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

I thank the committee for the invitation to come here to discuss the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020. This is my first appearance before the committee and I want to take the opportunity to congratulate the Chairman on his appointment and to say that I look forward to working with him and all the members in the time ahead in my role as Minister with responsibility for social protection and rural and community development. It is a broad brief but I think there are great synergies between the two Departments. Together with my colleague, the Minister of State, Deputy Joe O’Brien, I want to work with the committee. We do not have a monopoly on good ideas and while I know we will not always agree on everything I hope we will be able to work constructively with the committee to progress proposals which will deliver real benefits for people across the country.

I have Private Members' business in the Dáil at 10 a.m. so it will be a short visit this morning but I understand I will be back next week and the following week on the Revised Estimates for both Departments and that will allow for more detailed discussion on the wider aspects of both briefs.

Coming back to the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020, there are now just 85 days remaining until 31 December.The Government and the EU remain steadfast in our efforts to secure a negotiated outcome on the future relationship with the UK. However, we have been planning for all scenarios.

To underpin the readiness measures required at the end of the transition period, the Government approved the preparation of a scheme for the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020, known as the 2020 Brexit omnibus Bill. Many of the provisions reflect the legislation enacted before the original expected Brexit date of 29 March 2019. The Bill underlines the common travel area arrangements formalised in a memorandum of understanding signed by both Governments on 8 May 2019 and ensures the rights and entitlements of Irish and British citizens which remain under this long-standing agreement.

The overarching aim of this legislation is to address the wide range of complex issues that could arise for citizens and businesses post transition. Parts 14 and 15 of the Bill fall within my remit and I will outline each of these in turn.

I will first speak to Part 14.A key area of concern is the impact of Brexit on those current reciprocal arrangements for social insurance, which includes pensions and social assistance, being means tested schemes linked to residency rights, and child benefit between Ireland and the UK, including Northern Ireland.

Part 14 sets out the amendments to the Social Welfare (Consolidation) Act 2005 in order to maintain the status quo under the common travel area arrangements, which build on work already completed by the Department, which has resulted in a new agreement on social security with the UK. This was possible due to the unique nature of the common travel area and the associated rights and privileges which it provides and will continue to provide for Irish and British citizens in each other’s countries. This agreement was signed 1 February 2019 and passed through the necessary parliamentary ratification processes in both Ireland and the UK during March 2019. Under the terms of the agreement existing arrangements with regard to recognition of and access to, social insurance entitlements will be maintained in both jurisdictions. This means that the rights of Irish citizens living in Ireland to benefit from social insurance contributions made when working in the UK and to access social insurance payments if resident in the UK are protected and maintained.

There are approximately 132,000 people in receipt of a UK state pension living in this country and approximately 1,000 people receiving child benefit payments from the UK for children residing in Ireland. There are 27,100 people residing in the UK who are in receipt of a contributory State pension from Ireland. Just over 900 people residing in the UK are in receipt of full rate child benefit payments from this Department. These payments are in respect of 1,950 children, 97% of whom reside in Northern Ireland. A further 920 people residing in the UK are in receipt of child benefit supplement payments, in respect of 2,015 children, 98% of whom reside in Northern Ireland. The work undertaken to date is to ensure the continuation of these payments.

The provisions of Part 14 are as follows: to allow for the Minister to make an order to provide for the implementation of a signed agreement which has not yet been ratified; and to enable the Department to continue to share data with UK operators for the purposes of the recovery of benefits and assistance arrangements. This will ensure that specified benefits paid to an injured person by my Department following an accident can be recouped from a UK based compensator, just as before; and provides for other technical amendments to insert specific references to the UK into a number of sections of the Social Welfare (Consolidation) Act 2005 which include references to EU payments.

Specifically, these ensure the continuation of the existing arrangements in the case of persons receiving an invalidity pension from Ireland who become entitled to a UK state retirement pension; the continuation of the recoupment of supplementary welfare allowances paid by my Department to persons awaiting UK payments; and that island allowances can continue to be paid to persons who rely on an equivalent primary UK payment to support their entitlement. In addition, UK child benefit will continue to be disregarded in the means test for social assistance schemes.

Part 15 of the Bill amends the Protection of Employees (Employers’ Insolvency) Act 1984 which provides for the insolvency payments scheme. The scheme covers wage-related entitlements of employees who are employed in Ireland by an employer who has become insolvent in Ireland or another EU member state. After the end of the transition period, employers in a state of insolvency under the laws of the UK will not fall within the scope of the Act. That means employees of those employers, who work and pay their social insurance in Ireland, would no longer be covered by the protections set out in the Act unless the amendments set out in this part of the Bill are made.

The amendments in this part of the Bill are to ensure those employees will continue to be covered by the scheme after Brexit. The amendments in this part provide for updates to existing definitions in respect of employees employed, or habitually employed, in Ireland and whose employers are made insolvent under the laws of the UK so that they continue to be covered by the scheme, technical matters concerning the date of the insolvency and the amounts certified by the actuary and that the Minister may, by regulation, provide for the transfer of data to the UK for the purpose of carrying out the functions of the Act.

Given the economic uncertainties which may prevail if no deal is reached in the future relationship negotiations, and indeed in the current Covid-19 scenario, it is vital that we continue to provide this protection to workers in Ireland and that is why these amendments are being introduced.

This legislation is an essential part of the whole-of-Government preparations for Brexit. I thank the Chair and the members of the committee for allowing me to outline my Department’s legislative planning. I appreciate the co-operation of this committee, and its support, to ensure that we can get this Bill enacted by 31 December. I thank everyone for their attention and I am happy to answer questions.