Mary Lou McDonald (Dublin Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

When the Tory boys got their way and got their Brexit agenda over the line, they did no favours to anybody but themselves. I spent five years in the European Parliament. I was always astonished at the fact that British Tories could obsess so passionately over obnoxious foreign notions like a 40-hour working week. It is no secret that my party and I have been long-term critics of much of the architecture and the direction of the European project. We believe it has lost its way, which accounts for some of the backlash that was manifest in the Brexit debate.

I suggest the little Englander mentality which sadly prevailed was far stronger than that. As an outside observer, I believe it serves no great purpose for the great English people. It is an agenda which is not worthy of them. That is my view as an outsider. If the desire of the English people, as voted for and democratically mandated, is for England to leave the EU, that is their business and off they go.

The primary concern of the Oireachtas must be the consequences of Brexit for this island as a whole, and in particular for the North. It has been said, but it bears repeating that the people of the North of Ireland voted to stay in the EU. They did not join in the Brexiteer jolly as it unfolded across the water. I am conscious that there has been endless discussion and lamenting of Brexit and no doubt that will continue. I cannot help feeling the Government is essentially sleepwalking into a potentially damaging and dangerous situation. I want to put it straight on the table that if Brexit and the hard departure of Britain from the EU are left unchecked and unchallenged, it is an absolute racing certainty that the Good Friday Agreement will be undermined and sabotaged. The logic of the Agreement, the political architecture of the Agreement and the human rights provisions that underpin the ethos and the outworkings of the Agreement were all premised on joint membership of the EU.

A hard Brexit, as envisaged by Mrs. May and her colleagues, means the essence of the Agreement, which has been so painstakingly constructed by so many people over such a long period of time, is in immediate peril. I have to say one certainly would not get that impression from reading the draft guidelines from the Council. One of the Taoiseach's Government colleagues - I think it might have been the Minister, Deputy Flanagan - described them as a "triumph" for Ireland. The triumph concerned is anaemic in its wording, non-committal and mealy-mouthed. It is certainly not as strong as the protections or assertions achieved by the Spanish Government in respect of the Rock of Gibraltar. Heaven help us if the Taoiseach and the Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, regard this as a triumph. If this is a moment of triumph, we are in even bigger trouble than I suspected.

As we have heard, a majority of Members of the Oireachtas voted to support a special designated status for the North of Ireland within the EU. That is the agenda the Government must pursue. For reasons I find bizarre and outlandish, it seems unwilling to pursue that logic. Unless we achieve what this House has voted for, we will cause economic difficulties for our agrifood business and for communities that live on the Border. It will be more difficult for everyone, including those who do not live in Border areas, to access health services and academic institutions in the North. In these circumstances, the biggest damage and the real collateral damage will be to the peace process and to the architecture, the letter and the spirit of the Good Friday Agreement. We are not prepared to let that happen. I do not believe any Irish Government worthy of the name should be prepared to let it happen. That means that Article 11 needs to be amended. We have until 29 April. The Taoiseach should relish the opportunity to go back to secure what would be a real achievement and potentially a triumph for this country.

Alan Kelly (Tipperary, Labour)
Link to this: Individually | In context | Oireachtas source

I agree with many of the previous speaker's comments. I accept her passion on this issue. It would have been great if her party had campaigned on Brexit in Northern Ireland. It would have been welcome, given the passion with which she has spoken about the issue this evening. Her party did not even register as a political entity to campaign in the referendum. If it had done so, the Deputy and her colleagues would have been able to express their views and fight for even more "Remain" votes.

We are heading into years of uncertainty. It is clear from how long it took to reach a trade deal with Canada that this process will take many years. I genuinely congratulate the Government on its diplomatic efforts. I would not necessarily say it has won, but it has secured elements of acknowledgement of Ireland's unique situation. We should acknowledge those small wins. The real win will be secured when we reach an agreement we can all live with.

I would like to take a different angle on this debate. I believe we need to discuss what our options as a country will be when the final outcome is known. In particular, I suggest we should have a conversation about whether the agreement that is eventually reached will need to be put to the Irish people for ratification. I do not think anyone here can predict where we will be at that point, what the outcome will be or whether a vote will be needed. I am not saying anyone has the answers, but we certainly need to discuss the possibility of a referendum. Article 50 has been triggered. We know the EU's initial negotiating principles. There is a spectrum of outcomes on where we could end up as regards Brexit. There could be a hard Border. Obviously, a fully negotiated agreement is what we want. The spectrum of outcomes I have mentioned will lead us to make a decision in order that we can ensure this is ratified.

We can be sure of three things. First, the agreement on leaving will have to be ratified by the European Council using qualified majority voting. Second, any such agreement will have to be passed by the European Parliament. As a former Member of the European Parliament, I expect that to happen, although it is not a foregone conclusion. Third, any deal will have to be agreed by each existing member state. We all know we have been here before. Many EU referendums have been held in this country since 1987. Every country has its own way of ratifying the accession of a new member state, for example. In this case, a member state is leaving the Union. The Labour Party has published a Brexit document that discusses the need to look at how all the EU treaties will affect this change. Substantial changes to EU treaties may be ratified by the Irish Government by means of an Act of both Houses of the Oireachtas. As we have seen before, there will need to be a referendum if a material change is proposed.

It is extremely unlikely that Brexit will result in a change to the EU treaties that will affect Ireland in such a way that we will not need to have a referendum. The UK is referred to approximately 120 times in EU treaties and protocols. Having listened to what the Tánaiste has said about a range of protocols, I am more convinced than ever that there is a strong possibility that any agreement will create new bodies or organisations to oversee the relationship between both parties - the UK and the EU - thereby again necessitating a referendum. I do not think anybody in the Oireachtas can say definitively that a referendum will be necessary. I am saying straight out that we need to discuss the possibility. We need to have it on our radar. We need to be prepared for it. I expect that myriad legal arguments will be presented as part of the legal debate about whether a referendum will be necessary.

I would like to help the Government by mentioning another component of this matter. We do not know where the legal debate will end up. We certainly should be putting it to our EU partners that there is a very strong likelihood of a referendum. Frankly, it is one of the biggest levers we have. The possibility that an agreement between the remaining EU member states and Britain would have to be put to a referendum of the Irish people should focus Mr. Barnier's mind during the negotiations.

