Paul Murphy (Dublin South West, Anti-Austerity Alliance)
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1. To ask the Taoiseach if he will report on his meeting with Mr. Michel Barnier, EU chief Brexit negotiator. [30629/16]

Eamon Ryan (Dublin Bay South, Green Party)
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2. To ask the Taoiseach the details and outcomes of his discussion with Mr. Michel Barnier following their recent meeting. [30640/16]

Micheál Martin (Cork South Central, Fianna Fail)
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3. To ask the Taoiseach the issues he discussed with Mr. Michel Barnier when they met on 12 October 2016. [30752/16]

Enda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 1 to 3, inclusive, together.

I welcomed the European Commission's chief Brexit negotiator, Mr. Michel Barnier, to Government Buildings on 12 October. Mr. Barnier's visit to Dublin was one of a series of engagements in EU capitals in order to prepare for the forthcoming Brexit negotiations. Our discussions were timely, especially given the indication by Prime Minister May in early October and confirmed to EU leaders at last week’s European Council that she will trigger Article 50 no later than March next year. During his visit Mr. Barnier also met the Tánaiste, the Minister for Foreign Affairs and Trade and the Minister of State with responsibility for European affairs, as well as senior officials. Mr Barnier who took office as head of the European Commission’s Brexit task force on 1 October will lead the European Union’s technical negotiations with the United Kingdom. This process will proceed under the political guidance of EU Heads of State or Government at the European Council and subject to their approval once the UK Government has formally triggered Article 50.

My exchange with Mr. Barnier was open and constructive. He is well known to us in Ireland, given his various roles at national and EU levels. Consequently, he understands our close historical, political and economic ties with the United Kingdom. During our discussions I took the opportunity to emphasise and explain in some detail Ireland’s unique set of concerns arising from Brexit in relation to Northern Ireland, the peace process and citizenship issues; the common travel area and border issues; and the depth of our economic and trade relationship with the United Kingdom. We also spoke about Ireland’s strong support for EU membership and our commitment to play a full part in the negotiations process. In this context, I briefed Mr. Barnier on the various strands of work which are advancing here at political and official levels to prepare Ireland to the maximum extent possible for the period ahead.

Given the critical role of Mr. Barnier and the Commission, it was also useful to hear his thoughts about the process and how negotiations might be handled in the next critical phase. I assured him that we looked forward to working closely with the Commission team in the months ahead and we agreed to stay in close contact.

Pat Gallagher (Donegal, Fianna Fail)
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Three Members tabled the questions, Deputies Paul Murphy, Eamon Ryan and Micheál Martin. Is it agreed that they will ask their questions in that order in order that we receive a substantive response? Agreed.

Paul Murphy (Dublin South West, Anti-Austerity Alliance)
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On the letters being sent by IDA Ireland to 1,200 British companies, the talk of Mr. Seán Kelly, Fine Gael MEP, in the European Parliament last week about reducing the rate of corporation tax, the various attempts being made to get the European Medical Agency to relocate to Ireland and the idea of banking regulation, are these indications that the Government is prepared to engage in a race to the bottom with the City of London in a post-Brexit scenario in terms of financial regulation and corporation tax? Was this discussed with Mr. Barnier? Does the Taoiseach agree that such an approach would prove very damaging to people in this country and across Europe?

As the Taoiseach knows, a debate has restarted on the question of having a common consolidated corporate tax base in Europe. Despite its protestations in terms of being to the fore in the fight against tax avoidance, the Government is opposing one of the measures proposed in an attempt to tackle tax avoidance. Mr. Seán Kelly made an interesting contribution on the topic. With suggestions from the United Kingdom that it may reduce its corporation tax rate to 10%, he said it was important that member states had the flexibility to change their tax rate as needed, "particularly small countries that depend on foreign direct investment." He was clearly referring to or, at least, including Ireland in that regard. There are ridiculous comparisons being made such as that Blackrock can be the Kensington of Dublin in trying to attract finance capital from the City of London to Dublin. Is that the strategy the Government is pursuing?

Eamon Ryan (Dublin Bay South, Green Party)
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I agree with the previous speaker as such a strategy would be misguided if that is what the Government is pursuing. On the wider strategy, I have a concern that the Government is looking for a side-deal, as it were, between Ireland and the United Kingdom in any talks on invoking Article 50 which we might then present to the 26 remaining countries for them to treat us as a special case. While Ireland is a special case as it has a land border that other countries do not have, as well as the historical connections, I do not believe that would be the right strategy to pursue. Will the Taoiseach confirm that we will instead stick absolutely to what I believe is the correct argument that the United Kingdom cannot have access to the Single Market without providing access to its labour market? Did he mention this to Mr. Barnier?

