Dáil debates

Thursday, 30 April 2020

Covid-19 (Taoiseach): Statements

 

1:55 pm

Photo of Michael LowryMichael Lowry (Tipperary, Independent) | Oireachtas source

The entire world is currently transfixed by Covid-19, which is understandable. This virus has impacted on people's lives like nothing else in living memory. However, other significant issues remain to be dealt with. I refer specifically to Brexit. Serious and unresolved matters surrounding Britain's exit from the European Union are more crucial now than even before the onset of Covid-19. Brexit implications are looming large. We now face a double whammy with the combination of a no-deal Brexit plus the economic battering of Covid-19. The impact of the two together will have massive and far-reaching consequences for Ireland. The EU has wisely advised that Britain extend its transition period to avoid compounding the economic damage caused by the Covid-19 pandemic with a rushed Brexit. The Prime Minister, Boris Johnson, has stated on several occasions that he is adamantly against seeking an extension. This intransigence leaves us with a huge dilemma. The political declaration envisages a no tariff restriction trade regime for agrifood and the manufacture of products on the island of Ireland. However, the declaration also requires the UK to achieve regulatory and technological alignment with the EU, in order to avoid EU-UK tariffs. This remains a major problem as there is no clarity as to how this will be achieved in the short timeframe between now and the end of December. As of now, the UK will leave the Single Market and the customs union on 1 January next year. This raises the question of how advanced our preparations are for implementing new measures around customs procedures, regulatory checks for goods, foods, animals and bloodstock crossing the Irish Sea. The timeframe for preparations and action is now very limited. The outcome of the EU-UK talks on a future relationship is of critical importance to Ireland and has the potential to have a devastating impact on our economy.

Ireland has always been uniquely exposed to Brexit compared to other EU states. The UK is Ireland's third largest export market with a value of €16 billion. Ireland is also heavily reliant on the UK for food imports. Nearly half of all food imports come from the UK and €1 billion in goods and services is exchanged between Ireland and Britain on a weekly basis. Our exports, agrifood sector and tourism are alarmingly dependent on Britain. In that context, I have a number of questions for the Taoiseach.

Will the Government make a commitment to maintain all the existing Brexit funding and support programmes, given the cost of the pandemic? Will the Government provide specific assurances that the agrifood sector, which is the sector most exposed to Brexit, will be sufficiently supported ahead of the transition period on 31 December? What preparations has the Government made to help prepare businesses for the new situation on 1 January? When will businesses know the details regarding checks and controls and when does the Taoiseach anticipate the EU and UK will agree same? Does he accept that these decisions need to be made soon in view of the short lead-in time so that the necessary customs and duties infrastructure is put in place? Business needs certainty about these issues.

What progress is being made on the implementation of the Irish protocol of the withdrawal agreement in respect of controls and checks between Great Britain and Northern Ireland? Will the Taoiseach outline the implications for the Republic? Has the Taoiseach had recent contact with Prime Minister Johnson or does he intend to put our concerns directly to him?

I wish to ask a specific question relating to beef farmers. As the Taoiseach is aware, markets are curtailed, demand has dropped, prices have slumped and cash flow is now a major issue for beef farmers throughout the country, including Tipperary. Will the Government commit to bringing direct payments to beef farmers forward from October to July? These moneys are due under EU funding and the measure I am proposing would greatly assist the cash flow for this category of farmers.

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