Oireachtas Joint and Select Committees

Tuesday, 16 May 2017

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Brexit - Recent Developments and Future Negotiations: Discussion

4:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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I appreciate that. That is welcome information that this committee should have. It brings some clarity. Language is being used which is not getting to the substance of the issue. What is meant by the phrase, "no return to the borders of the past"? Is it that no British soldiers will be standing at a customs post as customs officers check if a person has two pounds of bacon in the back of the car? That is what people remember. However, the scenario outlined, which I acknowledge is contingency planning rather than an plan for certain implementation, in terms of Border patrols and spot checks and so on, including a facility which could lead to up to 8% of traffic being diverted to it, is a major worry for businesses, particularly in Donegal, the county from which I come. People and companies there such as haulage companies have to cross the Border. While we are preparing contingency plans on this side of the Border, a similar process may be taking place on the other side. Is that not the case? Travelling from Buncrana or Gweedore, a person might reach a trade facilitation post 8 km from Lifford and then have to pass another one 8 km from Strabane. By the time that person reached Aughnacloy, he or she could have been stopped twice more. That could be problematic, in particular if fresh product was being transported.

My colleague asked Mr. Callinan about special status for Northern Ireland within the European Union. I appreciate he said it does not matter what we call it. There is some truth in that. However, the Oireachtas has voted that the Government should seek special status for Northern Ireland with the European Union. I understand the witness's role and that he is responsible to the Taoiseach. However, in a democracy one must have regard to the will of the majority of the people. Mr. Callinan mentioned that it is not his place to demand special status. In reality, it is, and he has that authority. The Oireachtas has given him, or at least the Taoiseach, that authority. He is not able to ensure the special status is secured but neither can he ensure we do not have a hard Border or hard Brexit and so on. There is a requirement for special status for Northern Ireland within the European Union. As we are dealing with 26 other member states in addition to Britain, who obviously have their own opinion on this matter, the only way we can prevent what Mr. Irwin has spoken about, which could decimate industries across the Border community which must cross the Border daily, is by Northern Ireland being within the customs union. That would require it to be in the EU and special designated status is therefore required. Although Mr. Callinan works under direction, I ask him to bring that back. I make that point to him again.

The witnesses said that fiscal exceptions are being reviewed and that they will work within the fiscal rules. They are aware of the now widespread Sinn Féin position, which is that the fiscal rules do not work and need to be renegotiated. However, there is leeway to deviate from the fiscal rules in exceptional circumstances.

Are we going to argue or are we willing to make the argument that the outcome of Brexit should be deemed an exceptional circumstance under the fiscal rules? That could allow us to invest in areas where normally we would not be allowed to invest in the case of no exceptional circumstances. If Brexit is not an exceptional circumstance for this country, God knows what is.

I have two further small questions.