Dáil debates

Wednesday, 27 February 2019

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

 

2:25 pm

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

The Government recognises that managing a no-deal Brexit is an exercise in damage limitation. This Bill represents a whole-of-Government approach to protecting us from the worst effects. Fortunately, preparation and planning for a range of Brexit scenarios have been ongoing since well in advance of the UK referendum in 2016. A comprehensive set of Government structures was put in place to ensure that all Departments and their agencies would be engaged in detailed preparedness and contingency activities. Dedicated actions to get Ireland Brexit ready, including significant investment for business, were announced in the past three budgets.

In the event of no deal, we recognise that it would be impossible to maintain the current seamless arrangements between the European Union and United Kingdom or to put in place arrangements equivalent to those provided in the withdrawal agreement. Therefore, our focus is on the United Kingdom ratifying the withdrawal agreement, including the protocol on Ireland and Northern Ireland, which was concluded following intensive negotiations between the United Kingdom and European Union. The protocol protects the Good Friday Agreement and the peace by respecting fully the constitutional status of Northern Ireland and the principle of consent, as guaranteed by the Good Friday Agreement. It makes provision for the maintenance of the common travel area, ensuring that current bilateral arrangements can continue whereby Irish and British citizens can live, work, study and access healthcare, social security and public services in each other's jurisdiction as though they were citizens of both. Indeed, it puts the common travel area on a much more solid legal footing than it is now.

It also ensures there is no diminution of rights, safeguards and equality of opportunity, as set out in the Good Friday Agreement, and confirms that Irish citizens in Northern Ireland will continue to enjoy their right as EU citizens, that is, freedom of movement across the Continent without any need for a visa or work permit.

Protecting the Good Friday Agreement in all its parts and advancing North-South co-operation and the all-island economy, in addition to protecting and maintaining the common travel area, underpin the Government's approach to the provisions of this Bill. The European Union has been unambiguous in that it is determined to do all it can, deal or no deal, to avoid the need for a hard border and protect the peace process.

If the United Kingdom chooses to leave the European Union without a deal, Ireland and the European Union will have responsibilities in terms of ensuring the protection of our Single Market and customs union, and the United Kingdom will have its own responsibilities, including meeting World Trade Organisation requirements. All of us will have our respective obligations under the Good Friday Agreement and to ensure peace and stability in Northern Ireland.

The backstop is a carefully negotiated compromise, in many ways drawn around the United Kingdom's red lines — the need to avoid a hard border on the island and to protect the integrity of the EU customs union and the Single Market, of which we are part. It is a result of a negotiation between the United Kingdom and European Union and is supported by the people it is designed to protect, that is, our citizens in this State and British and Irish citizens alike in Northern Ireland, in addition to business, farming and civil society groups in both jurisdictions. The backstop is about avoiding a hard border and, therefore, protecting the peace. It cannot be time limited and cannot have a unilateral exit clause. If it did, it would not be backstop.

The European Union is committed to exploring and trying to agree alternative arrangements with the United Kingdom to supersede the backstop in the future. However, there are currently no alternative arrangements that anyone has put forward, written down in legal form or demonstrated in practice, that achieve what both sides are determined to achieve, namely, the avoidance of a hard border. The backstop is intended as an insurance policy for avoiding a hard border in all scenarios, no matter what else happens as a consequence of Brexit and any divergence that occurs thereafter. The Government is convinced that the backstop is necessary to protect the Good Friday Agreement, and the current uncertainty and political stability in the United Kingdom reinforces our view that it is needed. The best way forward now is to ratify the withdrawal agreement and use the time provided by the transition period, which is almost two years, if not more, to negotiate a future relationship or alternative arrangements to avoid any need to ever invoke it.

I reiterate what I have stated previously, namely, that a no-deal Brexit is the worst possible outcome and would not be in our interest, the interest of the British or the interest of the European Union. Given the ongoing uncertainty in the United Kingdom and the proximity of the date of Brexit, the Government is continuing to take concrete steps in preparation for a no-deal scenario. These include the publication on 19 December of the Government's contingency action plan. The plan sets out our approach to dealing with a no-deal Brexit. It includes an analysis of the impact across all aspects of public life, including the economy and public finances, security, Northern Ireland and North-South relations, and it provides detailed sectoral analyses and approaches, at both EU and national levels, to mitigate the impacts of a no-deal Brexit.

On 30 January, an update to the contingency action plan was published setting out how preparations for a no-deal scenario have intensified since 19 December. This includes: prioritised drafting of Brexit-related legislation and detailed Government consideration of important policy areas, including transport connectivity and ongoing preparations of the ports and airports; the supply of medicines; agrifood and fisheries; the common travel area; and macroeconomic impacts. This work is informed by intensive planning across all relevant Departments and agencies to prepare as best we can for no deal.

