Enda Kenny (Mayo, Fine Gael) | Oireachtas source

In the course of the meeting with Prime Minister May we did not discuss the British corporation tax rate. I have made it clear on many occasions we are supportive of the devolution of authority to the Northern Ireland Executive Assembly to be able to determine itself the question of a reduction in its corporation tax rate, which would approach ours here. It would make it easier in many ways to be able to speak about the island economy of Ireland. The First Minister and deputy First Minister are either in China or returning from China. On these occasions we have always made our diplomatic services available to the First Minister and deputy First Minister for Northern Ireland, in respect of attracting industry and job opportunities. I may have referred to this in my conversation, but we did not discuss the British Government's intentions or discussions about reducing its tax rates.

As Deputy Martin is well aware, tax policy at European level is a matter of unanimity but each country has it enshrined in the treaties that it has individual competence in respect of the rate of tax, where ours is at 20%. The Deputy made a valid point on where we are looking to five, ten or 15 years out. This is what the essential focus of the European Union should be. If it becomes obsessed with the question of what might happen to the United Kingdom or what facilities will eventually be negotiated, then Europe itself needs to look to its own laurels and how it should become more competitive than it is that present. We have always tried at European level to be as competitive as the United States, but we have never been able to measure up to it.

We cannot have a situation where some countries have a youth unemployment rate of between 30% and 50%. It is a recipe for disaster and leads to frustration, cynicism, anger and extremism. This is a question of politics and European leaders, countries and Governments must decide politically where they want to be. When Britain leaves the Union we will still have a Union of 450 million people, a Single Market and a well-developed region that needs to focus on giving these young people opportunities and inspiration. This can only happen by investment, through political decisions in these areas. It is a valid point and European leaders need to focus not just on the now but on the time to come so these decisions can be made.

The Deputy will have noted the comments from Mr. Barnier and from the German chamber of commerce. I have explained our country's position to Chancellor Merkel, President Hollande, President Tusk, President Juncker and all the other leaders. This is reflected in many of their comments, in that they understand there is a peace process here, that it is supported by Europe and is something we must continue to support, and that Ireland as a country stands to be the most impacted by the Brexit decision, particularly if it is a hard Brexit which might mean withdrawal from the Single Market and-or from the customs union.

These are issues for discussion and negotiation, which will have to take place. I do not have any control over the Prime Minister's schedule. I have attended all of the British-Irish Council meetings of the past few years and the deputy First Minister is now the longest-serving member, having been there for many years. I made the point that it would add status and importance to the British-Irish Council were the previous Prime Minister, David Cameron, to attend. He attended one or more of the first meetings but did not go subsequently. It is an important entity in its own right, along with the crown dependencies. The Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, is in London today and I confirm to Deputy Adams that our officials, under the direction of a section in the Department of the Taoiseach, are in constant negotiation with Northern Ireland officials and with officials in London, as well as in Brussels.

The common travel area was brought up. When I met with Prime Minister May we agreed that nobody should lose any benefits from the common travel area and that citizens, and everybody here who has passports when Brexit happens, will be entitled to Irish citizenship and to travel up and down and over and back, not just for social occasions but also for work. The common travel area has existed since the 1920s and we do not expect or intend to lose it. When the negotiations are concluded I want to see co-guarantorship, on a continuing basis, of the Good Friday Agreement and its successor agreements.

Deputy Howlin asked about Gibraltar but I do not want to put the two things together. It is an overseas dependency and there is a special circumstance in Ireland, with a land border and a peace process involving direct funds such as peace funds. We have made the case very strongly at European level and we have to build on that for the future. We keep in contact with Brussels and are well aware of what is happening with Gibraltar. We have two people on the task force, set up by Mr. Barnier who is conducting the discussions and will be leading the negotiations when Article 50 is triggered. We will have an accurate and consistent flow of information which we will bring to the attention of the House at all times.

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