Dáil debates

Tuesday, 26 September 2017

UK Withdrawal from the EU: Statements

 

8:05 pm

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein) | Oireachtas source

Last week during an exchange with Mr. Guy Verhofstadt, MEP, European Parliament Brexit co-ordinator, I told him that the economic consequences of Britain’s decision to leave the EU was already being felt in Border communities such as my own in Cavan and Monaghan. It is common knowledge that some of the weakest economies on the island are along the Border and, therefore, require the most protection against the negative impacts of Brexit. I told Mr. Verhofstadt of the palpable fear held by so many that certain sectors, particularly the agrifood sector, will be significantly reduced and jobs lost without solid economic supports.

Their fears are not unreasonable. Agrifood sector exports were an estimated €570 million less than they would have been in 2016 as a result of the weakening sterling in the wake of the Brexit vote.

I asked him if, in solidarity with hard-pressed sectors of our economy, the EU would respond with assistance and supports for struggling Irish enterprises. His answer was vague, to say the least. It is on the record of the meeting of the joint committees, which was chaired by the Ceann Comhairle. It will come as no comfort to those who fear their jobs could be lost in the future.

The ramifications of the Brexit vote are also being felt by local businesses in the Border area as a result of the euro-sterling exchange rate. Sterling has been down 15% to 20% against the euro since last year’s referendum. The weak pound is driving shoppers north of the Border in search of cheaper prices and this has been to the detriment of local retailers and businesses. That is not unique to Cavan and Monaghan and I am sure my colleague, Deputy Breathnach, will be able to confirm it from the Louth perspective. A recent article in The Irish Timesreported a car dealer north of the Border saying that there has been an 18% increase in used car sales to customers from the South. This is another indication of the trend and the traffic.

The disastrous consequences of Britain’s decision to leave the EU are limitless. It is important to recognise that its impact is already being felt in Border communities. Certainly, the future ramifications are stark. However, I believe it is incumbent on the Government to push for EU assistance and supports for Irish enterprises that are already struggling. If we wait until after the conclusion of negotiations, as Mr. Verhofstadt appeared to indicate last week, and then examine the situation that is presented, many of these businesses will already have gone. Theresa May’s speech in Florence last week came as no comfort and confirmed that the British Government does not have any solutions to the issues affecting Ireland as a result of Britain's decision to leave the EU. In that context, the Government should not allow the Brexit negotiations to move to the next phase. We must hammer this down, step by step.

It has been said time and again that Brexit has the potential to undermine the Good Friday Agreement and the rights of Irish citizens in the North. It will undermine our economy and is already doing so. It is worrying to note that the narrative has now changed to talk about avoiding a "physical border" as opposed to avoiding border checks of any kind. Sinn Féin has provided solutions. We have consistently called for the North to be given special designated status within the EU. We are also calling for the Good Friday Agreement to be inserted as a protocol in the final withdrawal agreement. This would provide legal protection for the agreement, which was so hard won. The effort to implement the agreement in its entirety has been strenuously and eagerly pursued over the almost 20 years since it was signed.

None of this will be achieved if the Taoiseach and the Government do not up the ante. They have a responsibility to stand up for the interests of Irish citizens. The Taoiseach must harness European and Irish support, stand up for Ireland and argue for designated status for the North within the EU. I commend such an approach to the Minister.

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