Cian O'Callaghan (Dublin Bay North, Social Democrats) | Oireachtas source

I am sharing time with Deputy Cairns.

I welcome that there is a deal.

I thank Michel Barnier and his EU negotiating team for working so hard to conclude a deal in very challenging circumstances. It is worth noting that it is a very unusual situation to have a reverse trade co-operation deal in place. None of us knows exactly how much damage it is going to do because there is no precedent.

I wish to address three points relating to key weaknesses I see in this deal in terms of the level playing field provisions, increased costs to Irish households, in particular low-income households, as a direct result of Brexit, and the impact of the cost of steel to the construction industry. We know that steel being imported into Northern Ireland is being hit with a 25% tariff. Given that the two ports on the island of Ireland that are best able to receive large imports of steel are located in the North this could have an effect on the construction industry here. The fact that steel destined for the Republic has been hit with a 25% tariff could have major implications in terms of costs for the construction industry. This is an area on which the Government needs to take action to avert the increased costs that would affect the cost of construction and have knock-on effects on the cost of new homes.

Regarding the impact on low-income households, a couple of years ago the ESRI did a study on the potential impacts and costs of Brexit and it concluded that in the worst-case scenario, with a deal like this in place, we would be seeing increased costs for households of approximately €900 a year. We do not know the exact cost impact on households. We do not know how much costs will be absorbed or how much households will be able to avert them by switching to different products and the difference in supply chains, but we know there will be increased costs. There will be an increase in disruption and bureaucracy, resulting in increased costs. We need the Government to monitor this very carefully to see what the impact is and for that to inform any decisions on what measures it needs to take to mitigate against costs for low-income households. I am concerned that in almost an hour of speeches by the Taoiseach, the Tánaiste and the Minister for Foreign Affairs, there was no mention of that at all. Is it on the Government's radar and are low-income households invisible to the Government? I ask that because three of its most senior members have come into the House and not addressed the potential impact.

In terms of the provisions of the deal on the level playing field, we have seen Boris Johnson already talking up the fact that he will use Brexit as a way to redraw regulation to give UK businesses a competitive advantage. He has said that they are considering ripping up the working time directive and the corresponding legislation in the UK, including bringing an end to the 40-hour working week and changing rules around rest breaks. We know that in the OECD the UK already has one of the lowest protections for workers. The UK is already looking at doing that. Ireland is exposed given that the UK is our largest trading partner and because we are right next door to the UK. Previously, the European Union has been very slow to enforce any arrangements on labour standards in bilateral agreements. We also know that the level playing field only applies to workers' rights, climate change, environmental standards and state aid, but it does not apply in other areas and the onus is on industry to prove material effects from a lowering of standards by the UK. We need very active monitoring by the Government of changes in the UK so that we can look for fast action from the European Union if any lowering of standards affects Irish jobs and industries.

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