area in recent times. The EU supports actions intended to increase operational co-operation, such as strengthening networking, information sharing, mutual confidence and understanding. The EU also works closely with other international organisations such as the United Nations and has positively positioned itself as a key player in the developing world, assisting some of the most vulnerable people in some of the poorest regions on this planet.

A recent report published by the ESRI highlights the possible economic implications of Brexit for Ireland across four areas: trade, foreign direct investment, energy and migration.

The findings make for sobering reading and it is clear from the report that the consequences for the entire island are indeed far-reaching and wide-ranging. Among the findings of the report is an estimation that a Brexit could reduce bilateral trade flows between Ireland and Britain by 20% or more. Less foreign direct investment is likely to result in slower economic growth in Britain, which in turn would impact negatively on Ireland's economic growth. The report also refers to the all-island electricity market that has existed since 2007. If the electricity market in Britain remains independent of the rest of the European Union, interconnection with Britain only would leave Ireland vulnerable to any problems in the British market.

The report also refers to migration and underscores that a British exit from the EU opens up the possibility of restrictions on the free movement of people between Ireland and Britain for the purposes of work. As we all know, Britain has long been a destination for many Irish people seeking work, especially during times of high unemployment. An exit from the EU could have significant repercussions for the Irish labour market. The findings of the ESRI report are stark and underscore the seriousness of the issue.

The referendum will take place on 23 June. It is clear that we need to give a major impetus to a national conversation on the implications of Brexit and what it would mean not only for Ireland but for the European Union as a whole. If Britain were to leave the EU, the nature of the most successful transnational organisation ever created would be irrevocably changed. Fianna Fáil believes that a far greater awareness needs to be created throughout the country of the gravity of this issue in respect of trade, employment, tourism, free movement and Northern Ireland, since Britain is our nearest neighbour and our largest trading partner. If Britain votes to leave the EU, the knock-on effects would be felt throughout the country but in particular in the Border area. This includes my constituency of Cavan-Monaghan where serious consequences would be felt.

As has been stated earlier, in particular, by the Fianna Fáil party leader, Deputy Micheál Martin, we must re-establish EU solidarity. This is vital if we are to convince Britain and Northern Ireland to remain part of the European Union. The normal EU spirit of solidarity and co-operation between member states is best illustrated in the Border region. PEACE funding has been vital in supporting the fledgling agreement framework. Co-operation between Ireland and Britain has been the engine of the Good Friday Agreement. Our role as co-guarantors binds us together. Those links were forged in the common ground of the European Union and they need to last. Breaking this link by a unilateral British and Northern Ireland withdrawal would deal an immense blow to our capacity to work together. We must do everything we can to safeguard Ireland's political and economic future. Fianna Fáil has been and will continue to be vocal in supporting Britain remaining as a full member of the EU.

Britain has a population of 64 million people and GDP of £3,000 billion, making it the second-largest EU member state in population and economic terms. Britain is Ireland's most important trading partner. Importantly, our exports to Britain are wide-ranging with the computing, chemical, pharmaceutical and agrifood sectors being the most prominent. Irish agrifood exports to Britain represent approximately one third of Ireland's total merchandise exports to that country. Therefore, Brexit represents a major concern to the Irish agrifood sector. In 2014, Ireland exported €4.5 million worth of agrifood products to Britain, primarily in the form of beef and dairy products and processed food. Any impediment to this trade would have major knock-on effects on the entire farming and agrifood sectors. At present there is no certainty in respect of the loss in Irish agrifood export value. Obviously, this would depend on Britain's future trading relationship with the 27 other member states of the European Union as well as the direction of British agricultural policy, both of which remain unknown. Some commentary by the leave campaigners suggests there is a ready-made trading arrangement should Britain exit the EU. This is blatantly false since an exit from the EU would necessitate a new trade deal.

A recent economic report outlined clearly that Brexit would have a bigger impact on Northern Ireland than England Scotland or Wales. Northern Ireland agriculture policy would be most under threat due to its dependence on transfers from the Common Agricultural Policy to support the farming sector there. Davy Group stockbrokers has estimated that sterling could drop by up to 25%, which would have major ramifications in respect of trade between Britain and the eurozone area. Fianna Fáil is committed to creating a cross-Border economic development zone to promote job creation in the Border counties. European support will be vital in this regard. North-South links in the areas of education, health, justice and enterprise have always been framed and assisted by our common membership of the EU. The prospect and necessity for further economic development based on the all-island model would be dealt a serious blow with the prospect of new border regulations from Derry to Dundalk and co-operation would be adversely affected.

