Oireachtas Joint and Select Committees

Wednesday, 23 October 2019

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Update on Brexit Engagement: Minister for Business, Enterprise and Innovation

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

There is an early warning system but we were not aware of the job losses in either company in question. In the case of the first company in Shannon, I got a call late on Monday evening. I got another call late yesterday evening regarding the announcement in Cork. We were not aware of these before this.

IDA Ireland works closely with both of these companies. Sometimes, however, commercial decisions are made at a board level in a different country. These companies do not always say what they are doing because the information may be commercially sensitive. We did not have notification of these announcements but we have quickly responded. That is why all State supports have been put at the disposal of the regions in question. We will ensure we get investment into these areas to replace the jobs lost.

On the backstop and the new proposal, the deal reached between the EU and the UK negotiating teams differs from the previous withdrawal agreement and political declaration on the future relationship in four ways. The protocol on Ireland and Northern Ireland will now be a permanent arrangement for Northern Ireland rather than a backstop or an insurance policy. It is no longer temporary. However, the protocol can still be replaced, in whole or part, by a subsequent EU-UK future relationship agreement. The customs and VAT provisions in the protocol have substantially changed with the removal of the EU-UK single customs territory. Instead, this has been replaced with arrangements which will see Northern Ireland remain part of the UK customs territory. Northern Ireland will, therefore, stand to benefit from future UK trade deals, although it will continue to apply the rules of the EU customs code. Products entering the island of Ireland will undergo necessary regulatory and customs checks. The details of how this will work in practice are to be decided by the joint committee during the transition period.

The review clause, or Article 20, of the current protocol has been removed and replaced by Article 18, providing for democratic consent in Northern Ireland. This will enable the Northern Ireland Assembly to agree by a simple majority four years from the end of the transition period if it wishes to remain in customs and regulatory alignment. If a simple majority decides to remain, a vote will be held every four years. If the decision is made by the majority of both communities, the subsequent vote will not take place for a further eight years.

The bottom line is that there will be no border between this jurisdiction and Northern Ireland. That is important, especially if one lives where I live. We are protecting the all-island economy and the Good Friday Agreement.

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