Dáil debates

Wednesday, 6 November 2019

Ceisteanna (Atógáil) - Questions (Resumed)

Brexit Preparations

2:25 pm

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

We were prepared for a no-deal Brexit in March and in October, or were at least as prepared as we possibly could be. We will continue our preparations for a no-deal outcome in case we end up facing into that scenario again on 31 January. I have said it before but I want to say it again - being prepared for a no-deal outcome does not mean that there will be no disruption. It does not mean that it will be a case of business as usual. No matter how prepared we are, there will be disruption to our ports and transport infrastructure and to other places in the event of a no-deal Brexit.

With regard to the Rosslare-Le Havre route, I do not have any particular knowledge of that contact but I am glad to hear it happened. The more links we can have between Irish ports and those in mainland Europe, the better. With regard to Rosslare and shipping lines in general, the assessment of the Department of Transport, Tourism and Sport is that there is sufficient unused capacity on existing shipping lines between Ireland and mainland Europe. That was the Department's assessment. The reason it was decided to opt for temporary facilities in Rosslare was that it would be quicker and less costly. We still hope that we will not need permanent facilities or hard infrastructure in Rosslare because it is our ambition to negotiate a quota-free and tariff-free future relationship between the EU, including Ireland, and the UK. Dublin is quite different because the port already receives ships from outside the EU. A different case was made in that respect.

Deputy Burton made a very good point about increasing capacity at other ports so that they could relieve the pressure on Dublin should it come under a lot of pressure as a consequence of Brexit, or even to provide a competitor to Dublin. I believe in competition. I like competition between State-owned enterprises. I would like to see those ports develop in any event. There are, in fact, very significant development plans for the Port of Cork. I am not sure if they are under way yet as there is a legal dispute in that regard, but a very significant upgrade of the port is planned. This is included in Project Ireland 2040. An improvement in the road connection between Ringaskiddy and the city and motorway network is also crucial. The same applies in respect of Shannon Foynes Port. Only a week or two ago, we approved the progression of the Adare bypass and the Shannon Foynes road connection to the planning stage. There are significant developments ongoing in respect of Shannon Foynes. We are going to see better infrastructure in the ports at Foynes, Cork, Waterford and Rosslare in addition to better road connections which will allow them to compete with Dublin for business. That will be a very good thing whether Brexit occurs or not.

Deputy Howlin is correct in his assessment. We are not yet out of the woods with regard to a no-deal Brexit. If the UK election goes one way, the withdrawal agreement will be ratified and we will avoid a no-deal Brexit on 31 January. There is a risk that it could go another way, as Deputy Howlin mentioned. In that case, we could find that the withdrawal agreement cannot be ratified. We cannot rule out the possibility of a no-deal Brexit on 31 January. Even if the agreement is ratified, another potential cliff edge arises at the end of 2020, although the transition phase can be extended. As I said earlier, however, it is all to play for.

There is no such thing as a good Brexit. There are upsides and downsides but the downsides very much outweigh the upsides. That is why Brexit is a bad thing. In all scenarios there will be reduced growth and employment growth but this does not mean recession and it does not necessarily mean higher unemployment. It is all to play for and if I have the privilege of leading the country in negotiations on the future trading relationship, my aim will be to achieve tariff-free and quota-free trade with the UK with a level playing field and the minimum number of checks so that the opportunities lost to the Irish economy can be minimised.

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