Dáil debates

Wednesday, 16 October 2019

Pre-European Council: Statements

 

2:20 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour) | Oireachtas source

The forthcoming Council meeting is clearly one of the most important to take place in recent times. We are acutely aware of the significant amount of speculation surrounding the Brexit negotiations. We are also acutely aware of the impact of Brexit and are now debating the outcome of same in a vacuum, as deliberations appear to be heading towards a deal or arrangement, the details of which are emerging as we speak and to which we are clearly not privy. Substantive briefings and developments have been absent to date.

Brexit has already cost every family in Ireland hundreds of euro. This is money the Government has had to spend to prepare for the threat of a no-deal Brexit and we all subscribe to that. It is money lost from the economy because business in some sectors has already slowed down. The fact that Brexit is taking place at all is not good news for the Irish and UK economies or the wider European economy. Uncertainty about the future trading relationship has caused some businesses to hold back on investment or new contracts. Trade union officials have spoken to the Labour Party about manufacturing companies that have let temporary staff go and stopped all overtime. Brexit is already doing significant harm and I am sure all Members agree that it is damaging for Ireland as well as for the UK.

For over three years, Brexit has caused an unprecedented level of uncertainty. It has caused anxiety for people living on either side of the Border. It has caused endless headaches for businesses, especially small businesses, in terms of new paperwork being created if the UK leaves the European Single Market and customs union. Even the outline of the deal that is emerging indicates that paperwork will figure significantly in areas such as how VAT is dealt with and other issues relating to customs. It is somewhat ironic that British Brexiteers talk of EU red tape ad nauseambut by leaving the EU, it is the UK that will reintroduce a load of red tape and bureaucracy around trade that the EU spent years eliminating.

From the Labour Party's perspective, with two weeks left until a potential no-deal Brexit, our first concern is protecting jobs. The Minister for Finance has announced a so-called package of €1.2 billion to respond to Brexit, excluding EU funding. Peculiarly, he has only made approximately €200 million available for next year. Notwithstanding what is emerging, it appears that significant sums must be made available to cushion or lessen the possible impact of Brexit. As some of my colleagues have said, Brexit by its very nature is not good for this island. I hope the Taoiseach or the Minister of State, Deputy McEntee, will return with a clear indication of what level of EU funding will be available for Ireland in the event of a no-deal Brexit in just 17 days' time - a prospect that, hopefully, has now passed - or if a deal is reached. The money allocated by the Minister of Finance will cover staffing, IT and infrastructure at our ports and airports.While this is welcome, it is hardly sufficient. The Labour Party has raised repeatedly the need for cash subsidies to employers to protect jobs, possibly a grant to enable employers to introduce short-time working schemes with workers on shorter hours having their pay topped up by the State. In Germany, this approach saved large numbers of jobs and the workers involved were given in-house training, which helped prepare them for the future. This is real preparation for Brexit but there is no sign that the Government has thought this through. While the emerging situation brings some rays of hope, the Government must continue on the path of ensuring that companies are assisted through the early and medium stages of Brexit. The Taoiseach would do well to talk to his German counterparts this week to learn more about what Germany did to save jobs. ICTU and IBEC have proposed schemes similar to the scheme the Labour Party has proposed. They have asked that much larger sums of money be made available to support jobs and businesses. We must continue to focus on that area. The trade unions are the voices of experience from the real economy and the Government would do well to heed them.

At this stage, we are none the wiser about the nature of the deal that will emerge or what it might include. Details of the emerging proposals must be made available as soon as possible. As time is running out, it is important they are made available so that we can scrutinise and assess them in the overall context of Brexit.

We have been discussing Brexit for three and a half years but for many members of the public, the prospect of Brexit is only becoming real now as the threat to their daily lives has moved closer. Any observer would be forgiven for thinking that the Heads of Government will do nothing but discuss Brexit at the European Council later this week. In fact, Brexit is not even mentioned on the formal agenda, notwithstanding that it will be a central part of the meeting. The first item on the agenda is the new multi-annual financial framework. The second item is the strategic agenda being set out for the next six years, while the third focuses on foreign policy issues. The ordinary business of the European Union is continuing. It is highly unfortunate that Brexit has become central and taken up so much of our time and energy.

The Labour Party has serious doubts about the direction of the new financial framework and strategic agenda. They lack the necessary ambition to deal with the climate crisis and they lack any vision for Europe that people across the Continent can rally around. Europe needs to be more than just a trading club, particularly if Brexit goes ahead. People want political leadership on the social, economic and environmental challenges they face and a progressive vision of Europe is needed to address people's concerns and give them hope for the future.

Before I conclude, I will mention a few foreign affairs issues which have been referred to by some colleagues. The leader of the Labour Party, Deputy Howlin, has called on the Taoiseach to condemn the Turkish attacks on the Kurds in Syria. I hope the Taoiseach will take a strong message to the European Council that the EU needs to impose immediate trade sanctions on Turkey until it stops its military aggression, which has already claimed the lives of dozens of people, including civilians. Recently, we saw the results of the Israeli election, where both leading parties have taken a hardline position regarding Palestine and illegal settlements. I hope the Taoiseach will take a strong message to the European Council that we cannot allow whatever new

government emerges in Israel to dilute in any way the rights of Palestinians or Israeli Arabs or to damage the prospects for a peaceful, two-state solution to the conflict.

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