Dáil debates

Wednesday, 7 October 2020

Brexit and Business: Statements

 

7:30 pm

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent) | Oireachtas source

I welcome the opportunity to speak on this issue. I have spoken to the Minister of State, Deputy Troy, previously, but this is my first time to speak to him in the Dáil, so I wish him luck as a new Minister.

The uncertainty around Brexit is ferocious. Whether people like it or not and whether they live in a city or a rural area, we must realise that food is transported between Ireland and England by lorry and by ships going back and forth. We need to make sure that we understand that 60% to 70% of our beef goes to the UK. It was alarming to see Asda's statement yesterday that it will buy only British beef, which would not be a welcome development for Irish farmers. We have to make sure that we put the funds in place. Be it state aid or whatever and regardless of whether the EU blocks it, we have to support the agricultural sector, be it the beef, dairy or sheep sector. While 300,000 to 400,000 lambs are transported here from across the Border, some of them come from the UK. It appears that will continue with the agreements that are in place. However, in terms of our beef getting to the UK, if a deal is not done, there will be tariffs imposed, and with the current price of beef, the farming sector cannot withstand the likes of that. There must be Government intervention to make sure our farmers continue to be viable.

With regard to the business communities, especially those in the Border areas, we have to make sure that we put a foot under them, so to speak, because not only are they going through the torment in respect of Covid-19, which was highlighted earlier, Brexit is a double whammy coming at them.

In terms of the timber industry, last Friday, for the first time in 30 years, there was a mill in this country that did not have any timber. We must realise that much of our timber goes to the building industry in the UK, and for pallets. We have to put a foot under that sector also which employs 12,000 people.

I refer to the haulage industry and roll-on, roll-off services. In terms of our new models of where we will be going in the future, are we ready in ports such as Rosslare? I am aware a review was done earlier in the year by the EU and I believe Rosslare will go into a core node in TEN-T, but will the Port of Galway get help? Will the infrastructure be put in place under, say, the core network for TEN-T funding from Donegal, along what we call the western arc, through the Minister of State's constituency, and I have often advocated on behalf of Mullingar, to Castlebar? We need the infrastructure to make it linkable in terms of traffic going back and forth.

On a note of caution, we had a meeting with IBEC via Zoom last week attended by the pharmaceutical sector and other businesses in the west. They have highlighted the major problem that Ireland is losing foreign direct investment, FDI. The CEOs or the people who make the decisions about FDI are not coming to this country because of the need to quarantine on arrival. I am not saying they should be allowed be in contact with people on arrival, but we need to put in place a system that facilitates those who are spending money here to get through our airports, without having contact with others, and travel to where the business they will make the decision on is located. It has been stated to us bluntly that we will not get the FDI that other countries are getting currently because of such regulations in place.

I spoke to a business today and it seems that the banks are putting people through the ringer with respect to the Covid credit guarantee fund. I believe a decision will be made with respect to that business tomorrow but the bank involved was AIB, which we bailed out. It asked for a business plan to be done but subsequently requested another one. They then had to do a business plan indicating that they will be doing almost no business next year. With the current situation, no one in business can foresee more than six months ahead let alone look into a glass bowl and say what will happen in the next year. The Government is prepared to stand 80% behind a business but some of the people in the credit committees of the banks, especially the State-owned banks like AIB, who are making the decisions seem to be putting people through the hoops. It is as if they do not want to give them money. We have to keep businesses in operation. We have to take risks at times. No one knows what the Covid situation or Brexit will bring in the next six months or year. Through no fault of anybody's things are happening and we have to make sure that we protect the existing jobs. If we do not, what comes in goes back out. If the Government is not getting in the money in taxes, rates and other revenue, more people unemployed will be a problem.

Coach hire was talked about by Deputy McGuinness, as was the hospitality sector. They have got a hammering this year, including from Covid. If there are many rules and regulations coming in under Brexit, it will be problematic.

Prices are going up all the time. It is necessary to be competitive to survive in this world. Last week, the PSO levy was increased. We talk about the great new world we are going to enter but households will have to pay €54 more for electricity because of the increase. We are talking about climate action again and introducing a carbon tax. Basically, rural people will suffer. While everybody is willing to make an effort and help in every way, we are dealing with crises. We are dealing with Brexit and Covid and now we are talking about introducing climate action legislation that will basically screw people more in the rural areas if there is to be a carbon tax increase of €6 or €7 per tonne this year and next year. When under pressure, it is necessary to pull back on certain things. The health and wealth of the people are more important than deciding that we, as a nation, are going to save the world when others are giving the whole lot the two fingers. I am not saying we are ignoring the issue but people cannot be left as I describe. Do we want an Ireland in which we are looking out a half door and drawing the dole while saying we are a great country and that our emissions levels have come down? Alternatively, do we want to keep creating work? We are emerging from a tough time that began in 2010. We are now in the middle of a very tough time and we must ensure we put incentives in place so businesses can continue right around the country, but we must also ensure there are links between all the relevant Departments, including those responsible for agriculture and transport, to be sure we are as Brexit ready as possible. People talk about being Brexit ready but how do we solve the problem if a heap of lorries are banged up together with food in them, resulting in shortages here and there?

I ask the Minister to take my points into account. This debate is well worthwhile but at the end of the day we do not know what is going to happen. We hope the issue will be resolved and that an agreement will be reached. If not, we have to be prepared to step in for the people of this country and help them in their hour of need because they have put their shoulders to the wheel over recent years.

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