Michelle Mulherin (Fine Gael) | Oireachtas source

I welcome the witnesses. My first question is on the efforts that have been made by the remaining member states to attract banks and financial services. There are reports that there will be a race to the bottom in terms of supervisory standards, which, considering all that we have been through with the banks not only here but abroad, is shocking. My colleague has asked if there will be flexibility so that we can attracts banks and financial services to Ireland. In what areas will we be allowed to be flexible? Where can wheeling and dealing be done to attract businesses without compromising standards or taking an undue risk of compromising a system put in place to protect people in member states who have had to bear the brunt of the near collapse of the banks?

I have heard comment and discourse in the media suggesting that if we do not get what we want in the event of a hard Brexit, we should leave or threaten to leave the European Union. This does not appear to be a sensible proposition. It is not clear what the British want from Brexit or even if they know what they want or know how they propose to get it. All we have heard is what they do not want and everything seems to point towards a hard rather than a soft Brexit.

The witnesses described how our dependence on the UK market has declined since we joined the European Economic Community in 1973. Sectors such as agrifood and indigenous manufacturing continue to rely on the UK, however. People in the west are not expecting financial services companies to wing their way over to us. Galway city is probably the only location in the region that stands a chance of securing such investment. We are preparing in whatever way we can for Brexit. I ask the witnesses to comment on the suggestion that the Government's position was weakened by its failure to threaten the European Union with leaving.

On the rules associated with the fiscal compact, the witnesses and speakers at previous meetings described the need for businesses to restructure and find new products and markets. The Government intends to assist companies to do this. This will require an increase in expenditure, which could put pressure on the Government to increase the fiscal space. Should the Government seek a derogation from the expenditure rules under the exceptional circumstances provided for in the treaty? Is such a derogation being considered and would it give us flexibility to deal with the fallout from Brexit, especially given the current trajectory of the negotiations?

On state-aid rules, certain regions, specifically in the west, are especially disadvantaged and are not experiencing the economic recovery to the same extent as other regions. Figures from the 2016 census show that the population in the west is declining and ageing. The reason for these trends is that young people are leaving owing to a lack of job opportunities. Another critical factor is that areas in the west do not have good infrastructure and did not benefit from investment in roads and rail during the Celtic tiger period.

Ireland West Airport Knock is strategic infrastructure in which has been earmarked for growth. State-aid rules present an impediment to its expansion, however. I understand a temporary arrangement in respect of state-aid rules was in place in 2009 which allowed us to deal with the banking crisis. Could we do something along these lines again and invest in infrastructure in disadvantaged areas to stave off the negative effects of Brexit and address infrastructure deficits? This would allow us to fund Ireland West Airport Knock without seeking the European Commission's approval every time the airport requests additional funding. I understand the maximum percentage of funding that can be provided is 90%, whereas Ireland West Airport Knock needs 100% funding in certain areas. Under current rules, the airport can only be offered assistance in safety and security measures, which precludes capital investment for expansion. I ask the witnesses to address the issues I have raised, especially my final point.