Dáil debates

Tuesday, 7 February 2017

Ceisteanna - Questions

Cabinet Committee Meetings

4:10 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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7. To ask the Taoiseach when the Cabinet committee on the economy, trade and jobs last met. [4118/17]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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8. To ask the Taoiseach when the next meeting of the Cabinet committee on the economy, trade and jobs is due to be held. [5742/17]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 7 and 8 together.

The Cabinet committee on the economy, trade and jobs last met on Thursday, 26 January 2017. The next Cabinet committee will take place in the coming weeks.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I thank the Taoiseach for his very comprehensive and precise reply. The Taoiseach will agree that the economy faces direct and long-lasting challenges, particularly due to Brexit. The Economic and Social Research Institute, ESRI, has forecast that a hard Brexit will cost us tens of thousands of jobs, especially in the regions, which we discussed earlier, and that it will undermine certain sectors of our economy and hit the public finances.

It is clear we face a hard Brexit. The Taoiseach and the Prime Minister spoke of a seamless and frictionless Border. They are meaningless terms. The emerging model of Brexit, as articulated by the Prime Minister, is one that includes a hard Border. This is as bad as it gets for Ireland. While the Taoiseach has spoken about a common travel area, the issue is how we mitigate the economic damage which will be caused by the UK's exit from the Single Market and customs union. This is the central question that faces Ireland. There has been a pat answer focusing on the common travel. The core issue is trade and how we will limit the damage which Brexit will cause.

Will the Taoiseach tell us when he intends to outline proposals on how we will help businesses and communities that will be hit by Brexit? I accept that the Taoiseach wants to limit the impact. Would he agree that no neutral outcome is possible and that we must prepare for a hard Brexit, and not try to wish it away with phraseology, language, goodwill and the bonhomiethat exists when meetings are held? There is a need to convey to people the gravity of what is involved over the next decade as a result of the UK's leaving the EU. Our economic model as we have known it for nearly 50 years will have fundamentally changed as a result of Brexit. Will the Taoiseach outline the Government's proposals to limit it?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Next Tuesday, I will bring a memo to the Government. On Wednesday, I expect to make a statement on Brexit. I will follow it with the second all-island forum on the Friday. I have said very clearly that I do not want the Border to be as it was. I have very deliberately and clearly told this to the Prime Minister. The situation arose due to a vote by the UK electorate. We should take note of a matter I discussed with the Prime Minister here and since, given that the position is as yet unclear arising from the Prime Minister's statement at Lancaster House. She said:

I do not want Britain to be part of the common commercial policy and I do not want us to be bound by the common external tariff.

These are the elements of the customs union that prevent us from striking our own comprehensive trade agreements with other countries. But I do want us to have a customs agreement with the EU.

[Here is the important point] Whether that means we must reach a completely new customs agreement, become an associate member of the customs union in some way, or remain a signatory to some elements of it, I hold no preconceived position. I have an open mind on how we do it. It is not the means that matter, but the ends.

And those ends are clear: I want to remove as many barriers to trade as possible.

Until this issue becomes clear, it is difficult to assess what the outcome might be. I do not want to see personnel with caps enforcing Border controls outside Dundalk or Newry. I have said it would carry very negative consequences for the country. When the Prime Minister writes her letter to the European Commission on Article 50, I expect this element will be sorted out.

4:20 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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We all acknowledge that the biggest threat to the economy at this time is Brexit and its consequences. Will the Taoiseach tell us what consideration, detailed or otherwise, was given to the proposition that the North be accorded a special designated status within the European Union? It might be useful to understand the thought processes and procedures which the Government went through in this regard.

It is not enough for the Taoiseach to join the British Prime Minister in these meaningless soundbites - just stuff and nonsense - about a seamless and friction-free Border. He said it again today when he said there would be no return to the borders of the past. That is absolute nonsense.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is not absolute nonsense.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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There can be no soft Border. We said this from day one. There will be a hard economic Border, which is unfortunate. The only way to deal with that is to ensure the land frontier between the European Union and the British state is not on the island of Ireland. That is the way to avoid it. The impact on the Good Friday Agreement, Border communities, jobs and wages as well as on the economy of this island will be significant.

May I put it to our friends in People Before Profit that they should have considered all of this before joining with UKIP, the hard right in Britain and the DUP in supporting Brexit?

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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There must be an election on somewhere.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Can I also raise again with the Taoiseach the concerns which have arisen about the future of our fishing industry following Brexit? The British fishing industry wants to exclude all foreign boats, which includes us, from its fisheries zone after Brexit. That will directly impact on at least 36% of fish caught by this State’s meagre fishing fleet. It means other fishing fleets will increase their activities. What measures is the Taoiseach proposing to protect our fishing industry?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I have made the case on many occasions that we have a particular set of circumstances in Northern Ireland which are special and unique. It is the only peace process in Europe which is supported by Europe. We have the PEACE and INTERREG funds and we want to be able to continue to build on them.

