Dáil debates

Tuesday, 20 June 2017

Trade and Foreign Direct Investment: Motion [Private Members]

 

9:20 pm

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein) | Oireachtas source

I move amendment No. 1:

To delete all words after “Dáil Éireann” and substitute the following:“notes:
—the contribution small and medium-sized enterprises make to the Irish economy, employing over 919,985 people around the country;

—the importance foreign direct investment provides to the Irish economy;

—the success of the Industrial Development Authority, IDA., Ireland in attracting multinational companies to Ireland and in supporting 199,877 jobs here in 2016;

—the results of InterTradeIreland’s quarterly Business Monitor survey showing that in quarter one of 2017 98 per cent of firms have not made plans to deal with Brexit;

—that the Comprehensive Economic Trade Agreement, CETA, is part of the so-called new generation of free trade agreements, along with the Transatlantic Trade and Investment Partnership, TTIP, the Trade in Services Agreement, TiSA, and the Trans-Pacific Partnership, TPP, that move far beyond the lowering of tariffs and aim primarily to remove ‘non-tariff barriers to trade’ by reaching regulatory coherence or harmonisation between parties;

—that the legal opinion of a senior counsel has pointed out that Irish ratification of a free trade agreement, that includes an Investor-State Dispute Settlement, ISDS, or Investment Court System, ICS), would:
—possibly infringe Article 15.2.1 of the Constitution of Ireland, which vests the sole power to make law in the Oireachtas;

—certainly infringe Article 34.1 of the Constitution of Ireland, which vests the power to dispense justice in the Irish domestic courts; and

—certainly infringe Article 34.3.2 of the Constitution of Ireland which makes the High Court, and appellate courts above it, the sole court in which a law may be questioned; and
—the ongoing European Union, EU, proposals to introduce greater harmonisation of corporation tax systems across the EU;
recognises:
—the threat that Brexit poses for trade on the island of Ireland;

—the extensive trade links between Northern Ireland and Ireland, with trade in goods valued at €1.65 billion, South to North, and €1.05 billion, North to South, in 2016;

—the decision of the electorate in Northern Ireland who voted to remain in the EU;

—the need for a special status designation for Northern Ireland, to protect jobs and trade across the island of Ireland;

—that free trade agreements ratified by Ireland must have the interests of citizens and workers at their core;

—that free trade agreements ratified by Ireland must not benefit large multinational corporations at the expense of indigenous businesses;

—that a comprehensive academic study, published in September 2016 by the Global Development and Environment Institute at Tufts University, demonstrates that CETA will cause, inter alia, 200,000 job losses in the EU by 2023, significant wage compression, a decline in the labour share of income, a net loss of governments’ revenue, and net losses in gross domestic product of signature parties;

—that the Irish beef farming sector is particularly vulnerable to the effects of CETA including an influx of 50,000 tonnes of Canadian beef and 75,000 tonnes of pork entering the EU market, the impact of this influx on Irish beef producers will be exacerbated as a result of the Brexit vote due to the fact that Britain has been the largest importer of Canadian agri-produce and there has been no revision of quotas in response to the Brexit vote;

—that pursuant to Articles 34.2 and 34.3.2 of the Constitution of Ireland, a referendum of Irish citizens to change the Constitution of Ireland in relation to the subjection of the Irish State to an ICS is legally required; and

—that Seanad Éireann has voted to reject the provisional application of CETA, and the Irish Congress of Trade Unions as well as Irish environmental, public health, food safety and consumer rights organisations have called for the rejection of CETA and TTIP; and
calls for:
—a special status designation for Northern Ireland to protect jobs and trade across Ireland;

—more funding to be made available to IDA Ireland, Enterprise Ireland and InterTradeIreland to help increase the level of business preparation for Brexit;

—the Government to withdraw from the provisional application of CETA;

—the Government to uphold Article 29.5.2 of the Constitution of Ireland, which states that the terms of any international agreement involving a charge upon public funds must have been approved by Dáil Éireann;

—the Government not to ratify CETA or any free trade agreement which includes the subjection of the Irish State to an ICS or ISDS mechanism;

—the holding of a referendum of the Irish people, in accordance with the legal requirements of the Constitution of Ireland, Articles 34.1 and 34.3.2, in relation to the subjection of the Irish State to the ICS included in CETA; and

—the rejection of EU proposals which undermine Irish tax sovereignty.”

It is no surprise that we have a problem with the Comprehensive Economic and Trade Agreement, CETA, and the Transatlantic Trade and Investment Partnership, TTIP, and Sinn Féin will not support this Fianna Fáil motion. We find the motion bizarre on a number of fronts. Deputy Collins said that TTIP ran into the ground when President Trump was elected. Unfortunately for those in favour of TTIP, it was in trouble long before that. Last August, the German Vice Chancellor, Sigmar Gabriel, described it as having failed but that no one would admit it yet. He also said that in 14 rounds of talks neither side had agreed on a single chapter of the 27 being debated. The motion seems to be cheerleading for CETA which is a similarly contentious deal being provisionally applied in Ireland without so much as a Dáil debate, still less a vote in a blatant affront to democratic norms. Does this Fianna Fáil motion endorse a position of preventing the Dáil from debating or voting on CETA? Do we have to wait until all the other countries have debated or voted on it?

