Dáil debates

Thursday, 28 February 2019

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

 

4:05 pm

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I welcome the opportunity to take part in this important debate. Brexit has rightly been described as one of the greatest challenges facing Ireland in recent decades. As we face into an uncertain future, I would like to start by reflecting on a number of things: on the very real achievements of the European Union over more than 60 years, on the benefits that membership has brought for Ireland since we joined more than 40 years ago and on why it is important that all of that continues. Like an increasing number of people in this House and the majority throughout the country, Ireland joined what was then the Common Market before I was born. For people of my generation it has shaped the world we live in.

What has membership of the European Union, previously the European Economic Community, meant for us? It has given us unfettered access to a market of more than 500 million people and has seen a dramatic increase in trade and foreign direct investment. It has supported job creation, with more than 700,000 jobs created in Ireland during the years of our EU membership. It has given Irish citizens the right to move, to work and to live freely throughout the Union. During that period, Ireland has been a major recipient of financial support from the European Union, through the Common Agricultural Policy, through structural funds and through many other sources of EU funding. More than that, Irish views and interests are now reflected in the policies of the European Union towards the rest of the world. We are no longer a small island on the fringe of Europe, but an active participant in the world’s biggest union - in the words of the Taoiseach, a small island in the centre of the world. So let us not forget the very real achievements of the European Union as it has grown from a union of just six member states to a union of 28.

The history of the European Union, initially founded with the Treaty of Rome and the European Coal and Steel Community, has been one of unparalleled peace in Europe and the European Union, including the United Kingdom, has played no small part in that. For many member states whose post-war histories have not been as benign as Ireland’s, membership of the European Union has been part of their road to freedom. That statement can also be underlined with respect to the recent expansion of the European Union into the Balkans. The European Union is rightly described as one of the great post-war peace projects. So it was fitting that, in 2012, the European Union itself was awarded the Nobel prize for peace. Why did it receive the award? In the words of the Nobel committee, it was because the Union and its forerunners had, for over six decades, contributed to the advancement of peace and reconciliation, democracy and human rights in Europe.

Like most people in Ireland I was disappointed that the UK, our closest neighbour, made the decision to leave. I respect the decision but it is difficult to accept in some regards, given some of the arguments that were presented during the referendum campaign. Like most people in Ireland, I believe the UK has been stronger because of its membership of the EU, and I believe that the EU has been stronger and better because of UK membership. Like most people in Ireland, I believe that the EU has been stronger because of UK membership, but we accept that the UK has voted to leave the European Union.

We are under no illusion about the nature and scale of the challenges posed by Brexit. While securing a deal is still the Government’s priority, we are continuing our preparation for all Brexit outcomes. As the House will be aware, the Government decided last December to give greater immediate priority to preparations for a no-deal Brexit. This work is being co-ordinated at the highest level by the Department of the Taoiseach, in collaboration with the Department of Foreign Affairs and Trade, and involves all Government Departments. The Government’s contingency action plan, published in December, sets out comprehensive, cross-Government preparations that have been under way since even before the Brexit referendum in 2016. The plan covers over 30 issues, involving all Departments and many agencies. An update was published at the end of January outlining progress that has been made since the original plan was published. Given the proximity of the date of Brexit, contingency planning has moved to taking actions to mitigate the risks of a no-deal Brexit, without prejudice to the Government’s priority of finalising the ratification of the withdrawal agreement.

This Bill is a key element in preparing Ireland for some of the impacts of a no-deal situation. Its focus is on protecting our citizens and on supporting the economy and jobs, particularly in the sectors most exposed to Brexit. It reflects the Government’s focus on protecting the Good Friday Agreement and supporting North-South co-operation and the all-island economy. It enables the maintenance of the common travel area, which predates our entry into the European Economic Community in 1973. Ireland is working on preparedness and contingency planning as part of the wider EU27, with the full support of the European Commission and other member states, and with all the stability and solidarity that brings. Many of the actions aimed at mitigating the effects of a no-deal outcome will be taken at an EU level, as they involve sectors regulated by EU law.

The Commission published its contingency action plan in November and a further communication on contingency was published in December 2018. These set out guidance on planning for Brexit and outline the Commission’s approach in key areas. The Commission’s contingency action plan emphasises that it stands ready to engage with the member states that will be most affected by a no-deal withdrawal, which is something Ireland can take comfort in. It expressly states that it will support Ireland in finding solutions addressing the specific challenges of Irish businesses. Ireland is also in ongoing close bilateral contact with the Brexit preparedness group in the European Commission and with other seriously affected member states like France, the Netherlands and Belgium, who will face many similar challenges to us after Brexit, albeit that ours is a unique situation.

Turning again to our own preparations, dedicated measures to prepare for Brexit were announced in budgets 2017, 2018 and 2019, to ensure that Ireland is in the best possible position to respond to the challenges that Brexit will bring. Budget 2019 continues the overall approach of prudent financial management to strengthen the resilience of Ireland’s economy against the backdrop of heightened uncertainty, including from Brexit. It builds on other Government initiatives, namely investing in the future of the country through Project Ireland 2040, opening new markets for businesses through the Global Ireland 2025 strategy and developing policies to adapt to changes in the world of work through the future jobs programme. Budget 2019 ensures that the economy is prepared for the challenges of Brexit through continued prudent management of the public finances by balancing the books, reducing the debt burden, building up the rainy day fund, improving the competitiveness of our personal taxation system and continuing to invest in infrastructure. Budget 2019 also contains a number of specific measures aimed at making Ireland Brexit-ready, including increased resources across a range of Departments and offices, the introduction of the €300 million future growth loan scheme and a €71 million package to further strengthen the agriculture sector’s ability to become more resilient in addressing the challenges of Brexit. As a Deputy from County Limerick, I can tell the House that this is an area of particular interest for the people I represent.

The measures introduced in budget 2019 continue the process of ensuring that Ireland’s economy continues to remain competitive and resilient against the backdrop of heightened uncertainty, including from Brexit. The Government will continue to work for a withdrawal agreement but prepare for a no-deal scenario. A no-deal Brexit is the worst possible outcome and would not be in the interests of the UK, Ireland or the EU. As the Tánaiste said, it is a lose-lose-lose scenario. Managing a no-deal Brexit would be an exercise in damage limitation.

It would simply not be possible in a no-deal scenario to maintain the current seamless arrangements between the European Union and the United Kingdom across a range of sectors currently facilitated by our common European Union membership. This would have a major adverse impact on Ireland. As a Government, we will continue to prepare for all scenarios. I am sure all Members agree that the Bill is a key element of the preparation. I hope it will secure cross-party support.

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