The Irish and British labour markets are heavily integrated and our relationship with Britain in that respect is markedly different from continental European countries. Historical ties, common language, ease of travel and social networks reflect emigration by earlier generations, and enterprise integration in Ireland and Britain facilitates this movement of labour. The common travel area established in the 1920s is of particular importance to both countries. In effect, we have a special relationship, including passport-free travel and the sharing of immigration data between both countries' immigration authorities. Brexit could entirely change these relationships which date back almost a century. There would be adverse effects on the labour market and on trade and tourism. I believe that it is absolutely incorrect for the Northern Ireland Secretary of State, Ms Theresa Villiers, to state that in the event of a Brexit, the Border between Ireland and Northern Ireland would remain unchanged. The question must be posed as to how she can make that claim. It should be fairly clear that there are no other external EU borders that do not come with concrete border controls. While Britain and Ireland may have a special relationship, Ireland's relationship with the EU will require it to protect the EU's borders. We could be sure that in the event of Brexit, the State would be pressurised by the European Union to establish border controls along the EU's external border. We need to be cognisant of a British Cabinet Office report which found that in the event of a British exit from the EU, the re-introduction of customs controls on the Border would swiftly follow. That would mean a major security presence along the Border. The Northern Ireland Secretary of State referred subsequently to common-sense arrangements being established. We all know that it is often hard to build common-sense arrangements into international agreements. How would we write those regulations? We would be in a totally new situation as the only land frontier between Britain and a European Union state. It is also worth noting the comments of a senior pro-Brexit figure, the former UK Chancellor of the Exchequer, Nigel Lawson. He said categorically that Irish Border posts would have to follow a British withdrawal. He was supported in his remarks by another eurosceptic Conservative member and junior minister Mr. Crabb. In the event of a vote to leave the EU, the timing of Britain's departure is also unknown. Let us consider the chaos and bureaucracy associated with the winding down of the EU programmes in Britain. Many EU programmes such as CAP run to 2020. How does a sector disengage from those programmes while at the same time forging new trading relationships?

This British referendum on EU membership and any resultant negotiations mark a potentially defining shift in British-Irish relations.

The prospect of a fresh wall of regulation being built between Derry and Newry would deal a massive blow to years of efforts on cross-Border reconciliation and growth. A British exit from the EU would remove the common ground that facilitated much of the progress in Northern Ireland. Ireland cannot afford its largest trading partner and only state with which it shares a land border to leave the EU. While not participating in the referendum in other jurisdictions, we as a party wish to see a vote that will ensure Great Britain and Northern Ireland remain in the Union. I believe there is an obligation on all of us in public life to make our position clear

As a person who grew up in a Border parish and who lived beside permanent vehicle checkpoints and customs posts, I do not want them to return to our island. The message needs to be clear about the potential damage to our country, from an economic point of view and from a social point of view and from the point of view of all of us going about our daily business, of the difficulties, hindrances and obstacles that would become part of our normal day-to-day living. Thankfully, today along the Border in south Ulster, there is a huge movement of people between counties Cavan and Monaghan and Fermanagh and Armagh to work and vice versaas well as along the Border between counties Derry and Donegal and counties Down and Louth. We have to ensure those people do not face the obstacle of customs posts and other controls while they go about their daily business.

I had the privilege of speaking at the SDLP party conference last month on this issue. We need society to be engaged. I am glad most of the political parties in Northern Ireland are active in a campaign to seek support to remain in the Union but I am disappointed that the DUP, which gains widespread support from the farming community, is advocating a "No" vote. The Minister will be aware, as will anybody who has the privilege of serving in government, that on a weekly basis, Government representatives at official level and at political level support the Northern Ireland administration as well Northern Irish farmers and fishermen and other sectors to derive the best benefits from the EU. Often, the people of Northern Ireland depend on our Ministers to champion their cause at the Council of Ministers. We want, as a State, to continue to do that work.

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