Oireachtas Joint and Select Committees

Thursday, 9 March 2017

Joint Oireachtas Committee on Foreign Affairs and Trade, and Defence

Implications of Brexit for Irish Exports: Irish Exporters Association

9:00 am

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

We all agree that Irish jobs should not be lost because of a decision made primarily by English and Welsh voters. That is where we should start this debate.

Ms Byrne mentioned air and sea links and the significant amount of Irish goods shipped through Britain to continental Europe. Do the delegates have any idea for what percentage it accounts? Ms Byrne stated more preparations needed to be made. Will she expand on this point? The Government will state budget 2017 included measures as part of the preparations. Does the Irish Exporters Association believe they are enough? What more do we need to do as a state?

The idea of connectivity with the rest of Europe includes energy. Our access to energy markets is through Britain. At one stage there was talk about an interconnector between Ireland and France. Do the delegates believe this project should now be spearheaded because of Brexit? Do they believe we are vocal enough on the idea of special funding to build our ports in order that we will be able to use alternative routes? What are their views on the matter?

Brexit has unique implications for Ireland. Does the Irish Exporters Association have a view on a special relaxation of the fiscal rules for Ireland because of our unique position? Has it discussed this issue? Ms Byrne spoke about competitiveness. Unfortunately, everyone runs off and states labour costs represent the biggest competitiveness issue. It is not necessarily the case for Irish business that labour represents the biggest cost. Some of it has to do with upward-only rent reviews and child care and other costs, including the cost of rent and accommodation for workers. Do the delegates agree that if the 12.5% corporation tax rate was implemented in full for every company, it would grow the tax base and allow us to reduce personal tax rates? I have huge sympathy and concern for SMEs which provide jobs throughout the State as they are not afforded sweetheart tax deals.

I understand and sympathise with Ms Byrne's statement that we need more of a focus on trade between Ireland and Britain, not simply a focus on the North and the imposition of a border because east-west trade is extremely important. Ms Byrne mentioned the importance of food and agricultural exports, a matter about which the Chairman also spoke. Does the Irish Exporters Association believe there is a demand for quality food in Britain? Ms Byrne spoke about customer surveys. People state they want quality food and that it is not just about how it is presented but what goes into it. They are concerned about genetically modified foods and additives. Most people who eat meat would not necessarily want to find antibiotics in their food stock. How important is this issue? Are we raising a particular fear that might not necessarily reflect people's eating habits? There is a huge demand for fast food, as we can see in our communities. People do not have a clue how to cook and there is an over-reliance on convenience foods, something about which I am concerned. Many Irish food products do not go down the fast food route, which might be a benefit. Is the Irish Exporters Association concerned about the idea of products coming in through Britain and the North and being dumped here?

Ms Byrne mentioned the importance of food and agricultural products. A border would be devastating for the milk industry. This issue is mentioned at every meeting we attend and the figure of 1 billion litres of milk crossing back and forth for processing has been discussed. It will be a mess. We would all put up our hands and state not enough preparations are being made. We will not get into serious negotiations until Article 50 is triggered. Do the delegates have a view on this? Do they believe the preparations about which they spoke should be made? The World Trade Organization has estimated that 600 million litres of milk will be subject to an aggregate tariff of 45%. How will this work out for producers, North and South?

I am also surprised that there is no mention of InterTradeIreland. People speak about its importance and the returns we are getting. Do the witnesses have a view on that and should there be greater investment in it? I understand there is supposed to be 60:40 investment but the rules do not apply to investment in the State. Is that a way forward and to get around those regulations?

The witnesses said the Government needed to attract more FDI from the Middle East, China and India. What opportunities should we be looking at and at what industries? Are there new markets? Has the association spoken to the Iranian ambassador who says they are crying out for greater co-operation. Is that market positive? There are difficulties about Irish companies investing in Iran, but how will that move forward?

What can the Government do to create more indigenous industries? Is there a lack of support for SMEs to help them get off the ground, grow and export? What specific things can the Government do? Was enough support provided in budget 2017?

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