Oireachtas Joint and Select Committees

Wednesday, 19 June 2019

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

Engagement with the Central Bank of Ireland

Dr. Pat Ivory:

Could I add to the point about the beef sector and the threat of Argentinian or Brazilian beef coming across the Border? There are two matters to address relating to the Border and the backstop is part of it. We have responsibility, as members of the European Union, to protect the integrity of the Single Market. That will be challenging and difficult in a no-deal situation but these are the sorts of challenges that we have to address. It is not just a matter of customs but also regulatory alignment. The wholefoods, dairy, beef and infant formula sector are all important parts of Irish industry, especially around the Border counties. There has to be action by State agencies and by the veterinary authorities on sanitary and phytosanitary, SPS, and inspection issues. These are all complex matters and further work has to be done on this. Our information is that customs and the Revenue Commissioners have introduced a 24-7 employment arrangement with new customs officers, such that they will be available around the clock, seven days a week, to facilitate things coming in and out of our ports. Are our other agencies at that level? Will SPS measures and inspections be able to match that role? We have to look at that.

On where the impact will be felt, the regional impact is extraordinarily important. For example, in the Cavan-Monaghan region, 33% of people employed are in Brexit-exposed sectors. Therefore we need to address those regional concerns. As one goes further through the country, into the south and the midlands, one will find significant emphasis on food, spirits and drinks production, all of which could be impacted by this. One of the stabilisation mechanisms we are proposing in the upcoming budget is that they should take into account the impact on workers. We propose to prepare a short-term work subsidy scheme for two years for vulnerable workers in the event of a no-deal Brexit. We also propose the introduction of an employment subsidy scheme with subsidies up to €10,000 over 24 months for employees affected in distressed firms. We need to address a range of measures in addition to the working capital and access to finance that Mr. McDonnell mentioned.

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