Oireachtas Joint and Select Committees

Thursday, 1 June 2023

Joint Oireachtas Committee on the Implementation of the Good Friday Agreement

Business Opportunities and Differences: Engagement with Irish SME Association

Mr. Neil McDonnell:

ISME thanks the members of the Joint Committee on the Implementation of the Good Friday Agreement for the opportunity to address them. As representatives of traders, importers and exporters, we know that agreement on matters of business will usually triumph over matters of politics where livelihoods and profit are concerned. That is to be celebrated. While Enterprise Ireland has worked hard and successfully for many years to expand Ireland's trading networks beyond the UK, the fact remains that the typical first market of export for an Irish SME remains Northern Ireland. From there, the next step is into the far larger GB market, typically before SMEs export to the Continent. Most of our trading members expect cross-Border trade to increase in the years ahead.

However, this expectation is grounded in current trading conditions.

While we all wish to see a deepening of the trading relationships on this island, we must voice a note of concern about UK divergence from EU standards. There is huge goodwill in the Republic towards a deepening trade relationship with Northern Ireland. This goodwill will evaporate, however, if there is a diminution in workers' rights north of the Border, particularly in respect of issues such as the working time directive. Wage rates are already lower in Northern Ireland. Were businesses there able to extend working hours beyond those businesses here must observe by law, it would have serious implications for services businesses, especially those that can operate on a cross-Border basis such as distribution, electrical, plumbing, energy and insulation services. Irish businesses have benefited from the UK’s failure to implement its side of the customs arrangements agreed under the UK-EU trade and co-operation agreement, TCA. As the UK moves to fully implement those, we need to ensure that progress on the Windsor Framework does not impede cross-Border trade.

We note the recent census figures that put the current population at 5.2 million. This puts the Republic of Ireland population at 1.38 million below its 1841 figure and the Island of Ireland population at 1.28 million below its 1841 figure. Ireland is most certainly not full and we have a way to go before we even match our population of 180 years ago. We remain an attractive destination for inward migration. Ireland, North and South, has a bright future ahead.

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