Dáil debates

Tuesday, 11 May 2021

5:55 pm

Photo of James O'ConnorJames O'Connor (Cork East, Fianna Fail) | Oireachtas source

Today marks the 50th anniversary of the death of former Taoiseach, Seán Lemass, who was pivotal in creating an open, inclusive, and dynamic Ireland at the heart of Europe.

Such forward and progressive thinking is again required. Ireland at the heart of Europe can play a leading role in building back a more inclusive and sustainable society. We know this to be particularly to be true in Ireland, as a small open economy at the most westerly point of the EU. Ireland must do all that it can to remain a leading example of how to attract and grow business and be a welcoming place for tourism around the world. We must not isolate or cut ourselves off from the rest of Europe or the wider world. The pandemic has created a sense of inward-looking obsession, which has been damaging to both our economy and society. Thankfully, with the vaccination programme under way, we now need to ensure that Ireland remains at the heart of Europe.

International travel across the EU is vital for Ireland. This week's Irish aviation financial and traffic statistics are extremely worrying for a sector which needs to be at the heart of our economic recovery. The Government must bring industry leaders together to implement recommendations for the safe reopening of international travel. Air traffic decline of over 700,000 flights over the past 12 months is equal to the entire air traffic handled in this country in 1998. I welcome the announcement of the Minister of State, Deputy Byrne, in the Seanad on Friday that the Government is committed to the digital green certificate proposal from the EU that would enable a return to EU-wide international travel. Every effort must be made to achieve the alignment of travel policy across the EU to prepare for the opening of travel again. It is vital that we have a common framework for the issuance, verification and acceptance of certificates relating to vaccination, testing and recovery. Ireland must make sure that it is not left behind. As the EU home to many of the world's leading tech companies, Ireland should be leading the way in the development and execution of a digital green certificate.

A return to international travel is vital to the recovery of Ireland's aviation sector and the wider tourism sector in Ireland. Too many livelihoods are at stake if we fail to act. Aviation was one of our economy's strongest performing sectors before Covid-19, with over 140,000 livelihoods being sustained by the industry in this country. We must protect and rebuild post Covid. The aviation sector helped to get us out of the last recession due to its huge economic contribution to our economy. If it does not survive, we will suffer the consequences.

Passenger numbers at Cork Airport, for example, fell by over 95% during lockdown compared to the same period last year. Air traffic is not expected to recover to 2019 levels until 2024. Cork Airport is Ireland’s second largest international airport with 2.4 million passengers passing through it in 2018. The airport offers more than 50 routes to destinations in the UK, Europe, and the United States. Such a loss would not only be a huge blow to jobs in the region but to connectivity throughout the south east and the south of the country more generally.

Progress is being made at an EU level. The European Parliament adopted its mandate on 29 April 2021 and the Parliament and the European Council commenced negotiations this week. I was also delighted to read in The New York Timeson Sunday that American tourists who have been fully vaccinated against Covid-19 will be able to visit the European Union over the summer, according to the President of the European Commission, Ursula von der Leyen. I must say that it is of critical importance for the Government here in the Republic of Ireland to do all it can to allow the safe reopening of transatlantic travel in alignment with many of our European neighbours in the Schengen area. Obviously, the fact that Ireland is part of the common travel area has presented us with some minor difficulties, which could be dealt with, in my opinion. It is critical that the Government does this.

The fast pace of vaccination in the United States and advanced talks between its authorities and the European Union over how to make vaccine certificates acceptable as proof of immunity for visitors, will enable the European Commission to recommend a switch in policy that could see transatlantic leisure travel restored. This is huge news for Ireland, rural Ireland and the hospitality sector in this country, as vaccinated tourists from America represent huge economic opportunities for tourism, hospitality and aviation. The Government must provide a clear roadmap before the end of May on inbound tourism.

It was heartening to see the level of solidarity among the EU member states in the face of the Covid-19 pandemic. We are stronger together than apart. By working together, we achieve more than on our own.

