Oireachtas Joint and Select Committees

Thursday, 15 December 2016

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Economic Impact of Brexit: Discussion (Resumed)

2:00 pm

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein) | Oireachtas source

I thank the Minister for her presentation. I welcome her comment that the peace process is the first priority. We all agree that when the referendum took place in England, it was not really discussed. English people were not aware of the implications it would have for themselves and for this State and as such it is very welcome that in this regard it the first priority of the Government.

The Minister might be aware that a document was produced on Monday from the House of Lords commission on Brexit. I do not know if the Minister has read it yet, but I encourage her to do so. It is probably one of the best documents on Brexit to have been released so far. Some of the comments I want to make relate to some of the suggestions in it. Similar topics have been raised here already. In a line that jumps out at me and which should be red-flagged by everyone, it warns that Ireland's unique vulnerability is not being taken seriously enough in Brussels or in London. That is a report from the House of Lords dealing with the impact of Brexit on Ireland alone. Last year and before the referendum was triggered in the UK, the Irish Government warned of potential negative consequences for the country's economy and of the still-fragile place in which the peace process remained. We need to ensure that the peace process is protected. The House of Lords report also warned that the North must not become collateral damage as part of the Brexit process and expressed concern the implications, of which are all well aware, for the Irish economy. The report noted that Brexit will impact on all aspects of life and in particular on the substantial cross-Border trade in meat and dairy products.

The report also stated that Northern Ireland's economy was already characterised by the highest levels of deprivation, unemployment and poverty, a fact that we are all well aware of. It said that while the Republic might be well placed to respond to the economic challenges that Brexit will represent the North will not be in a similar position. One of the conclusions reached in the report reads: "The only way to retain the current open border in its entirety would be either for the UK to remain in the customs union, or for EU partners to agree to a bilateral UK-Irish agreement on trade and customs". Having sail all of that I would like to know the following. What are we going to do to ensure that the North's special status is maintained? Let us remember that 56% of the people in the North voted to remain. We do not want them taken out of the European Union against their wishes. A retention of the North's status must be delivered in the upcoming negotiations between the Irish Government and whoever conducts the negotiations.

I wish to talk about infrastructure. Last Monday the House of Lords EU committee report was published. On page 12 it reads: "Dublin’s limited infrastructure and shortage of housing might deter financial firms from relocating there". I have raised the issue of infrastructure on a number of occasions during Dáil Question Time. Infrastructure is of critical importance in Dublin and across the country. For example, data provided by the Department of Finance found that the food and beverage sector and the manufacturing sector are the most at risk from Brexit. As has been said here before, these sectors primarily consist of small Irish-owned SMEs that are significant regional employers but with comparatively low profit levels. The report continued: "The Irish Department of Finance has also noted that profit margins make it difficult for Irish SMEs to diversify away from the UK market, given the lower fixed costs associated with exporting to the UK ... due to a shared language, legal system and culture". Does the Minister accept that infrastructure is central in her efforts to minimise the impact of Brexit? If so, what does she intend to do about infrastructure in this country?

My next question is on trade with the EU. The report states: "A paper by Durham and Newcastle Universities also suggests that Brexit is likely to rebalance Ireland’s trade relationships away from the UK and towards the remainder of the EU". Does the Minister have a contingency plan in the event that Brexit becomes a reality? Does she agree with the suggestion made in the report?

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