Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

It is quite unusual to see so many Deputies in the Chamber welcoming Government legislation. It is particularly unusual to welcome legislation we hope never to see enacted.

Looking through this mammoth Bill, it is extremely jarring to confront the fact that in a few short weeks, unless Article 50 is extended, we will have an external EU frontier cutting across this island.

While I commend the Government on this complex legislation, it is a matter of huge regret that we should have to discuss this issue at all. As I and others have stated previously, there is no such thing as a good Brexit. As it stands, the relationship between Ireland and the UK, as partners in the Single Market and the customs union and with almost frictionless movement of people, is as close to the optimum that can be achieved in terms of social and economic co-operation between two economic states. However, the United Kingdom has chosen to walk away from that arrangement. It has also chosen to walk away from similar relationships with 26 other member states. From the perspective of a neighbouring country, this is a really baffling decision and the Conservative Party will bear a heavy responsibility for it in the future. It also shows the dangers of nationalist populism when driven to its irrational extreme.

While we respect the outcome of the 2016 referendum, the lack of foresight and planning, the obfuscation that has followed and the incomprehensible continuing lack of clarity from the British Government regarding what kind of Brexit it wants has undoubtedly served to sour relations between our two states. This is most regrettable as the warming of the east-west relationship between our two states was one of the hard-won triumphs of the peace process. We can only hope that this relationship can be repaired over time.

Events at Westminster today indicate that an extension of the Article 50 process seems a more likely outcome than no deal. The Labour Party seems to have thrown its weight behind the possibility of a second referendum. We need to have more clarity in terms of what it now proposes. If Article 50 is extended, I urge the Taoiseach and the Tánaiste to work to ensure that it is for as tight and defined a period as possible.

Aside from the possibility of hard Brexit, the most frustrating outcome for individuals and businesses that desperately need clarity on what form Brexit will take is a further open-ended period of uncertainty. Businesses that rely on access to the UK market literally have no idea what their trading arrangements will be in a few short weeks. To further prolong this uncertainty is untenable. The British Prime Minister’s strategy of running down the clock to effectively bounce her party into supporting the deal on the table, at the risk of a no-deal Brexit, underscores the UK's total unpreparedness for the enormity of a hard Brexit.

Playing fast and loose with not only the peace in Northern Ireland, the businesses that rely on trading relationships and the UK market but also with the lives of the most disadvantaged who would be disproportionately damaged by a no-deal Brexit displays a callousness and a disconnectedness from the reality of existence for so many people in the UK. Theresa May will be remembered as the Prime Minister who tore up her own deal when faced with the same malcontents from the extremes of the British political spectrum who, in the first instance, fought for Brexit in the absence of a plan on how to deliver it. Regardless of the form it takes, it is a Brexit will come at the expense of the British public, their jobs and businesses.

I now turn to the Bill. I commend the work that has gone into producing this legislation. It contains complex provisions - spanning several Departments - that would attempt to minimise the massive disruption that a disorderly Brexit would cause. I especially welcome the proposed changes to the VAT regime for importers that would continue to treat the UK on the same terms as a member state for the purposes of making VAT returns every two months on imports, rather than on their arrival in Ireland. This will be of benefit to small and medium-sized enterprises which do not have sufficient capacity or a sustainable cashflow that would allow for continuous VAT payments. This is a particularly welcome measure because it goes some way to addressing an aspect of Brexit preparedness on which the Government has been weak, namely, support for small and medium enterprises.

Part 3 relates to the role which Enterprise Ireland will play in enhancing support to companies involved in research and development in order to allow them to continue to operate and expand. There is also provision for additional lending and investment instruments in certain circumstances. While these measures are welcome, I do not think that it is credible that this measure should be offered after the fact if the Bill is ever needed. I urge the Minister for Business, Enterprise and Innovation to speak to small and medium-sized enterprises so as to fully ascertain their needs. Small businesses cannot afford to prepare for no-deal Brexit while big business cannot afford not to. The Brexit loan support scheme was a welcome plank in the Government’s preparedness strategy. However, we have heard serious and repeated claims that the scheme did not take into full consideration the specific needs of small and medium-sized businesses when it came to capacity to make applications. If the Article 50 process is extended, I ask the Minister to work to further develop the strategy to assist this sector to prepare for Brexit and to ensure that those in it are fully cognisant of existing supports. I also ask her to work to develop additional sector-specific solutions as needed.

While the Government and the other 26 EU member staters have thus far stood fast on the need for a legally-binding backstop to be a core part of the withdrawal agreement, as the deadline looms, I hope no member state will be tempted to blink. In recent months, certain elements in Eurosceptic Governments who may be more susceptible to bilateral lobbying by the UK have made some worrying comments about Ireland’s role in the current impasse. This cannot be allowed to become a narrative as the prospect of a no-deal Brexit approaches. The Government enjoys the unprecedented support of all in this House to continue to hold the line. I urge the Taoiseach and the Tánaiste to ensure that this support is echoed in the capitals of the other 26 member states as 29 March looms nearer.

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