Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I thank Members of the House for their time and engagement over the past three days. Brexit poses an unprecedented challenge for Ireland and the ongoing uncertainty we are facing only serves to increase the scale of this challenge as we prepare ourselves for several possible outcomes. The unity and common purpose demonstrated by all the political parties in dealing with this challenge has been valuable to me, as someone who is trying to co-ordinate that response. I look forward to further detailed engagement by Ministers with Deputies on each line of the Bill in the course of next week’s Committee Stage. Afterwards the Bill will go to the Seanad for Second Stage. Committee and Report Stage are scheduled for the week of 11 to 14 March, which will also be a week when much may happen in Westminster. This timeline allows for commencement orders and other secondary legislation arising to be enacted in time for 29 March should that be necessary.

The Government’s focus remains on ratifying the withdrawal agreement that has been agreed between the EU and the UK. This remains the best way to ensure an orderly UK exit. Should the UK formally request an extension to Article 50, Ireland would be open to such a request. As part of the EU 27, we would need to carefully consider such a request, taking into account the reasons for, and duration of, a possible extension, as well as the need to ensure the functioning of the EU institutions throughout that period. Contacts continue between the EU and the UK on finding a way to facilitate the ratification process in Westminster. Notwithstanding this week's developments, given the ongoing uncertainty in the UK, we are obliged to continue to move forward with our no-deal preparations.

At home, in addition to the important debate in this House, this week saw the launch of a new Government Brexit information website, www.gov.ie/Brexit,which is a one-stop-shop for citizens and businesses who have questions about what they can do now to prepare. The negative implications of Brexit across a range of economic sectors in Ireland have been repeatedly outlined. All our preparations are focused on minimising to the greatest extent possible the negative impacts that we would face should the UK choose to leave with no deal. We have to recognise, however, that it will not be possible to eliminate or mitigate all risk. A vast array of work across sectors is under way at EU level. Ireland's preparedness work very much fits into this wider EU picture. This reflects one of our principal underlying mitigation measures, which is the fact that we are remaining in the EU. Business will continue to benefit from all the stability, certainty, predictability and solidarity associated with our EU membership and remaining in the Single Market.

With regard to mitigation measures not encompassed in primary legislation, in response to some of the main themes which emerged during the debate, I want to focus on physical infrastructure and related staffing measures, business supports, agrifood and fishing. The majority of contingency planning work in these areas is not directly addressed in the Bill for the simple reason that legislation is not required to carry out this work.

On physical infrastructure and related staffing measures, to ensure east-west trade continues as smoothly as possible, we are developing the additional physical infrastructure needed at our ports and airports. Work on temporary facilities is under way at Dublin and Rosslare ports. The Revenue Commissioners will have 400 additional customs staff trained and in place by the end of March 2019. It can recruit an additional 200 by the end of 2019. The Department of Agriculture, Food and the Marine is implementing the necessary steps to facilitate potentially increased sanitary and phytosanitary controls while deploying approximately 230 people as part of its Brexit response. The Department of Health is recruiting an extra 61 environmental health staff. We remain in close contact with other EU member states, including France, the Netherlands and Belgium, which will also be strongly affected by the UK’s departure. We have also engaged in depth with the European Commission and affected member states on the continued operation of the landbridge in all Brexit scenarios. Those contacts are continuing and are making good progress.

Several Deputies commented on the question of business supports and state aids in a no-deal Brexit context. While the Government has already introduced a wide range of supports for business, we know that a no-deal Brexit would have severe consequences for Irish businesses. In a no-deal scenario, the Government is committed to doing more to provide businesses and key sectors with the support needed to mitigate the impacts as far as is possible. There are signs of increased preparations by business for a no-deal scenario, with Enterprise Ireland and Bord Bia reporting significant uptake in the level of engagement from business with the supports they provide.

Revenue advises there has been a 330% increase in customs registration economic operator registration and identification, EORI, applications in February 2019 over the comparable figure for January. EORI applications are currently at approximately 100 per day, a significant number.

On the question of state aids, the Department of Business, Enterprise and Innovation has been proactively engaging with the European Commission for some time to find solutions to assist Irish enterprises. A technical group was established and has achieved results which benefit our Irish businesses. Members should be in no doubt that the Government is continuing actively to pursue the question of further state aid flexibilities which would be needed in a no-deal scenario. Just last week, the Minister for Business, Enterprise and Innovation, Deputy Humphreys, announced an amendment to the rescue and restructuring scheme budget from €20 million to €200 million. This scheme is an important safety net for Irish businesses and the increased budget is prudent as part of our overall contingency plan for Brexit. In a further welcome announcement last week, the European Commission gave state aid approval for national investment in an Irish cheese producing company, the Carbery Group, a company I know well.

