Dáil debates

Thursday, 17 January 2019

Government's Brexit Preparedness: Statements

 

4:45 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

We have spoken to the Commission about a relaxation of state aid rules in certain circumstances. The issues and the challenges, however, will have to be much closer to materialising than they are in order for that to be sanctioned. The European Commission is unlikely to move away easily from its state aid rules, but there is undoubtedly a recognition that in certain circumstances Ireland will have to act to protect sectors within the Irish economy that are highly vulnerable to an unplanned, no-deal Brexit, which we will do if necessary.

On the green card issue, it is a practical response from the insurance industry which shows it is also aware of the issues and is planning for all contingencies. It is good that this morning the industry announced that if the United Kingdom leaves the European Union without a deal, the European directive that allows us all to drive around the EU or into the UK and be recognised for insurance purposes will no longer apply to the UK, including Northern Ireland. To overcome that, the insurance industry will provide what it describes as a green card - a slightly unfortunate name - which is proof that one's car is insured when one crosses the Border into what will be a third country. While it is inconvenient, while we would rather it did not exist and while it may be avoided if contingency arrangements between the EU and the UK are in place, the insurance industry is moving forward because those arrangements are not in place. Incidentally, the insurance industry in Northern Ireland and Britain have made the same announcements at the same time to warn people that this could become an issue and explain how it will be solved.

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