Darragh O'Brien (Dublin Fingal, Fianna Fail)
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21. To ask the Minister for Foreign Affairs and Trade the steps he will take to safeguard Irish trade interests in view of the United Kingdom referendum result; and if he will make a statement on the matter. [19759/16]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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In light of the UK referendum, what steps is the Minister taking to safeguard Irish trade interests? The ESRI and others have published reports warning that there is a potential reduction in trade between the two countries of up to 20%. The UK is a very important trading partner for us but the beginning of our approach has bordered on shambolic. I am very disappointed about the collapse of an all-Ireland forum before it even began and I hope that can be addressed. We are at an early stage but what plans is the Minister putting in place to safeguard Irish trade interests between the two states?

Charles Flanagan (Laois, Fine Gael)
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As I said in the House last week during the important discussion on the implications of the outcome of the UK referendum, I believe there is a collective determination across the Government and Opposition benches to meet the challenges and uncertainties of the period ahead. Our work together over the next months and years must serve Irish national interests as we construct a new environment in which to maintain the strongest possible relations with our EU partners and with the United Kingdom, not least in so far as our trading relationships are concerned. There will be no greater priority for Government than the effective handling of the process following the UK electorate's vote to exit from the European Union.

As to the shape of the negotiations at EU level, both in terms of withdrawal and the UK's future relationship with the EU, this was a matter of some discussion at last week's European Council in Brussels which the Taoiseach attended. In his post-European Council statement to the House today, the Taoiseach made two important points very clear: Article 50 provides a legal framework for the withdrawal negotiations, and the European Council, that is, the EU Heads of State and Government, will direct the process. We await further clarification on this from the British side when the new Prime Minister is in place. The new UK Prime Minister will also have to clarify what kind of future relationship it intends to seek with the EU. The Irish people expect nothing less than a comprehensive, proactive, constructive and calm response to the challenges presented by these circumstances. As a Government, we will use every resource available to us.

The North-South dimension is also critical. At the plenary meeting of the North-South Ministerial Council yesterday, the Government and the Northern Ireland Executive had a detailed discussion on the potential impact of the UK referendum result to leave the EU. To optimise joint planning and engagement on key issues arising following the referendum result, we agreed to take actions in a number of priority areas.

While we continue to rely heavily on a number of traditional markets, Ireland has been working to deepen its market penetration and its market diversification. For example, while growing in volume terms, the percentage of UK exports as a percentage of total global exports has declined over the period 2005 to 2015. This reflects Enterprise Ireland's strategy of supporting clients to win more business in the UK while at the same time diversifying the overall export base through targeting other existing markets and the emerging high growth markets.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I understand why the Minister has given a general response because it is early days. Already, though, there is a threat to our export market as a result of the severe weakening in sterling and I would expect that, through the trade element of the Minister's portfolio, we would assist our exporters. While our dependency on the British market is less than it was 20 years ago, it is still significant, with more than €1.2 billion per week in trade between Ireland and Britain. Has Government or the Minister deployed further resources within the Department and with other Departments to support the many businesses that export into the UK in the short term while this uncertainty is in place? From the perspective of Tourism Ireland, how will the result affect visitor numbers and everything that flows from that?

Charles Flanagan (Laois, Fine Gael)
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I agree with the Deputy on the importance of the points at issue. We have been engaged in a review of our personnel and have put into effect something of a redeployment, but this involves much more than the Department of Foreign Affairs and Trade. The Minister for Jobs, Enterprise and Innovation, Deputy Mary Mitchell O'Connor, has a particular role to play. However, my Department will support Enterprise Ireland's international trade mission, scheduled for the rest of this year, which will include missions to northern Europe, the USA, China, India and other high growth markets. IDA Ireland is liaising directly with its more than 1,200 client companies and potential investors to work with them on the implications of the vote. New opportunities may arise for Ireland in some sectors, many of which already form part of the IDA’s marketing strategy. Our embassies will, of course, continue to support and co-ordinate work on the ground with local market teams. In the period leading up to the referendum, I consulted the export trade council on a number of occasions and, following the result, I have now convened a further meeting of the council, which will shortly bring together Ministries, State agencies and interested parties, including private sector representatives, to co-ordinate our efforts and intensify our work on this important issue.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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There may be opportunities for Irish companies post-Brexit and I understand that IDA Ireland, Enterprise Ireland and others, through the Minister's Department and others, will try to seize upon those opportunities. It is not in our interest that the process be allowed to run into the next year or two. I agree that we should not force Britain to submit the Article 50 letter, but there is uncertainty in the markets which means uncertainty for jobs and people's standard of living. I am sure many companies have been in contact with the Minister in the area of agriculture and horticulture, with particular reference to export companies, and it is of grave concern that companies are already looking at cutting back, a mere two weeks after the referendum result. I am glad to hear there is redeployment and that a cross-departmental approach is being taken. Will the Minister keep us updated in this regard?

Charles Flanagan (Laois, Fine Gael)
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In the interim period while the negotiation process is being established, our new economic diplomacy strategy, which I launched earlier this year, offers an opportunity to build on the commercial capacity of our embassy network across the world, which supports Irish business and complements the work of the State agencies. In this regard, my Department has launched a pilot programme of commercial attachés and these will be locally hired commercial experts with short-term contracts of between one and three years, depending on the circumstances. We are focusing on placing them in emerging markets where we have opened new embassies and missions and where there is an agency presence, for example, in Brasilia, Bucharest, which also covers Bulgaria, Buenos Aires, which also covers Chile, Jakarta in Indonesia, and Mexico. These will work closely with our State agencies and the work will proceed while we prepare for the vital strategic negotiations on the matter of the UK withdrawal from the European Union.