Tactically, this is something we have to consider very strongly. We will need to have a referendum anyway. The Government should state this is a strong likelihood as a strategic, tactical and factual move. No one can tell me that somebody will not walk into the Supreme Court once an agreement has been reached and argue that, for various different reasons, it needs to be put to the people. There needs to be a discussion about whether we should be upfront about this.

I want to focus on some of the issues the Labour Party has highlighted in our perspective on Brexit. We were the only party to publish a paper on Brexit. The special status of Northern Ireland is a critical priority. We need to examine a range of other areas. My party believes that a new protocol on EU treaties will be necessary and we need to consider how that will happen in order to protect the common travel area with Britain and enshrine the Good Friday Agreement. Work on that needs to commence. The fiscal rules and Stability and Growth Pact are key issues that we need to lever in the negotiations in order to generate change and give us greater flexibility. We need that flexibility, given the unclear situation in which we find ourselves.

We need to ensure the Common Agricultural Policy, CAP, is protected. The €115 billion received by Irish farmers annually must, as far as possible, be guaranteed in any post-Brexit adjustments to the EU budget. The UK currently contributes 12% of the EU budget, with a net contribution of €10.5 billion which will be lost post-Brexit. A 12% cut to CAP will be devastating for Irish farmers, as EU direct payments account for 65% of family farm incomes in Ireland. There needs to be a direct and real focus on that.

We need to consider transitional arrangements with Britain over the coming years before Brexit in order to prepare for it. Furthermore, an early warning system needs to be created to deal with the issues that will arise across industries as regards Brexit. This will help to prepare industries for Brexit. There are unknowns. This is virgin territory. Let us put an early warning system in place in order to find out what the issues are and deal with them as quickly as possible. We all know what happened to the mushroom industry.

Not alone will we have to deal with negative consequences, there could potentially be positive consequences. We were told how well the IFSC would do out of Brexit and now we can see the consequences. There are opportunities in other areas, including IT and standards, pharmaceuticals and education, particular third level education. There is capacity to promote this country as the only English language speaking country in the EU, which would provide an opportunity to foster significant investment in research. We need an early warning system or other system in place to foster ideas and opportunities and bring about capacity for warnings about the known or unknown impacts on industry.

Joan Collins (Dublin South Central, Independent)
Link to this: Individually | In context | Oireachtas source

Some two or three weeks ago, the Minister for Finance, Deputy Michael Noonan, gave a short interview on television at a meeting of EU Finance Ministers. He was remarkably sanguine about the prospects of Brexit. He stated that, in his view, there would be a transitional period. He implied that most of the existing arrangements between the UK and the EU and the UK and Ireland would remain in place during this transitional period. In other words, he said there was nothing much to get excited about. If this reflects in any way the attitude of the Government, it is heading for a rude awakening. We only have to consider the remarks of Michael Howard, who raised the spectre of war with Spain over Gibraltar, to see the reality of the situation. Michael Howard cannot be dismissed as a voice from the lunatic fringe, even though some people might think he is. He is a former leader of the Tory Party who has influence and authority over the Tory extreme right, those who are driving the agenda on Brexit. These people live in a fantasy land of their own creation. They have convinced themselves that once they have thrown off the shackles of the EU, all of the glories of the empire will magically reappear. It is a case of hard Brexit or no deal. It is highly likely that these people, along with their supporters in the UK right-wing media, have an effective veto over the hapless Theresa May.

As to who else might have a veto on the Brexit negotiations on a new relationship and trade deal between the UK and the 27 member states it is, to be honest, anybody's guess. Spain may have a veto on Gibraltar. If it does, it will use it. Anyone who thinks this is not a problem for the exit negotiations is not living in the real world. The 27 individual member states do not have a veto on the Brexit negotiations but if the negotiations involve elements of a post-Brexit relationship, individual states will possibly have a veto. The European Parliament has a monitoring role in the negotiations. If it decided that sufficient progress was not being made on the early issues in the negotiations, such as the rights of EU citizens in the UK up to 2019 or agreement on the amount the UK pays to leave, it can prevent negotiations moving to the next level. Is this a veto?

This points to a situation in which a soft Brexit is the least likely scenario. The special situation of Ireland in Clause 11 of the EU negotiation guidelines will have about as much weight as Angela Merkel's statement that Ireland was a special case in the context of the bailout of the EU banking system, and look where that got us. The situation is not good - some people think it is verging on very bad. We should be prepared for the worst, something to which other Deputies have referred. We need to think about what will happen if Europe does or does not remain in place.

For working people throughout Europe, neither remaining in a European Union dominated by neoliberalism or living outside it in a right-wing nationalist pipedream can solve the problems they face, health, jobs, education, social welfare, housing and all of the other issues faced by ordinary people in the past eight years of austerity. There is a need for an alternative, and the alternative will become clearer over time. Unless Europe puts money into the areas that directly affect people's lives such as living standards, jobs and other things, we face a potential rise of the right and the continuation of neoliberalism, which is the cause of the rise of the right.

There is a need to build a new left to fight for a new Europe, which is genuinely based on solidarity and co-operation between the peoples of Europe and which puts the interests of the citizens before those of big business. If we do not do that, the outcome for Europe or America will not be good. People will struggle and fight back against what they see as inequality.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

8 o’clock

I am pleased to have the opportunity to address the House on this very important issue. As Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs, Brexit will have an impact on a number of sectors and areas within my remit. Its impact on rural areas is of course of particular concern, but the UK’s decision to leave the EU will also have an impact on the arts and cultural sectors. My Department, like all other key Departments, has been engaging with sectoral interests under our remit to ensure the Government is well prepared to anticipate key issues.

I hosted a sectoral dialogue on Brexit in Cavan on 6 February, which was attended by more than 100 stakeholders from across the arts, culture, film, heritage, Irish language, regional and rural affairs sectors. The actions set out in Realising our Rural Potential, the Government’s Action Plan for Rural Development launched in January, will assist in supporting rural communities, including those in Border areas, to meet the challenges posed by Brexit and to position themselves to avail of the opportunities which may also arise. The plan sets out a number of actions which will address the effects of Brexit in particular. For example, a specific piece of research will be commissioned on the impact of Brexit on rural areas, particularly rural areas in the Border region. InterTradeIreland will also fund the development of a programme of initiatives to increase the awareness and capacity of SMEs to deal with the practical consequences of Brexit for cross-Border trade. I am confident that my Department’s preparations for Brexit are comprehensive and will assist in ensuring rural communities and businesses are equipped as best as they can be to deal with the issues which will arise.

