Oireachtas Joint and Select Committees

Wednesday, 7 June 2017

Seanad Committee on the Withdrawal of the United Kingdom from the European Union

Engagement with All-Island Bodies

10:00 am

Photo of Paul DalyPaul Daly (Fianna Fail) | Oireachtas source

I would like to pre-empt every question I am about to ask by saying that like the delegates, we are hoping for the best. I mention that in case I am portraying this committee as the ultimate in pessimism. We want the best outcome, but we have to plan for the worst-case scenario. I would like to tease out with the witnesses a few issues that might arise if the worst-case scenario comes to pass.

The all-island bodies are unique. It is appropriate that the ICMSA is represented here today, rather than at the meeting which was attended by representatives of the other farming bodies, because the milk sector has more of an all-island dimension than other parts of the farming community. As Mr. Comer said, millions of litres of milk cross the Border each day. Milk is brought from the South to be processed in the North and vice versa. Country of origin issues, etc., will arise if we end up with the worst-case scenario of a very hard Border. What contingency plans have the all-island bodies put together collectively to cope with such a scenario?

Mr. Kavanagh knows where I stand on horse racing.

It is a passion and love of mine. However, when the real negotiations start, while we are joined at the hip with France and the United Kingdom and those of us into the industry and the sport recognise its economic value, how high up the pecking order does Mr. Kavanagh think it will be in view of the fact that the vast majority see it as a sport? They do not see the economic aspect or know the figures involved. We know about the tripartite arrangement with the French and the British, but from where is the British Horseracing Authority, BHA, coming? Is it as big a priority for it? I know that it is for its members personally. However, is Mr. Kavanagh getting feedback from them at to where in the pecking order of priorities on the UK side it will slot in? In the worst case scenario, if we end up with a hard Brexit and a hard border, from the viewpoint of Downpatrick and Down Royal racecourses, could he envisage - I know that he will not want to see it, but the fact is that Irish money is going there to be used as prize money and provide grants - these two racecourses ending up within the remit of the British Horseracing Authority? While some side arrangement may be made, they may ultimately have to race under BHA rules. For example, the whip rule is different. From that point of view, I am trying to tease out where we are and where Horse Racing Ireland would be as an organisation in a worst case scenario. We are all hoping for the best case scenario.

With regard to fisheries, environmental standards were mentioned. Brexit was sold in the United Kingdom in a lot of quarters. Money aside, there were fantastical promises made about where the money being sent to the European Union would be invested. One of the key sales pitches in the electoral manifestos at the time was that the United Kingdom would not have to keep European standards any more. We know that that was not thought through. Let it be with tariffs or free trade, if it intends to export product to the European Union, it will not be accepted unless it maintains standards. That has been said. If there is a query or standards are questioned, the worse part will be determining where one should go if there are two jurisdictions. There will be two governing bodies. If there is a pollution problem on a river that transcends the Border and it started in the North, one will have to go to one agency. However, if it is flowing downstream, one will have to go to another. If the delegates could write the agreement, how would they foresee a solution to the monitoring problem on the whole island.

To tease this out, with a view to making recommendations in our final report, we had a number of groups here who touted the idea of special status for Northern Ireland. That would be a big help for the three organisations represented which are working on an all-island basis. It would eliminate the prospect of a hard border and we would have an east-west border. While that might solve a lot of problems from the point of view of racing, as well as of water management and fisheries, we would then have a situation where Northern Ireland, although we might have the same status, would still be part of the United Kingdom. The farmer south of the Border would be in the European Union. If the deal goes ahead, eventually the United Kingdom will be out of the CAP; therefore, one farmer would be within the CAP and the other outside it. In a worse case scenario there would be a WTO tariff on product from Monaghan, but in Fermanagh it would be a UK product. In the agricultural model how much thought has been put into what a lot of people are touting as a bloody great day were we to achieve all-island status. It is only my opinion - I am teasing it out for the purposes of our report - but in terms of the farming model, in particular, it would open a whole new can of worms and be a nightmare. I would like to hear the delegates' opinions.

As I stated, we are all on the same page. I am with the delegates 100%, but, unfortunately, we are in the position in which we find ourselves and it was not of our making but of the United Kingdom's making. If the negotiations go sour, we must have a contingency plan for the worse case scenario.

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