Dáil debates

Wednesday, 11 November 2020

Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020: Second Stage

 

5:10 pm

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

Had the Covid-19 pandemic not happened, the primary focus of people at this time would be Brexit. The media would be running endless articles and debates and the talk on the street would be of Brexit. As it currently stands, many people can speak with authority on the US electoral system, quote Covid trends from around the world and debate the business of this House at length. Their knowledge of current affairs is vast. There is, however, a disproportionately low level of interest in Brexit among members of the general public.

There appears to be an apathy on the part of people when it comes to Brexit. It seems as though many have grown tired of or frustrated with it. Britain’s imminent departure from Europe was all-consuming in the early stages of 2019 but now it has slipped well down the list of priorities for many people. This indifference to Brexit is not new. The exit poll from the most recent general election showed a mere 1% of voters gave the issue consideration when casting their ballots. This compared to 32% of voters focusing on health, 26% on housing and homelessness and 8% on the pension age. People voted on the issues of the day not on the issues of the will be far-reaching implications for Ireland as a result.

Everyone in Ireland, irrespective of background, will feel the impact. There has been a good information campaign by Government targeted at specific sectors. Updated information is being made available insofar as is possible in light of the ever-evolving Covid situation and the ongoing uncertainties surrounding Brexit. With nothing definitive, preparation becomes very complicated yet remains very necessary. We need to ensure risks are planned for and adequate preparations are in place. Support, certainty and structure are needed for the Irish agrifood sector for suppliers, farmers and small and medium-sized businesses.

Information is less readily available for the average person. Workers, homemakers, students, caregivers and those living week to week or month to month are largely unprepared for the changes Brexit will bring to their everyday lives. Some believe that it will not impact on them at all. The farming sector, which will be one of the hardest-hit sectors in the country, is deeply concerned about what the future holds for it. Those involved in the sector fear that the impact for them will be much harder than the picture that is currently being painted. These two conflicting situations, these two ends of the scale, are the people who make up the constituency that the majority of us represent. It falls upon each of us to ensure that members of the public are fully and accurately informed, as much as possible, about what lies ahead.

The reality is that no matter what the final Brexit picture looks like, the decision by Britain to leave the EU will affect all of us to some degree. For the average household in Ireland, the impact will be felt in terms of everyday spending. This comes at a time when the pandemic fallout has already hit many incomes through reduced working hours or job losses. Many households are not aware of where the Brexit-related costs will occur. There will be additional costs involved in buying products from the UK after 31 December. If an item costs between €22 and €150, VAT and import costs will apply to it, while products in the UK that cost more than €150 will be liable for VAT, import and customs duty costs. Different rates will depend on the product a person buys. If there is no trade deal between the EU and the UK, there could also be tariffs on items bought from the UK. An Irish retail source is quoted this week as saying that unless there is a Brexit deal, prices in our supermarkets and retail shops will go up very quickly. If there are tariffs, they will be passed on to the consumer. The tariffs will, on average, increase prices by between 15% and 20%. This will be a major blow to the average Irish household.

After 31 December, the UK will become what is termed a third country. This term refers to any country outside the EU and outside its economic structures, namely, the Single Market and the customs union. Businesses in a third country have to complete custom declarations when they import from and export to the EU, regardless of whether there is a trade agreement in place. In addition to increasing the cost of goods on the supermarket shelf, it will also increase the cost and possibly the supply of certain medications and medical devices commonly used in Ireland. Those on long-term medications may not be aware of the fact that these medications may be in shorter supply, leading to patients having to opt for alternative brands. This will be difficult and confusing for many people, particularly the elderly and caregivers.

The recognition of academic qualifications is also a grey area at present. Under EU rules, Irish and UK citizens are offered mutual recognition of qualifications. However, there is no decision as yet on whether this will continue after 31 December.

These are just a handful of examples of the changes that are just around the corner, but many people remain unfamiliar with them. For the farming sector, there is endless information available, some of which has been confusing and, indeed, conflicting. The agrifood sector provides 8.5% of national employment and generates €14 billion for the economy. The dependence our farmers have on the UK market makes for vulnerable and uncertain times. The agrifood sector is exposed. Irish beef farmers are already experiencing major uncertainty regarding meat prices and environmental compliance.

This is forcing many dairy and beef farmers to question their livelihoods and financial sustainability. On top of this, farmers are facing potential losses in CAP repayments to farm families arising from a substantial reduction in the EU fund. This reduction is predicted to be up to 30% for some farm payments. Many farmers will be unable to withstand such a drastic drop in income. As trade in agriculture and food is subject particularly to WTO tariff rates, this does not augur well for Ireland's beef and dairy sectors. In a scenario whereby the UK chooses to slash trade barriers to EU member states it will have to offer this same access to other WTO members so Ireland and all other European Union countries would face much harsher competition on the UK market.

I have highlighted a fraction of the issues that ordinary Irish people and the Irish farming community could be facing from 1 January. I accept that total readiness for the change that will result from Brexit is impossible at this time. I accept that extensive work has to be done in an effort to keep people informed about the changes that will and may occur post Brexit. I know that in ordinary times Irish people would be actively engaging in everything that is happening but these are not ordinary times. While they concentrate on dealing with life in a pandemic, Brexit is sneaking up on us and many are not ready for it. An enhanced campaign that places the impact of Brexit centre stage is urgently required. There should be greater focus on ensuring that every Irish person is aware of what Brexit means to them. Recognising the changes Brexit will bring may not make them any easier but it may help people to have a greater understanding of them. It is imperative that the EU adheres to the withdrawal agreement. Notwithstanding the serious implication of a breach of the Good Friday Agreement, the Irish agricultural sector needs to be protected and our trade position in terms of accessing the UK market has to be strengthened and prioritised. I compliment the Minister, Deputy Coveney, on his work to date on behalf of our country and people. His tactical approach and skill set is paying dividends and we wish him well in his continued endeavours.

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