The Irish Government has been preparing for Brexit for a long time - months before the UK actually took that fateful decision last May to leave the European Union. Our concerns and priorities have been well flagged and they are well understood. As we move into the next phase, the finalisation of the EU negotiating guidelines, we will continue to pursue our priorities and ensure they are clear to all EU member states. Entering this phase marks the beginning of a long and complicated process. We will no doubt encounter roadblocks along the way, but it is important we remain calm and patient as the Government continues to seek the best deal for Irish citizens.

It is also important we communicate the benefits of our own EU membership. Ireland has benefited exponentially since we joined the EEC in 1972. It is worth specifically mentioning that Irish women have benefited significantly from our EU membership. Let us not forget that it was EU legislation that led to the abolition of the marriage bar for women in public service jobs in 1973. We have also benefited from enhanced workplace legislation, such as measures on equal pay, which I suspect might not have been given priority in the Ireland of the 1970s and 1980s were it not for the EU’s influence. Irish people are broadly supportive of our EU membership, but we should not take that for granted. Misinformation and scaremongering played a large part in the campaign strategy of pro-Brexit parties in the UK; therefore, it is important that we, as elected representatives, impart factual information to the Irish public on the benefits of EU membership.

I was pleased, therefore, to see my colleague, the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, launch a website today which will publicise the positive impact of European structural and investment funds in Ireland. Over the 2014 to 2020 programming period, EU structural and investment funds will be used, together with Irish Government and local authority funding, to invest €6.2 billion in Ireland.

As a Minister from a Border constituency, I have considerable concerns about the impact of Brexit on those communities living close to the Border. Those of us who have lived on or near the Border all our lives know that Border communities have faced more than their fair share of challenges. Brexit presents one of the great challenges to date, but that does not mean it will not also bring opportunities. The Government’s position is clear. We want the closest possible trading relationship with the UK and, in particular, for trade between the North and the South. A key priority is to ensure the continued free flow of trade on the island and the need to avoid a hard border. The British and Irish Governments agree that they do not want to see the imposition of a hard border on the island of Ireland. It is my view that the cross-Border bodies are more important than ever and could provide a framework for post-Brexit relations, North and South. Investment in projects which will benefit both sides of the Border should be given priority by the Irish Government and the Northern Ireland Executive.

Through my Department, I am supporting the restoration of the Ulster Canal which criss-crosses the Border from Belturbet in County Cavan, through Northern Ireland and on to Clones. I also believe there is a significant opportunity to develop a specific tourism offering in the Border areas. We need to be innovative and ambitious as we plan for a post-Brexit era in the Border region.

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There has been much speculation on possible scenarios, including ifs, buts, ands and maybes. It is clear that while we have heard a lot of expert opinions, none of us here is an expert. Everyone involved in the negotiation process here, in Britain and across Europe never envisaged having to have a debate along these lines. It was never envisaged all those years ago that Article 50 would ever be invoked. Nonetheless it is the reality we now have to face.

In the time allowed, I would like to focus on the sectors for which I am responsible as Minister of State at the Department of Agriculture, Food and the Marine. These include forestry, horticulture, organic products and food, in particular. The agrifood sector faces one of the more acute challenges from Brexit. It is in the eye of the storm, and certain sectors within it are exposed to the potential implications of a negative outcome from the Brexit negotiations. To put our dependence on the UK market in context, in 2016 we exported €4.8 billion worth of agricultural products to the UK, representing about 39% of our total agrifood exports. Our imports came to €3.7 billion, which represented 47% of our total agrifood imports. It is not just about the figures but also about the intricate, ongoing and long-established relationship between both islands, which has made each of us an important trading partner for the other. It is important to note that the British Prime Minister, Theresa May, saw fit to insert in her letter triggering Article 50 a specific paragraph dealing with some of the North-South issues, as well as the UK's relationship with Ireland which dates back many centuries, long before the EU was formed.

The areas of forestry and horticulture, for which I have specific responsibility, would be very exposed to a negative result from the Brexit negotiations. They have a particular dependence on the UK market within an EU context. Our priorities ore clear. We wish to have continued unfettered access to the UK market, without tariff, and with minimal additional customs and administrative procedures. In addition, we are asking that the UK market be kept viable for Irish producers by minimising the risk from UK trade agreements with third countries. In the short term, our immediate concerns have centred on the significant drop in the value of sterling against the euro. We have attempted to address these challenges primarily through the measures announced in budget 2017. These include further additional funding for Bord Bia of €3.6 million, a new €150 million low-cost loan scheme, additional agri-taxation measures, and increased funding under the rural development programme and the seafood development programme.

The more medium to long-term impacts of Brexit include new trading arrangements and possible tariffs, changes to regulations and standards, Border controls and certification and the related areas of veterinary and health certification. Some of these overlap a number of Departments.

To ensure the process works well we have put in place a number of practical steps. These include: establishing a Brexit response committee and a dedicated Brexit unit in the Department; the creation of a stakeholder consultative committee complemented by frequent contact with representative organisations and companies on an ongoing basis; close consultation with State entities, Bord Bia, Bord Iascaigh Mhara and Enterprise Ireland in particular; and the addition of Brexit as a standing item on the agenda of the Food Wise 2025 high level implementation committee.

To address some of the comments and observations that have been made, the Minister, Deputy Michael Creed, and I have engaged in meetings with our counterparts in Northern Ireland, the UK and other member states. Since St. Patrick's weekend we have met the German, Dutch, Belgian, Danish, Estonian, Polish, Luxembourg and Austrian Ministers, and today the Minister met the French Minister, to try to build up alliances in the fishing and other sectors so that in the negotiations Ireland's special relationship with the UK as a market is acknowledged.

Stephen Donnelly (Wicklow, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will speak directly to what needs to be done on Brexit and suggest to the House three big priorities, which are protecting Irish jobs and securing new ones, safeguarding the peace process and the welfare of the people of Northern Ireland, and removing uncertainty from the negotiations where possible. There is probably a good deal of consensus between Fianna Fáil and the Government on these priorities, but where there will not be consensus is we believe the Government needs to do much more in all three areas. This is our view, it is the view of the public as, according to polling, two thirds of the public believe the Government is clueless on Brexit, and it is the view of many people involved in preparing their companies, their clients or their members for Brexit.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Clueless.

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Mother of God.

Stephen Donnelly (Wicklow, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Ministers may find this funny-----

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I do not find it funny.