As the Minister for Agriculture, Food and the Marine, Deputy Creed, set out in his contribution last night, Ireland is in close contact with the European Commission, including the European Commissioner for Agriculture and Rural Development, Phil Hogan, on the challenges for the agrifood and fisheries sectors. The Commissioner is keenly aware of the unique exposure of the Irish agrifood and fisheries sectors to the threat of a disorderly Brexit. Ireland has stressed the need to deploy market response measures, including exceptional aid, under the Common Agricultural Policy, CAP, to provide necessary supports to Ireland’s agrifood sectors. When the Minister for Agriculture, Food and the Marine met the Commissioner last month, he reiterated the EU’s readiness to respond and support Ireland. The Government will not abandon Irish agriculture in the context of Brexit, regardless of what happens.

Several Deputies raised concerns over driving licences. Holders of British and Irish driving licences can continue to use these licences to travel to visit one another’s countries, both North and South on the island and east and west with Great Britain. However, there is a specific issue regarding holders of UK driving licences resident in Ireland. They should now move quickly to exchange their British driving licence for an Irish licence before the UK leaves the EU, as there would be an issue if the UK leaves without a deal.

With regard to motor insurance, the industry has taken several precautionary measures to print and prepare a large number of green cards which may be necessary in the case of no-deal Brexit. This is a prudent contingency plan in the absence of a broader agreement.

Several Deputies noted the text of the Bill, as published, differs from that of the heads of the Bill published in January. This reflects the intense engagement between Departments and the Attorney General’s office in the interim. For example, all the proposed aims of the longer initial draft of Part 2 on healthcare are encompassed by the shorter version now proposed. Similarly, although there is no longer a Part dealing with rail transport on the island, work is continuing with the Department of Transport, Tourism and Sport to ensure the Enterprise train service continues to operate smoothly between Dublin and Belfast. Specific legislative provision at this stage, however, is not necessary. Deputies will have the opportunity to engage with the relevant Ministers on these issues on Committee Stage next week.

Deputies have noted the range of measures in the Bill to facilitate in an operational way the shift to the UK being a third country. Deputy Howlin made two points relating to Parts 2 and 6. I reassure the Deputy that the Bill and all its Parts has been prepared in consultation with the Office of the Attorney General and on the basis of legal advice from that office. I am sure the Minister for Finance, Deputy Donohoe, and the Minister for Health, Deputy Harris, can address the Deputy’s concerns in more detail, if necessary.

Deputies Boyd Barrett and Bríd Smith expressed concerns about the tax measures in the Bill. These measures are not intended to create or extend so-called loopholes for multinational companies. Deputies will note that a limited number of corporation tax measures are being introduced in the Bill. These are focused on maintaining the status quoin the immediate aftermath of a disorderly Brexit for bona fide transactions entered into by Irish businesses.

Several Deputies mentioned the important question of recognition of professional qualifications in the context of Brexit. This will largely be taken forward, in the first instance, via the relevant Irish and UK recognition bodies. In one or two areas, specific issues have arisen which require legislative amendment. In this context, the Minister for Communications, Climate Action and Energy will introduce a technical enabling provision on Committee Stage to ground regulations for the recertification of companies and individuals working on fluorinated gas equipment under the EU fluorinated gas regulation. This approach is intended to be similar to that already included in the Bill in respect of pilotage exemption certificates in Part 9. It will ensure those working in this area can continue to do so and get the certification in law.

The Good Friday Agreement in all its parts and supporting North-South co-operation and the all-island economy have been key priorities in the Government’s approach throughout the Article 50 process. North-South co-operation arrangements bring tangible benefits to the daily lives of people in the Border region on the island of Ireland as well as contributing to economic opportunity and development. These priorities are reflected in the withdrawal agreement in the protocol on Ireland and Northern Ireland. They also underpin several provisions in this Bill.

Some Deputies suggested this legislation should make reference to the Border. I can assure the House that the Government is not preparing for a hard border. There is no secret plan. Ireland and the European Union are at one on this issue. The European Union has been clear that it is determined to do all it can, regardless of circumstances, to avoid the need for a border and protect the peace process. If the United Kingdom chooses to leaves the European Union without a deal, Ireland and the Union will have responsibilities in ensuring the protection of the Single Market and the customs union. The United Kingdom will have its own responsibilities, including meeting WTO requirements. We will all have our obligations under the Good Friday Agreement to ensure peace and stability in Northern Ireland. No matter what the outcome to Brexit is, Ireland will continue to be a full member of the European Union, with all of the benefits of the Single Market and the customs union. When the United Kingdom committed to the backstop in December 2017, it also committed to respecting the integrity of the Single Market and Ireland’s place in it.

I again thank Members for their time and engagement in the Second Reading of the Bill. The legislation is an essential part of our preparedness work. It will provide for continuity in key arrangements with the United Kingdom, protect Irish citizens and support the economy, enterprise and jobs in key economic sectors. To end on a more positive note, the Bill, very importantly, will also put in place necessary measures for the application of a transition period under the withdrawal agreement which we hope to see ratified by the United Kingdom, I hope as early as in the next few weeks. Only then will we be able to start work on the agreement that will frame our future relationship which we want to ensure will be as close and as comprehensive as possible.

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