When one crosses into the Six Counties, or Northern Ireland, there is no visible Border and we do not want to see that anymore. Deputy Adams’s question wants to deal with what was originally the constitutional claim on the Six Counties.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I want the Taoiseach to tell me what consideration was given to the proposal.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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He wants a situation where one has de facto a united Ireland by having all traces of any Border removed out beyond Fair Head.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I would like to think we all would like that.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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That is what I gather from what he asked me.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Does the Taoiseach not want that?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Of course I do. I have answered that question before.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Will the Taoiseach then tell me what consideration he gave to the proposal?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Deputy should not misinterpret me now. We do not have a Border when one crosses from Dundalk to Newry. We do not want to see any future signs of that. I disagree with the Deputy when he claims these are meaningless soundbites. The important element is what is not clarified by the British Government yet in respect of the future relationship of the UK with Europe. Is it to be, as the British Prime Minister said, a completely new customs agreement, associate membership in some way or a signatory to some elements of it? There is no preconceived position.

Until such time as that becomes clear, it determines, as Deputy Adams well knows, the nature of the agreement and relationship between the United Kingdom and the European Union from where we will negotiate.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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What about our relationship?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We had before a situation where people said it could not be done or could not happen. It has to happen. This situation arose because of the votes of the electorate of the United Kingdom and we have to deal with the outcome of that. The outcome is that I do not want to see a Border where there was one before.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Will the Taoiseach agree that a special status is needed for the island of Ireland, both North and South, with regard to the Brexit negotiations? As the country most affected by the proposed Brexit, it is inconceivable that our interests will be amalgamated with those of 27 other states.

The Taoiseach has already told the Dáil that he will be among 27 other Heads of State at the final meeting, which will go on through the night, judging from previous meetings. While he will probably be allowed one senior diplomat in the vicinity, the Taoiseach will be the decision-maker. It is not adequate that Ireland does not have separate representations for its serious issues. There is a Franco-German alliance, as well as a series of other alliances, among the other 26 member states. That is realpolitik. The Taoiseach is well-respected and well-known among the 26 other countries. However, there is an old saying in diplomacy, “Countries do not have friends, they have interests.” Our primary interests are the hundreds of thousands of jobs in the Republic and the significant number of jobs in Northern Ireland.

Based on the Belfast Agreement, I propose the Republic of Ireland and Northern Ireland - the island of Ireland - should be a specific strand of the Brexit discussions between the European Union and the UK. Otherwise, we are simply part of the 27 versus the UK. Notwithstanding the Taoiseach’s frictionless and seamless relationship with the British Prime Minister, Theresa May, we are in grave peril and jeopardy.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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All the economic indicators point out that Ireland would be most adversely affected by a hard Brexit. The Barnier task force, which has been doing quite a deal of work, is well aware of the priority attached to Northern Ireland and the peace process, as indeed is the British Government and the British Prime Minister. I have said what our priorities are on many occasions already.

It must be remembered the Netherlands, Denmark and Spain have serious economic interests with the United Kingdom also. They are concerned with issues such as people living in one country or another. We have a common travel area which covers not just travel but rights of residence and right to work.

From the contact we have had with all the Ministers across the different Councils, everyone appreciates there is only one peace process supported by Europe in the European Union, the one dealing with Northern Ireland. This is a particularly special and unique case with a particular set of circumstances. We want to be able to build on that. When we look at what we have to do with the capital review programme and the longer-term vision for the country on an all-island basis, we will continue to support infrastructure, where possible, in Northern Ireland.

I will be one of the 27 Heads of State but it has changed since Deputy Burton’s time. There are no officials in the meeting with the Minister or myself. I am one of 27.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I meant in the general halls outside of the meeting.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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That is why I will go to Poland tomorrow to speak to the Polish Prime Minister. I was in Malta last Friday speaking to the Maltese Prime Minister. I will visit each of the Heads of Government to explain just how critical this issue is for us. As I said to Deputy Micheál Martin earlier, it is hoped the letter to the Commission will clarify the remaining piece of this jigsaw in respect of the customs union.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Does the Taoiseach think it is ironic that Deputy Adams should attack People Before Profit in the name of jobs in the North when Sinn Féin, Fine Gael, the DUP and the Tories took specific action in supporting the Stormont House Agreement which condoned and set out the plan to axe 20,000 jobs in the public sector in the North? It was an austerity deal, an almost carbon copy of the one the EU-led troika inflicted on workers here and which was such a disaster. Sinn Féin also signed an agreement which will result in more job losses because it aims to privatise assets in the North and has agreed to social welfare cuts. Incredibly, when the North is in desperate need of revenues for its public services, jobs and infrastructure, it proposes to cut the corporate tax rate to 12.5% which will result in less taxes being paid and less money available for investment in jobs.

Is that not deeply ironic? I suppose Deputy Adams is worried about the growth of People Before Profit in the North.

4:30 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I thank the Deputy.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I will leave it at that.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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There was a very strongly worded attack on the Sinn Féin Party.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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It is also unproved.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I am quite sure Deputy Adams will continue the discussion with Deputy Boyd Barrett in due course about the matter.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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On the hustings.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is not for me to intervene.