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Absolutely disingenuous.

Stephen Donnelly (Wicklow, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

-----but the polling was released by The Sunday Business Postand is what it is.

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Fallacy.

Stephen Donnelly (Wicklow, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Let us start with jobs. Ireland is a trading nation and we export a lot of goods and services globally. By far the biggest export group is our small and medium-sized companies, and €2 in every €5 of our SME exports go to the UK. For some SME sectors, the figure is much higher. The Department of Finance estimates that a hard Brexit could lead to 40,000 fewer jobs in this country and a drop in trade with the UK of nearly one third. Irish exporters could be looking at the imposition of tariffs. They could be looking at border controls and a divergence in product standards with the UK no longer subject to EU regulations. They could be looking at lower business regulations for UK companies, such as on environmental protections and working conditions. They could be looking at changes to contract enforcement, the rights of their employees to work, changes in data protection, higher costs of funds, bigger currency fluctuations and more.

Our fishing industry faces an existential threat, should the UK decide to take back its territorial waters. The agrifood sector faces an existential threat. Beef farmers could be looking at tariffs of more than 50% and having to compete with product from Brazil or Argentina or producers who do not have to deal with EU food safety standards. The list goes on.

What has the Government done in response to these threats to farmers, the fishing industry, manufacturing, tourism, retail and 40,000 Irish jobs? The Department of Jobs, Enterprise and Innovation has a dedicated Brexit unit, which is one principal officer and three additional staff. In the Brexit budget last year, IDA Ireland received total funding for Brexit of less than €1 million and is allowed to hire nine staff. To put this into context, The Guardianhas a Brexit unit of nine staff. Bord Bia, tasked with helping the agrifood sector deal with an existential threat, is allowed to hire four staff this year for Brexit. To put this into context, the newly established UK Department for Exiting the European Union employs 335 officials.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

They are leaving. We are not.

Stephen Donnelly (Wicklow, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

There is plenty that Irish exporters can do right now to prepare for Brexit. They could consider currency hedging to protect against further falls in sterling. They could review supply chains to protect against potential tariffs and other trade barriers They could look at their international pricing to offset falls in sterling since Brexit. They could explore new customer markets and new products, and conduct financial reviews to ensure cashflow is protected from some of the known risks associated with Brexit.

Some Irish firms know how to do this and are doing so, but many do not. They need direct assistance, and this means the Government needs to free up resources for Enterprise Ireland and other sectoral agencies in order that they can engage directly with companies. Running regional events and constituency events is not enough. Companies need to be engaged with directly.

On Northern Ireland, the Government's activity to date is decidedly mixed, it has to be said. To the Government’s credit, the issues of Northern Ireland have been well flagged diplomatically in Brussels. Government spokespeople were out in force on Friday to proclaim a diplomatic victory when we saw the European Commission's draft negotiating guidelines for Brexit. The guidelines recognise the unique circumstances on the island of Ireland and include the stated aim of avoiding a hard border. They also speak to how the EU should recognise existing bilateral agreements between the UK and Ireland. The Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, described the result as as good as could have been hoped for. Maybe or maybe not, as to me this suggests a pretty low level of ambition. The existing bilateral agreements between the UK and Ireland should be recognised, but it is important to state the EU guidelines put a caveat on this, which is if they are compatible with EU law.

There is broad support for retention of the common travel area, but what about the full reciprocity of rights between the UK and Ireland? What happens when Irish citizens want to work in Northern Ireland and it is no longer possible for French, Spanish or Italian citizens to do so but it is covered by the common travel area? Will it fall foul of EU law? It may or it may not and then there is Gibraltar. Prime Minister Rajoy has obtained a veto on what happens in Gibraltar in terms of its future relationship with the EU. Ireland got warm words. We have had warm words previously. In July 2012, the EU inserted words into a statement on sharing the burden of the bank bailout. The Taoiseach described it as a seismic shift for Ireland and the then Tánaiste told us it was a game changer. However, as we all suspected, those warm words turned out to be empty, meaningless, vacuous words. The population of Gibraltar is 30,000 people. The population of Northern Ireland is 1.8 million. There are 60 times more people living in Northern Ireland than in Gibraltar but where the Irish Government got, admittedly, warm words on Northern Ireland, Spain got a veto.

Brexit could be a disaster for Northern Ireland. More than half of its exports are to the EU, and 87% of farm income in the North comes from the Common Agricultural Policy. It will no longer be in the Common Agricultural Policy. A total of 30,000 people cross the Border on a daily basis to work. EU peace funding has delivered €3.5 billion over the past 25 years to the Border regions, North and South. Special status must be afforded to Northern Ireland, as called for and voted through by the House. We should seek ways to include ongoing access for Northern Ireland to the Single Market, EU sectoral programmes and EU peace funding. None of these is being actively pursued as far as we can see.

If there is to be a border, we should seek to have it moved off the island of Ireland. This could be done with border controls in Belfast, Derry and Larne. The common travel area must be secured but not just in terms of free movement. The UK and Ireland enjoy full reciprocity of citizens' rights. We can vote in the UK and they can vote here. It is a unique relationship and it must be protected in totality. Simply protecting a common travel area will not be enough.

The Government should seek to remove as much uncertainty as possible from these negotiations. This is something it has failed to do. The EU position is the divorce talks must happen first and if Monsieur Barnier's team is satisfied the UK is behaving itself, it will go back to the European Council and seek a second mandate to begin informal trade talks. Then those high-level guidelines will have to be turned into detailed directives and then they can begin talks. That could take a year.

Every month that the trade talks are delayed is an additional month of risk and uncertainty for Ireland, Irish companies and Irish jobs. The EU's position is what it is, and we are unambiguously on the side of the EU and will support that position. Before it was locked in, the Government, the Taoiseach and relevant Ministers should have been calling for those negotiations to happen at the same time. They should have been doing so publicly and, to the best of my knowledge, not one of them ever did. I stand to be corrected if that is not true, but personally, I have listened to many statements and I have never heard them say that.

