Dáil debates

Thursday, 21 January 2021

Brexit (Foreign Affairs): Statements

 

1:15 pm

Photo of Thomas ByrneThomas Byrne (Meath East, Fianna Fail) | Oireachtas source

The trade and co-operation agreement secured a new basis for engagement between the European Union and the UK. It preserves our and the EU's core principles while respecting the wishes of the UK, wishes with which we did not agree but respectfully do so. There is a framework which can be built on by mutual agreement over time. The agreement provides for zero-tariff and zero-quota trade for goods of EU or UK origin. Securing a zero-tariff and zero-quota agreement was a major priority of Irish exporters which rely on markets in the UK. For example, a substantial proportion of Irish agrifood exports go to the UK which have been damaged by Brexit in any event but would have been completely devastated if tariffs had been imposed.

Tariffs and quotas are only part of the complex story of supply chains. The difficulties we are seeing, particularly in Britain, remind us why the Single Market was set up in the first place. It was designed to avoid those difficulties, to have frictionless trade within the European Union and to get rid of all of the inconvenience that existed in the past. Unfortunately, the UK has chosen to be outside of the seamless trading environment of the European Single Market and customs union. Traders moving goods to, from or through the UK, excluding the North of Ireland, now have to comply with new rules and procedures. We have been emphasising this to businesses and the Dáil for many months. One only needs to look back at the Brexit readiness action plans from September last year and previous years, as well as the Official Report for Brexit debates.

The Government has invested significant time and resources preparing for the new trading environment. Funding commitments for Brexit-related expenditure now sit at more than €1 billion. We have installed new infrastructure and IT systems, along with 1,500 additional staff at ports and airports. There are difficulties but generally the systems are working well. We have encouraged officials to engage with businesses and traders to ensure as much help as possible can be given. There are dedicated supports and helplines to help businesses to adjust to the new trading arrangements, including the clear customs scheme and €100 million in dedicated supports to the agrifood sector. These are along with a range of funding options to drive investment in longer term mitigation measures, including the €300 million Brexit loan scheme and the €800 million future growth loan scheme. We have also introduced postponed accounting on VAT for imports from the UK to help businesses with cash flow issues.

The feedback from stakeholders is that there is demand for this help and support to continue. The Government will continue to be there to help businesses through change. When specific issues arise, such as moving goods through our ports, we are there to help. Businesses must also continue to engage and adapt, however - these changes are here and not going anywhere - and many businesses already have.

The most recent statistics indicate that more than 70% of consignments moving through our ports have the correct paperwork in place and are receiving a green routing to exit directly. There was a significantly increased number of inbound goods movements through Dublin and Rosslare Ports in the past 24 hours with 1,136 recorded. The previous day it was a high of 1,063. Everyday more and more movements are coming through customs from Britain. That is just the reality of life as it is. There are also more services direct to the Continent where we have seamless trade and that continues.

Goods moving from Ireland to the EU do so seamlessly. Supply routes are reorienting. Ferry operators have responded to industry-led demand. We seek new routes, new capacity and bigger vessels. We have seen one vessel come off a Britain to France route to come to an Ireland to France route. Given the scale of our trading relationship with the UK, significant capacity is also still needed on routes to the UK, but it is welcome that additional direct connectivity options are now in place.

The trade and co-operation agreement will never replicate the closeness of the co-operation that takes place between member states in the shared framework of European Union law. In addition to its provisions on trade, it also provides for unprecedented levels of sectoral co-operation between European Union member states and the UK. As the Minister, Deputy Coveney, just set out, the agreement contains important provisions on police and judicial co-operation, transport connectivity, energy connectivity and fisheries, but difficulties still remain. These areas of sectoral co-operation are essential to underpinning economic co-operation and co-operation between our public administrations. The trade and co-operation agreement, together with the withdrawal agreement including the Northern Ireland protocol, mean that at the very least there has been an orderly withdrawal of the UK from the EU and a structured basis for future co-operation. This was not always a given. It will be important that the Government, Oireachtas Members and other stakeholders remain active and engaged as we continue to construct this new relationship.

I want to put on the record of the House our thanks to Michel Barnier and his team and our EU partners. I warmly congratulate again Michel Barnier on achieving the European Movement Ireland's award of European of the year. He has incredible links to this country going back over decades. We have only achieved what we have achieved with their support. The strength and solidarity that comes with membership of the European Union has been on clear display during the Brexit process. The announcement last week of the Brexit adjustment reserve by the European Commission and the detail of it, which was negotiated in the July summit by the Taoiseach and other leaders, is but the latest manifestation of EU solidarity and support, with approximately €1 billion allocated to Ireland. This money we will receive from the European Union will help us in softening the effects of Brexit but in no way eliminating them. Those effects were brought on by the decision of the British people, and particularly the decisions of the British Government, to leave the customs union and the Single Market.

Our relationship with the European Union and our role in it are not simply transactional or economic. It is not simply a money relationship. As the European Union begins to move on from Brexit, Ireland must and will continue to play a leadership role at European Union level, promoting our common values and the rule of law to deepen our alliances and friendship, showing leadership on climate and building an economic model that allows our citizens to reach their full potential. I am very excited by the objectives of the Portuguese Presidency of the Council of the European Union this term with regard to social Europe.

As the Minister of State with responsibility for European affairs, I hope Members of the House will be at the centre of this effort. In this regard, and for example, I have asked the Chief Whip to facilitate a Dáil debate on the rule of law in the European Union at some point when we can. Many Members with whom I have discussed this will be glad of it and I look forward to it. It is one of a number of issues on which we must continue to lead at European level and show the solidarity we have received over recent years.

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