Dáil debates

Tuesday, 26 February 2019

Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019: Second Stage

 

5:45 pm

Photo of Lisa ChambersLisa Chambers (Mayo, Fianna Fail) | Oireachtas source

With 31 days to Brexit, it is extremely disappointing and worrying that we find ourselves in this situation of having to pass emergency legislation to try to minimise the damage to our country and our citizens because of the UK Government's failure to ratify the withdrawal treaty which it negotiated and helped to craft. We are but onlookers to this entire mess, something which we did not ask for or create but which nevertheless impacts on us heavily.

The Oireachtas has shown incredible political maturity in uniting to navigate Brexit together and ensuring that we do all we can to protect Ireland's interests. We have at times disagreed with the Government's approach to the Brexit process - particularly in the context of the disintegration in Anglo-Irish relations - and we remain dissatisfied with the level of preparedness for a potential no-deal Brexit. Notwithstanding this, Fianna Fáil has, despite the posturing of others in this House, given Government the latitude to deal with Brexit in the national interest. When one compares and contrasts the political situation here to that in the UK, one is comparing stability with chaos. The stable political situation here in Ireland has allowed us as an Oireachtas to have to a mature and responsible approach to Brexit and work to protect our economy, our people, our farmers and our business community.

I am proud of the role my party and its leader have played in ensuring that much-needed stability our country needs right now, particularly in light of the cheap political stunt Sinn Féin tried to pull last week when it attempted to plunge the country into a general election. What Sinn Féin wants is to develop the same chaos here that it has created in the North, playing right into the hands of the hard-line Brexiteers and attempting to mirror the chaos in London. I am thankful that it was unsuccessful in what it attempted to do.

There are only 11 Dáil sitting days until 29 March. The time is tight to get this mammoth legislation through the House but I and my colleagues in Fianna Fáil will do all we can to facilitate its timely passage. We are, however, disappointed that the Bill was only published on Friday last and that the Opposition has been given insufficient time to scrutinise it properly. Given the goodwill that exists on the part of my party in assisting the Government in getting the legislation through and despite numerous requests from me to see it sooner, this request was not facilitated and the reasons given are not acceptable. It is in all our interests to ensure that this crucial Bill is as robust as possible and it is our opinion that much more time should have been allocated in respect of it.

The Bill was published on Friday and, four days later, is now before the House. By the Government’s own admission, it is a substantial item of legislation, so the time provided to the Opposition to scrutinise it - effectively a weekend - is wholly inadequate. It was simply unnecessary to create this situation. It is no secret that other countries, including France and the Netherlands, published their Brexit legislation a number of months ago. We seem to be on the back foot in terms of contingency planning for a no-deal Brexit. Given that Ireland is the country most exposed to the impact of Brexit, we should really be out front in terms of our preparations for a no-deal Brexit, not at the back of the queue and lagging behind, trying to catch up.

All of us in this House, like the Tánaiste, are hoping that this emergency legislation will not be required and that either a deal can be reached or there will be an extension of the Article 50 process. It appears likely an extension will be sought and granted, given how little time is left, but it is not a guarantee that it will be requested by the United Kingdom. We do not know what length of extension will be sought in the event that there is a request from the UK, but an extension, while preferable to a crash out, will not be without impact. The continued uncertainty is having a negative impact on sterling prices, business and farming. As a result, this is not an ideal situation by any means. The business community is crying out for some degree of certainty in order that it can plan and make investments but a picture is being painted that so much is on hold as we wait to see what happens.

The situation is extremely fluid. Yesterday, the British Prime Minister, Theresa May, stated that she would delay the next meaningful vote on Brexit until 12 March, only 17 days out from Brexit day, and President Donald Tusk called on the UK to ask for an extension. The leader of the British Labour Party, Jeremy Corbyn, has stated he would support a second Brexit referendum if the UK Parliament rejects Labour's Brexit proposals. In today's edition of the Daily Mail, three Conservative Ministers wrote an article stating that they will support an amendment tomorrow to take no deal off the table and extend the Article 50 process if there is no agreement by March 13. The situation in the UK is changing by the day, if not the hour at times, and it is uncertain for everybody. We know the clock continues to tick down to 29 March and we are no further towards concluding a Brexit deal.

