Oireachtas Joint and Select Committees

Wednesday, 2 December 2020

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Brexit and Readiness of Businesses, Employees and Communities: Discussion

Mr. Tom Murray:

Gabhaim buíochas leis an gcoiste as an deis seo le labhairt fá choinne tionchar an Bhreatimeachta ar an bpobal agus lucht gnó thart ar an Teorainn. Is mise Tom Ó Muireadhaigh, poitigéir as Dún na nGall agus liom inniu tá J.J. O'Hara, fearr gnó san earnáil turasóireachta agus teicneolaíochta as Contae Liatroma.

Border Communities Against Brexit was formed approximately four years ago as we recognised the threat of Brexit to the economic and social well-being of the communities on both sides of the Border. As representatives of civic society, we have lobbied and highlighted the many issues which concern us about Brexit in the EU, in Dublin, London and the USA. We have had several meetings with our own Government, with Michel Barnier, Guy Verhofstadt, Nancy Pelosi among many others.

A common thread runs through the things we will discuss today. There is a lack of clarity and inconsistency in information on Brexit. Brexit has already happened. Britain left the EU, the transition period now ends on 31 December and there is no tangible difference so far and less understanding of what will happen in January. Many important deadlines have passed and thus far there has been no real change at employee or business level. This has led to a certain complacency, disinterest and disconnect between employees, businesses and Brexit. There is a strongly held belief that there will be some form of deal and that all issues relating to Brexit will be resolved at a business macro level or government level, but there is little engagement at a micro level and little understanding at SME or employee level.

Information or detail about the implications of Brexit for supply routes, importation, exportation and associated paperwork and bureaucracy is seriously deficient. This obviously comes from the lack of clarity at EU and British Government levels as to what form of deal may take place, if one does, and what effect that will have on the day-to-day running of business. There is an expectation of extra paperwork and possible shortages in supplies but little is clear. Furthermore, there is a serious evidence of a lack of common understanding of the North of Ireland protocol as already agreed. British Government action in respect of a breech of the international agreement has led to a level of further disengagement and caused further difficulties. It has also worsened the lack of clarity among employees and business around administrative details post Brexit. This requires urgent attention in the form of training and financial supports for businesses and employees, to help understand the impact of Brexit on day-to-day business.

We heard about the economic consequences of Brexit. This year it was overtaken by the economic consequences of the pandemic. We need people to re-engage at a business and employee levels about Brexit’s consequences. It will have an economic impact and it has a potential impact on job security. It is incumbent on business and Government to inform employees about their own financial planning, because of the potential impact that Brexit could have on their job security in SMEs and larger businesses.

On community preparedness, the level of integration across the Border of families, communities, sports teams, schools and community groups has been largely misunderstood and underestimated until Brexit. There is a widespread expectation among those groups that the free movement of people will continue and as such much of that integration will continue seamlessly. However, there is a fear in Border communities where Mr. O'Hara and I operate that the British Government might renege on agreements around free movement as enshrined in the Good Friday Agreement. Their recent actions on the North of Ireland protocol have seriously undermined trust.

There is also a fear due to lack of knowledge about cross-Border funding and PEACE funding for Border area community initiatives. The lack of clarity and constant moving of goal posts has worsened that. We need clarity and information. There is a very short time for community groups and those living on either side of the Border to implement changes.

On business, various outcomes are possible and each requires different planning. All business on the island of Ireland is under great pressure from uncertainty surrounding Brexit and the current pandemic. We expected to see funding supports rolled out across the country. We understand the Strategic Banking Corporation of Ireland, SBCI, has dried up. The partner financial institutions tell businesses there is very little funding left for business.

There is evidence of great deprivation in recent years because of the Border’s presence. There was some economic resurgence since the peace process but there is urgent need for investment in infrastructure and financial supports in this area. Under the Border Enterprise Development Fund, BEDF, we expected around €400 million of investment in the region, but only around €15 million has been delivered to date. The Border regions have suffered massive financial hardships and lack of growth due to the presence of the Border. Efforts to revitalise sustainable communities in the area have been damaged by the pandemic.

Anecdotal evidence from newspaper reports tell of youth unemployment among those under 25 years at more than 40% in Border areas. This is unsustainable for any community. It is impossible for us to sustain and grow communities in this area where there are such high levels of youth unemployment. We implore the Government to seek strategic investment to rebrand tourism in the area, particularly in counties Donegal, Sligo and Leitrim to revitalise the industry in these areas and to maintain jobs for our young people so that we can maintain our communities into the future.

The elephant in the room is the threat of Internal Market Bill in that goods produced in Britain must be available on the market in North of Ireland. Depending on the nature of the international deals agreed by the British Government, this could include chlorinated chicken, GM foods and other goods which are not acceptable to the European Single Market. There is a risk of these goods leaking into the EU market area through the Border. We need clarity on whether that will be protected. Will some sort of customs border be established on the island of Ireland, which would be against the spirit of the Good Friday Agreement? What protections will be put in place if we cannot guarantee the safety of the market of the North of Ireland in the South, we could see Ireland as a whole become some sort of annex to the EU Single Market? That must be addressed.

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