Enda Kenny (Mayo, Fine Gael) | Oireachtas source

This is a serious matter in the context of challenges facing the country. Obviously, while we must hold a general election in Ireland, Europe faces a number of challenges that will be of highly significant import, of which this is one. Issues such as migration, oil, energy costs, climate change, the impact of the great powers and the situation in the Middle East are not within our control, but they have an impact on this country and its economy. The important point to make to the Deputies who are as interested as everybody else is the detail of the proposals has yet to be tabled in this case. Everyone is cognisant of the potential impact of what might happen when the question is asked of the British electorate whose decision it is to stay in. Britain is our largest and nearest trading partner and the fact that trade to the value of €1 billion takes place across the Irish Sea every week speaks for itself. Obviously, currency fluctuations can have an impact on trade either way in tourism, the hospitality sector, production, manufacturing and exports. While a paper is to be circulated by President Tusk in the near future, I do not know what it will entail and nor do I wish to commit to presuming to know what will be the outcome of the British people's decision. Suffice it to say the Government is sufficiently interested in this matter to be highly public in its support for Britain remaining a strong and central part of the European Union. Ireland has made its decision on the fiscal stability treaty, our entrance to the European Union and commitment to the euro, the eurozone and the Union.

As the Deputies are aware, four clusters or baskets of issues were set out. One cluster pertained to economic governance, which includes moves to prevent non-eurozone countries such as the United Kingdom from being disadvantaged by decisions taken solely in the eurozone. That is a good basis for discussion. I believe the euro area must have the capacity to do what is necessary to ensure financial stability and economic growth. It must also, however, act with full respect for the Single Market which comprises the entire European Union, as well as for the integrity of the Union as a whole, without prejudice to any interest of member states. I consider this to be an achievable goal. The Government appreciates the concerns of the United Kingdom and other non-euro countries in this regard and while this is an issue that obviously requires some serious analysis, it can be dealt with.

A second basket of issues concerns making the European Union more competitive. This includes the completion of the Single Market, better regulation and expediting international trade agreements. Ireland shares quite a number of Britain's priorities in this area and welcomes steps that will give impetus to growth, competitiveness and employment.

The third one concerns steps to enhance national sovereignty. Those steps relate to strengthening the role of national parliaments in the EU as well as addressing the concept of an ever-closer union. We always have had a constructive approach to this proposition and believe that a solution can be found to that particular issue.

The question of migration and welfare is one that is of great concern to people. It is clear what happened in Cologne is appalling. I saw the response from Syrian men and women who said this is not what their country represents. It is a very sensitive issue and something which cannot be condoned in any circumstance but discussions at the December Council showed broad agreement that abuses of free movement should be targeted without calling the principle of free movement into question. I think this is acceptable to everyone and we are supportive of action to achieve it. In addition, we agree that welfare systems should not, in themselves, be a pull factor in encouraging migrant workers to come to any country but any reform would have to have full respect for equality and non-discrimination. At the meeting, President Juncker said the Commission would like to look at a number of options in respect of this category, which is where the real difficulty was being experienced following the Prime Minister's tabling of these issues.

No one here would want to see the common travel area coming under pressure and border controls between here and Britain or Northern Ireland, as rightly pointed out by Deputy Adams. The issue, in so far as Northern Ireland is concerned, is of great importance to us. Deputy Martin referred to the ESRI report which was commissioned by the Department of Finance and published on 5 November. It considered the impact of a British exit on Ireland across trade, foreign direct investment, energy and migration and found that, aside from the UK, Ireland would be the most adversely affected European member state. We should not assume, therefore, that we do not have an interest in this issue.

None of the findings in the report made an Irish case for a British withdrawal from the European Union. We have been very public about our support for the British Prime Minister and Britain's continued membership. A number of other studies are also available which point out the economic, political and social implications of a potential British exit from the EU for Ireland, Europe and Britain. The Institute of International and European Affairs published a study in March of last year which identified key areas that would be impacted. These included trade, energy and foreign direct investment. It concluded that the precise impacts would depend on the trade arrangements that would be put in place to manage bilateral economic relations in the event of a British exit. The key issue is that Britain is our number one trading partner and we are its fifth most important market. The trade is valued at approximately €1 billion per week.

Deputy Adams raised the question in Northern Ireland. As I stated when I spoke to the Confederation of British Industry, the ESRI found that Northern Ireland could be the most adversely affected region of the UK in the event of a British exit. This is extremely worrying on a number of levels. The EU has been an important if, perhaps, underestimated enabler of peace in Northern Ireland. It provided €2.4 billion in funds over the period 2007 to 2013 to help Northern Ireland overcome the challenges faced by a peripheral region emerging from conflict. Common membership of the EU project is part of the glue that holds that transition process together and now is not the time to weaken a cohesive, stabilising influence and outward focus that shared EU membership brings to Northern Ireland.

While we are conscious of these things, our best opportunity at the moment is to work with British industry and British needs in this country to explain the importance and the potential implications of a decision that might be made by the British people. I must focus on an outcome from the February meeting of the European Council and then the British Prime Minister's making his case to the British people. In the meantime, we must continue to work on the clear opportunities for trade in all of these areas in the future.

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