Oireachtas Joint and Select Committees

Tuesday, 12 May 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

All-Island Economy: Discussion

1:30 pm

Dr. Anthony Soares:

On cross-Border studies, I raised the possibility of a Brexit and how that would fundamentally place an effective all-island economy - if such a thing is to be pursued - at risk. Mr. Gough also highlighted the fact that one of the things InterTradeIreland has been very successful in doing is enabling cross-Border co-operation between businesses and research institutes in the context of drawing down Horizon 2020 funds. These are European funds which lead to innovation. Northern Ireland, in particular, has been assisted by the allocation of European funds.

One of the themes to be addressed at this meeting is that relating to job creation and the possibility of staff exchanges, North and South. The European Union has funded a very successful project run by the Centre for Cross Border Studies, which is the Border People project. If we are discussing the creation of an all-island economy and co-operation, North and South, then the mobility of citizens between the two jurisdictions in order that they might work, study, live and retire in either is a factor. Such citizens need information and the Border People project currently provides it. It is a very practical project and has been funded by INTERREG. Research undertaken in 2010 indicates that at that time there were an estimated 23,000 cross-Border workers. We know that this is an underestimate because it was only those 23,000 who identified themselves as cross-Border workers. There are many more individuals out there who might not perhaps be forthcoming in terms of identifying themselves as being such workers as a result of the lack of information regarding their general rights, their duties in the context of where they should pay taxes and their rights when it comes to retirement.

We have received support from the European Union in respect of this very practical project, which has been assisting many citizens and providing free advice. However, as is frequently the case in circumstances of this nature, the European funding for the project has come to an end. We have tried to identify alternative funding so that the project might continue in the absence of INTERREG funding. In that context, we have sought the support of the Department of Foreign Affairs and Trade through its reconciliation fund. Unfortunately, we do not believe we will obtain all the funding necessary to support all the activities relating to the project.

Situations of this type arise frequently. In other words, we receive European money to fund very positive projects that help in terms of economic development, particularly cross-Border co-operation, but once that money runs out, there is no desire on the part of the authorities in the two jurisdictions to step in and say "Yes, this is a valid project, it needs to be supported and we will both provide that support". It seems to be the case that if one jurisdiction does not become involved, the other will not do so. Both tend to wait to see who will step in first and by the time a decision is made, the relevant project is already dead and the expertise relating to it is lost. It is very difficult to get such projects up and running again.

The threat of a UK withdrawal from the EU is serious. Such an exit would place the possibility of creating an effective all-island economy in serious doubt.

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