Similarly, we must call for an early transition period agreement. To the Taoiseach's credit, he mentioned that in his opening statement yesterday. It is fair to say tensions are high on both sides and they have been escalating. It is simply the case that the UK took a pretty open mandate for Brexit, picked up the Brexit ball and ran towards a hard Brexit. That has not gone down well in Ireland, nor should it. It has not gone down well with our EU member state colleagues. That can be seen reflected in the tone of the EU guidelines. They take a very hard line. It is in everybody's interests, in Ireland's interests, in Europe's interests and in the UK's interests that people step back from the cliff that they are beginning to walk towards. Ireland is a small country in Europe, but we have unique exposure to Brexit. We have a unique relationship with the UK. While we are unambiguously on the side of the EU 27, we can play a role in facilitating as little change as possible and in helping the parties, I hope, to step back from what is currently like a very hard Brexit.

Finian McGrath (Dublin Bay North, Independent)
Link to this: Individually | In context | Oireachtas source

I am grateful for the opportunity to speak in this urgent and important debate on Brexit.

I urge all Deputies to work together in the national interest and to do our best for the people on our island. I stress the words "the island". I have always said a divided Ireland is a weakened Ireland. Everyone needs to accept and listen to common sense arguments in this debate. My recent visit to Antrim, Newry, Derry and Strabane reminded me closely of this, of the relationship on the island and the importance of it, particularly in the area of economic development. That is the strong message that I got from people in the North and the Border counties in recent weeks. While I was there, I visited many disability centres in both Antrim and other places in the North. There was also a message for me there to work very closely with everybody on the island.

We are trying to rebuild the economy. It is returning. We can now see the economic situation here. We are beginning to return to good health. Unemployment is down to 6.4% from 15.2%. That is three points below the EU average. It is not all bad news. My recent visit to Scotland also supported that. There was warmth, energy and support for Ireland all over Scotland, particularly in Edinburgh and Glasgow, where I visited many expatriates living there.

We need to focus on issues and need to have priorities for this Brexit debate. The first issue for me is protecting the Northern Ireland peace process. We need to protect all the provisions of the Good Friday Agreement. We need to maintain EU support for the peace process. We need to avoid a hard Border on the island and support continued North-South co-operation. We need to minimise the impact on trade and the economy. We need to maintain close trade between Ireland and the UK and the EU and Ireland. We need to minimise the regulatory burden for goods transiting the UK. We need to improve the business environment, make us more competitive, diversify markets and have better infrastructure. We also need to pursue trade and investment opportunities from Brexit. There are opportunities.

Of course, we have major concerns. I totally respect the views of my colleagues from all parties who share my concerns. It is important that we clearly outline what we have to do. We have to maintain the common travel area, CTA. We have to commit jointly with the UK to maintain the CTA. We have to confirm rights and benefits under the CTA, secure support of our EU partners and uphold free movement of EU citizens within the European Union. We also have to be optimistic and look to the future. We have to influence the future of the European Union. We need to strengthen existing allies in the European Union and build new ones. We also need to influence future direction of the European Union and many of us have concerns about the direction of the European Union in recent years. That is something that we should challenge. I emphasise that all Deputies should challenge it. I would like to see a European Union built on equality and social justice and less militarisation throughout the European Union. That is our view and that should be our policy for building and developing Ireland's independent, neutral foreign policy, which can have major benefits and effects on conflicts throughout the world. We need to promote better awareness of the EU role, values and achievements and we need to maintain strong Ireland-UK and EU-UK relations. These are all very important issues to deal with in this Brexit debate.

Many people are being critical about the role of the Government. I totally reject that. Brexit has been on our radar since before the vote last June and we have been planning accordingly. We need to analyse and prioritise. Deep analysis has been conducted across all areas by the Brexit teams across Departments. Risk and mitigation measures were identified. Opportunities were identified and pursued. Everybody should be a Brexit ambassador. Every Minister and politician in Dáil Éireann should take that role. We undertook the all-Ireland dialogue for consultation. There were 16 events in four months. Over 1,200 delegates representing industries and organisations from across the country attended. We also had, separately in the dialogue process, nearly 200 separate meetings with industry and civic society to deepen and expand our analysis and research.

This was the message that I got from a cross-community group that I met in Antrim town during my recent visit to Antrim. Those people were very fearful of Brexit, including both small businesses and farmers throughout the North. That is a message that they asked me to bring back to Dáil Éireann. They were from right across the political spectrum and different religious and political divides. The message was that they are very concerned, particularly since they voted to stay in the European Union.

The Government held over 390 meetings with the remaining European countries and institutions as part of the programme for engagement. It has been a huge diplomatic effort with officials flying out to key capitals and hosting delegations here in Ireland for sectoral discussions to ensure that our unique concerns are well-understood. In addition, the 80 Irish embassies all around the world, especially our permanent representation in Brussels, are also making the case for Ireland's specific issues with Brexit. The work is ongoing. I challenge those who say the opposite. There have been good opportunities to discuss it. We had a good opportunity to discuss Brexit with London and with Edinburgh and as I said I was in Edinburgh spreading that message. I was in Glasgow, spreading that message. I was in the Scottish Parliament meeting ministers and spreading that message. My colleagues were in Cardiff and Belfast, using long-established connections from the Good Friday Agreement, while clearly respecting the "no negotiation without notification" principle. Structures and resources are in place. All Departments and agencies have been charged with making Brexit a priority. There is strong co-ordination at key levels right across government. Every Minister is on the same message.

What are our priorities? We have to have priorities. First, we have to minimise the impact on trade and the economy. Protecting the Northern peace process is a very important issue. Support from the European Union is very important. Support from ourselves is equally important and we have to build on this and build on diversification. We also have to maintain the common travel area. Influencing the future of the European Union is another of the priorities of the Government.

It is important that we stand up and speak up for our own country and that we accept, say and celebrate Ireland's contribution to the wider world and the positive impact that the wider world has had and continues to have on Ireland.

When one looks at the details and the facts, Ireland has experienced continued solid economic growth, with 3.5% real GDP growth forecast in 2017. Economic activity is broadly based and we now have more that 2 million people at work, the highest level since 2008. Ireland is a committed member of the European Union and the eurozone. It has prepared to meet the challenge of Brexit, which I emphasise is our duty. In a world facing complexity and uncertainty Ireland remains a stable, competitive and secure place with a well educated and productive workforce and a reputation for excelling in research and creative discovery.

As regards the peace process and the situation in the North, the principles of partnership, equality and mutual respect and the goal of reconciliation are shared objectives. These are at the core of the Good Friday Agreement and must be upheld by all parties involved in the political process in the North. The Government will continue to engage fully with the British Government and all political parties in the North in order that devolved institutions will be fully established at the earliest opportunity following the election.

