Mattie McGrath (Tipperary, Independent) | Oireachtas source

It is from one McGrath to another, but I will never be as good at the bluster as my ministerial colleague.

I am glad to be able to speak to the report carried out by the EU committee. With a Chairman like the one it has, we would expect to receive a good report. Among the ideas discussed in it is a requirement that Ireland seek to maintain strong connections through its permanent representatives with the various EU committees and structures. There is also a sense that we must face certain facts, namely, that while Brexit is a hugely significant event for us and the United Kingdom, the work of the European Union will continue as normal and we expect it to continue with reference to Ireland. I am not sure if this is just common sense or something about which we need to be worried. To my mind, the nature of the European Union and how it is organised and what it is about have been thrown into question following the decision by the United Kingdom to leave. That is a discussion that cannot be left to one side. Of course, there is still the day-to-day running of events, but I wonder if the seismic nature of Brexit has really sunk in and if the EU elite really thinks it can adopt a business as usual approach.

The issues discussed at the round table meeting included how Brexit was going to impact on farming and enterprise and industry in this state. Banking was also discussed, but the European Union never listened to us on any issue about which we were worried in banking. It promised us during the bailout that it would not be found wanting but, my God, it was. It was absent in paddling its own canoe.

I have spoken previously about all of these topics and the European dimension. Given that I have limited time, I will confine my remarks to highlighting just how important the UK market is in sectors of strategic importance for Irish farmers and why we need to get this right in achieving solid outcomes in the negotiations.

At 65% self-sufficiency, the United Kingdom is a net importer of beef. Ireland is its main supplier, accounting for almost 70% of UK beef imports. I know that the Aire Stáit will understand this, being a farming man. I am not saying the Ministers, Deputies Michael Noonan and Heather Humphreys, do not understand it, but the United Kingdom is the market for 50% of Irish beef exports, with a further 45% going to other EU markets. Overall, a reduction in the level of access to the UK market would have a very negative impact on the Irish beef sector and potentially the overall EU beef market. The capacity of the EU beef market to absorb increased imports is low. Irish beef exports of 270,000 tonnes to the United Kingdom represent almost 10% of the intra-EU beef trade figures. The displacement of these exports will, therefore, have a destabilising effect on the overall EU market.

In 2016, 34% of Ireland’s dairy exports went to the United Kingdom, representing 53% of cheese exports, 29% of butter exports and 12% of skimmed milk powder exports. The volume of exports of cheddar cheese was 78,000 tonnes, representing 82% of the cheddar imported by the United Kingdom in 2016. Retention of tariff-free access to the UK market is critically important, particularly for Irish cheddar cheese exports. Overall, the loss of or restricted access to the UK market could have a destabilising impact on the overall value of the Irish dairy sector. We cannot emphasise this point enough.

Ireland exported 13,000 tonnes of sheepmeat to the United Kingdom in 2016. Almost 90% of UK lamb imports come from outside the European Union, from New Zealand and Australia, while the United Kingdom predominantly exports to four EU member states, with France accounting for 50%. The key issues for the sheep sector will be the decisions taken on the division of the large EU tariff rate quotas for New Zealand lamb. Any displacement of New Zealand Iamb imports to the UK market could have a negative impact on the overall value of the EU lamb market.

There is significant bilateral trade between Ireland and the United Kingdom in pigmeat and poultry products. The Minister, Deputy Heather Humphreys, above all should be aware of this, especially given the impact in Border counties. It has been built over many years. The disruption to existing trade flows caused by tariff barriers or other increases in costs would reduce the overall value of these markets. In addition, the continuation of cross-Border trade in pigs for processing is critical, reflecting the overall processing capacity of the sector on the island of Ireland.

In the tillage sector, as the Aire Stáit knows, Ireland is a net importer of grains. The geographical closeness to Northern Ireland results in some grain farmers exporting their product there rather than selling to more distant parts of Ireland. Why would they not? The imposition of tariffs on UK imports would potentially result in a re-sourcing of imports from elsewhere in the European Union, resulting in increased transport costs. On import costs, the exit of the United Kingdom from the European Union presents a significant threat of increased costs and reduced availability of plant protection products to ensure animal health.

We all know what has happened in the mushroom sector and I am more acutely aware of it than anybody else. The UK accounts for 90% of the value of Irish mushroom exports or over €80 million. Barriers to trade through tariffs or other additional costs would significantly undermine the sector which is struggling already because of the fall in value of sterling.

The forestry sector has a high reliance on the UK market and experienced major growth in exports to the United Kingdom in recent years, doubling its UK market share for sawn softwood timber since 2007, while 65% of panel products produced in Ireland are exported to the United Kingdom. I am acutely aware of this because of the location of Medite in Clonmel and the other plant in Waterford which depend totally on those exports. This may have dire consequences if we are not proactive. It is time to listen to the Minister of State, Deputy Finian McGrath, who has been on trips to Belfast and parts of Wales and elsewhere. I do not know, however, if he is really in touch with what is going on. The excitement of being in the Cabinet as a super junior Minister has not yet left him and, as far as I can see, he is in a trance. He thinks all is well because he can come into the Dáil Chamber and use some empty rhetoric. I was used to him sitting on this side of the House when the shoe was on the other foot.

The year 2012 was very telling for us. The Minister for Finance, Deputy Michael Noonan, came back and proclaimed that our EU gods were going to support us in the bailout and that they were our friends.

We are still waiting for them to support us. They use us as patsies to bail out the European banks. The Minister was not Minister for Finance at the time but he supported the bailout as did I, to my everlasting sorrow. We were sold a pup and told naked untruths. The European banks shovelled money in here when the banks ran out of it, having trailed recklessly. Not only were the bondholders bailed out by the vote, they had insurance policies that were drawn down. We were the laughing stock of Europe and the world. The EU does not mind securing Gibraltar for Spain but what have we got? For all the visits of the Taoiseach, the Minister for Finance and all other Ministers, what have we got in tangible benefits for our little country? Nothing. We have only received pious platitudes, and dúirt bean liom go ndúirt bean léi. We would be a long time waiting for the bag and we could shake it forever without getting three farthings. They do not care.

The British people are entitled to their own destiny but Northern Ireland must be protected. The Border cannot be in Monaghan, Armagh or Aughnacloy and must be pushed back to the ocean. Ireland is an island off the west coast of Europe and we all learned at school that we were surrounded by water. It is now more important than ever that the water is our boundary and if the British want tariffs they should have them there, along with the checkpoints and the trade and customs posts. They should not divide the Six Counties from Ulster's other three counties as we have too many memories of what went on there. We have too many memories of smuggling and other issues which are still happening as a legacy of the past. It is imperative we do not have our Border in Aughnacloy, south Armagh or Monaghan, areas of which I have an intimate knowledge. We must have control of our own destiny and if the European gods will not help us out other countries might also exit. They have been found out for being selfish, unforgiving and unhelpful to smaller countries such as ours.

See this speech in context