This motion fails to mention the huge consistent contribution indigenous Irish SMEs also make to the Irish economy. It mentions the importance of trade across Ireland and the threat posed by Brexit but offers no solution on how to protect trade in the face of Brexit. We have tabled an amendment to this motion that recognises the equally important contribution of Irish companies to the Irish economy, that seeks a special status for the North to protect trade across the island, and that calls for the ending of the unjustified undemocratic provisional application of CETA.

Sinn Féin is supportive of the great work IDA Ireland does in attracting multinationals to Ireland. IDA Ireland, Enterprise Ireland, InterTradeIreland and local enterprise offices together provide much of the support businesses in Ireland need to meet new and changing economic and political challenges. IDA Ireland supported multinationals employed 199,877 people across Ireland in 2016 and contributed heavily to the economy through corporate tax returns, wages and spending in the local economy. We want to see this trend continue and grow, and we will support measures that help achieve this.

Our amendment calls for more funding to be provided to the key agencies involved in supporting jobs throughout the country, namely, IDA Ireland, Enterprise Ireland and InterTradelreland. InterTradelreland is tasked with assisting businesses engaged in cross-Border trade. While its work is vital in this post-Brexit era, I am concerned it is not receiving the resources it deserves and needs. Documents obtained by me under a freedom of information request outline that the then Minister was aware that “InterTradelreland already operates on a very tight budget, and given the cuts imposed, they are just about able to carry out their legislative remit”. This quote was taken from a briefing document for the Minister for Jobs, Enterprise and Innovation in September 2016, four months after the Brexit vote. This is not an acceptable description of an agency with major responsibilities for assisting SMEs with their preparation for Brexit.

lnterTradelreland’s quarterly business monitor survey showing that in the first quarter of 2017, 98% of firms have not made plans to deal with Brexit. This compares with 97% that said they were unprepared in the third quarter of 2016, so in fact the level of preparedness has actually grown worse in the interim. That is why we have included a call for more resources to be made available to InterTradeIreland, Enterprise Ireland and IDA Ireland.

Brexit will pose significant challenges to trade on this island. A recently published report from InterTradeIreland and the ESRI shows that cross-Border trade in goods was valued at €2.7 billion in 2016. The same report highlights the scale and complexity of this trade, outlining that 1,933 product categories are exported from the South to the North and 2,269 products are exported from the North to the South. If the North is forced to quit the EU, these trade links will be severely disrupted and depleted, and a customs and tariffs border will reappear on this island. Talk of a frictionless Border is total rubbish. There can never be a seamless Border with either side subject to totally different regulatory regimes. The Taoiseach’s remarks in Downing Street yesterday that he wanted to see an invisible Border missed the whole point. We cannot have a Border of any type. This narrative is designed to deflect debate away from this area just long enough until it is too late. That is why we are calling for a special status designation now for the North in the Brexit negotiations. I urge Fianna Fáil and Fine Gael also to take this position for the good of the whole island of Ireland. As we saw with both parties turning their attention to the question of Irish unity lately when it suited them equally, both could now endorse the position of a special status designation for the North.

Free trade agreements ratified by Ireland must have the interests of citizens and workers at their core and also not benefit large multinational corporations at the expense of indigenous businesses. Sinn Féin has no problem with Ireland entering into free trade agreements, when they are just that - a free trade agreement. However CETA and TTIP are a new generation of deals that move far beyond the lowering or abolition of tariffs and aim primarily to remove non-tariff barriers to trade by reaching regulatory coherence or harmonisation between parties. We have serious concerns about the negative aspects CETA will have on Ireland.

At the fore of these is the inclusion of the investor court system, which will allow Canada-based corporations the right to sue national governments in Europe for compensation for the loss of expected future profits in response to government actions that impact on the companies' activities. Sinn Féin has received legal advice that the inclusion of this system is not compatible with Bunreacht na hÉireann, which is probably one reason our various requests to debate CETA in this Chamber have been refused. CETA will further distort trade and wealth in favour of large multinational corporations at the expense of indigenous Irish industry. Small and medium-sized Irish enterprises will be severely disadvantaged. The beef quotas included in this agreement will have a detrimental effect on the Irish beef industry. Canada has been approved to supply the EU with 50,000 tonnes of beef, which equates to hundreds of thousands of head of cattle. Irish beef prices will only go one way, and that is down. A comprehensive academic study published in September 2016 by the Global Development and Environment Institute at Tufts University demonstrates that CETA will cause, inter alia, 200,000 job losses in the EU by 2023, significant wage compression, a decline in the labour share of income, a net loss of governments' revenue and net losses in GDP of signature parties. This is not something Ireland should be proud of or endorse. These flaws need to be debated and action taken to avoid seriously negative consequences for workers, farmers and small businesses across Ireland.

I am not sure why Fianna Fáil is using its valuable Dáil time to talk about TTIP, a deal which has effectively been dead since the new US President took over. Protecting and growing trade across Ireland benefits everyone, not just members of particular parties. Tonight, Sinn Féin tabled an amendment which would see the Dáil adopt a position of negotiating for a special status for the North, a constructive proposal into which I urge all parties to buy. I suggest Fianna Fáil should put more effort into its motions to bring forward actual solutions to current problems rather than putting a redundant trade deal up for discussion. The Minister said we will debate CETA in the Chamber and I would appreciate it if she could give us an answer as to when we might have that debate.

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