A number of my colleagues referred to Ireland as a small country. In 2020 it will be seeking election to the United Nations Security Council. Our candidature reflects Ireland's continuing engagement on issues of international importance. The United Nations is central to our foreign policy and commitment to promoting our values of freedom, democracy, tolerance, community and solidarity and respect for others,

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Give it socks.

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

I remember when the Minister of State was on the other side of the House and would not have said half of that.

Mattie McGrath (Tipperary, Independent)
Link to this: Individually | In context | Oireachtas source

It is from one McGrath to another, but I will never be as good at the bluster as my ministerial colleague.

I am glad to be able to speak to the report carried out by the EU committee. With a Chairman like the one it has, we would expect to receive a good report. Among the ideas discussed in it is a requirement that Ireland seek to maintain strong connections through its permanent representatives with the various EU committees and structures. There is also a sense that we must face certain facts, namely, that while Brexit is a hugely significant event for us and the United Kingdom, the work of the European Union will continue as normal and we expect it to continue with reference to Ireland. I am not sure if this is just common sense or something about which we need to be worried. To my mind, the nature of the European Union and how it is organised and what it is about have been thrown into question following the decision by the United Kingdom to leave. That is a discussion that cannot be left to one side. Of course, there is still the day-to-day running of events, but I wonder if the seismic nature of Brexit has really sunk in and if the EU elite really thinks it can adopt a business as usual approach.

The issues discussed at the round table meeting included how Brexit was going to impact on farming and enterprise and industry in this state. Banking was also discussed, but the European Union never listened to us on any issue about which we were worried in banking. It promised us during the bailout that it would not be found wanting but, my God, it was. It was absent in paddling its own canoe.

I have spoken previously about all of these topics and the European dimension. Given that I have limited time, I will confine my remarks to highlighting just how important the UK market is in sectors of strategic importance for Irish farmers and why we need to get this right in achieving solid outcomes in the negotiations.

At 65% self-sufficiency, the United Kingdom is a net importer of beef. Ireland is its main supplier, accounting for almost 70% of UK beef imports. I know that the Aire Stáit will understand this, being a farming man. I am not saying the Ministers, Deputies Michael Noonan and Heather Humphreys, do not understand it, but the United Kingdom is the market for 50% of Irish beef exports, with a further 45% going to other EU markets. Overall, a reduction in the level of access to the UK market would have a very negative impact on the Irish beef sector and potentially the overall EU beef market. The capacity of the EU beef market to absorb increased imports is low. Irish beef exports of 270,000 tonnes to the United Kingdom represent almost 10% of the intra-EU beef trade figures. The displacement of these exports will, therefore, have a destabilising effect on the overall EU market.

In 2016, 34% of Ireland’s dairy exports went to the United Kingdom, representing 53% of cheese exports, 29% of butter exports and 12% of skimmed milk powder exports. The volume of exports of cheddar cheese was 78,000 tonnes, representing 82% of the cheddar imported by the United Kingdom in 2016. Retention of tariff-free access to the UK market is critically important, particularly for Irish cheddar cheese exports. Overall, the loss of or restricted access to the UK market could have a destabilising impact on the overall value of the Irish dairy sector. We cannot emphasise this point enough.

Ireland exported 13,000 tonnes of sheepmeat to the United Kingdom in 2016. Almost 90% of UK lamb imports come from outside the European Union, from New Zealand and Australia, while the United Kingdom predominantly exports to four EU member states, with France accounting for 50%. The key issues for the sheep sector will be the decisions taken on the division of the large EU tariff rate quotas for New Zealand lamb. Any displacement of New Zealand Iamb imports to the UK market could have a negative impact on the overall value of the EU lamb market.

There is significant bilateral trade between Ireland and the United Kingdom in pigmeat and poultry products. The Minister, Deputy Heather Humphreys, above all should be aware of this, especially given the impact in Border counties. It has been built over many years. The disruption to existing trade flows caused by tariff barriers or other increases in costs would reduce the overall value of these markets. In addition, the continuation of cross-Border trade in pigs for processing is critical, reflecting the overall processing capacity of the sector on the island of Ireland.

In the tillage sector, as the Aire Stáit knows, Ireland is a net importer of grains. The geographical closeness to Northern Ireland results in some grain farmers exporting their product there rather than selling to more distant parts of Ireland. Why would they not? The imposition of tariffs on UK imports would potentially result in a re-sourcing of imports from elsewhere in the European Union, resulting in increased transport costs. On import costs, the exit of the United Kingdom from the European Union presents a significant threat of increased costs and reduced availability of plant protection products to ensure animal health.

We all know what has happened in the mushroom sector and I am more acutely aware of it than anybody else. The UK accounts for 90% of the value of Irish mushroom exports or over €80 million. Barriers to trade through tariffs or other additional costs would significantly undermine the sector which is struggling already because of the fall in value of sterling.

The forestry sector has a high reliance on the UK market and experienced major growth in exports to the United Kingdom in recent years, doubling its UK market share for sawn softwood timber since 2007, while 65% of panel products produced in Ireland are exported to the United Kingdom. I am acutely aware of this because of the location of Medite in Clonmel and the other plant in Waterford which depend totally on those exports. This may have dire consequences if we are not proactive. It is time to listen to the Minister of State, Deputy Finian McGrath, who has been on trips to Belfast and parts of Wales and elsewhere. I do not know, however, if he is really in touch with what is going on. The excitement of being in the Cabinet as a super junior Minister has not yet left him and, as far as I can see, he is in a trance. He thinks all is well because he can come into the Dáil Chamber and use some empty rhetoric. I was used to him sitting on this side of the House when the shoe was on the other foot.

The year 2012 was very telling for us. The Minister for Finance, Deputy Michael Noonan, came back and proclaimed that our EU gods were going to support us in the bailout and that they were our friends.

We are still waiting for them to support us. They use us as patsies to bail out the European banks. The Minister was not Minister for Finance at the time but he supported the bailout as did I, to my everlasting sorrow. We were sold a pup and told naked untruths. The European banks shovelled money in here when the banks ran out of it, having trailed recklessly. Not only were the bondholders bailed out by the vote, they had insurance policies that were drawn down. We were the laughing stock of Europe and the world. The EU does not mind securing Gibraltar for Spain but what have we got? For all the visits of the Taoiseach, the Minister for Finance and all other Ministers, what have we got in tangible benefits for our little country? Nothing. We have only received pious platitudes, and dúirt bean liom go ndúirt bean léi. We would be a long time waiting for the bag and we could shake it forever without getting three farthings. They do not care.