To say something positive about the UK political position, I can see that a number of MPs across all parties genuinely want to find a solution and understand and sympathise with the Irish position. I put on record that I am grateful for those moderate voices in the British Parliament who appreciate their responsibilities under the Good Friday Agreement and also understand that there is an onus on the UK when pursuing its Brexit policy that it should not hurt or damage other member states in the process.

Whereas we all hope that those in charge of the Brexit process in the UK see sense and realise that leaving without a deal would be an act of great self-harm, nothing can or should be assumed at this point. We only need to look back to December 2017, when we were told that commitments given on the Border were bulletproof and cast-iron to see how wrong assumptions and premature celebrations can be. It is my strong belief that the actions and comments of our Taoiseach in December 2017 following the joint statement that gave birth to the infamous backstop at paragraph 49 was touted as a big political win by the Irish Government over the UK. The language used by the Taoiseach at the time made the backstop toxic to some MPs and went some way to souring relations between the UK and Ireland. We have been dealing with the consequences of that mistake ever since.

I am glad that this legislation has finally being published and that the Government is at last not assuming an orderly Brexit and that everything will be all right on the night. We just do not know if that will be the case. Whereas Brexit is not of Ireland’s making, we are, unfortunately, central to it. The UK is our nearest neighbour and traditionally our largest trading partner, and our countries are bound together by our often difficult past and tied to each other's future because of the common travel area and as co-guarantors of the Good Friday Agreement. Ireland and the UK joined the European Union together in 1973 and the relationship between our two islands has been shaped and governed by European Union membership ever since. We took for granted the structures that were put in place by the EU that provided for regular interaction between the Taoiseach and British Prime Minister of the day and various Ministers from both jurisdictions. We have become accustomed to the EU way of doing business and the UK leaving the EU will fundamentally change how our islands interact and work together. We now have to find another mechanism by which our two Governments and countries can maintain our relationship and continue to work together. Fianna Fáil has proposed a Nordic-style council of ministers and believes no time should be wasted post Brexit to put this new structure in place. Given how strained relations have become as a result of the Brexit process, we will have work to do to mend those relations and strengthen them for the future.

In the event of a no-deal Brexit, this Bill will address some of the most fundamental issues and will, as much as is feasible, maintain the status quo. The Bill spans a number of different Departments and over the course of the debate my party's various spokespersons will address each of their areas of competence covered by the Bill. We welcome that reciprocal health arrangements will be maintained as this was of particular concern to patients living around the Border who may have been precluded from accessing their geographically closest hospital for treatment. We welcome that an agreement has been reached that formalises the pre-existing common travel area social protection arrangements in a legally-binding agreement signed on 1 February. We welcome that this Bill ensures that cross-Border bus services will be maintained to ensure connectivity across communities. We also welcome the provisions relating to electricity supply licences to facilitate the continuing operation of the single electricity market and we welcome the measures that strengthen Enterprise Ireland’s capacity to support through the Brexit process client companies that may have become exposed and vulnerable. This flexibility is much needed and will remove some of the barriers and red tape companies can face in obtaining credit. We welcome also the provisions relating to third level institutions and the maintenance of the current arrangements with the UK to facilitate students from both islands continuing to study across both islands.

While these measures are welcome, we must be very clear in this House and, more importantly, with the public that this is emergency legislation and it will not fully protect Ireland or its economy in the event of a no-deal Brexit. There will be an immediate disruption to financial markets. A fall in sterling would harm our competitiveness. Several sectors will be particularly exposed and will immediately need significantly more support and assistance than the Government has offered to date. Over the longer term we would see a reduction in economic growth and a reduction in the level of output. According to Department of Finance projections, a disorderly Brexit would result in a substantial slowdown in gross domestic product growth to 2.7% in 2019 from an estimated 4.2% in the 2019 budget, and the modest surplus projected for 2020 would instead become a deficit. Over a ten-year period, the level of Irish output could be reduced by approximately 6%, employment would increase more slowly and the unemployment rate could rise by 2%, which translates to between 40,000 and 50,000 job losses. That, in turn, would impact on the public finances. To put it mildly, there is no good news in Brexit.

