Oireachtas Joint and Select Committees

Wednesday, 2 October 2019

Joint Oireachtas Committee on European Union Affairs

General Affairs Council: Minister of State

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael) | Oireachtas source

I will respond to the Deputy's comments first as he has to leave.

There has been significant investment, not just in Dublin Port but in Rosslare and the airports also. It has allowed for new customs bays, new inspection bays and new parking spaces. Moreover, additional staff have been hired; additional space has been bought and permanent infrastructure put in place. Not all of the permanent infrastructure is in place in Rosslare, but there are temporary measures which we believe will address many of the challenges we may face, taking into account the fact that the United Kingdom would be a third country, which would require separate bays, separate inspections and separate routes. The biggest challenge we potentially face is hauliers not having the full paperwork filled in, not having an EORI number to allow them to trade with third countries, not having their customs declarations filled in properly or at all and not having the paperwork ready. This could all create delays.

To answer the question about the training of customs officials, last week the Minister for Business, Enterprise and Innovation re-emphasised an ongoing training programme - it has been ongoing for some months - under which we have been training individual customs agents to work with either businesses or companies which may have only one or two people to ensure they will have the correct and appropriate information to fill in the customs declaration forms. A huge amount of work is ongoing, but, as well as that, customs inspectors have been hired. There has been an increase in numbers. As I mentioned, we are possibly looking at an increase from around 1.2 million or 1.3 million customs declarations forms to potentially 20 million in a very short space of time. Therefore, a huge amount of work is under way in that regard.

With reference to the Prime Minister, the leaks and what we have been hearing in the past few days, I have to stress that they are reports and that nothing has been presented to the Commission in the form of a legal proposal or legal document. I watched the Prime Minister's speech this afternoon and there is no greater clarity. No details of any proposal were outlined in it. Again, we need to wait for the official proposal to be made and any legal documentation to be presented to the Commission. Until that is the case, what I have said publicly is that much of what we are hearing is not compatible with the commitments as set out by the United Kingdom. Without any clear proposal or details, it is just speculation. We have to be ready and willing to hear what it might propose.0

On an extension of time, as Deputy O'Rourke rightly put it, it would have to be requested by the United Kingdom. The European Union cannot grant an extension without a request being made by the Prime Minister. Of course, an Act has been passed by the UK Parliament which legally requires the Prime Minister to seek an extension, but, again, it is not something in which we can been involved, nor would we be. If an extension of time was to be asked for, from our point of view, if we were faced with no deal or an extension, obviously, an extension would be appropriate. However, we would need to know that it would not be a rolling extension that would just prolong the uncertainty and challenges for industries that are already facing significant challenges without a clear direction as to where we are going.

On funding supports, many supports have been accessed. A significant number of direct payments have been made across different sectors, from agriculture and small and medium enterprise to tourism. There are also loans available, but, as the Deputy can understand, irrespective of whether they are long or short term, or whether they are at a lower rate, it is money people have to take and then pay back. For the two largest loan schemes of €300 million each, people have been approved for half of the funding, but only a fraction of it has been drawn down. I do not think it is because the schemes are overly onerous or complex. They are not the complaints we have been hearing through the various channels, including Enterprise Ireland, Bord Bia, the Department's agencies, local enterprise offices or councils. It is simply that people, understandably, do not want to take on a potential financial burden if they do not need to. Again, I stress that being approved for a loan does not mean that one has to draw it down; being approved means that they have that safety net if they need it.

On overall supports, I again stress that the Minister will be announcing a budget next Tuesday in which there will be specific, timely, targeted and, we hope, temporary measures for specific sectors that we know will be impacted on in the event that there is no deal. We already know that small and medium enterprises, the agriculture sector, the tourism sector and the retail sector will be among them.

To respond to Senator Coghlan's comments on my negative tone, I believe a deal can be done. As I said, we are hearing about elements of a paper that has not yet been presented. Much of what is being relayed through the newspapers is not compatible with the commitments made. However, we have to be willing and ready to accept any new proposal and look at it objectively.