To inform the public about our preparations, the Government launched the Getting Ireland Brexit Ready public information campaign last September, including a website and dedicated social media presence. To date, 68 events in 21 counties have been held, with another 18 events scheduled for the coming weeks. These include six Getting Ireland Brexit Ready workshops, in Cork, Galway, Monaghan, Dublin, Limerick and Letterkenny. Over 2,500 people have attended and there has been strong participation from the business community in addition to the voluntary sector.

The Government is providing information to assist the business sector and other affected sectors to respond and prepare for Brexit. Included is financial assistance from Enterprise Ireland and local enterprise bodies. Practical assistance is available in the form of Brexit advisory clinics, Bord Bia's Brexit Barometer and Enterprise Ireland's Brexit Score Card. The Revenue Commissioners have engaged with over 80,000 businesses to date to raise awareness of customs obligations.

At EU level, there is strong understanding of the unique and disproportionate impact of Brexit on vulnerable economic sectors, particularly our farmers and fishermen in the rural economy. The Commission has said it stands ready to support Ireland in finding solutions to these specific challenges, and the Commission has adopted a package of contingency measures preparing for a possible no-deal Brexit. As recently as last week the Commission announced the adoption of the revised rules on state aid in the agricultural sector, signalling an increase in national support for farmers from €15,000 to €25,000. The budget for 2019 includes a €78 million package for farmers, fishermen and food SMEs to cover additional costs relating to Brexit. Work is under way to provide temporary infrastructure at Dublin and Rosslare ports, in addition to Dublin Airport, in order that the necessary checks and controls can be applied in a no-deal scenario. Recruitment of staff and the development of IT systems are also on track.

Engagement with stakeholders is an important aspect of the Government's domestic response to Brexit. Within the framework of the all-island civic dialogue on Brexit, five plenary dialogues and 20 sectoral dialogues have taken place across the country. Alongside the Tánaiste, I hosted the fifth plenary session in Dublin Castle on 15 February. Over 400 political, business and civic leaders gathered to continue this important all-island conversation. Many Members were present. I updated participants on the Government's position on the latest Brexit developments and our intensive contingency planning work, and I welcomed the opportunity to hear the views of political parties, North and South, and also to hear the concerns of participants through interactive panel discussions on people, citizens and rights and on business preparations. There will be certain level of disruption but we are doing all we can to minimise it. I urge businesses to step up their contingency planning for a no-deal Brexit and utilise the supports available. Time is short.

Brexit of any kind means changes for the worse for Ireland, and no country can be fully prepared for no deal. It is uncharted territory and no country has ever left the European Union before. We are, however, as prepared as we can be for this unprecedented challenge. Indeed, it is prudent to be. The legislation the Tánaiste has introduced to this House is part of it. While politically our focus is on assisting the United Kingdom to ratify the withdrawal agreement, we have in the past two years been preparing for no deal as well. This legislation enables us to mitigate against some of the worst effects of no deal by protecting citizens' rights and security and facilitating extra supports for vulnerable businesses and employers.

This Brexit omnibus Bill is a result of more than a year's background work, starting with a root-and-branch review of the existing legislative landscape. The draft scheme of the Bill was published on 24 January, and all nine relevant Ministers have appeared before Oireachtas committees to discuss the content. The Bill prioritises issues that need to be dealt with urgently and immediately through primary legislation at national level, complementing European legislation.

Across the 15 parts, there are health provisions to protect citizens on a North-South basis. As a result, that children in Belfast will be able to continue to come to Dublin for specialist paediatric care and patients in Donegal will continue to access hospital care in Altnagelvin Hospital in Derry.

The Bill also includes provisions to protect employees if their companies become insolvent, new powers for State agencies to intervene to aid business, provisions to ensure ferry crews can continue to operate in our ports and protection for the single electricity market on the island. We will also have laws to ensure that bus operators can enter and operate in Northern Ireland and there is legislation to protect British and Irish student grants so that we can continue to travel to each other's countries for education.

The Bill includes sections to ensure that social welfare and pension payments will continue as normal for the thousands of people in Ireland who rely on British pensions each week for all or part of their income. The legislation also protects Irish citizens living in the UK who rely on pensions coming from here. These are all crucial issues that need a new legal base in the context of a no-deal Brexit.

Work is progressing in parallel on a wide body of required and complementary secondary legislation - regulations and statutory instruments - covering a range of issues including the recognition of driving licences and qualifications, changes to facilitate the introduction of postponed accounting and measures to reduce the advance notification period for imports of animal and plants from third countries using roll-on, roll-off shipping.

In recognition of the importance, depth and scope of this Bill, I want to thank the Business Committee for waiving pre-legislative scrutiny. We will continue to work closely with all Members of the Oireachtas, listen to constructive proposals for amendments and take into account all views. We can all agree that it is essential that the Bill passes all Stages in the Dáil and Seanad in a timely fashion in order that it be ready for commencement on 29 March.

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