The British people are entitled to their own destiny but Northern Ireland must be protected. The Border cannot be in Monaghan, Armagh or Aughnacloy and must be pushed back to the ocean. Ireland is an island off the west coast of Europe and we all learned at school that we were surrounded by water. It is now more important than ever that the water is our boundary and if the British want tariffs they should have them there, along with the checkpoints and the trade and customs posts. They should not divide the Six Counties from Ulster's other three counties as we have too many memories of what went on there. We have too many memories of smuggling and other issues which are still happening as a legacy of the past. It is imperative we do not have our Border in Aughnacloy, south Armagh or Monaghan, areas of which I have an intimate knowledge. We must have control of our own destiny and if the European gods will not help us out other countries might also exit. They have been found out for being selfish, unforgiving and unhelpful to smaller countries such as ours.

Pat Gallagher (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I would prefer not to have to interrupt Deputy Mattie McGrath in full flight, but I must call Deputy Catherine Murphy.

Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

I welcome the opportunity to speak in this debate following the triggering of Article 50. In recent weeks there has been far too much emphasis on who should attend the negotiations on our behalf. It suggests a reliance on personal relationships to achieve the desired results, but what exactly are the desired results, or set of results? It is not at all clear. The same personal relationships were much in evidence before the general election of 2011, when the same "close relationships" arguments were advanced. However, the crisis was largely handled, or mishandled, by the intergovernmental approach of France and Germany. Nation states acted in their own interests and not as a collective. The peripheral countries paid a very heavy price and we have to learn a lesson from that. We have to know what we want and cannot rely on that approach. We have a unique set of circumstances because of the Good Friday Agreement, which was possible because of our joint membership of the EU and was underwritten by the EU.

We need to develop a shared ownership of what we want out of the negotiations, and not allow something to be done behind the scenes by a cross-departmental group and imposed on us. I am not saying that it is unimportant that cross-departmental groups work hard on Brexit but it is simply not enough for this to be where the focus is. How we approach Brexit in the context of Ireland and Northern Ireland is critical and it has been identified in the draft guidelines. No one wants a return to a hard border but there is a sizeable circle to be squared in the context of how that is achieved if the UK leaves the customs union and wants to control its own borders. The 10% of Northern Ireland exports that flow to the Republic account for €3.5 billion but just as important is the normalisation of the trading relationship that connects the two parts of our island in more than the economic sphere.

The post-conflict opportunities should be paying dividends but Brexit will set them back, possibly for years. Point 22 in the guidelines states that no agreement between the EU and the United Kingdom may apply to the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom. This is much more definitive than what is stated in point 11 as it gives a veto, whereas point 11, while welcome, appears to rely on goodwill. Language is really important because, without absolutes, one tends to have something one cannot rely on. The guideline also states:

The Union has consistently supported the goal of peace and reconciliation enshrined in the Good Friday Agreement, and continuing to support and protect the achievements, benefits and commitments of the Peace Process will remain of paramount importance. In view of the unique circumstances on the island of Ireland, flexible and imaginative solutions will be required [that states nothing concrete], including with the aim of avoiding a hard border, while respecting the integrity of the Union legal order. In this context, the Union should also recognise existing bilateral agreements and arrangements between the United Kingdom and Ireland which are compatible with EU law.

What if they are not compatible with EU law? There are many ifs, buts and maybes embedded in that and while it is welcome that the reference is included, it is not a hard commitment in the same way as for Gibraltar, where nothing is agreed until everything is agreed.

On trade, when triggering Article 50 the British Government sought to put in place a parallel trade deal. Article 18 of the draft guidelines states:

The British government has indicated that it will not seek to remain in the single market, but would like to pursue an ambitious free trade agreement with the European Union. Based on the Union's interests, the European Council stands ready to initiate work towards such an agreement, to be finalised and concluded once the United Kingdom is no longer a Member State.

For the next 18 months or two years, all attention will be paid to the divorce and it is only after that is finalised that the trade deal will be considered. It seems that there is the potential to identify a crisis for countries like Ireland that rely heavily on the UK for trade unless transition arrangements at least are put in place. In Ireland’s case, 20% of our trade is done with Britain. The agrifood sector accounts for 41% of trade with the UK and the SME sectors would be particularly badly affected, with 192,000 jobs and a very good regional spread at risk, or partly at risk.

We need to address a transition arrangement now, not in 18 months’ time, in addition to the work being done to identify alternative markets. Did we agree to postponing a trade deal until after the negotiations conclude? If we did not have an input into that, was it done for us and was it done with our agreement? The European Union will position itself for negotiations but we could fall badly foul of that. Trade deals take time to negotiate, sometimes years, and we will not be free to negotiate a trade deal with the UK other than as one of 27 member states. We need to know what our desired outcome is and how any interim arrangements will be handled and, just as importantly, supported.

The UK is not without clout and we could see a return to the individual nation states ensuring their interests are protected. These are nation states that have much bigger interests than ours. For example, the UK accounts for approximately 16% of the European Union's GDP. The German car industry relies quite heavily on the UK. We need to be very hard line on our desired outcomes.

The third point I want to emphasise is the need to reimagine a different kind of Europe. We hear constant references to the European project. It is not at all clear what the project was or is post the economic crash. While we are utterly focused on Brexit because it disproportionately impacts on us, Europe will change and change is not always good. Jürgen Habermas, a respected German philosopher, wrote a long essay, the English name of which is On Europe's Constitution. In it he describes how the essence of our democracy has changed under the pressure of the crisis and the frenzy of the markets. Habermas maintains that power has slipped from the hands of the people and shifted to bodies of questionable democratic legitimacy. He suggests that technocrats have long since staged a quiet coup d'état.

Newton's third law states that for every action there is an equal and opposite reaction. We are seeing that reaction post crash now. We cannot ignore the need to consider the type of Union to which we want to belong. Understanding why people supported Brexit or those who are supporting Marine Le Pen and others like her cannot be ignored. To quote Habermas:

Like all symptoms, this feeling of the loss of control has a real core - the hollowing out of national democracies that, until now, had given citizens the right to co-determine important conditions of their social existence. The UK referendum provides vivid evidence about the keyword "post-democracy". Obviously, the infrastructure without which there can be no sound public sphere and party competition has crumbled.

