Oireachtas Joint and Select Committees

Wednesday, 26 June 2019

Joint Oireachtas Committee on European Union Affairs

Alliance Building to Strengthen the European Union (Resumed): Institute of International and European Affairs

Dr. Pat Ivory:

I thank the committee for another opportunity to set out the views and concerns of business to the joint committee as it undertakes its work on alliance building within the European Union. IBEC is the country's largest business organisation and represents members at national, European and international level. Over recent years, we have been working intensely at a national and European level to support member companies as they manage the ongoing uncertainty of Brexit disruption. More recently, we have also been working to highlight business priorities during the recent European Parliament elections as well as in the context of the election of the new Presidents of European Council and Commission and the appointment of the new college of Commissioners. Unsurprisingly, Brexit remains a top concern. The failure of the UK Government to ratify the withdrawal agreement has left business with the complex task and enormous cost of managing the uncertainty of shifting Brexit deadlines. Millions of euro have already been spent putting in place, and in many cases activating, costly contingency plans. The divisive and ongoing polarisation of the UK political debate has increased the likelihood of a no-deal outcome, driving up the cost of contingency planning further. For the record, business fully supports the terms of the withdrawal agreement, which comprehensively address the key challenges that arise in the exit process. From the perspective of business, customs and regulatory alignment across the island of Ireland is vital to avoid the return of a hard border, safeguard the all-island economy and protect the Good Friday Agreement. The unique challenges facing Ireland and Irish business in the Brexit process have required us to invest enormous energy in strengthening our links and co-operation with other EU and international business groups over recent years. It is vital that our partners in Europe fully understand the specific economic and political challenges Brexit presents to Irish business and support an outcome that comprehensively addresses them.

IBEC has had a permanent office and staff in Brussels since the 1970s and the organisation is a member of BusinessEurope, the leading advocate for growth and competitiveness at EU level. The group brings together business federations from 35 countries and IBEC actively participates on its council of presidents, executive committee and numerous policy committees and working groups. IBEC is also the Irish member of Business at OECD, which is based in Paris, and the International Employers Organisation, which is based in Geneva. In addition to these horizontal business organisations, IBEC's numerous trade associations are affiliated to their respective sector associations at EU level.

An audit of our activities shows that over 60 of our staff are involved in approximately 200 committees and working groups in more than 65 organisations. That is a significant commitment of time, effort and finance to building alliances across Europe.

Given the challenges on the horizon, we have stepped up significantly our engagement with strategic business partners in recent years. We have travelled across Europe to meet our business partners in their cities, including Berlin, Paris, the Hague, Vienna, Prague, Copenhagen, Tallinn, Helsinki, Athens and others where Ireland does business. The breadth and depth of our ongoing work make us among the top business federation lobbyists at EU level, alongside the key German business groups. All of this means that IBEC has a truly unique capacity to ensure Irish concerns are understood and shape common EU-wide positions. This has been the case when it comes to Brexit, with IBEC ensuring Irish concerns are reflected clearly and strongly in EU-wide business positions, but it is an issue that goes far beyond Brexit. IBEC has set out in detail its priorities in the context of the future of Europe and the direction of a post-Brexit European Union. Of course, a European Union without the United Kingdom will be very different. Ireland and the other remaining EU member states must seize the opportunity to reinvigorate their commitment to a stronger, more prosperous European Union which will further develop the Single Market, the digital economy, international trade and enshrine pro-jobs and pro-growth conditions and a real commitment to innovation at the very heart of EU decision-making. We are working with our partners across Europe to make this happen.

In its work IBEC also focuses on global issues and connections that are so important to an open globalised economy like Ireland. In recent years IBEC delegations have visited Washington DC, New York and elsewhere to strengthen its engagement with US businesses and their representative organisations such as the US Chamber of Commerce, the National Association of Manufacturers and the US Council of International Business. IBEC has also welcomed leaders from these organisations to Dublin to meet Irish business leaders. A key part of investment and trade in Ireland is the strong relationship between not only Ireland and the United States but also the European Union and the United States. This is something to which we continue to be committed, even in a challenging global environment.

Key international challenges have intensified the work of IBEC in forging strong alliances with its partners in Europe and further afield. This is work it carries out typically in close co-operation with the Government and Ireland's international embassy network across the world which is second to none. Of course, there is more to do. IBEC intends to further strengthen its engagement with liked-minded EU and International business groups as we face the challenges ahead.

I thank the Vice Chairman and members for their attention.