Certain sectors are particularly exposed to Brexit. Our agrifood industry, for example, could be decimated in a no-deal Brexit because it is particularly reliant on the UK market. In 2017, agrifood exports to the UK were valued at approximately €5.2 billion, with 48% of our beef exports going to the United Kingdom and 21% of our dairy exports, including 46% of cheddar cheese exports. Almost 100% of mushrooms go there. There are up to 300,000 people employed both directly and indirectly in this sector in the country and the grim reality is that a no-deal Brexit would result in job losses in this sector. There is very little in this Bill to prevent this.

Last week, there were reports that in a no-deal scenario the UK would open its market to South American beef. This would be nothing short of a catastrophe for our beef industry and it would have a devastating effect on all our farmers.

If this comes to pass and Irish beef is forced to compete in the UK market against cheaper imports from other countries, jobs, many of which are in rural Ireland, will be lost. It was really concerning to read reports last week from the UK that some British politicians were seeking to exploit this concern from Ireland around our beef market in the hope we would compromise on the backstop. It was disappointing to see tactics of this nature emerge and I hope they have been put to bed. It is wise to remember that there will come a time when Brexit is behind us and we have to be able to trust and work with each other. In response to this, the Tánaiste said last week that the European Commission will support and protect a sector to ensure that it survives. While warm words are welcome, this industry needs to know the facts and figures. It needs assistance now and needs to know that a concrete guarantee will be in place afterwards relating to resources, financial and otherwise. I have consistently asked the Government to provide the farming sector with details regarding the financial aid package that will be available on 30 March should the worst happen. We need to ensure that regardless of whatever aid is made available, it goes directly to the producer and that the farmer is not at the back of the queue.

Moreover, we cannot lose sight of the fact that whatever the outcome of Brexit, orderly or disorderly, it will ultimately result in change, and while the magnitude of this change is not yet identified, industries, businesses and SMEs will need additional supports in the short, medium and long term to help them adapt to a new trading environment that sees the UK outside of the EU and considered a third country. While the measures in this Bill relating to Enterprise Ireland are welcome, we need more detail on how the Government plans to support businesses and industries in the weeks, months and years ahead. There has been far too much of a wait and see approach from Government. Now is the time for specifics.

From the date of the referendum result, Fianna Fáil has called on the Government to prepare for all Brexit scenarios. Time and again, we asked the Government to publish its contingency plans and to be prepared for what is one of the gravest threats we have ever faced. At times, when the Government did not like our line of questioning, it accused us of playing politics with Brexit, but that was neither true nor fair. We were, and are, simply trying to protect our country and our interests and do our job in opposition. It is no secret that while we have broadly supported the Government's negotiating stance, we have been critical of its domestic preparedness, and I make no apology for that. As the main Opposition party spokesperson, it is my job to ask the difficult questions and to hold Government to account. The Government has been far too quick to accuse the Opposition of acting against the country's interests when we simply ask legitimate questions of Government policy and strategy. Only yesterday, the Minister for Business, Enterprise and Innovation, together with the Minister for Finance and Public Expenditure and Reform, launched the first in a series of customs training workshops which are being delivered for the Government by the local enterprise offices, LEOs. This exemplifies the tardiness with which the Government has approached its domestic preparations for Brexit. Why are these workshops only being launched now with just over 30 days to go until 29 March? Why did the Government not act sooner in terms of providing these workshops? These are legitimate questions and the Government should not shy away from answering them.