Does the Taoiseach consider that there are aspects that we need to treat differently from financial services or traded goods? I am thinking of issues of energy policy, climate policy or environmental policy where there are very real, distinct and physical connections we have to manage. How are we going to manage the all-Ireland electricity market? Is there a case for managing it slightly differently? How are we going to manage water services? There was a meeting of European Green Party leaders last weekend in Dundalk where our councillor made the point that the water we were drinking had crossed the border two or three times. In the negotiations can we look at how we differentiate in managing the energy market and water services where there are physical interconnections? I do not know if the Taoiseach or the Government has given any consideration to what the final court of arbitration will be. If the United Kingdom is stating, as it seems to be, that it will no longer recognise the European Courts of Justice, how will we manage the all-Ireland electricity market? How will we settle any dispute? As a result, how would we attract any investment in the energy sector in the North of Ireland?

They are my questions. Will the Taoiseach look to make a side-deal or will he be solid with the other 26 member states? Can we treat areas in which there is a physical connection differently from financial services or traded goods?

Micheál Martin (Cork South Central, Fianna Fail)
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In later questions we will talk about what Britain is seeking in the Brexit negotiations. The core of these questions is how the European Union is approaching the negotiations. There has been a lot of wishful thinking and bluster but very few specifics so far. Mr. Barnier talked about having the negotiations conducted in French. That caused much amusement within the Commission, but it is petty and does not serve any useful purpose.

The other point, which we have been stating since the outset, is that the Commission has a distinct role in implementing treaties but does not have a reserved role in negotiating those treaties. We have been anxious all along, and the Taoiseach has indicated it in his speeches, that the Council, where Ireland has an equal voice, would make core decisions in respect of these negotiations and does not hand matters over to a Commission that, in my view, is now spending more time playing to the gallery than acting with proper reserve and in accordance with procedure.

Government spokespeople have been saying that Europe understands the needs of Ireland. Where is the evidence? What we are hearing from Brussels is talk of a hard Brexit. We are hearing the same from Westminster and the British Government. They are all talking about a hard Brexit. As stated by Deputy Eamon Ryan, the British Government does not want the Court of Justice of the European Union to hold sway. It does not want freedom of movement in any shape or form and, so far, all the noises from Westminster is around a hard Brexit. However, the same is happening in Brussels. Will the Taoiseach give us one example of how Ireland's unique position is being respected by the European Union? Have we, for example, been given representation in the permanent group of the Council? Are we in that group?

We are unique. The Department of Finance has produced two publications, one being UK EU exit - An exposure analysis of sectors of the Irish economy. Some of this is not reflected in our budget but it is clearly stating that there are many exposed sectors once Brexit goes ahead, particularly traditional manufacturing and, for instance, the pharmachem sector. There will be fiscal impacts because of a potential reduction in corporation tax. Above all, the impact will be very serious outside of Dublin in employment terms. The regional impact of Brexit will be far more pronounced than people might have thought. It seems to me that Irish businesses and communities, particularly those involved in traditional manufacturing and SME services, will require assistance. Having read the two reports, there will have to be a transitional period whereby support and aid will have to be given to Irish SMEs to enable them to move to a new situation and to discover and diversify into new markets and so on and to enable them to ride the storm, if one likes, that is coming once Brexit takes place, in particular if it is a hard Brexit. The report also made the point that the highest share of total employment in the exposed sectors in the particular regions is found in the Border region. The Border region above any other will be particularly hard hit as a result of a hard Brexit. I have no sense of that being shaped yet or that the Commission or anyone in Brussels has an understanding of it. That is not to speak of the devaluation of sterling, which is also hitting our SMEs. In addition to the devaluation of sterling and its impact on SMEs and businesses will be the actual exit itself. If there is less than full market access, we are in tariff country. We are talking about tariff territory. This will be very difficult for the food industry and traditional manufacturing sectors.

Has any work begun on specific instruments to implement aid programmes and support for such companies? Has the Taoiseach informed his European colleagues of the likelihood of such aid and assistance being required, given the reports by the Department of Finance on the potential and very real prospects of the impact of Brexit on our Irish industries and jobs?

Pat Gallagher (Donegal, Fianna Fail)
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Bearing in mind that we had 15 minutes and there are only three minutes left, I will ask the Taoiseach to respond.

