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

I compliment Mr. Arnold and Mr. O'Ceallaigh on their excellent presentations. I am sure they have been influenced by their vast experience of working in national and international public administration. They have outlined the facts in a cold analytical way and the grave challenges that face all of our island.

Mr. Arnold provided statistics on farm incomes and outlined how dependent Northern Ireland farmers are on a transfer of funds from the European Union. It is a pity the matter was not addressed at meetings held by the farm organisations in the Six Counties in advance of their vote to leave the EU. It beggars belief that people from that community voted to leave the EU. Some people must think the British Empire will come back. It is not coming back.

Eighteen months ago we argued on this committee that we had not realised the potential of the Good Friday Agreement and should have pushed for more all-island bodies. However, we are at this juncture. As I have mentioned at previous committee meetings, when one analyses the huge progress that has been made since 1998 one discovers there has been a huge development of trade on a North-South basis and vice versa. I do not think the official statistics, both North and South, capture the great economic development that has occurred in the Border regions, in particular, and further afield.

The following is often omitted from commentary. We have many small enterprises, North and South, whose sole market is on the other side of the Border. Many small enterprises in my constituency, which is comprised of two southern Ulster counties, depend on the Northern Ireland market as their only outlet, apart from the South.

The delegation has highlighted the importance of the agrifood sector and the negative impact that will result when Britain leaves the European Union. The South exports a lot of product and goods to parts of Europe and outside of the European continent. Most of that product must pass through Britain. Sometimes a product leaves an EU member state, goes into a non-EU member State, goes back into a European State on mainland Europe and finally exits in order to reach another destination. With Brexit it is hard to think that there will not be a tariff or impediment to trade at some point along the way. I have asked the Taoiseach whether there were figures available that analyse the level of export products that transit Britain with a final destination that is further afield. Unfortunately the figures are unavailable. I think we have underestimated the difficulties that will arise in the export sector.

The agrifood sector is the mainstay of the rural economy in Ireland. It will be hit hard by Brexit. Let us remember that it is always difficult to regenerate or create jobs in the agrifood sector. I am glad that the delegation has put a strong focus on the challenges that face the agrifood sector.

Like myself Mr. Arnold has experienced agriculture meetings in Europe. I have never heard the British Minister or his officials argue for more money to be distributed through the CAP programme to farmers in Northern Ireland. Those farmers think that the £300 million plus will be compensated for by a direct payment by Westminster. They are fooling themselves because I know the attitude of successive British Government to funding for the agricultural sector.

Another important development that is always laudable is the development of major food companies on an all-Ireland basis. The programme has been given huge impetus since the late 1990s. One can think of the main dairy producers. In my own constituency there is Lakeland Dairies, the Town of Monaghan Co-Op Limited and LacPatrick. They are all-Ireland companies that have sites on both sides of the Border. As the witnesses have rightly pointed out, raw materials travel North and South. There will be great difficulties if we have two regimes in terms of sanitary standards, etc. We need to identify the challenges and create an awareness about them among the public at large.

Dr. McDonnell has made the good point, as did Mr. Mark Durkan in different fora that I have heard him speak in, that we must safeguard the architecture of the Good Friday Agreement and its workings. I have no doubt that the vast majority of MPs in Westminster have not lost sleep about the Good Friday Agreement in the context of Brexit.

Again, I thank the witnesses for their excellent contributions.