Dr. Eoin O'Neill:

On the first question regarding whether there is a contradiction between promoting the economy and promoting sustainable development and if they are they mutually exclusive or in any way compatible, competition policy is related to concern for the environment and the harmonisation of standards. Environmental policy is the level or threshold of the standard itself. The evidence suggests that environmental regulations have been generally positive throughout Europe and the furthering of the standards have not had an impact on economic performance, therefore, there is not a mutually exclusive element. Some of the evidence suggests that it has had a minor impact on productivity initially. In the long run, on average, I would say the impact has been generally positive. There has been some minor short-term effects in terms of employment. There may be certain industries that have been impacted more than others. The important thing is to provide support. This may arise in the future in terms of a low carbon transition. There may be certain sectors that need to be supported as certain areas are restricted and other areas are being promoted through eco-innovation where new technologies and opportunities are emerging. On the one hand, there are some downsides in the short term, but in the long run it is usually positive. Therefore, they are not mutually exclusive, and they can be complementary. Dr. Brereton and Mr. Ewing may have something further to add on that issue.

Senator Leyden raised the issue of the UK potentially lowering standards, and the Chairman also mentioned that point. I do not necessarily have any greater knowledge than the members on this matter. Some of the Brexit research has identified this as a potential problem, as an issue and a potential scenario that could emerge. Presumably, it depends on the nature of the future trade relationship that is established with the European Union. If there is a hard Brexit and a trade relationship is not firmly established, we could potentially see a lowering of standards. Presumably, they would then seek to achieve competitive advantages through means whereby they would be no longer subject to European regulation where regulatory divergence would emerge. That would be a concern. It would affect the competitiveness of any industry in Ireland presumably, including farming, and presumably industry-wide across Europe, if the UK sought to achieve competitive advantage through lowering its environmental standards. I presume that would result in them achieving an advantage through that means, which would be a negative outcome in terms of competition for us and potentially in terms of the environment where there are transboundary effects that are unique to Ireland as well. That would be an additional concern. Does Dr. Brereton have anything further to add?