Joe Carey (Clare, Fine Gael) | Oireachtas source

I rise to speak in support of this omnibus Bill, which is the result of the sad decision of Britain to withdraw from the EU. There are numerous reasons for this Bill as we have entwined much of our legislation in our partnership with the EU over the past 47 years. This Bill is made up of 21 Parts relating to matters within the remit of 11 different Ministers and it also makes provision for the Northern Ireland protocol, which protects the peace process and avoids a hard border on the island of Ireland while preserving the integrity of the EU Single Market and the customs union and Ireland's place therein.

I commend the former Taoiseach, Enda Kenny, the former Tánaiste, Deputy Coveney, and the senior civil servants on their preparation in going into these ongoing negotiations on Britain exiting the EU. They were well ahead of the posse in persuading our European partners of the strategic and political reasoning in negotiating the Northern Ireland protocol.

When Ireland and the UK joined the Common Market in January 1973, Ireland's exports to the UK were around 70% of our total exports. Ireland's dependence on the UK for trade was massively transformed as a result of EU membership. We now export our goods and services to all corners of the globe. Our membership of the EU has been very good for Ireland. Our exports to the UK now account for only between 9% and 12% of our total exports and 25% of our imports.

This Bill has been drafted to protect our citizens and consumers, to reduce the possibility of a serious disturbance in the economy of the State, to facilitate the sound functioning of a number of key markets, sectors and fields and to ensure our businesses are not disadvantaged. It also protects the Good Friday Agreement in all its parts, supporting North-South co-operation and an all-island economy. These are the key underpinnings of the Government's approach in a number of provisions of this Bill. This Bill protects and maintains the common travel area and the associated rights and privileges which precede our membership of the EU. I am pleased that both the Irish and British Governments are committed to maintaining the common travel area. It should be said that this probably prevents us from joining the Schengen area for the foreseeable future.

This Bill is being dealt with in a timely fashion and should be ready for commencement before the full withdrawal of Britain at the end of the year. One concern that has been brought to my attention relates to section 64, which amends section 58 of the Value-Added Tax Consolidation Act 2010, the proposed change to the retail export scheme and the issues arising from admitting UK residents, now that they are not members of the EU, into the scheme. It must be remembered the proposal is to raise the minimum threshold from 1 cent to €175 and that this spending is conducted in one retail outlet. This scheme led to the export of traditional Irish products, such as crystal, glass, china and pottery, handmade woven clothes and other specialty Irish-produced goods. This, in turn, led to greater online sales when these products were brought back to the tourists' home countries. Those involved in the trade are concerned that this amendment to the scheme will unnecessarily impact the availability of this scheme for tourists from all non-EU countries. I am aware that France has reduced its previous threshold from €175 to €100 in time for Brexit.

Would it be possible to maintain the status quofor the next year as a boost to the tourism recovery plan and could we make a detailed assessment of this scheme in time for next year's Finance Bill?

In the context of Brexit, the major concern that I will raise is connectivity to and from the mid-west and western region through Shannon Airport. It is essential that we maintain air connectivity to such major hubs as London Heathrow and develop reliable and frequent routes to other European hubs such as Frankfurt and Paris. At present, Heathrow is the only hub airport accessible to the catchment area of Shannon. The loss of EU hub connectivity after Brexit is of serious concern to stakeholders in the region. Air links to hubs in the US and Europe via London are critical for effective regional development and necessary if the Government's ambition to drive 75% of growth outside the capital by 2040 is to be realised. Access to airports is particularly important for the high-tech foreign direct investment, FDI, and knowledge-intensive firms that are the key drivers of economic development. The importance of Shannon Airport in this regard is also evidenced by the fact that over 40% of FDI companies in the region are located in the catchment area of the airport.

I also have concerns about our valuable exports, particularly those from the chemical and pharmaceutical sectors which account for 50% of our exports by value. The majority of this cargo is freighted by air. We are all aware of the problems that may occur with the landbridge route to Europe. It is essential that we also build air bridges to the European mainland. It is crucial that the Government invests in securing these strategic routes to provide connectivity in a post-Brexit era and to provide business and tourism with vital links to maintain growth in these sectors.

I am aware that this Bill is proposing changes to many sectors of our legislative framework but these are necessary changes to protect our nation and its citizens. I know that every Department, agency and organisation in the State network has been working hard to make these amendments to our legislation.

I wish the negotiating team all the best in the next month as it brings the negotiations on Brexit to a conclusion. I express my support for this Bill.

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