Maurice Quinlivan (Limerick City, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this motion. While there will be further statements on tariffs this evening, it is positive that we are holding this debate now regarding how the economies on this island, both North and South, can be protected against the impact of tariffs announced on 2 April by the President of the United States of America. The announcements on 2 April by the US are a form of economic aggression on its supposed partners and allies while simultaneously being an act of self-harm by the same country. They are a threat not just to the world economy but to the economy of the United States. We know in this State we have a multitude of challenges that have not been addressed from the cost of living to the emergency that is housing and the ongoing crisis in our health service. We cannot and will not allow the imposition of, or the threat of future, tariffs to drop election commitments or, worse, herald in austerity measures. Now, more than ever, we must prepare ambitious investment on housing, health, infrastructure and, crucially, green energy, especially offshore wind.

Renewable energy has the potential to be a vital source of revenue and energy for our market. The development of offshore energy is our chance to eventually become energy independent. We can harness this energy and export the excess energy that Ireland will not need, or we can import it from abroad. That is the choice. It is as simple as that. We can either harness the energy from wind or purchase it from abroad. The impact of these tariffs and how we react to them will affect our resources, but this must not distract from the investments needed to advance the well-being of all our citizens.

In my constituency of Limerick, we have several technology parks with American IT, medical devices and pharmaceutical companies that employ thousands of people both directly and in associated companies. Thankfully, for now we are fortunate that 75% of our exports to the US fall within exemption categories and this may mitigate the damage caused to our economy by these tariffs, although last night's comments might scupper the hope we have at the moment. Thousands of people in counties Limerick and Clare work for these organisations. Following the 2 April announcement, many of these employees are concerned for their future. They are concerned as to whether their jobs will be there in a few years' time, how these companies will react and how these tariffs will impact the availability of future investment and promotion opportunities that exist in these companies already. These companies have been, and continue to be, vital to the local economy of the mid-west region. It is hoped that those that were planning expansions will continue to do so. They have been good for Limerick and the mid-west region and have contributed enormously to Limerick and the surrounding counties.

As I said, exports are critical to our economy. If these tariffs dramatically impact our exports, we will face serious challenges, not just in the export sector but across the whole of our economy. CSO estimates show that exports in 2024 were valued at €223.8 billion, with imports valued at only €133 billion. Clearly, in welcoming large volumes of foreign direct investment, the focus on our domestic economy was often not prioritised. However, before 2 April, we still had a shortage of craftsmen and apprentices, we were watching the decline of our city centres and our SMEs were not supported as they should and could have been.

The issue of apprenticeships was raised by me with the then Government in 2018. At the time, my colleague Kathleen Funchion, now an MEP, launched a document, Apprenticeship Reform Proposals, in which, recognising the future need we would have, we sought the tripling of spaces on apprenticeship programmes. Unfortunately, our proposals were not adopted by the Government, and we now have large-scale shortages in many areas. Yesterday was the time to prepare, but we are where we are now, and we must prepare for the impact of these and any future tariffs and external shocks that may present themselves. We need to be ready with supports akin to those introduced in the responses to Covid and Brexit, while also looking at market diversification supports and better support for our SMEs, businesses and companies.

Although, as I said, FDI is very important and has been excellent for Limerick, it is clear we have become over-reliant on that sector of our economy. The dangers of over-relying on tax incomes from multinationals has been well flagged by me and others, but this and previous Governments have not done enough to encourage balanced development of our economy by strengthening and supporting our SME sector. I have previously called for and launched policy documents on the need to establish a State-wide Irish enterprise agency. It would take over responsibility for the current local enterprise offices, make best practice uniform and provide the Government with advice on what retailers and other SMEs want and help them to grow, sustain and build their businesses. An increase in personnel would include new mobile business advisers to travel to businesses and provide advice on business plans, grants and strategies on site. In the immediate term, we must also seek to protect jobs across the island. To that end, I urge an increased level of engagement with the Executive in the North and, as my colleagues said, for the North-South Ministerial Council to meet as a matter of urgency.

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We, along with our European partners, must respond in a measured way. Aggressive counter-tariffs could damage our economy. Along with our European colleagues, we must do all we can to avoid a tariff war, one which serves the interests of no one and would expose our island to the worst impacts of such a tit-for-tat response. We must rather look to enhance our competitive advantages such as third level education, our people and our unique location between Europe and the United States. Simultaneously, we must develop our indigenous enterprise sector, which has been left behind in recent years. To do so, we must reduce the cost of doing business in this country. We have the most expensive net electricity prices in the EU. This must change if we are to be competitive. We must look at ways to reduce utility prices more generally, while doing similar with property and banking.

We must be measured in our response and never lose sight of our greatest strength, which has always been the people of Ireland. Businesses invest in our country because of our hardworking and highly educated workforce. While things are uncertain at the moment and a lot of workers are really stressed, investment in our key advantages, such as our workforce and our SMEs, will see us through these aggressive self-destructive tariffs imposed by the US President.

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