Oireachtas Joint and Select Committees

Thursday, 5 March 2015

Joint Oireachtas Committee on European Union Affairs

Possible Exit of UK from European Union: Discussion (Resumed)

2:30 pm

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael)
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I thank the Vice Chairman and other members of the joint committee for inviting me here to be a part of this process. At the outset, I wish to compliment the committee on its work in this area. Committee members visited the UK last week undertaking an extensive programme of engagements. Yesterday, I had a conversation about that with Senator Leyden and also, in the past 20 minutes, with Senator Hayden. I look forward to seeing the committee's report, including the transcript of today's proceedings. I acknowledge the presence of members of the diplomatic corps at this meeting.

The UK’s relationship with the EU is undoubtedly a subject of significant importance, as is the UK's relationship with Ireland. Irrespective of our party affiliation, we all recognise that the UK’s continued membership of the Union is very important in the context of our own country’s continued economic, political and social well-being. So it is heartening that we are all working together to identify the issues that arise and safeguard the interests of our own country and people. The committee's hearings in recent weeks have made a significant contribution to this process and I appreciate the hard work that has been done so far and which continues to be undertaken.

Given what the committee has already accomplished, my intention today is not to repeat what members have heard in previous weeks. Instead, I will focus on the Government’s approach to the EU-UK question. I am conscious that we have much to learn from this committee. I have already referred to the engagement that a delegation from the committee had in London earlier this week, which was an important part of the process.

I want to start by addressing a seemingly trivial point but an important one nonetheless. We are here to officially consider the United Kingdom's possible exit from the European Union. On the face of it there is nothing wrong with this, but I would much prefer if the agenda read: “United Kingdom: Keeping Britain in the European Union”. That is because our focus, across our political system and across Ireland, needs to be on keeping the UK in the Union, rather than preparing for the consequences of its departure.

That is not to say we cannot do both at the same time - we can - but Ireland should be sending strong, positive messages about the benefits of continued British membership of the EU, especially, to be blunt, in terms of the relationship between our two islands. That is how we can best make a constructive contribution to the debate in Britain. It helps us to avoid lending weight to the negative notion that a UK withdrawal from the EU is somehow inevitable. That is something which I, for one, certainly do not accept.

What is the Government’s fundamental approach to the EU-UK question? The first point to make is this: British membership of the EU is absolutely in Ireland’s best interests. That conviction underpins the messaging, the diplomacy and the strategy when it comes to addressing this question. Everything we do is predicated on the belief that we want the UK to remain in the Union. This committee has already heard evidence in recent weeks as to why this is the case. Instead of repeating much of that, I will briefly outline four key ways in which we benefit from our joint membership of the European Union.

The first is our economy. The UK is our biggest trading partner, by far, with which we trade over €1 billion worth of goods and services every week. The publication in 2013 of the results of the joint UK-Ireland economic study – the genesis of which is to be found in the March 2012 joint statement of the Taoiseach and the British Prime Minister – set out clearly the nature and depth of that economic relationship. For example, the UK is the destination for 16% of Irish industrial exports and is also the largest recipient of service exports with an 18.5% share. Nearly 200,000 Irish jobs, representing 10% of total Irish employment, depend on that close economic relationship which, in itself, is partly dependent on the fact that our two economies operate under the common umbrella of the EU’s single market. No matter what the sector, be it agriculture, pharmaceuticals or financial services, Ireland benefits from working with the UK under the EU’s common economic framework. We therefore cannot afford the potential deep uncertainty that would inevitably result from a fundamental change in the EU-UK relationship, let alone the concrete difficulties which could arise.

The second factor is the strength of the wider British-Irish relationship. Our shared membership of the EU has played a vital, if often underestimated, role in bringing our two countries closer together. Working together, side by side, within the EU apparatus helps to forge bonds and cement ties between our political systems and administrations. That relationship could not but suffer if we were no longer part of the same European club.

The third factor is Northern Ireland, where the EU has been a genuine force for good, something which is often overlooked. It has helped to foster peace and reconciliation, and has provided a framework for co-operation, including between North and South, and between Unionists and Nationalists. As a wider Union of which we are all members, the EU has silently but seamlessly buttressed the peace process. That is something which should not be forgotten, notwithstanding the great contribution of other countries such as the United States.

The fourth factor is the fact that the UK is an important friend and ally within the EU, in many ways our most important friend and ally. On account of our shared history, similar economic model and common-law legal systems, Ireland and the UK think similarly when it comes to a range of policy areas, such as trade, the digital single market, better regulation, and co-operation on police and justice matters. We are therefore frequently allies when it comes to hammering out agreements at the Brussels negotiating tables and we often rely on each other’s support.

A British exit from the EU would therefore be a serious blow to the protection and promotion of Ireland’s interests within Europe and, thus, to our strategic position within the EU itself. It is no wonder, therefore, that we feel so strongly about the merits of British membership. The stakes are so high that we need to take a proactive, determined and consistent public approach on this. That is exactly what the Government has been doing and continues to do.

The Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, outlined our concerns and why the debate matters so much to Ireland in a major speech to the European Council on Foreign Relations in London last November. The Taoiseach has reinforced these points on several occasions, most recently to Irish ambassadors in Dublin Castle. Other Ministers have outlined our views too, including last Friday when the Minister for Justice and Equality, Deputy Frances Fitzgerald, spoke about the importance of the EU for our relations with the UK, at an event organised by the British-Irish Chamber of Commerce.

Despite the often loud exchanges that characterise discussions on this question across Europe, we know that our messages are reaching our European partners. However, our diplomatic campaign on this extends to far more than set-piece speeches. As virtually ever Minister will attest, the EU-UK relationship figures prominently and regularly in bilateral discussions with our international counterparts, whether EU or non-EU. While we are never slow to raise it ourselves, because of our close strategic relationship with the UK, others often look to us as well for insights on the debate in Britain. I can attest to that myself as, last week, I was in Riga and Helsinki where our opinion on the UK question is valued and frequently sought.

The most important partner, however, is the UK itself. While ultimately the nature of its relationship with the EU is for those in the UK to decide, we try to ensure that they are fully aware of, and sensitive to, the concerns of their nearest neighbour. To that end, we have already had a number of productive discussions, both at political and senior official level. Most notably, the Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, had a substantive exchange in December in Dublin with the British Foreign Secretary, Philip Hammond, MP, where they addressed the intricacies of the debate and the Irish dimension to it.

I have discussed the matter with my British counterpart, David Lidington, whom the committee met earlier this week, as well as the British ambassador to Ireland, Dominick Chilcott. Of course, discussions will only get us so far. That is why we have been examining what further steps we can take to help the UK to remain firmly within the Union.

As a starting point, which was highlighted in the Dáil last week by the Minister, Deputy Charles Flanagan, we are continuing to work closely with our British partners, as well as other similarly minded EU states, on those policy issues where we share the same interests. The main British political parties have all made it clear that the achievement of common EU economic aims is a key goal and will help strengthen the case for UK's continued membership. For Ireland, this means that we should seek to progress on matters such as the digital Single Market, the completion of trade negotiations with third countries, such as the Transatlantic Trade and Investment Partnership, TTIP, and the move to a more streamlined approach to EU regulation. These are all goals that we wish to achieve anyway, but now they have the added bonus of helping to anchor the United Kingdom within the Union.

The UK might also seek changes to the way in which the EU functions or operates. In this respect much will depend on the outcome of the forthcoming British general election in May. It is fair to say that nobody here today would be surprised if a British agenda for change in one guise or another is presented soon after the election. While I do not wish to engage in needless speculation on hypothetical scenarios, the likelihood is that the outcome of any subsequent negotiations between the UK and the EU on this agenda could be material in determining whether our British friends remain in the Union.

For its part, Ireland will take a pragmatic approach when it comes to considering any such proposals. We are always open, as we should be, to effecting sensible changes to the Union that could improve the way it works for the 500 million Europeans. This is only normal. We have a shared collective interest in getting the EU to function as efficiently and effectively as possible. We also recognise, as the European Council has done, that the UK has some legitimate concerns that should not be ignored. Ireland will be sympathetic and supportive when it comes to addressing those, especially because the UK remains our closest friend and ally in Europe. This does not mean that we should write blank cheques; far from it. True friendship requires both parties to be fully honest with each other, so if and when we believe a UK proposal would be unrealistic or damaging either to our national interests or to the broader functioning of the EU, we will be direct, candid and forthright in saying so. For example, the Government has already made it clear that it considers freedom of movement to be a cornerstone of the European Union. We therefore could not, and should not, support anything that would undermine or weaken it. That is not to say that we would reject out of hand any reforms to this, British or otherwise. We should always be prepared to consider proposals on their merits, so long as this fundamental principle is properly protected and respected.

I assure the committee that all of the areas I have outlined are the focus of ongoing reflection and analysis within the Government. Government Departments are examining the matter on an ongoing basis, and our embassy in London is also very heavily engaged. There is concerted and significant activity under way to ensure we best understand the issues at stake. Ultimately the question of the UK's future in the European Union can only be resolved by the British people and their government. I am fully respectful of this democratic reality, as I am sure the committee is also. However, there is no question of us avoiding the debate. We have far too much at stake for that. Accordingly, we will continue to contribute to it as constructively as possible.

In conclusion, it has been a pleasure to speak today on this extremely important subject, which is obviously of particular importance to this committee. I hope I have been able to add some value to the many distinguished speakers who have appeared before the committee before my attendance today. It is essential that this committee, the Government and the Opposition continue to exchange views and ideas as the issue evolves. I appreciate that I have gone a little over time, but I will be happy to take questions from the members.