Louise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source

Brexit poses a huge threat to the economic future of the people of this island, with the land Border resulting in the North being forced out of the Single Market, with barriers to trade, potential devastation of agriculture, not to mention the potential implications for the peace process and the Good Friday Agreement. This is one area in which I am sure there is unanimity across this House and among sensible people throughout this island. The only way to prepare for what is coming down the road with Brexit is a proactive detailed strategy to deal with the special and unique circumstances faced by the island of Ireland and the needs of our farming community, businesses and workers, all-island trade and the huge challenge for future trading relationships between the European Union and Britain.

This past year has been a very difficult time for business and workers in this State. Covid-19 has rocked our economy and society to their very core. It has shone a light on the need for big government and the steady hand of the State, the importance of public services and nationalised services, and the requirement for ambitious and assertive actions from Government. We can debate whether such actions have occurred but when we look at those countries that have combated the virus best, namely, Germany, Vietnam, New Zealand and many more, we see a significant government response. The reason I refer to this is that Brexit will not be any different. It will take a great effort by the State and its steady hand will continue to be needed until Brexit has been concluded and for a considerable time thereafter. While we will also need EU support, our Government will have to do the bulk of the heavy lifting.

As Britain withdraws from the European Union, protecting jobs and supporting business need to be at the forefront of the minds of the Tánaiste and Minister for Enterprise, Trade and Employment, his officials and everyone working on this issue in his Department. There is probably little doubt that Brexit will exacerbate the current economic crisis. Sinn Féin has long argued that the EU fiscal rules will stifle essential investment and starve public services of the funding they so badly need and on this we have been proven correct. While the rules have been relaxed until the end of 2021, that relaxation must continue for this State beyond that timeframe, especially given the impending effect of Brexit. These combined events constitute an exceptional circumstance and the EU should allow for continued derogation as per the fiscal rules so as to allow the Government adequate scope to invest North and South in order to protect against the fallout from Brexit and put the country in prime position to thrive in the aftermath of Brexit. This means that we should be looking at grants and other economic supports that have been used throughout the Covid-19 crisis to help businesses which will be affected by Brexit. Grant aid and wage supports have been successful in helping to stabilise many businesses and preventing their collapse. As we approach Brexit and the implications that it will have for the agrifood and manufacturing sectors, the State must stand ready to support these businesses and the workers whose livelihoods depend upon them.

On the matter of state aid, the European Commission published a temporary framework for state aid measures to support the economy during the Covid-19 outbreak until the end of 2021. While Sinn Féin finds the idea that the State cannot invest in companies and businesses in its own jurisdiction somewhat ridiculous and a significant infringement of our sovereignty, the relaxation was nonetheless to be welcomed. However, the relaxation of state aid rules for the purposes of Covid-19 will not cover this State in the event of difficulties arising post-Brexit. It is imperative that the Government lobby the European Commission to allow the State to invest in workers and business and support them during the British withdrawal from the European Union and through the shock of any changes to our trading relationship after this withdrawal. As with the fiscal rules, exceptions are permitted in some circumstances.

The EU treaty governing state aid leaves room for a number of policy objectives for which state aid can be considered compatible. Sinn Féin believes that Ireland should be exempted from state aid rules for the spending and investment that is required to offset the damage of Brexit. Ireland should apply for and be granted dispensation to make direct investment and spending in ways that, under normal circumstances, would constitute state aid to combat the impact of Brexit into the future. An exemption exists under Article 107(3)(b) of the Treaty on the Functioning of the European Union, which states that it "may be considered to be compatible with the internal market" to provide "aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State". In any event, the Covid-19 crisis has now set a precedent that should be used to secure such a derogation in order that we can invest in jobs and businesses. It should be stated that such investment should go further and allow us not only to offset the damage of Brexit but also focus on allowing our SMEs and micro-businesses to capture the market share of any available opportunities that may arise. This will require the EU to engage with Ireland in a different manner from other EU countries. It is imperative that the EU formulate a tailored plan outlining how it will help Ireland to overcome the negative economic shock following a new trade deal between the EU and Britain. It is especially necessary that infrastructural investment is forthcoming to help Ireland to position itself to capture the market share of available manufacturing and services jobs and investment in a post-Brexit European Union.

There is no doubt that trade gaps will arise in the European market as a result of Britain’s exit from the EU. The Government should be working with SMEs and other businesses to help them expand to fill these trade gaps.

There also needs to be some fundamental changes around examinership and the costs for SMEs and micro-businesses. Businesses will often say that the simple things are the one that make the greatest difference. One change the Department should be examining immediately is the fast-tracking to January 2021 the use of examinership-lite, as it is known, for small and medium enterprises and micro-businesses. Covid-19 has shone a light on the need for this fast-tracking and with Brexit ahead, it is even more necessary. Many businesses with viable and functioning business models may not be able to trade their way into recovery despite the supports and measures put in place to date and those that have been proposed. For those businesses, a fast-track, low-cost examinership model should be made available, that is, one that limits the exposure of the business and protects the rights of workers. For many small businesses, the cost of examinership is a barrier to using the examinership tool to save their business. The solution, therefore, may potentially lie in fast-tracking examinership-lite. I would appreciate if the Tánaiste investigated this proposal because it is worthy of debate.

Has the Tánaiste given any consideration to the establishment of an IDA-type body to specifically focus on micro-business, workers co-operatives and small and medium enterprises to help them find domestic and external investors? As we move through the Covid-19 crisis and with Brexit on the horizon, such a move would be worthy of consideration.

The response to Brexit must not be low pay and precarious work or the exploitation of workers. Sinn Féin believes that the central plank in dealing with Brexit must be a real commitment to our micro-businesses, SME sector and family businesses, as well as a steadfast commitment to workers’ rights embedded in legislation and the creation of decent jobs with decent pay and conditions. The State can and must protect workers and support businesses.

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