Dáil debates

Wednesday, 10 May 2017

Ireland and the Negotiations on the UK's Withdrawal from the EU: Statements (Resumed)

 

8:35 pm

Photo of Declan BreathnachDeclan Breathnach (Louth, Fianna Fail) | Oireachtas source

My party leader addressed the macro issues of Brexit's impact on the European project and our party spokesperson, Deputy Donnelly, focused on the matter of trade and the difficulties and opportunities therein, so I will focus on the difficulties for the Border from a North-South perspective.

Rudderless leadership and squabbling over cash for ash and the Irish language north of the Border have diminished the ability of this island to ensure that the best Brexit situation on an all-Ireland basis is reached. I hope that, post the 8 June election, the Assembly can start operating and focus on the business that is required of it if it is to share in the burden of finding a solution on a Thirty-two County basis.

While respecting the participation of cross-Border sectoral engagement in the two all-island dialogues, it is my belief that there is a distinct lethargy among departmental officials north of the Border. If we are to have the best outcomes for the island, they need to engage in work that will guarantee the achievement of the unique solutions that Mr. Michel Barnier, Mr. Guy Verhofstadt and the negotiating team have asked the island to find. The old Irish phrase, "Ní neart go cur le chéile", springs to mind in this regard. For Northern Ireland officials, doing the bidding of the British Government's pro-Brexit stance appears to be in conflict with finding a solution that will not set the Border communities back decades through a lack of dialogue or achieve bespoke arrangements that suit the Thirty-two County island. While Northern Ireland has no autonomy on Brexit, I call on the Minister of State, Deputy Breen, to outline to the House the discussions that are taking place at departmental level North and South to ensure that the disruption caused by Brexit is kept to a minimum and funding streams are protected and enhanced.

I will focus on a number of issues that, while significant, have received little mention in all of the debate since 23 June. On health co-operation and in conjunction with the subsequent Good Friday Agreement, the Ballyconnell Agreement, which was signed on 10 July 1992, set up an organisation called Co-operation and Working Together, CAWT. It has seen great collaborative work on health projects and EU funding has allowed more than 50,000 people to avail of services that would not otherwise have been provided. How can we guarantee such co-operation in future?

Similarly, we need to focus on issues like energy, tourism, which pertains to the Minister of State who has just left the Chamber, the peace process, our economy and trade. A total of 88% of Ireland's energy needs are met by the UK, with 55% of fuel imports coming from there. Brexit could result in cutting off ties between our respective energy industries, leaving Ireland severely compromised. We should seek as a priority an all-island single electricity market.

Prime Minister Theresa May stated this week that no deal would be better than a bad one. No deal would be catastrophic for us on this island, as it would bring into effect the full extent of tariffs under World Trade Organization, WTO, rules. This week has seen testy exchanges, which has increased worries in Dublin about the upcoming negotiations ending without a deal. No deal means that Ireland's food market in the UK, which supports 150,000 jobs in many sectors, could face tariffs of up to 35%. Under the EU's external trading arrangements with WTO countries, dairy products are subject to an average bound tariff of 35.5%, animal products are subject to an average tariff of 16.9% and clothing products are subject to an average bound tariff of 11.5%. This would be disastrous for us in dealing with the UK, which is our largest trading partner and to which 45.5% of Irish food and animal exports go. More than 80% of products produced by individual firms in the agrifood sector are exported to the UK.

Our Government needs to get real on the prospect of this happening. It should stop believing that this will be a soft Brexit. There is a significant gap in expectations on both sides in these negotiations. European Commission President Jean-Claude Juncker has said that Britain is not realistic about the negotiations and is more focused on its general election on 8 June.

Ireland's unique position has been alluded to in various discussions. We will need to get clarity - sooner rather than later - on what will happen to our Border with Northern Ireland. We also need to protect the common travel area. However, these are all contentious issues. If Britain leaves the customs union, there will certainly be some form of border control and possibly immigration checks. I have received no answer to this question yet, but has discussion on these issues taken place?

Currently, goods travel from warehouses in the UK to the Republic without a problem. Post Brexit, this will require some level of bureaucracy and duties, resulting in considerable cost increases for those engaging in that activity. Prices will rise significantly for Irish consumers, putting us at a severe competitive disadvantage. Going it alone is not an option for such a small economy. The IDA and the Department of Jobs, Enterprise and Innovation need to work fast, hire new staff to deal with this crisis and incentivise and attract new entrants to the retail sector from other countries.

With regard to tourism, we need clarity on the Border issue. The Minister of State referred to Ireland's Ancient East. Tourism knows no borders. Where I live, the opportunities presented by the Cooley Mountains, the Gullions and the Mountains of Mourne operating as a single entity to deliver on the £9 million investment in tourism go without saying. However, this initiative is now under threat despite the fact that local authorities on both sides of the Border have made every effort to ensure that non-contentious issues such as tourism and water supply operate seamlessly. Last week, the Minister for Foreign Affairs and Trade, Deputy Flanagan, stated that he wanted to see the proposed high-speed rail link between Dublin and Belfast operate post Brexit. That was pure lip service, as no costing of that project has been done.

The symbolic Narrow Water bridge needs to be built regardless of Brexit. The project is another important link between the North and the South. It has been in the pipeline for many years, but if we do not act quickly, the planning application on the northern side of the Border will expire. Given that €1.95 million was spent on the project by Louth County Council before it was virtually shelved, it should be re-activated by the Government to ensure there is EU funding. It will help to create a critical mass and linkage in an area that is even more beautiful than the Kerry region.

Protection of the environment is another issue that should not be overlooked. Under EU legislation, a huge range of environmental protections are set out. We need to ensure Northern Ireland will maintain the same level of environmental protection as under current EU standards. There are many common cross-Border issues, including the integrity of freshwater and marine habitats, climate change, air quality and a plethora of other issues.

For Border regions and my county of Louth, at the start Brexit seemed to be all about currency volatility. While there is no escaping the impact of that volatility and businesses manage to adjust somehow, it will inevitably lead to an increase in smuggling and illicit trading. There are, however, other issues of serious concern, for example, for cross-Border commuters and staff working on both sides of the Border. They include the reintroduction of customs checks, the position of education and research and the need to ensure Horizon 2020 projects will continue, as well as co-operation between universities.

I was born prior to 1969 and our membership of the European Union and the era of the Good Friday Agreement and have seen the benefits the European Union has brought to our community. We cannot go back to the past.

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