Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

That is grand.

There is no denying that Brexit has disturbed the balance of politics right across the island, and it is understandable that it provokes suspicions, as any separation will always do on different sides. The art of our calling, however, the art of politics, is the art of resolving conflict. This is more thoroughly tested by the kind of adversarial politics we have seen in recent times. This adversarial politics is very much enhanced by the echo chambers of social media, which have been so prevalent in politics in recent years.

Notwithstanding this, it is important to recall that Ireland has had significant breaks like this previously and we have managed through those relationships. Strangely - I do not know why this is the case - they seem to come every 20 years. I recall that in 1979 we broke the link with sterling for the first time and entered the exchange rate mechanism, ERM, as it was called. Twenty years later, in 1999, we entered the eurozone whereas Britain stayed out. Now, in 2019, we have pledged our future to the EU while Britain has decided to leave. It is important that we manage as effectively as possible these breaks which have occurred in recent years.

I wish to turn to the area for which I have responsibility, that is, Part 4 of the Bill. As the House will be aware, this is a set of contingency measures we are putting in place to ensure that in the event of a hard Brexit, the disruption that occurs will be minimised. There is no way we can avoid significant disruption but we can take appropriate measures to minimise that disruption. Under Part 4, we propose to give specific powers to the Commission for Regulation of Utilities, CRU, to modify licences for operators in the event that unexpected, sudden events disrupt the market. We have thought long and hard about this, and both EirGrid and the regulator are taking every measure to ensure minimum disruption to the single energy market. However, we believe these powers are necessary as a precautionary measure. Deputies will see that the use of these measures is quite restricted in the legislation. The measures will only be used in the context of a disorderly Brexit. They will only be subject to a ministerial order, so they will not be used automatically. They will only last for a limited period in order that this is not seen as a continuing power but they will allow the CRU to modify the conditions of a licence where the CRU considers it necessary or expedient to do so in order for the State to continue to comply with EU rules on cross-border trade in electricity, as set out in the directives.

It is important we have this reserve power, but we believe that all sides want to preserve the significant effort that has been put into the creation of the single electricity market in the North and the South. I was recently in Northern Ireland meeting representatives of the Northern Ireland Chamber of Commerce, and there was a major appetite to see the benefits of the Single Market continue because they have allowed our electricity networks to run more efficiently and allowed us to integrate more renewables onto the grid. This is the only case of a totally integrated market in the EU and it offers significant benefits to the North and the South. These benefits are being realised in lower energy costs for users in both jurisdictions, and we are keen to maintain this. Some changes will be necessary if there is a sharp withdrawal by Britain in the event of Brexit and no agreement being put in place. It will take some time to put in place the kinds of long-term measures that will ensure the evolution of this market. There is, however, a desire both North and South and in Great Britain and the EU to see this continue. It is stated explicitly in the withdrawal agreement that the continuation of the single electricity market on these islands will be a core objective under the withdrawal treaty.

I am conscious that the time is short. We are pretty optimistic that the impact on other markets such as gas, oil and solid fuels will be minimal. We do not expect disruption in these areas. The gas market, unlike the single electricity market, is not wholly dependent on EU directives and EU oversight so it will continue based on the contracts in place and use a different platform for trading than is required in the single electricity market. It is, therefore, robust. We continue to have our oil reserves. Oil is accessible. While we do source a lot of oil in the UK market, we do not expect disruption to this. There is no expectation that the EU will impose tariffs on any trading with the UK in these products, so trade in oil, gas and solid fuels should continue.

I will leave it at that, given the short time available. I look forward to Committee Stage, when we will be able to go through any questions Members may have about Part 4.

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