Enda Kenny (Mayo, Fine Gael)
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Deputy Paul Murphy raised a question about corporate tax. This is a matter that falls within the competence of every country. That is provided for in the treaties. It is our business. The common consolidated corporate tax base has been around for quite a long time. It requires unanimity. It was one of the first issues Ireland allowed on the agenda when we held the Presidency in 2013 and it ran into the sand early on. It is a complex area, as Deputy Murphy knows. It does not interfere with the rate of corporate tax but is concerned with having a common base. I can assure Deputy Murphy that there are quite a number of countries that are violently opposed to it. It resurfaces every so often, but I cannot see it actually getting anywhere, to be honest with Deputy Murphy. I did not discuss the common consolidated corporate tax base with Mr. Barnier, who had just taken up his duties on 1 October. We should make it clear that the Commission, as has been pointed out, always dealt with countries wishing to join the European Union and not countries wishing to leave. Now the expertise that is within the Commission will be used for that purpose. I want to make it perfectly clear, however, that the Commission and the former Commissioner, Mr. Barnier, will not be in a position to make decisions. The decisions will be made by the European Council, which is, in other words, the elected political Heads of Government and Heads of State as the case might be in some countries. Whatever negotiations or discussions the Commission has, it will have to come back to the European Council for a political decision.

Deputy Eamon Ryan raised the issue of special cases. Every country, I suppose, considers itself a special case. We have people living in Britain, but so have other countries. They trade with Britain, but so do we. Ours, however, goes back a couple of centuries. The common travel area has been in place since 1922. This includes not just the right to travel but the right to work in Britain, as so many hundreds of thousands of people did. We will speak as a member of the European Union. We have decided on the fiscal stability treaty, the euro, the eurozone and the European Union. Ireland, involved in these negotiations, will be speaking from the perspective of a European Union member. Obviously, however, as I agreed with the Prime Minister when I met her in Downing Street, we do not want a return to a hard Border and we want the common travel area protected. This system has worked well outside the Union and inside the Union, but it has never been tested with one outside and one inside the Union. Obviously, our trading links are important to us. Some 200,000 jobs are depending on trade either way across the Irish Sea.

Deputy Eamon Ryan has a point about energy. We will have to discuss the matter. There will be a meeting on 18 November of the North-South Ministerial Council. Following a request by the Minister for Foreign Affairs and Trade to them, I have asked all the Ministers to engage directly with their counterparts so that, when we go to Armagh, we can at least hope that we can reach a common agreed agenda or position or sets of positions with the parties represented in the Executive and in Northern Ireland politics. Deputy Ryan is right though. The European Union wants to end energy islands, yet we need an energy interconnector from the South to France. The big theory of Juncker's programme was that it would allow for massive infrastructure such as this and for finance and credit to be made available for that very kind of provision. If one is to end the energy island system that currently exists within the European Union, that is a case in point. Deputy Ryan is quite au faitwith this.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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Thank you, Taoiseach.

Enda Kenny (Mayo, Fine Gael)
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The connections between Ireland and England in terms of interconnectors for gas or electricity and cross-Border, North-South, in terms of water are issues that need to be discussed.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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Thank you, Taoiseach.

Enda Kenny (Mayo, Fine Gael)
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I am coming to a conclusion now.

On the repeal of the law, the Prime Minister said that they want to introduce the law and have it ready for implementation when Britain actually leaves, which would mean that all the European issues would no longer be relevant in Britain. From a European perspective, and let me assure Deputy Martin that they have been very clear on this, if one is to have access to the Single Market that carries with it the fourth freedom, that is, freedom of movement of people and labour. There will be no cherry-picking by financial houses or different sectors.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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The Taoiseach has gone way over time.

Enda Kenny (Mayo, Fine Gael)
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I have just one other point-----

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I know, but we have to move on.

Enda Kenny (Mayo, Fine Gael)
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If I may just raise this one-----

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The Taoiseach is rolling over into the time allowed for the next group of questions. He is a minute and a half over already.

Charles Flanagan (Laois, Fine Gael)
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There were lots of questions. Do the Deputies want answers?

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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It will roll over into the time of those who have asked the next group of questions.

Paul Murphy (Dublin South West, Anti-Austerity Alliance)
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He wants to get his question answered.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I want to get my question answered.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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We will move on to the next group of questions.

Enda Kenny (Mayo, Fine Gael)
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There is a really important element to a question, which I will answer within 30 seconds. When Deputy Martin raises the issue of a hard Brexit or a soft Brexit, as we stand here, the position is unclear as to what is the agreed consensus of the British Government. Pulling out of the Single Market, the customs union or Schengen brings a range of complications. These are issues that we will have to focus on and discuss as things become clearer.

Micheál Martin (Cork South Central, Fianna Fail)
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I do not think we were ever in Schengen.

Enda Kenny (Mayo, Fine Gael)
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We are not in it because Britain-----

Micheál Martin (Cork South Central, Fianna Fail)
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It is not in it either.

Enda Kenny (Mayo, Fine Gael)
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-----is not in it. We are not under any pressure to join it. We are not in it and Britain is not in it.

Micheál Martin (Cork South Central, Fianna Fail)
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I understand.