Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

Brexit is a centre stage at the moment. The visit of our negotiator, Mr. Michel Barnier, two weeks ago left me even more concerned. I can hear the water tumbling over the cliff edge. It is no secret that Mr. Barnier indicated there would be great flexibility in the movement of people.

What I heard in the visit and subsequently is that there would be no flexibility in regard to services and goods from the European side and similarly, no flexibility from the UK side in terms of what would be needed to retain them within the customs union. In those circumstances that is the cliff edge. It is very hard, politically, to see how we can steer away from that. I think we need to change tack to try and avoid it but it seems to be coming.

There is a crucial issue for rural Ireland and that is recognised but there is also an issue for digital services. I would be interested to hear what the witnesses know or what members in that area believe will happen if there is such a cliff-edge approach where we cannot get a transitional deal and the UK crashes out. I accept that people have said we will revert to WTO rules. Have the witnesses looked at the implications for software or digital services companies? Has analysis been carried out on what are the constraints? I was interested in the comment about a potential 24% increase in administrative costs but there may be other issues, for example, if one is sharing data with the UK as part of one's service system. For example, will we be able to transition straight into a safe harbour or other arrangement that allows those data transactions to be part of everyday business, which is what they must be?

If we are not in a customs union, I imagine the import-export business will be very complex. A lot of companies rely on products provided through the UK, via the Birmingham and Manchester distribution system. One sees trucks coming over here carrying everything from sandwiches to high-tech devices that feed into our industries and go back out again. Are people looking at an alternative distribution system to that? Is it viable to look at a continental link via Rosslare where some of those globally traded services might come in?

Given the scenario which the witnesses seem to share, are we hearing about any difficulties for Irish exporters in terms of financial institutions giving credit? If someone is looking to make an investment or agree credit terms around a future trading arrangement, at what point will the banks say they are sorry but they are nervous about lending on a facility because they do not know what the business case is for import-export businesses? Is there any sign yet that financial institutions will start to be nervous about providing credit for companies that might be exposed in that regard?