Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

In later questions we will talk about what Britain is seeking in the Brexit negotiations. The core of these questions is how the European Union is approaching the negotiations. There has been a lot of wishful thinking and bluster but very few specifics so far. Mr. Barnier talked about having the negotiations conducted in French. That caused much amusement within the Commission, but it is petty and does not serve any useful purpose.

The other point, which we have been stating since the outset, is that the Commission has a distinct role in implementing treaties but does not have a reserved role in negotiating those treaties. We have been anxious all along, and the Taoiseach has indicated it in his speeches, that the Council, where Ireland has an equal voice, would make core decisions in respect of these negotiations and does not hand matters over to a Commission that, in my view, is now spending more time playing to the gallery than acting with proper reserve and in accordance with procedure.

Government spokespeople have been saying that Europe understands the needs of Ireland. Where is the evidence? What we are hearing from Brussels is talk of a hard Brexit. We are hearing the same from Westminster and the British Government. They are all talking about a hard Brexit. As stated by Deputy Eamon Ryan, the British Government does not want the Court of Justice of the European Union to hold sway. It does not want freedom of movement in any shape or form and, so far, all the noises from Westminster is around a hard Brexit. However, the same is happening in Brussels. Will the Taoiseach give us one example of how Ireland's unique position is being respected by the European Union? Have we, for example, been given representation in the permanent group of the Council? Are we in that group?

We are unique. The Department of Finance has produced two publications, one being UK EU exit - An exposure analysis of sectors of the Irish economy. Some of this is not reflected in our budget but it is clearly stating that there are many exposed sectors once Brexit goes ahead, particularly traditional manufacturing and, for instance, the pharmachem sector. There will be fiscal impacts because of a potential reduction in corporation tax. Above all, the impact will be very serious outside of Dublin in employment terms. The regional impact of Brexit will be far more pronounced than people might have thought. It seems to me that Irish businesses and communities, particularly those involved in traditional manufacturing and SME services, will require assistance. Having read the two reports, there will have to be a transitional period whereby support and aid will have to be given to Irish SMEs to enable them to move to a new situation and to discover and diversify into new markets and so on and to enable them to ride the storm, if one likes, that is coming once Brexit takes place, in particular if it is a hard Brexit. The report also made the point that the highest share of total employment in the exposed sectors in the particular regions is found in the Border region. The Border region above any other will be particularly hard hit as a result of a hard Brexit. I have no sense of that being shaped yet or that the Commission or anyone in Brussels has an understanding of it. That is not to speak of the devaluation of sterling, which is also hitting our SMEs. In addition to the devaluation of sterling and its impact on SMEs and businesses will be the actual exit itself. If there is less than full market access, we are in tariff country. We are talking about tariff territory. This will be very difficult for the food industry and traditional manufacturing sectors.

Has any work begun on specific instruments to implement aid programmes and support for such companies? Has the Taoiseach informed his European colleagues of the likelihood of such aid and assistance being required, given the reports by the Department of Finance on the potential and very real prospects of the impact of Brexit on our Irish industries and jobs?

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