Dáil debates

Wednesday, 18 September 2019

Withdrawal of the United Kingdom from the European Union: Statements

 

8:00 pm

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael) | Oireachtas source

As the Tánaiste outlined at the beginning of this session, and as many speakers have agreed, there is a significant risk of a no-deal Brexit on 31 October, particularly given the prevailing political uncertainty in London. We are, however, hopeful and are working towards positive engagement between the EU and the UK throughout the next few weeks. The UK has said it has difficulties with aspects of the withdrawal agreement, especially the backstop. In response, the EU's ask has been clear and always consistent. It has asked the UK to send written proposals which provide the same legal and operational certainty as the agreement we reached in December 2017. The EU is very open to finding a solution, but without this, it will be difficult to make substantial progress. Against this backdrop, we have to do everything we possibly can to prepare. This has always been Government policy and we have always been clear that a no-deal Brexit would result in huge disruption and severe negative economic impacts across this island. Many reports have outlined this, including the Copenhagen Economics report, reports from Revenue, reports from the Department of Business, Enterprise and Innovation, and sectoral reports dating back to before the referendum even took place. That is why Government has been planning for Brexit since before the referendum took place. It is also why Government took the prudent decision last December to prioritise no-deal planning across all Departments and agencies.

It is not possible to mitigate against a no-deal Brexit fully, but we have been actively preparing for Brexit to try to ensure that Irish citizens and businesses are as ready as possible for all scenarios.

Our 2019 contingency action plan, which was updated in July, demonstrates that the challenges of a no-deal Brexit will be felt on many levels and will require engagement at EU level, responses by the Government and engagement by business and citizens. I do not accept that insufficient information or supports have been provided across the country. We have held more than 1,200 stakeholder preparedness events. These cover sectors ranging from construction to tourism and issues ranging from customs requirements to currency fluctuations. This advice is coming from Departments, Government agencies, county councils and individual sectors. A large number of funding schemes have been made available. Mention was made of €60 million, but we have made €600 million available through two schemes alone. More than €70 million is available through Enterprise Ireland. While not all of these funds have been drawn down, a large portion has been approved. We cannot force people to draw down money when they do not feel they need it just yet, but that funding is available to them.

Budget 2020 will continue the approach of budgets 2017, 2018 and 2019. There will not be cuts in this year's budget. We will have more than €2 billion in additional spending, €900 million of which will be new funding. We will provide dedicated measures to try to get Ireland Brexit-ready.

As one of the UK's closest trading and business partners, Brexit will mean changes for all Irish businesses regardless of location, size or sector. It will have a significant impact on businesses, particularly those relying on goods traded with the UK. As the Tánaiste outlined, however, businesses representing 96% of the value of export trade and 88% of the value of import trade have their EORI numbers. It is not only goods that will be affected, though. Businesses that have contracts with a UK service provider will also need to review their positions.

I attended the ploughing championships yesterday. Many Deputies were there yesterday and today. The Government's Brexit hub there was busy all day. A series of briefings is taking place over the next few days and staff from various agencies are available to take questions. These are just some of the events that are happening and will continue over the next month. While much took place in advance of 29 March, we have been developing and increasing our engagement, not just on a one-to-one basis, but in terms of our online platform and portfolios and in helping agencies to maintain this level of engagement and host various events. We have a wide range of advice for citizens and businesses on how they can prepare. This advice is available at www.gov.ie/Brexit.

Many Deputies referenced the landbridge. The question of how the UK landbridge will function in the event of a no-deal Brexit is causing significant concern. It is an important route for goods travelling to and from Ireland to mainland Europe. Given its importance, the Government has been working to try to facilitate its functionality post Brexit as far as possible. In particular, we have been engaging with our colleagues in France, Belgium and the Netherlands on ensuring that Irish goods can be transported through them and can have access as quickly as possible without being held up in the same traffic experienced by our UK colleagues. That is much more difficult to do in respect of the UK landbridge itself, though, where we will not be able to predict the delays or what the UK Government will do. It is important to be aware that use of the landbridge after Brexit will not replicate the status quofor operators and will depend on traders being compliant with the new requirements under the common transit convention and in line with EU requirements. Targeted information campaigns in that respect are under way to ensure that operators are aware of the steps that they must take and the supports available to them. As we noted in our July 2019 contingency action plan update, operators should also be prepared for delays at UK ports, given the general disruption that a no-deal Brexit would cause.

Many Deputies have asked about Border checks. Businesses and citizens are concerned about what measures might be in place to ensure the integrity of the Single Market on the island of Ireland and how this will impact not only on trade, but on Border communities. The Government has been clear about our objectives since the UK decided to leave: protecting the Good Friday Agreement; preserving North-South co-operation and the gains of the peace process, including protecting the all-island economy; and avoiding the emergence of a hard border on the island of Ireland. They will continue to be our priorities. These objectives are delivered by the withdrawal agreement, which includes the backstop and is the only solution currently on the table that delivers the outcomes that everyone, including the UK, wants to achieve. In the absence of the withdrawal agreement, there are no easy solutions. As we stated clearly in our contingency action plan, "There should be no illusion – a no deal Brexit would result in far-reaching change on the island of Ireland." The Government is working closely with the European Commission to meet the shared twin objectives of protecting the Single Market and Ireland's place in it. This work is looking at necessary checks to preserve Ireland's full participation in the Single Market and the customs union.

Any arrangements in a no-deal scenario would be suboptimal to the backstop and would have profound implications for North-South trade, including through the impact of tariffs, checks, additional costs and administrative burdens. Should the UK decide to leave the EU without a deal, the risks for Northern Ireland and the Good Friday Agreement are significant. This is not something with which we are playing games. These are very real risks and threats.

It is important to remember that Ireland is working on preparedness and contingency planning as part of the EU 27 with the full support of the European Commission and other member states and all the stability and solidarity that that brings. Many of the actions aimed at mitigating the effects of Brexit will be taken at the EU level, as they involve sectors regulated by EU law. Versions of many of these actions have been published by the European Commission, even as recently as two weeks ago. The EU has put in place a number of contingency measures aimed at mitigating the impact of a no-deal scenario in a range of sectors of particular importance to us, for example, aviation, finance and road transport. Furthermore, the EU has published more than 80 Brexit preparedness notices, which provide guidance for businesses and citizens. We undertake all of our work in line with the work of the Commission.

Brexit presents an unprecedented challenge to Ireland. It is only by the Government, business and citizens working together and with our EU partners that we can aim to mitigate as much as possible the implications and impacts of a no-deal Brexit and ensure that we are as prepared as we can be for the changes it will bring.

I wish to take this opportunity to thank Deputies, not only for their contributions this evening, but for their broad support for the Government's approach to the Brexit negotiations and for their support in March for facilitating the passage of the Brexit omnibus Act, which is ready to be deployed in the event of there being no deal.

On Monday, I was in Brussels at the General Affairs Council where I met all 26 of my European colleagues. Throughout the negotiation process, the solidarity that we have received from member states and the EU as a whole has been strong, consistent and unwavering. That has not changed this week. In my time as the Minister of State with responsibility for EU affairs, it has been a positive reminder of what our EU membership means. We face this challenge as one of 27 member states working together, something that has clearly been to our benefit and perhaps something that others did not expect. I have accompanied many of my counterparts on visits to the Border region, as they have wanted to see at first hand what Brexit means for the island of Ireland.

Membership of the EU has been transformative for Ireland. Our continued EU membership and all the certainty that brings form our best defence in dealing with a no-deal Brexit.

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