Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this debate and to recommend the EU-UK Trade and Co-operation Agreement to the House. Brexit is not good for Ireland, Britain or Europe, and Brexit was not our decision. It was a decision of the British people, one we regret but one we respect. From day one, our policy was to protect Ireland, the Good Friday Agreement, citizens' rights both North and South, jobs and businesses, to avoid a hard border and to ensure that Ireland's position in the European Union and its Single Market was not undermined.

After four years of hard work and careful diplomacy and alliance building, I believe we have achieved our aims. First, with the withdrawal agreement and the Irish protocol, we ensured there was no hard border, with any checks taking place in seaports and airports instead, that the all-island economy would not be damaged and that the Good Friday Agreement would be respected. Through unilateral action, we have protected the rights of citizens of Northern Ireland, including access to the ERASMUS programme and the EHIC scheme, and also ensured that European citizens in Northern Ireland can continue to work, travel and study anywhere within the European Union. Through bilateral agreement with the UK, we have reinforced the common travel area and the reciprocity of citizens' rights that goes with it. I am very grateful to the UK Government for facilitating that. With the EU-UK TCA, we ensure that market access and tariff-free and quota-free trade are still available to Irish businesses, thus protecting jobs, businesses, farmers, rural Ireland and exporters. Overall, it is as good an outcome as was possible in the circumstances and much better than many thought possible.

I want to record my thanks to European governments and institutions and their representatives for the solidarity they showed to Ireland, especially Michel Barnier, Jean-Claude Juncker, Donald Tusk and the Heads of State and Government across the 27 member states. I also want to record my thanks to the British Prime Ministers, Mrs. May and Mr. Johnson, and their officials, who, notwithstanding the difficulties, honoured the promises they made, Prime Minister to Taoiseach, sovereign state to sovereign state. I want to thank our officials and diplomats in Dublin, Brussels and around the world for their professionalism and patriotism, former Taoiseach Enda Kenny and, particularly, the support of Irish America, which was crucial, especially at points of decision and difficulty. I also want to record my thanks to this House for the general support that all parties - or, at least, most parties - gave the Government in representing the national interest abroad.

I do have some regrets, particularly as I see difficulties now play out in Northern Ireland and, indeed, on trade between Ireland and Britain as a consequence of Brexit, and the border in the Irish Sea, as some people refer to it. This is, of course, primarily a consequence of Brexit. We never wanted any barriers to people or trade, North-South, between Britain and the Republic Ireland or between GB and NI. It is those who supported Brexit who must accept responsibility for that. However, we also must accept that it could have been mitigated and that some of the problems we face today could have been avoided. The backstop solution, for example, would have kept all of the United Kingdom in a single customs territory with the European Union, and that proposal could have passed the House of Commons had enough Northern Ireland MPs been willing to vote for it. Another alternative was a customs union involving the UK and the EU, which was also possible at one point. Let us not forget that it was defeated by only one vote in the House of Commons. Had one DUP MP or one Sinn Féin MP voted for it, we could have seen an even softer Brexit and a milder one for Northern Ireland than we have today. I do not say any of that to score political points but merely to speak the truth, and history will record it as fact. Nonetheless, what is done is done and we will work with the Executive in Northern Ireland, the European Commission and the UK Government to make the Irish protocol work better and more smoothly to minimise the disruption to GB-NI trade.

Brexit has few upsides but it does present a few opportunities, certainly for foreign direct investment into Ireland. Any British, American, Chinese or foreign firm seeking a base in the eurozone with access to the Single Market will certainly consider Ireland, and that is the case we will make as we fight for more FDI for Ireland. Absent Britain, Ireland can become a bridge between the US and the EU to help rebuild the Atlantic alliance, particularly now as a new Administration takes office there. It also creates the opportunity for us to build new alliances with like-minded EU countries away from the shadow of the United Kingdom.

The agreement, with its many parts, creates a framework for the new EU-UK relationship into the future. It creates a new stable relationship with the UK for the Irish transport and energy sectors. It ensures co-operation between police services on these islands can continue. It will protect the Single Market, which is so important for our future prosperity, and ensure fair competition for Irish businesses.

Some of the key positives from my Department's perspective include the market access provisions, tariff-free and quota-free trade as well as provisions aimed at preventing unnecessary technical barriers and requirements. In addition, it is welcome that there will be a memorandum of understanding on the handling of equivalence in financial services and decisions taken on data adequacy.

The agreement, however, does not replicate the status quo. Even with this agreement, Britain is still outside the Single Market and customs union and there are now a range of customs and regulatory controls at Irish, EU and UK ports. These checks are necessary to protect public health, food safety and the integrity of the Single Market. In no way do I want to underestimate the challenges that these new requirements have brought for business, especially small business. The evidence is that despite some initial difficulties systems are gearing up, with over 80% of goods imported into Dublin Port from the UK being green-routed. I acknowledge though that trade volumes into Irish ports from the UK are only approximately half of what they would normally be at this time of year. This is due to a combination of pre-Brexit stockpiling and Covid-19 restrictions. Many traders are using increased direct routes to and from continental Europe. This cuts out all the new customs and regulatory controls for Irish traders. Ferry companies have stepped up in delivering flexible capacity and I wish to thank them for this. There is approximately three times the capacity now on routes between Ireland and the Continent than there had been hitherto. There is also some evidence of trade being displaced to Northern Ireland ports. This requires further investigation and understanding.

The outcome on fisheries was a difficult compromise for us. I share the disappointment felt by many other member states on this matter. The Government will work to ensure that the fisheries sector and the coastal communities who depend on it are assisted through the period ahead.

We will work with all sectors as they experience the fall-out from Brexit by analysing the agreement in further detail to identify particular issues or gaps and we will put appropriate measures in place. This will be important to ensure the Irish economy withstands these major challenges.

As part of this response we will avail of the European Commission Brexit adjustment reserve to help those sectors worst affected. The Commission proposal to allocate €1 billion or 25% of the initial allocation of the fund to Ireland is welcome and is a good result. Unfortunately, however, it recognises that we are the state most affected. The allocation under the BAR is a further example of solidarity that Ireland has seen from the EU throughout the Brexit process. We know that supply chains will take time to adjust to their new arrangements and documentary requirements and we are actively engaging with logistics companies, retailers and wider stakeholders to deal with the issues arising to ensure the continued flow of goods. There is positive and reassuring feedback. Those in the retail sector are assuring us that due to the strength of their supply chains they do not anticipate shortages.

One point I wish to emphasise is that there are operating requirements to avail of the zero-tariff rate under the agreement. It does not happen automatically. Importers must show that the imported goods are proven to be of UK origin and actively claim the zero rate through import declarations. Similarly, Irish exporters need to show that their goods are of EU origin when exporting to the UK to qualify for the 0% tariff. It will not be assumed. My colleague, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Damien English, has been communicating and trying to raise awareness on this point. For consumers, my colleague, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Robert Troy, recently issued a reminder about the new arrangements now in place for online retail from the UK. It includes the possibility of additional costs by way of VAT and customs charges that may apply depending on the value and origin of goods in question.

While the immediate focus is on the short-term logistical issues that have arisen from the interpretation of the agreement's provisions, we need to plan for the medium and long terms by continuing to diversify into new markets and growing our share in existing ones. The United Kingdom will always be an important market for Irish business. It is right next door and has 60 million people. However, it is not the only market available. The Single Market is not much farther away. It is far bigger with 450 million people and offers vast opportunities for business, especially SMEs.

I commend Mr. Michel Barnier and all those who contributed to this agreement and I thank our EU partners once again for their unwavering solidarity throughout the negotiations.

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