Michael Noonan (Limerick City, Fine Gael)
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The Chairman of the Revenue Commissioners, among his other responsibilities, has responsibility for the Customs services. If Deputy Doherty is talking about the free movement of goods, it is an issue for Customs; whereas the free movement of people is more of an issue for the immigration authorities, with the chain of responsibility going back to the Department of Justice and Equality.

I had a discussion with the Chairman of the Revenue Commissioners about how the Customs Service operates. With your permission, Acting Chairman, I will take a few minutes to give the committee an insight. The best insight arises from the procedure for goods from Third World countries coming in to Ireland rather than from European Union countries. This is the worst case scenario if there is no deal with the UK. Arrangements will have the status of Third World countries under the World Trade Organization. At present, Revenue operates a colour coded channel system if goods are coming in from a Third World country. The colours are green, orange and red. Let us suppose something is coming from the Americas. Everything has to be transferred electronically to the Customs in advance. The procedure is that 92% of the goods are cleared in advance electronically. They simply go through when the containers come in, without a check. Goods in the orange zone may be subject to an electronic request for a manifest of what might be in individual containers, but there would not be a physical check of them. The actual physical checking is less than 2%.

Let us suppose the UK ended up with a status operating under World Trade Organization rules. That would be the template under which the Customs would operate. However, given the large amount of trade we undertake with the UK and the large amount of imports received from the UK, volumes would change.

The Revenue is undertaking contingency planning, but it has not been directed from a policy point of view in any respect. It would be prudent for the Revenue to consider the options, but that is all Revenue is doing at the moment.

The Taoiseach is speaking in the Dáil this afternoon on Europe and Brexit. The Taoiseach has enunciated the Government position on several occasions, saying that we want no hard border and no inhibition to the flow of goods and services across the Border. From a Government policy point of view, we do not envisage Customs activity on the Border. However, it will depend on where the negotiations go. The British have a similar view. They want free movement of goods and people as well. However, the negotiators will be the negotiation team of the European Union. Even though this is the intent of the two jurisdictions involved, we still have to get it across the line in Europe. That might be five or six years down the line.

I will answer Deputy Doherty's question directly. The Customs is looking at contingency in the event of where the negotiations may land, but the decision of Government and the policy position is not to have the kind of border that would require Customs officials to be in place.