To respond to Deputy Crowe's comments about our EU colleagues, there has not been any weakening of which I am aware through my engagement with all of my EU colleagues and the same goes for the Tánaiste, the Taoiseach and several other Ministers. There has been no change in position. I believe they understand the challenges we face. Because many of them have come here to meet not just the political representatives but individuals living along and near the Border and the business sectors which would be impacted on if there was no deal, I believe they understand the position. That is why we have already seen support from the Commission, including the beef exceptional aid measure which was an additional support. A total of €50 million was allocated from the Commission which was then matched with €50 million from the Department. We have up to the value of €200 million available through the rescue and restructuring scheme under the Department of Business, Enterprise and Innovation. Again, it is a relaxing of state aid rules, given the acknowledgement that businesses are already facing significant challenges businesses. Some of the money has already been accessed. We have also had the very clear indication that, in the event that there is no deal, when industries will be impacted on in a negative way, further financial assistance will be made available, not just for Ireland but for other member states also. I believe they understand our concerns. They have already shown flexibility but, obviously, until we know what the overall situation looks like, it is hard for them to provide further details.

On the United Kingdom pressurising other member states, if it has, we are not aware of it and there has been no change in position. It is my understanding the EU 27 will remain strong and together when it comes to the European Council meeting on 17 October.

To respond to the Deputy Durkan's contribution, the CAP and the agrifood sector are top of my priorities when speaking about the MFF. If we are to ask the farming community not just to be champions of food security around the world but also to protect the environment, among other things we will need to ensure they are adequately funded, that it is not just a love and a passion for them but that they can make a living from it also. We know that the farming community has been going through a very difficult period. There are suggestions the agricultural budget, the CAP in particular, is a traditional and older priority, but, for me, they are very real current priorities, ones we need to protect both now and into the future.

On the Good Friday Agreement and being optimistic about future international agreements, we have consistently reminded the United Kingdom of its obligations to what is an international peace treaty. We will continue to do so right up until the end of the deadline.

Senator Craughwell spoke about our twin objectives and asked whether either of them was tradeable. The simple answer is "No". Our objective in our communications with the Commission is to protect the Single Market and Ireland's place in it. It is also to protect the Good Friday Agreement. The Single Market is extremely important to the economy and our livelihoods. As I said at the beginning, we export 90% of what we produce. As an outward-looking trading country, the Single Market is our largest market, one we need to protect.

The Good Friday Agreement is extremely important to every person on this island, both North and South, and we need to protect it. Dual testing is currently ongoing. This includes physical checks but also desktop studies. I do not have the exact details of that but it has been ongoing for some time and continues weekly. If there are details, maybe I could get them for the committee separately.

Training of customs staff is ongoing. In the last month or two, it was perhaps 611, although do not quote me on that figure. A substantial number have been trained recently. What we are talking about with regard to the Border is very different from what the UK is proposing. The UK is proposing a permanent solution which would involve checks as part of a deal and that is not something we will accept. With regard to no-deal planning, we are talking about damage limitation. There will have to be checks. However, they cannot pose a security risk or threat. They would potentially not allow the status quoto be maintained and would be temporary, in our view. We are talking about two very different things but to answer Deputy Haughey's question, that conversation is ongoing and we hope it will be concluded in the coming weeks.

Significant work has been done by private companies and sea ferry operators on the supports available for the landbridge. We have the MV Celine, which will be the largest ro-ro ferry in the world, which has been added to ensure that we have adequate space between Ireland and mainland Europe. We have the MV W.B. Yeats, a passenger ferry as well as a haulage vessel.

The Minister is looking at the financial supports sought by hauliers and the transport sector along with overall Brexit supports in next Tuesday's budget. I do not have clear details on that but I think we will see it next week and that there will be an attempt to try to accommodate any requests or supports when it comes to Brexit preparedness over the next week.

With regard to the new Commission role on the EU way of life, I think the relevant committee is mainly focused on migration and security. The title of the Commissioner has raised a number of questions. I am not sure whether that title is changing or if there has been a change in focus. The substance of the Commission is the important matter, relating to migration, security and trying to build a consensus. In the two years I have been a member of the General Affairs Council, it is the one issue that we have failed to move forward and find a consensus on. There needs to be an additional focus on that and I am glad the Commissioner is doing so.

The new mechanisms relating to the rule of law were raised by Deputy Haughey. The Commission has outlined a series of mechanisms that would work in parallel with the Article 7 process through which we have engaged with Poland and Hungary. There are also suggestions about financial implications for the next European budget but those would apply to all member states and would be equal and fair in their application.

If I have missed anything, people might mention it, otherwise I can come back to matters another time.

Comments

No comments

Log in or join to post a public comment.