Dáil debates

Wednesday, 7 October 2020

Brexit and Business: Statements

 

5:20 pm

Photo of Aodhán Ó RíordáinAodhán Ó Ríordáin (Dublin Bay North, Labour) | Oireachtas source

I welcome the Tánaiste and thank him for his speech. The Labour Party has always been pro-business and pro-Europe on the basis of what business and Europe can do for ordinary people, including workers. I am sure the Tánaiste shares my party's concern over potential export losses to the tune of €18 billion in respect of the UK land bridge. Eighteen billion euro is 40% of our entire export revenue. About 150,000 trucks are involved. The Tánaiste and many others who watch these matters carefully will know that the publication of the United Kingdom Internal Market Bill caused absolute shock and dismay right across Europe.

The Tánaiste said that, today or tomorrow, he will be communicating directly with 250,000 businesses across the country. That is a good initiative but a large number of businesses are so caught up in firefighting in respect of Covid that Brexit is far down the priority list. I welcome the fact that the Tánaiste is perhaps reminding them of what is potentially coming down the tracks. We do not know what is going on and what political machinations are taking place in Downing Street, nor do we know the mentality of the Prime Minister of the United Kingdom. His actions heretofore have made me and my party believe we are not dealing with a stable government or ordinary politics and that we are potentially dealing with somebody who is pursuing a no-deal Brexit strategy for his own ends. That means our relationship with the United Kingdom has been at its lowest ebb for quite some time.

Although my constituency is urban, it has Howth Harbour and constituents who depend on fisheries. Obviously, the agri-food sector is important in many regions. I believe 20% of jobs in counties such as Cavan, Monaghan, Wicklow and Wexford are dependent on the agri-food sector, yet firefighting because of Covid has taken up most people's time.

I suggest to the Tánaiste that there are other factors that cannot be put to the bottom of the agenda. I mentioned to the Taoiseach today that we must build a society and economy that are robust enough to withstand the shock of Brexit but we must also ensure we do not put things on the long finger on the basis that it is convenient to do so. The Tánaiste got major publicity for himself on Monday evening by telling NPHET it had not thought things through and by not taking its advice to move from level 2 to level 5, or level 3 to level 5, yet when the Low Pay Commission advocated a 10 cent rise to the minimum wage that was not accepted by those who think these things through, he accepted it. The trade union movement walked away from the deal on the basis that it would not be fair to workers. The Tánaiste might say to me that an increase represents an unfair burden on businesses but we have operated heretofore in a low-pay, low-wage economy. As I say constantly, 23% of workers are on low pay and 40% of workers under 30 are in insecure work. That is the economic model that this country was showing to the world. It has not been and is not sustainable. When the pandemic hit, the impact was felt mainly by the poorly paid. When dealing with Brexit and building a business model, we must ensure we can protect businesses but we must do so in a way that protects the people who work for them. Sick pay, employment security and pay are important in this regard.

Having said all that, I believe it is easy for people who share the Minister's political ideology to state members of my political party are not serious about business and its cost. However, I have spoken to people in Dublin Chamber and other chambers around the country who are aghast that various political parties, including some purporting to be of the centre-right, have consistently cut the local property tax, thereby making councils depend disproportionately on commercial rates. I realise the situation is different now because of the Government's actions but the model the Tánaiste's local representatives are pursuing means councils cannot fund themselves or promote business and enterprise strategies to the best of their ability. Dublin City Council is €12 million down. Some of the resources could be allocated for community infrastructure, community building, addressing issues within communities and anti-poverty strategies but they could also be allocated for enterprise and development strategies at local level. Despite this, it was councillors in the Tánaiste's party, and Fianna Fáil in opposition, who consistently curtailed the potential of councils at local level to address these issues. It genuinely makes no sense to my party. If one is trying to provide supports for businesses and enhance the capacity of SMEs to survive the pandemic, one must realise businesses look not only for State supports but also for local authority supports. A local authority has to be fully funded and have the capacity to deliver such supports. One cannot say, on one hand, that the Opposition is not serious about its fiscal response, its demands regarding business and its talk of sick pay and tackling low-paid work while, on the other hand, not fund the local authorities, which are in many instances where SMEs and those in the local enterprise community go to look for support.

If it was not for the pandemic, our minds and energies would be completely focused on the issue of Brexit. I am satisfied that we have the support of partners around the European table. It is of comfort to me that many of us in the Oireachtas have supported the European project over many generations on the basis that when it came to an issue such as this, we could seek solidarity from other member states and ensure that we have their backing.

I would like to summarise some of the points I have made. The enormity of what we are facing has to filter down to people - €18 billion worth of exports, 40% of our entire export capacity and 150,000 trucks that use the UK land bridge. That is colossal. If we are facing a no-deal scenario, that is potentially ruinous. There is also an issue, as I mentioned, in regard to the agrifood sector and the number of jobs dependent on it. I have not touched on the security or identity elements, on which I know the Tánaiste shares my concerns.

His communication with businesses around the country and his contribution earlier are to be welcomed. It is clear to the Labour Party, in particular to me as a local Deputy, that businesses are not equipped mentally or in any way for Brexit. I do not attach any blame to them in that regard because I am aware of their daily struggles in regard to whether the levels are going up and down and their capacity to trade. I reinforce the point that we cannot return to the model we had previously. Notwithstanding the pandemic and Brexit, a low pay, low tax model is not a model we can return to. The Tánaiste's personal insistence on budgetary matters to keep income tax regardless of what one earns, or USC, regardless of what one earns, on people at the higher end to cushion them from any sort of impact from budgetary changes is indefensible. Fine Gael party representatives on local authorities stripping away of moneys that could be used to invest in communities and to support business is also indefensible. That said, the Labour Party will stand by the Tánaiste and Government when it comes to having a united Oireachtas viewpoint and stance facing down a no-deal Brexit, which, unfortunately, it appears is the determination of the British Prime Minister.

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