The next generation EU recovery plan will enable Ireland to put the necessary funding in place to make the country a greener and more digital place in which to live, raise a family and do business. There is a huge level of supports available to grow and develop our economy. We need to grab this opportunity to shape a bold vision for Ireland's future. The time for action is now. In terms of funding, Ireland is set to receive an estimated €1 billion in recovery and resilience facility grants. There will also be €89 million available in 2021 under REACT-EU package and €77 million from the just transition fund. It will include specific supports for sectors that are important to Ireland's economy, such as agriculture, to secure food supplies and protect the income of farmers. Ireland will also receive almost €1.2 billion in cohesion policy allocations from the latest long-term EU budget, as well as over €8.3 billion in direct payments from the European Agricultural Guarantee Fund. There will also be €2.25 billion available through the European Agricultural Fund for Rural Development. The European Commission recently disbursed €2.47 billion in financial support to Ireland as a first transfer under the support to mitigate unemployment risks in an emergency, SURE, scheme. The support will be provided in the form of loans granted on favourable terms and will assist Ireland in covering the costs related to the temporary Covid-19 wage subsidy scheme, which has been a critical income supplement for many people in this country. The Commission has approved two Irish schemes worth €10 million and €7 million for Ireland’s coach tourism and entertainment sectors, which were badly hit by the pandemic.It has also approved a €45 million Irish scheme to support companies active in the beef sector and a €60 million Irish scheme to support SMEs affected by the Covid-19 pandemic. Ireland will also be the largest recipient of the €5 billion Brexit adjustment fund, which is significantly good news for this country.

I come from a farming background, as I have often discussed in the House. It is critical for the European Union, on a day such as today, to understand that agriculture has a critical role to play in our economy in the Republic of Ireland. Many of our farmers, particularly in the dairy sector, are engaged in some of the most sustainable practices on the planet in terms of how they treat their animals. Their stock is reared in grass-fed settings on many farms in the country, which is something of which dairy farmers are particularly proud. It is something that differentiates us from much of the competition on the international stage and helps us to develop markets for our produce both within and outside the European Union.

In regard to the cutbacks in herd numbers that may come in the future, internationally and in Ireland, I encourage the EU to take a more sensible approach. It should look at countries where animals are kept indoors all year around as the places to cut back, not places like Ireland where farmers engage in incredibly sustainable practices that are very well researched. It should consider that in an economy such as ours, agriculture plays an enormous role in terms of economic investment in rural communities and the rural economy in its entirety. In my constituency, there are tens of thousands of people who are supported by the agrifood sector, whether they are working in places like Kerrygold, on the distilling side with Jameson, or, at a primary level of the economy, directly on farms. I know many Deputies in Munster and south Leinster are dealing with similar circumstances in their own areas. The agrifood sector really is one of the world-leading parts of our economy and we must do everything we can to protect it. I accept that, from a sustainability point of view, it is important that we find new ways to incentivise farmers financially to engage in more sustainable practices to help the climate, internationally and on a European level. However, this needs to be led from the top down, at Government and at European level. It is enormously important that we keep that in mind.

I have already mentioned the aviation sector. I reiterate that I am exceptionally worried about Ireland's speed of development in terms of the digital green certificates and how well connected we are going to be to the entirety of the European Union over the next couple of months. There are many thousands of people vaccinated in Ireland who would love to re-engage in international travel when it is deemed safe to do so. We seem to be a little behind our European colleagues in terms of how we are going to deal with this particular issue. It must be addressed as quickly as possible because it is critical to balanced regional development in this country. I am thinking of the airport in Cork, where a great deal of enormously positive work has been done in recent times. I am also thinking of our major international airport in Dublin.

Having transatlantic options and the European Union becoming, once again, a major host of North American tourism are of critical importance to the constituency of every Deputy. According to some hoteliers to whom I have spoken, up to 75% of their revenue comes from guests from the US and those guests account for 65% of bookings. This shows that US customers are an incredibly important part of tourism in this country. We need to move in lockstep with our European colleagues to ensure hospitality gets the strongest possible reopening later this year. That will be beneficial not just to the hospitality sector but also to the aviation sector. I have pointed out in the House before that 140,000 jobs in Ireland are supported by aviation. The sector is enormously important and it needs to play a firm and significant role in the economic recovery of this country in the post-Covid era.

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