Oireachtas Joint and Select Committees

Thursday, 14 February 2019

Joint Oireachtas Committee on Foreign Affairs and Trade, and Defence

Miscellaneous Provisions (Withdrawal of the UK from the EU on 29 March 2019) Bill 2019: Tánaiste and Minister for Foreign Affairs and Trade

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Yes. We cannot do our own thing. We have spoken to the Commission about it because the European Union could put in place a reciprocal arrangement with the United Kingdom, as it has done on a temporary basis for hauliers, for example, in the event that there is a no-deal Brexit. However, from a contingency point of view, the insurance industry is doing the right thing just in case to ensure people will be able to continue to drive. There are hundreds of thousands of crossings of the Border every day.

On the cost of the Bill, to be honest Brexit is costing the country hundreds of millions in working capital facilities, loan facilities, upgrading the ports in Dublin and Rosslare, supports and incentives. This is not without a cost of time, money and political distraction. We would be doing many other things if I did not have to fill virtually half of every day with Brexit issues. However, that is the reality. This is not an Irish policy and not something we like or support. It is something our neighbours have chosen to do. We must respect that and I am very strong on it. Any country has the right to leave the European Union if it wishes, but I would like to think we have the type of relationship with the United Kingdom where it will follow through on the commitments it made to us in the context of its decisions.

On state aid rules, we have spoken to the Commission about relaxing them, if necessary. We have also spoken to it about protecting vulnerable sectors, particularly agriculture and fishing, through a combination of a relaxation of state aid rules and EU supports. We are fortunate that an Irish Commissioner has the agriculture brief in the Commission. That is not because he is in any way biased towards Ireland but because he understands the Irish agriculture industry and how vulnerable it will be in a no-deal Brexit should we have to trade with the United Kingdom on WTO terms, including tariffs and so forth. The impact that would have on the beef and dairy sectors would be very significant and we must respond to it. I believe the European Union will respond to it with the appropriate solidarity.

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