Mr. John Kelpie:

It is a great privilege to represent the ten councils in the Border area, six on the Southern side and four on the Northern side. We represent more than 1 million people on the island. It is a true cross-Border and cross-community partnership. As advised, we have been collaborating for a considerable number of months and are beginning to understand the potential impact of Brexit along the Border corridor. More importantly, we have begun to move towards some solutions and potential mitigation that is most definitely required.

It has been very obvious for the last decade or so, in particular, that enormous progress has been made in Border counties. There has been huge economic development, considerable physical and environmental development and huge social change all along the corridor brought about not least because of the influence of the European Union and, of course, the national governments of the two jurisdictions. It is very clear, however, that Border council areas and the Border region, in particular, still lag behind national or regional averages in terms of productivity, labour participation rates and household income. There are quite a few very negative indicators that have stubbornly refused to move during the years. Some of this can obviously be explained by peripherality and poor connectivity. It is also a feature of the fact that the economic structure in the Border region and the differentials for companies across it are unique. The sectors within which the firms operate are unique in terms of their size and ownership. While there are differences across the region, there are some very common issues that we wish to explore with the committee.

It is our contention that Brexit will impact across the piste on matters such as trade, migration and particular sectoral areas such as agrifoods and fisheries and also very much on inward investment. We are already beginning to see a very significant impact in terms of delayed investment. In particular, we forecast an impact on trade between the two parts of the island. That is an obvious statement, but some of the figures we will share with the committee will show the level of integration in Border areas. In the agrifood and fisheries sector, as well as transport and logistics, some of the figures are quite startling.

On trade, more than €3 of every €10 worth of exports from companies in Southern Border areas goes to the United Kingdom. The United Kingdom is the single biggest market for firms in Border counties, after the rest of the European Union. It is a bigger market than north America, Asia and the rest of the world combined. More than half of exports from Border counties are in the agrifood, financial services, construction and engineering sectors. There is a similar story north of the Border. Approximately £2.20 of every £10 in external sales generated by companies on the Northern side of the Border goes to the EU market.

That is a significantly larger percentage than that for the rest of Northern Ireland which only accounts for 10%. Some 22% of all sales in Northern Border counties are into the Republic of Ireland and the rest of the European Union. The Republic of Ireland is the second biggest external market for firms in Border areas in the North.

In the agrifood sector 35% of the milk produced in Northern Ireland in 2015 was exported to the Republic of Ireland. Some 45% of the meat produced in Border counties went to Northern Ireland and, of course, in a hard Brexit or no deal scenario these exports would potentially be subject to WTO tariffs, which are excessive, as we know.

In the fisheries sector 65% of fish landings are in Killybegs, County Donegal. It is a little known fact that 7% of the entirety of fish landings in the United Kingdom are in Kilkeel, County Down. They are shared waters at this time. There are very real concerns that post-Brexit the sector will be affected extremely detrimentally and that the level collaboration and these very important trading figures will be severely impacted on.

The concentration of businesses and employment in these two industries in the Border corridor leaves the area especially vulnerable and exposed to risk. There is a need to recognise that many farm, fishing and agrifood enterprises are small in scale with a low turnover, which also makes them particularly vulnerable.

On transport and logistics, the Border is 500 kms from Carlingford to Lough Foyle, the area in which I am privileged to work. It divides rivers, fields, farms, households and businesses. There are almost 300 Border crossings and some 6,000 lorries cross the Border every day, many of them on their way to and from ports. We have Warrenpoint at one end of the Border, the third largest port in the United Kingdom, and Foyle port at the other. Many of the exports and imports are distributed along the west coast of the island and beyond.

In the packs provided and the slides we have done a little bit of work in looking at cross-Border commuting patterns. They show the level of integration across the Border region. In my council area which has a population of 150,000 there are 360,000 movements across the Border each week. They include families, those involved in businesses and others travelling for education or work purposes. Approximately 40% of the cars parked in Derry city centre during the day have Donegal registration plates. The situation in Letterkenny town centre is similar, with somewhere between 30% and 35% of the cars parked during the day having Northern Ireland registration plates. The level of integration cannot be underestimated. Frankly, we ourselves are astounded when we look at the detail and the figures, that integration is so ingrained across the Border region.

Another key fact relates to the dependence of Northern Ireland firms along the Border, as well as Southern Irish firms, on immigration to sustain them. The level varies per sector. In the restaurant and hotel business sector almost 25% of all employees along the Border corridor are immigrants. Some 20% work in administrative areas and 22% in manufacturing. There is, therefore, very significant reliance on migrant workers. The Border councils in Northern Ireland received over 50% of the entire population of new migrants last year. The Southern Border counties receive over 20% of the entire national migrant population. We can, therefore, begin to see the absolute dependence on migrant populations on both sides of the Border.

We have documented in our report the impact of Brexit and have a very substantial evidence base, but we have moved in recent times to begin to look at potential mitigation measures. I am very pleased to hear some of the comments emanating in recent times from the two Governments in particular and note the direction of travel taken. A key for communities living along the Border corridor is ensuring we will not have an economic border post-Brexit, that Northern Ireland producers will have tariff free access to the Republic of Ireland market and the Single European Market, that we will retain the right for Northern Ireland producers to freely access the wider Great Britain market, that Republic of Ireland producers will have free access to the Great Britain market which accounts for over €1 billion worth of business per week. In that regard, the quality and traceability of products will be essential. The migration issue as it relates to Border counties means that there must be free access to labour, both North and South.

In terms of economic solutions, it is true that weak economies will become weaker as a result of Brexit. Border councils have for some time been working on macro solutions that will once and for all change these vital statistics and ensure Border areas can become a net contributor to the economies on this island, both North and South. We know what strategic interventions are required and in the lead-up to and post-Brexit these strategic interventions will remain the same. We must ensure we minimise peripherality and improve connectivity both in terms of infrastructure, including road projects such as the A5 and Narrow Water bridge, as well as other vital infrastructural projects. We must also ensure we get to grips with the rural broadband issue - the virtual connectivity issue. The rail network, in which very substantial progress has been made in recent years, needs a final push to ensure connectivity, to and from the capital city and among other cities on the island, will be as smooth as possible. We can address the issue of infrastructure now; we do not have to wait for Brexit to happen. There are indications that very significant progress has been made in dealing with some of these issues, but we can prepare now and the two Governments can assist us in that mission.

On support for Border businesses, we recognise that across the two jurisdictions there has been very considerable support for small businesses in recent years, but they are particularly vulnerable. We contend that the level of support should increase. More information and advice are required for some of the very small or micro companies on tariffs. Of course, councils are very willing to play a part in that regard. The agrifood industry, in particular, as I mentioned, faces very significant challenges and needs assistance in beginning to plan for the future.

That is a very brief summary of the content of the report. I will hand over to my colleague from Louth County Council to make the second part of the presentation.