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

I thank the Chairman and all members for the opportunity to come in and, hopefully, we will have a detailed questions and answers session where we can focus on specific areas where members have concerns. I will make a general introductory statement first in terms of where we are at and the considerations we have.

I am pleased to have the opportunity to come before the committee to give an update on Brexit developments. I last updated the Seanad on Brexit developments in September and, of course, we are all aware of the Brexit omnibus Bill which completed Second Stage yesterday ahead of the Committee and Remaining Stages tomorrow. I wish to convey once again my appreciation for the solidarity shown by the Oireachtas throughout the Brexit process. It has been of critical importance to have that support and unity of purpose as we face the challenges Brexit brings because they are significant.

I will give an update on the three strands of Brexit work ongoing across Government, that is, the EU-UK future partnerships negotiations, the implementation of the withdrawal agreement and the protocol on Ireland and Northern Ireland, and readiness for the end of the transition period in less than a month's time.

This week, as members will know, is a crucial one for the EU-UK future partnership negotiations. Mr. Michel Barnier and his team are in London engaging intensively with the UK side to secure a deal in the short amount of time that remains. We are in decisive days in this process. Commission President von der Leyen briefed the European Parliament last week. She noted that while real progress has been achieved, gaps in the three key issues of level playing field, the governance arrangements to ensure those level playing field agreements can be enforced in the future and fisheries have not been bridged. Closing these gaps is a prerequisite for a successful conclusion of the negotiations. I believe that with political goodwill, a deal can be done. The EU wants a deal but our stance has always been that it cannot be at any price. Any deal must uphold the integrity of the Single Market and reflect the long-term political and economic interests of the Union. This is why free and fair competition is at the heart of these negotiations. It underpins our common current high standards on labour and social rights, the environment, climate change and tax transparency.

As Senators will be aware, fisheries are an area of the utmost political importance and sensitivity, not only for the UK but for Ireland as well. It is vital we do everything possible to protect our vulnerable coastal communities and fishers. In particular it will be important to ensure that no EU member state is disproportionately affected by any new arrangements.

Throughout this process we have worked closely with the EU task force, Michel Barnier in particular. From the start Mr. Barnier has been a good friend of Ireland. He is acutely aware of our concerns and knows that Ireland continues to support fully his work. The work on implementing the withdrawal agreement is formally separate from the future relationship, and the withdrawal agreement is designed to operate regardless of whether there is a separate trade agreement. We remain committed to building a positive and fruitful future relationship with the UK, but this can only be on the basis of trust and confidence that the withdrawal agreement is fully implemented. We have emphasised this in our discussions with our EU counterparts.

The protocol on Ireland and Northern Ireland is a central component of the withdrawal agreement. It is devised to protect stability and certainty on the island of Ireland, the Good Friday Agreement, North-South co-operation and the all-island economy. It prevents a hard border on the island of Ireland and preserves the integrity of the EU Single Market and Ireland's place in it. It ensures access for Northern Ireland goods to the Single Market and allows the trade in goods to continue to flow freely on this island. It is vital that the protocol is now fully and faithfully implemented. There has been some positive momentum on implementation in recent weeks. Progress has been made on a number of key issues, including medicines and the operation of the single electricity market in Northern Ireland. It is vital that this momentum continues, and we expect intensive engagement on the joint committee on implementation of the withdrawal agreement and the specialised committee on implementation of the protocol in the immediate period ahead. We are acutely conscious of its sensitive nature and critical importance in terms of all the issues connected to it. I am confident we will be able to find and implement solutions that work for businesses north and south on this island.

I know that Senators have been following the progress of the United Kingdom Internal Market Bill very closely. I support the Private Members' motion brought before the House on the withdrawal agreement in September. The EU has made clear that a future relationship agreement is predicated on implementation of the withdrawal agreement. We expect that the UK Government will take the necessary steps to ensure there is no suggestion of the withdrawal agreement, including the protocol, being undermined. The withdrawal agreement provides structures for handling issues surrounding implementation of the withdrawal agreement and protocol, and these are the only appropriate way to deal with the outstanding questions.

The third strand of the Government's Brexit work is our preparations for the end of the transition period on 31 December, just 29 days away. Irrespective of the outcome of the ongoing negotiations, the end of the transition period will bring substantial and lasting change, and action must be taken now to prepare for this. There will be no extra time or extension of the transition period. The date 1 January will mark substantial change, and people need to be ready for that. From 1 January the UK will be outside the Single Market and the customs union. This means that new controls and procedures must apply to any goods moving to, from or through Great Britain, processes that do not apply to such trade today. I urge Senators to continue to amplify key readiness messages to stakeholders, particularly businesses large and small. Time is running out, and it is imperative that they now finalise their preparations for 1 January.

In September the Government launched its Brexit readiness action plan. The plan sets out the actions the Government will take and that businesses and citizens must take to address changes arising at the end of the transition period. Since it was launched, there have been more than 50 separate ministerial engagements dealing with Brexit. These were supported by a range of official level meetings and briefings. We are using a multitude of virtual tools, from webinars to instructional videos, to assist businesses to prepare for the new realities they will face. The Tánaiste has sent a Brexit readiness checklist to 225,000 businesses registered in Ireland. The Revenue Commissioners, separately, have written to over 90,000 businesses trading with the UK and have followed up with some 14,000 phone calls. We have made a range of financial upskilling and advisory supports available to businesses. Budget 2021 allocates €340 million to Brexit-related preparation measures.

In response to a specific demand from industry, the July stimulus package included a €20 million ready for customs package to assist with hiring and training staff in customs. As the committee will be aware, businesses that trade to or from the UK will now have to have a customs number. They will have to understand how the customs system works in terms of declarations, checks and so on, something that most businesses in Ireland had simply no experience or understanding of until Brexit came along.

Preparations in our ports and airports are well advanced. In addition to the new infrastructure, we have invested in new staff and ICT systems. Some 1,500 additional staff will be engaged in supporting and carrying out customs and sanitary and phytosanitary, SPS, and food safety checks and controls.

We are working closely with the European Commission to ensure that the €5 billion Brexit adjustment reserve targets the sectors and member states most disproportionately impacted by Brexit, and that certainly means Ireland.

I was here yesterday for the Second Stage debate on the 2020 Brexit omnibus Bill, which is another key part of our national preparations for the end of the transition period. I am grateful for Members' co-operation in ensuring this essential legislation is in place by the end of the year.

Just as the future shape of the relationship between the UK and the EU will be decided in the coming months, we must continue to develop Ireland's bilateral engagement with the UK outside of the EU. We will always be close neighbours, trading partners and co-guarantors of the Good Friday Agreement. The context of our relationship has changed but we are committed to building on and strengthening the British-Irish relationship. Ireland will also continue to work to ensure the closest possible future relationship between the EU and the UK in the time remaining. Ireland's place remains at the heart of the European Union, and I will continue to inform the House on the developments in the days and weeks ahead. I look forward to Senators' questions.