Ms Mairead McGuinness:

I thank Deputy Richmond for a number of points but clearly around the Brexit scenario and what next, including financial services.

I will start at the very beginning here. The United Kingdom, in these last weeks, reached out and looked for an extension of the grace periods. Because it was requested, the European Union has given that up until the end of September as well as a number of other important offers to make implementing the protocol easier. What has been quite shocking is the reaction from the UK side. I was in Brussels last weekend and I listened to an interview given by the UK ambassador to Ireland. I read the Op-Ed from Lord Frost and I thought as to whether they were listening, whether they read what the European Union has offered here, and if they had, that their response lacks any graciousness. Worse still, it seems that the response was written before there was any acknowledgment of the strong reply from the European Union side wanting to solve problems and wanting to sit down with the United Kingdom to make sure that the protocol is implemented, that the benefits of the protocol to Northern Ireland flow towards Northern Ireland and that difficult areas are solved. I was a little concerned when I heard the ambassador talk about medicine shortages. This is something that European Commission Vice-President Mr. Maroš Šefovi has said from the outset we are addressing. I thought it lacked grace that there was no acknowledgement of the work we have done here at EU level which begs the question as to what the United Kingdom intends to do for the future. Based on past performance which, they say, is not always an indication of future performance, I would be afraid that it might be. I would be concerned that after September we would be back into this, where the UK refuses to acknowledge what it signed up to in the protocol and continues to point the finger at the European Union and accuse it of all sorts of things.

I will be very clear with this committee. Mr. Šefovi and I talk all the time about this. My colleagues around the table were aware, for example, around sensitivities with the month of July. I note there were big bonfires but I am relieved that there was nothing more than that. There were the celebrations of the loyalist community around that day which is important for them but at least we did not see violence. Europe understands that. Mr. Šefovi was sensitive to the month of July. The reason we were so willing to offer an extension was because we understand the sensitivities. The committee also should know that Mr. Šefovi tried to reach out after that debacle that Deputy Calleary alluded to in January but was not helped by the UK side, to colleagues in Northern Ireland to explain and, indeed, carry that apology.

Let us look at what this means for the future. If the United Kingdom thinks that if it persists in non-application this problem will go away, that will not be the case because this problem gets worse. This is an international agreement and I am sure the rest of the world is watching with some interest as to how an international agreement is being regarded by the United Kingdom. From our side, I repeat that we want it fully implemented but we also want to iron out those difficulties for citizens and businesses. That is already being delivered on. More can and will be done but we have to do it with the United Kingdom. We have to do it with a United Kingdom that is open to implementing what it signed up to. This is important.

Deputy Richmond asked in particular about what action we might take. It is not wise at this stage to talk about retaliation. It is not our style. In the long run, politeness and good manners matters. Diplomacy matters. While people might say you should be tougher and you should perhaps give a kick to the shin which does not happen in football matches but sometimes can, it is not the right approach. The approach we are taking to keep calm during all of this is not an easy one but it is important as a partnership of 27 countries that we stay calm, respect sensitivities in Northern Ireland and find solutions. I would just say that plans are being made and will certainly be unrolled and revealed if we do not see co-operative implementation of the protocol.

The Deputy talked about the upside of the protocol. What is troubling - I saw this during the Brexit referendum campaign - is there were voices that were silenced because they were afraid to speak up. There are businesses in Northern Ireland quietly getting on with doing more business but they may not be willing to speak out because it is such a divisive issue that they are better off if they work away and increase their business under the protocol and the opportunities it would give continuously and seamlessly - access to both the EU and to the UK. On this point, it occurred to me that was the same during the referendum campaign. One of the saddest parts for me as a politician when I was still in the European Parliament was I would have delegations coming from Northern Ireland because the Assembly was not functioning and they had no voice at all. Their concerns about the negotiations were not being heard and I did my best to try and raise to those concerns, indeed, as Deputy Richmond does in his work as well. I would hope that the quiet application of business people and entrepreneurs getting on with it and finding new opportunities will tell its own story. Frankly, headlines never do. I was a journalist and I can say this with some clarity. That will perhaps happen. Yesterday Lord Frost commented he had some concerns about an increase in cross-Border trade. I cannot understand why. I would have thought that, as a free marketeer, a global Britain would be delighted to see an increase in trade. It was an interesting observation.

Let me move to the wider point Deputy Richmond makes around the financial sector. There are two areas where I have particular work to do. One is banking union and the other capital markets union, in particular, green capital markets which I referred to in my opening remarks. There is a huge opportunity for all member states together to development the capital markets union. At present, we have fragmented capital markets. We need a union of those markets. We particularly need it now going into the recovery. Our businesses rely too heavily on bank lending. We need equity funding. Indeed, we need to change our own mindsets around saving and investing. If you look at the balance sheets of banks in Europe, and indeed in Ireland, those who are working have not been spending and there are enormous amount of savings waiting to find a home. One of the concerns - it is a hot topic in Ireland - is our property prices. Perhaps we think that Ireland is unique, but I spoke to finance Ministers just this week and practically every member state has this concern. It is to do with people with cash trying to find opportunities to invest. We need to look at that in the round to see what are the consequences.

In addition to that, we are seeing quite a high level of increase in raw material and construction costs. We had a good debate last week in the Parliament on this that I was engaged in. That will feed in to the work of different member states, including Ireland, around trying to build houses to house our citizens. To answer the Deputy's point directly, there are huge opportunities in the financial system and around sustainability, but I understand the Government is already focusing on this. We have many asset managers and funds in Ireland and there are opportunities to go that direction.

Deputy Richmond asked a question about how we tailor supports. We will have more details around Ireland's recovery and resilience package and the Brexit adjustment fund. In one sense, I will almost put that back to the members. The members are best placed as elected representatives in Ireland to know where these funds should go. I dare say that the Cathaoirleach, with his fishing constituency, will be well aware of the impacts of Brexit on fishing from coastal communities. The money will be put to good use.

It also is important to say that the amount of money that Ireland gets recognises that we are the member state in the hot seat, if you like, most impacted by Brexit. That continues to be the case.

Lastly, as a general remark, Brexit has been front and centre of all our minds since 2016 and before, but we have many other issues as well. It is important that we do not lose sight of other policy areas where we have to do important work, notwithstanding that Brexit remains unfinished business.

I have said before, and am probably going to be blue in the face saying, that Brexit is always going to be with us because there are consequences of a major country leaving the European Union. There are consequences around engagement at international level. On climate change, however - and we all hope to be going to Glasgow for Conference of the Parties, COP, 26 in November - we need to work together. In a way, Brexit is a fragmentation. It is a fragmentation of capital markets, of people and of all the things Europe stands for. On the other hand, the UK, Europe, the US, China and Russia all face the global challenges in the context of environment and climate issues. The only way we will solve those challenges is collectively because if we do it individually, it just will not work.