Oireachtas Joint and Select Committees

Thursday, 6 April 2017

Joint Oireachtas Committee on Foreign Affairs and Trade, and Defence

Potential Impact of UK Withdrawal from the European Union: Discussion

9:30 am

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

I welcome the witnesses here this morning. Earlier Senator Black asked me whether this was the Brexit meeting. There is another Brexit meeting going on and, increasingly, it dominates our lives. It is hard to believe that only a fortnight has elapsed because every day something new seems to emerge about Brexit. The humanitarian aid sector is one of the areas that have been overlooked by Brexit and its effect on EU action, particularly in terms of international development. I thank the speakers for the presentations.

In terms of finances, considering that Britain contributed up to 15% of the EU's development budget I imagine that there will be a reduction in the budget. I do not see how it can be any other way when the remaining member states have no appetite for increased contributions. This debate is happening at the same time as the EU is talking about forcing EU countries to spend more on military expenditure. A 15% cut is huge and expenditure on military is one area that can be examined to make up the difference. What practical effect do the witnesses think these measures will have on the EU's development projects?

Do the witnesses share my concerns about migration management? Many EU countries has tried to use aid funds to deal with migration development management in front-line states rather than deal with the root cause of the refugee crisis which are war, poverty, oppression, climate change, etc. Are the witnesses concerned about the clear change in direction by many of these countries? Do they believe that the EU is more likely to shift aid aimed at tackling root causes to schemes in front-line states after Brexit?

Mr. McCaughey mentioned the tax situation and I share his concern.

He mentioned a UN document that shows developing countries lose more through tax dodging than they gain in aid and the sum involved is €100 billion annually. I will use the analogy of us shoring up the dam but there is an excessive flow of water underground. I agree with him that Ireland's tax regulations and practices have had a significantly negative effect on developing countries in the form of robbing them of legitimate taxes. I also agree that we need parliamentary oversight.

I note the Finance Act commits Ireland to country-by-country reporting in terms of multinational companies. Dóchas noted that the Government is opposed to the measure. I ask the witnesses to provide further information on this point and identify how it could benefit developing countries.

There is a growing realisation internationally that Ireland has a damaging tax system and that some companies have used Ireland as a tax haven. Do the witnesses believe the tax situation here has undermined Ireland's status and perception internationally?

I am concerned about transparency. I have raised the issue here and in other fora. As we are discussing the EU and international development, I wish to express my concern about the European Development Fund. I have raised the matter with the Minister for Foreign Affairs and Trade and various other European representatives. I am still unclear about how Irish money is spent under the EDF. It is much easier to track Irish Aid spending and to hold it to account when necessary. The EDF was striking with its lack of accountability and transparency, not to mention the difficulty in having a fund that is supposed to be based on the foreign affairs' policies of 27 member states. Some member states are diametrically opposed in terms of their policies on foreign affairs. I understand the logic of having a global fund to fight malaria or AIDs, for example. It is supposed to be an aid programme but it has been linked to foreign policy. I would like to hear the views of the witnesses on this matter.

I was struck by what the witnesses said about peaceful conflict resolution processes and ask them to expand on the matter. Colombia was mentioned. I am conscious that my late friend and colleague, Martin McGuinness, was involved in some of the meetings in Cuba and the positive role they played in the agreement that is emerging. I am also conscious of the transition from conflict to peace and of the huge number of people who have been assassinated and of a huge amount of work that remains to be done.

There are other conflicts around the world where people have sought the help of Ireland - for example, the conflict and decommissioning in the Basque region. I refer to how the old situation in Ireland compares with the current one in the Basque region and to the difficulties in the Basque region because the state has refused to get involved. India and Pakistan are still fighting over Kashmir and there are conflicts in the Middle East. People say these conflicts will never be resolved but people said the same about the conflict in Ireland. Can the witnesses identify areas where Ireland can be of help? The witnesses have mentioned the unique experience Ireland has in terms of conflict resolution. How do they see our role developing?

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