Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I thank Mr. O'Neill and Ms Daughen. I appreciate all their work to date. I had dealings with Ms Daughen in early January and some of my colleagues in Fianna Fáil spent two days around Westminster. We got great assistance from Claire who does a lot of work with the British Irish Chamber of Commerce, Member of Parliament, Mr. Conor McGinn, and the APPG group.

The question is how to make Brexit work for all of us. It is an easy question to ask but getting the answers is difficult. From my contacts with colleagues in Britain through the foreign affairs committee and through my role as foreign affairs spokesperson for my party, it is clear there are very different views within the British Cabinet and Parliament depending on the committee one talks to. One specific area I want to ask Mr. O'Neill about is the agreement on phase one. We tried to interrogate this when we were in England the week before last. Our understanding of it is that no regulatory divergence applies to North-South and that will extend, de facto, to east-west. If that extends to east-west, it means that lack of divergence will extend further into the EU. If Ireland, as an EU state, has no divergence with the UK after it leaves, it would mean Britain would effectively have no divergence with the EU and the other EU 26. We put that question to the foreign and commonwealth office and the Brexit office in No. 9 Downing Street and there was a different view in both of those offices; they did not necessarily believe that would be the case. Mr. O'Neill highlighted the need for them to stay within the customs union so as not to bring about further tariffs or border checks. We know that. Phase one was the easiest, if any of it could be called easy. Phase two is what will really be difficult. We are into senior hurling now, to use an Irish phrase. The British will understand that pretty soon. What Mr. O'Neill has been able to do is set out a sensible approach. I want to ask about the regulatory divergence. What is the British Irish Chamber of Commerce picking up? Is the understanding in Ireland the same as it is in Britain? With regard to the extension of the transition phase, Mr. O'Neill mentioned the Secretary of State, Mr. David Davis, seemed to accept that. Mr. O'Neill is saying very clearly that he thinks the transition phase is too short. I agree with that. It is important that we, as a member state, ensure the integrity of the European Union and that the strength of the union remains intact. We can be reasonable.

The British Irish Chamber of Commerce has a role in continually highlighting the trade issue. I will turn to that issue now. In all of our discussions in Brussels, it is clear that our colleagues in the European Union fully understand the situation with regard to the North. They understand that the maintenance of the Good Friday Agreement and the rights of Irish citizens in the North, who by extension are EU citizens, is really important politically and socially on the island. I have a concern that the European Union may feel that if that element is dealt with the trade issue is secondary. The Chairman and Mr. O'Neill have outlined that 400,000 jobs on both islands are underpinned by the substantial trade done between the islands. We need to continue to reinforce that. I am worried the attitude will be, although not in a flippant way, that the Good Friday Agreement has been dealt with and therefore we will not get assistance on trade issues. What more can we do here to try to get that message across? Does Mr. O'Neill agree it is timely for the European Union to look at an EU reform fund to support businesses that are heavily vested in the UK market? I get a sense that state aid rules have loosened in Britain to a great degree already and may not be following the letter of the law with regard to EU state aid rules. We need to have a level playing pitch when we are competing with British companies. Our exporters and members of the British Irish Chamber of Commerce need assistance. What more does the Irish Government need to do? I have asked both the Minister for Foreign Affairs and Trade and the Minister of State, Deputy Helen McEntee, why we have not asked at the Commission for a relaxation of state aid rules. In the agrifood sector in particular, there are areas that need assistance immediately. For British businesses in Britain, the pinch is being felt now as a result of the increase in import inflation, inflation and the drop in net wages as a result of inflation in Britain. Does Mr. O'Neill get a sense that Brexit is beginning to bite there? Does he agree the reality is dawning and the hard Brexit attitude that no deal is better than a bad deal, to quote John Redwood and others like him, is losing currency in Britain?

I thank Mr. O'Neill for his presentation and for all the work he is doing. I might come in again afterwards.