Mary Butler (Waterford, Fianna Fail) | Oireachtas source

Brexit is undoubtedly one of the greatest challenges Ireland has ever faced. It is an immense task which has serious ramifications for the entire island. The United Kingdom has traditionally been our largest trading partner, with our countries trading approximately €1.2 billion in goods and services each week. While all countries stand to be affected by Brexit, Ireland will be disproportionately affected on several fronts and more so than any other EU member state.

The British Prime Minister, Mrs. Theresa May, made a speech in Florence on Friday last. While a number of the points she made were welcome, it is clear the UK is intent on delivering a hard Brexit, given the Prime Minister's re-statement of her Government's position that the UK will leave the Single Market and customs union. It is incumbent on the Government to prepare and plan for this eventuality.

The issue of the Border is particularly complex. While we welcome that the UK has ruled out a return to any physical infrastructure at the Border, there is no clarity as to how it plans to avoid such a scenario given that it is intent on leaving the customs union. From the outset, the Fianna Fáil Party has strongly advocated the establishment of a special economic zone for Northern Ireland and the Border counties which would enable the North to maintain links with the EU. This possibility must, at a minimum, be explored in full.

Domestically, much more needs to be done to be Brexit ready. First and foremost, Northern Ireland is still without an executive and has been rudderless for a number of months. On several fronts, Brexit is nothing short of a disaster for people in Northern Ireland, the majority of whom voted to remain, and the Border counties. It is imperative, therefore, that all sides redouble their efforts to resolve outstanding issues and move forward to promote actively and to seek the least damaging Brexit possible.

I am the chairperson of the Oireachtas Committee on Jobs, Enterprise and Innovation, which recently undertook a series of engagements on Brexit and produced a document on the issue. In the course of our engagement, the committee heard presentations from, among others, Enterprise Ireland; IDA Ireland; InterTradeIreland; the Centre for Cross Border Studies; the British-Irish Chamber of Commerce; the Small Firms Association; the then Minister for Finance of Northern Ireland, Máirtín Ó Muilleoir MLA; the then Minister for Infrastructure of Northern Ireland, Chris Hazzard MLA; and the then Minister for Jobs, Enterprise and Innovation, Deputy Mary Mitchell O'Connor.

The stakeholder engagement highlighted how difficult the road ahead will be and the importance of Ireland being prepared for the negative economic impact of Brexit and to take advantage of opportunities that may arise. The joint committee's report attempts to gain a better understanding of the consequences of Brexit on the economy, jobs and enterprise. The future trading relationship between the European Union and United Kingdom will be critical. The closer we remain to the current relationship, the less will be the impact of Brexit. However, as we seem to be heading for a very hard Brexit, we must be ready for the worst case scenario.

We have already begun to see some of the negative consequences of the uncertainty caused by the Brexit vote. I propose to address a number of these issues. It is vital that Ireland has a strong voice in the Brexit negotiations. It is important that we argue strongly in favour of making a transitional agreement until such time as the future relationship between the EU and UK is agreed. A special status arrangement for Northern Ireland within the European Union is also vital to protect the rights of Northern Irish citizens and residents. The peace process and the implementation of the Good Friday Agreement must also be at the forefront of negotiations. As the Border area is likely to be one of the regions of Europe most affected by Brexit, it is imperative that peace and community projects continue to be funded.

I am happy to say that our committee recommended a designated special status for Northern Ireland within the EU that protected the peace process, allowed access to the Single Market and all EU funding streams, retained the common travel area, allowed access to EU institutions, including the European Court of Justice and the European Court of Human Rights, and EU sectoral agreements, and protected EU rights pertaining to employment, social security and health care.

The enterprise agencies' funding must be adequate to help businesses that are struggling due to Brexit and maintain Ireland's image internationally as a country that is open for business and investment. I hope that funding for the IDA and Enterprise Ireland will be addressed in the forthcoming budget.

Ireland is a proud and committed member of the EU. As proud Europeans, it is our duty to highlight areas that need reform. To deal with the effects of Brexit, it is vital that there be changes to the EU's fiscal rules to allow for more capital investment across the Continent. By allowing for greater capital investment, EU member states will be better able to prepare their economies post Brexit. There also need to be exemptions from state aid rules to allow member states to aid businesses and sectors that are experiencing particular difficulties related to Brexit. Allowances need to be made for the exceptional circumstances in which the EU, particularly Ireland, finds itself.

It is important that the EU does not become embroiled in a race to the bottom with the UK. High standards in environmental and employment law must be maintained. We want a competitive economy, but one that provides secure, well-paid jobs.

The committee believes that action needs to be taken within the Irish economy. Businesses throughout the country must be helped to understand the dangers of Brexit. This applies to all firms, not just those that are directly involved in exporting to the UK. An early warning system should also be developed, bringing together employers and employees or unions to help identify sectors and enterprises at risk. The committee has recommended that the Department monitor the number of businesses relocating from Ireland to the UK and determine what measures can be put in place to avoid this.

The committee believes that there needs to be investment in education, infrastructure, housing and office space throughout the country to allow communities and businesses to mitigate the negative consequences of Brexit. For its part, the committee is fully committed to monitoring the progress being made on the ongoing implementation of the recommendations in the report, as well as other policy initiatives, in close consultation with Ministers, the Department, its agencies and other stakeholders with responsibility for policy in this area. Brexit will require a response from the whole country, including Government and all stakeholders.

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