Throughout this entire Brexit process, the issue of the Border has loomed large over the debate. The possible reintroduction of a border on this island is causing serious anxiety across Border communities and the issue remains unresolved. There is a withdrawal agreement between the EU and the UK negotiation teams, and within that agreement there is a solution to the Border, namely, the backstop. However, this remains one of the key barriers to getting the deal ratified in the UK Parliament and the UK is seeking to change the backstop or drop it from the agreement. If the deal is not ratified, then we do not have a backstop and we remain without a solution to the Irish Border issue. I listen and take heed when the head of the PSNI warns that the reinstatement of any Border infrastructure on this island would run a serious risk of a return to violence. I sincerely hope that British politicians listen to this warning too. A Border is not just a barrier to trade. It represents partition and harks back to a dark past on this island that we want to leave in the past.

Like everyone in this House, Fianna Fáil will not accept a reintroduction of a Border on this island but we are concerned about what happens in a no-deal scenario. This Bill does not address this issue and we have no clarity on how the Government intends to protect the Single Market and the Union's customs code in the event of a no-deal Brexit. We have been told that difficult conversations must be had, but what does that mean in practice? When pushed on the issue, the Tánaiste went as far as to say there might be checks in the sea somewhere, but that does not exactly provide any clarity to anybody in this House. More than once, I have asked whether any contingency planning for a hard border has been done by the Government and I have been told "No". I have to take this answer in good faith and accept this to be the case. However, I do not think it is credible to suggest that no conversations have taken place whatsoever around what might happen in the event of a no-deal Brexit.

It is accepted that if the UK crashes out and becomes a third country, there must be checks somewhere on goods coming in from the UK, but we have yet to see anything from Government on how it plans to deal with this. While the Minister for Transport, Tourism and Sport is clearly in the dark on this issue, I have to assume that at the very least, the Taoiseach and Tánaiste have had this conversation. I would be concerned by any suggestion that we might have checks imposed on Irish goods entering the EU mainland through France or elsewhere because we might be seen a as back door to a third country and will not permit checks here. This would effectively remove the benefits of the Single Market from Irish exporters and we do not want to see this happening. I sincerely hope, therefore, that the Government and the huge team of experienced civil servants working on this have a plan in place in the event that the worst happens.

This omnibus Bill is only one element of our preparations for Brexit but it is an important piece of the puzzle and will go some way towards ensuring we maintain the status quoin key areas in the event of a no-deal Brexit. The fact we have set aside essentially all parliamentary time by agreement of the House to get this legislation passed shows the commitment of all Deputies to doing what we can to protect our country and get the legislation through. There is no doubt that Ireland is in a vulnerable and precarious position and we need to up our game in terms of preparations. It is clear we can no longer afford to have all our eggs in the basket of getting a deal over the line.

As painful as this process has been to date, arguably the most difficult part is yet to come. We are still only at the state of negotiating the UK's exit from the EU. We have yet to begin negotiating the future trading arrangement between the EU and the UK. This will be by far the most important part for Ireland, and arguably it could deal with the Border issue as well. The future arrangement we will negotiate beyond the UK's withdrawal agreement is the agreement that will govern our relationship with the UK in a post-Brexit world for decades to come. To think that we are only at the stage of negotiating the UK's exit and have yet to start negotiating the future trading arrangements should provide for some sobering thinking. We have a long way to go in the Brexit process.

I assure our citizens and those listening to the debate that Fianna Fáil will do whatever needs to be done in the national interest to help our country navigate Brexit. As an Oireachtas, all of us working together have shown incredible maturity in ensuring that our country has the stability it needs to navigate Brexit in the difficult weeks and months ahead. It is clear to me that Brexit will be with us for many years to come, but our hope is that in the weeks and months ahead, we can find a stable place and ensure that we get a deal over the line so that the UK exits the EU in an orderly fashion and we can then proceed to the real task, which is negotiating a future trading relationship with the UK and the EU that serves Ireland's interests and ensures we protect our citizens, economy, farmers and business community. I look forward to listening to the debate. My party and I will do everything we can to ensure that the legislation is passed in a timely manner.

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