Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I will pick up on one or two points. There was an exchange of text including different options, one being no regulatory divergence and the other being regulatory alignment. On Sunday night, we were satisfied that we could accept either of those sets of words and regulatory alignment was what was accepted by the British negotiators on Monday morning.

We have also agreed a mechanism which, I think, should allow us to move on to phase 2. We all - the DUP in Northern Ireland, all the parties here, all the parties in the North, the British Government, both Remainers and Brexiteers - say we want to avoid a hard border and have no physical infrastructure. How do we achieve that? The agreement that we had yesterday set out three possible options. The first, my preferred option and the preferred option of most Members in this House, is an EU-UK free trade agreement that would allow free trade to continue, not only North-South but between Britain and Ireland. Second, an option which those who have been advocates of Brexit have always said was a possibility, a bespoke arrangement involving technology and other things about which we are sceptical but we are willing to allow for consideration. Third, and crucially, a backstop, if all else failed, of ongoing regulatory alignment between North and South. I do not see how we can proceed and how we can achieve what anybody wants to achieve unless we allow ourselves to go on to phase 2 on that basis. We are keen to move on to phase 2 but we must have the assurance we were promised that, no matter what, even as an unintended consequence, there will not be a hard border on the island of Ireland. We have to hold firm on that position.

In terms of relations with the United Kingdom, Deputy Howlin is correct. Relations were probably at their peak since independence around the time of the Queen's visit and the years after that. Relations had been strained in the last year or two, not because of a decision we made but because of Brexit, which is a British policy and a British decision, one that we respect but that we are aware causes enormous problems, not only for us but for others in Europe as well.

Nonetheless, I am very firmly of the view that Prime Minister May is negotiating in good faith and that her team, who agreed the language of the EU task force on Monday, were negotiating in good faith. They have asked for more time and we are happy to allow them to have that time and we look forward to hearing from them as to how they now believe we can proceed with this agreement.

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