Michael Harty (Clare, Independent) | Oireachtas source

I welcome the opportunity to contribute to this debate on the UK's referendum. The decision by the people of the UK to leave the EU has come as a shock to all the countries in Europe, to Ireland, the stock markets and to the UK Government itself. Uncertainty is the most common response across Europe in stock markets, in currencies and in the markets worldwide. Uncertainty always causes chaos in the markets. This market turmoil is our most immediate challenge and returning some certainty needs to be our most immediate priority. Since its foundation 43 years ago, no member state has opted to leave the EU, until now. Therefore the process of disengagement and negotiation on exit is uncharted. It will lead to very difficult negotiations for other EU countries but particularly for Ireland because of our connection with the UK. The Conservative Party and the Labour Party campaigned to remain in Europe but failed to get their message across to the British public. The main issues that led to this failure were not economic or political but were based on fear and isolationism, including fear of migration and immigration.

I pay tribute to the late Jo Cox, MP, who was murdered during this campaign as she campaigned to keep Britain and the UK in Europe. Her death was a tragedy which I believe overshadows the result of this referendum. She must be remembered.

The UK has voted to leave the EU against the advice of its political leadership and without political preparation. This is an extraordinary situation. One would wonder what the British people were thinking of. This was a protest vote against the British Government as well as a protest vote against the EU, without taking into account the ramifications of the result. Some campaigners used the referendum as an electioneering platform to advance their own careers. I believe that the UK is as confused about what happened as we are ourselves. There was political turmoil in Britain with the resignation of the Prime Minister and the mass exodus of the Labour Party shadow cabinet. There is the prospect of a disintegration of the United Kingdom with Scotland and Northern Ireland voting to remain in Europe. The UK and Wales are also divided since the margin of the vote was only 4%. There is no exit plan. Boris Johnson, MP, and Nigel Farage, in their attempts to preserve and isolate the United Kingdom, may have unwittingly precipitated the disintegration of the United Kingdom. Ireland is now faced with the prospect of its main trading partner being outside of the EU, which will lead to huge economic challenges.

Ireland has a common Border with Northern Ireland which will now be outside the EU. This will cause unique difficulties for both sides of the Border, politically economically and socially. Extra efforts will be required in seeking EU support to preserve freedom of movement of people and goods across the Border and indeed between Ireland and the UK where we have substantial interests economic and socially and with so many Irish citizens living and working in the UK. Many Irish companies have a substantial interest in the UK, including our agribusinesses such as Glanbia, Kerry Group and Greencore.

It is true that EU bureaucracy has become too intrusive. What might be good and applicable in France and Germany may not be applicable in Ireland or other small countries. We must guard against the EU becoming as unpopular in Ireland as it has become in the UK. However, we must remain calm and patient. The initial shock of this decision should not spook us. There are two years of negotiations ahead. Article 50 will not be triggered for several months and I believe there are three phases in what lies ahead. There is the immediate phase, where market and currency volatility is going to be very difficult. This is our most immediate threat. The second phase may be the medium term when Article 50 is triggered and the two years of negotiations commence, which may take several more years beyond that. Then, in the long term, what will Ireland be like and what will Europe be like after the UK has exited the EU completely? Hopefully negotiations will be positive and constructive and not carried out with rancour and mistrust. Hopefully also Ireland will get support from other EU with regard to our economic, social, political and geographic connections with the UK.

Ireland needs to protect its jobs and exports to the UK and to protect our political structures. We particularly need to protect the political institutions which developed from the Good Friday Agreement and which underpinned peace in Northern Ireland. However, Brexit could put Ireland's economic recovery at risk. We must protect Ireland's exports and in particular our agrifood exports. Some 50% of our Irish beef, one third of our dairy products, 60% of our poultry and cheese products and 33% of our timber are exported to the UK. Some 51% of total agricultural food exports from Ireland go to the UK and 51% of total agricultural imports come from the UK.

Border controls would also impede trade. The UK is a major contributor to the EU budget of which 40% goes to CAP. Therefore, the budget for CAP may be substantially reduced which would reduce subsidies to the Irish farming community. If tariffs were imposed then exports to the United Kingdom would be severely damaged.

On the positive side there may be opportunities for Ireland for foreign direct investment and in financial institutions moving from London to Dublin. Ireland will be the only English-speaking EU country. There may also be unforeseen advantages of which we are not yet aware or which are not apparent. We must be patient, calm and focused and we must gain advantage out of this adversity, if there is advantage available.

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