Oireachtas Joint and Select Committees

Tuesday, 16 May 2017

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Brexit - Recent Developments and Future Negotiations: Discussion

4:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

That is valid. I have one last question but I want to make another comment first. The outcome will determine whether there would be a trigger but I expect the normal process in negotiations would involve this being teased out. If that is the outcome, what would trigger the exceptional circumstances provision? Usually, we do not leave it until the end to find out the outcome. I am offering this as something that should be done during the negotiation process.

My last point relates to state aid. I welcome the comments of the deputation on state aid. We have already seen industries being severely impacted as a result of Brexit, for example, in terms of currency fluctuations. The mushroom sector is one case in point.

State aid rules do not require amendment. At this point, they require the flexibility to do certain things. They require the flexibility that is built within them to be utilised. I do not believe this is something that can be left to the end point. Article 107(3)(b) of the Treaty on the Functioning of the European Union relates to state aid rules and is clear. It allows aid to promote the execution of the important project of common European interests or to remedy a serious disturbance in the economy of a member state. I beg the deputation to make it clear as part of the negotiation strategy that Article 107(3)(b) needs to be initiated because of a serious disturbance in the economy of a member state. If that takes place, we would not have to spend six, nine or 12 months negotiating while we see employment in companies going to the wall or people joining dole queues or emigrating. The flexibility is in place.

We have all the research from the Department of Finance. We do not know the outcome of the negotiations, but it needs to be agreed that the provision can be switched on at any time. Brexit should be seen as a serious disturbance. If the Council does not believe that it is a serious disturbance, then what we are reading in the newspapers or what we are hearing in the media suggests something different. I appeal to the deputations to promote agreement in principle at negotiation level that the article can be triggered and that Brexit can be deemed as such.

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