Europe needs to rebuild socially, economically and politically if it is to have democratic legitimacy. The alienation of European citizens means that politics is catching up. Europe has been rebuilt previously, with the London debt agreement a great example. We need to be ambitious and seek things that will help to rebuild. For example, we need to talk about the need for resources to free up the possibility of investing in capital projects such as housing and transport, and making us more efficient. We need a national effort and not quiet diplomacy. We need to use all of our resources across the spectrum of business and politics. Citizens need to find ways of coming together on this. We need a national approach rather than just being kept up to date with changes and negotiations as they go along.

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Every Member of this House will agree that Brexit presents major challenges for Ireland given the potential implications for the economy and trade, the Northern Ireland peace process, the maintenance of the common travel area and the future of the European Union. These are the Government's priorities and we have been preparing solidly to defend them over a long time. Our preparation to date includes extensive analytical work carried out before the UK referendum, and intensified analysis and scenario planning carried out across all key sectors since the referendum. This is coupled with extensive stakeholder consultation and engagement to ensure Ireland's concerns are well understood. In this context, we are pleased that the draft Brexit Article 50 negotiating guidelines circulated by President Tusk last week include a very strong acknowledgement of Ireland's unique circumstances, the need to protect the peace process and the Good Friday Agreement, and our intention to maintain bilateral arrangements with the UK such as the common travel area. We will, of course, study the draft guidelines carefully in terms of the overall approach to the negotiations and the many other issues that arise beyond those that are unique to Ireland.

We are ready for the negotiations. We will negotiate firmly and fairly as one of 27. The Government is under no illusion about the nature and scale of the Brexit challenge. We know that because of our close economic ties, any negative impact on the UK economy in the medium term could have potential implications for the Irish economy. However, economically and administratively Ireland will be ready for optimal engagement in this process. Ireland will be seeking a positive, constructive and orderly outcome. The Government will continue to engage in the best interests of the country and all citizens.

Before turning to examine the economic issues on the Brexit negotiation, let me reiterate Ireland's commitment to the European Union. As a member since 1973, we have benefited enormously from our membership and the Government believes our future prosperity and well-being lies with continued membership of the EU. Let us not forget what the economy was like prior to 1973. Our EU membership has been central to the success of our open, trading and competitive economy. Access to the Single Market has allowed a small open economy like Ireland to prosper. It has been central to our twin strategies of attracting inward investment and helping Irish-owned companies to diversify their markets. Moreover, European Union membership has given us full access to EU trade agreements with other major markets and a capacity to engage in global free trade that we could not possibly have on our own.

There is no doubt, however, that Brexit represents a serious and direct threat to our economic prosperity. Overall, the Irish economy remains highly reliant on the UK. As a trade partner, the UK accounts for approximately 16% of exports. Given the close economic links between Ireland and the UK, any negative development in the UK economy in the short to medium term is likely to have a spillover effect on the Irish economy. The potential impacts are profound right across the economy. That is why a key priority in the forthcoming Brexit negotiations is to minimise the impact on trade and the economy.

We have a two-pronged approach in place to respond to the profound challenge of the UK's departure: to negotiate hard for the best possible outcome in the negotiations, and to continue intensive work to make the economy resilient and future proofed. We will work, as one of 27, to secure the closest possible economic and trading relationship between the European Union and United Kingdom, and to prepare the economy to cope with the turbulence of coming years and the structural shift of new realities. Important steps have already been taken to prepare the economy, including the introduction in budget 2017 of tax measures to support Irish enterprises that will be affected, especially agribusiness. The Action Plan for Jobs 2017 has 20 specific actions to respond to Brexit, including diversifying export markets and improving competitiveness.

The Government will remain proactive in developing and adapting our policies to ensure Ireland's economy continues to remain competitive in the face of future economic headwinds. A key element will be to continue to manage our economy and the public finances prudently to enable us to meet future challenges. In budget 2017, the Government announced the decision to establish a rainy day fund, starting in 2019 once we have achieved a balanced budget in 2018. This will both be a counter-cyclical measure to avoid overheating and also enable us to deal with the initial effects of any shock that may occur. The Government has also decided to set a new domestic target of a debt-GDP ratio of 45% to be reached by the mid-2020s, or thereafter, depending on economic growth. This target takes account of the particular risks that Ireland, as a small and very open economy, faces.

In recent years, Ireland has laid the foundations for a solid and sustained economic recovery. Indicators such as consumer spending and labour market developments are consistent with an economy that is maintaining momentum. We are confident that the economy is resilient and that appropriate fiscal policies are in place to help us to adjust to the economic effects of the UK's negotiated withdrawal from the European Union.

9 o’clock

While Brexit will pose undoubted challenges to the Irish economy, there will be some opportunities and the Government will work to maximise those where possible. Following Brexit, we will be the only country in the EU that is an English speaking common law jurisdiction. We have a young and well educated population and the Government will work to continue a business friendly environment here for large and small businesses. We have ensured additional resourcing of Enterprise Ireland and IDA Ireland to help retain, attract and develop businesses within Ireland and to help Irish businesses export to new markets. In terms of sectoral opportunities, the continued successful development of the international financial services sector in Ireland is a priority for the Government. The appointment of Deputy Eoghan Murphy as Minister of State with special responsibility for financial services highlights the importance the Government continues to place on the continued development of the sector, especially in the new context of Brexit. Brexit will provide an opportunity as companies will of necessity need to seek new access points to the European Union. We are ready to facilitate those needs and are actively seeking to maximise those opportunities.

A key component of a successful and attractive jurisdiction for the location of financial services activities is a strong and independent regulator with international credibility. The Central Bank of Ireland is committed to delivering high quality and effective financial regulation and supervision to achieve its mandate of safeguarding financial stability and protecting consumers. The Central Bank has a strong commitment to transparency and clarity in respect of its authorisation process, ensuring all applicants have a clear idea of what is expected. The Central Bank is already engaging with a significant number of firms across all sectors and has the resources, including dedicated professional teams, in place to cater for the demand.

Turning to the Article 50 negotiations, as outlined previously the Government will defend our national interests and priorities fully within the established negotiation framework in order to ensure the best possible economic outcome. For Ireland, that continues to mean the closest possible economic and trading relationship between the UK and the European Union. As the Taoiseach has stated, that close relationship is in the interests not only of Ireland but of our fellow EU member states. Given the complexity of the issues involved, it is likely that the negotiations on the future relationship agreement will take longer than two years. We therefore believe a transitional arrangement between the exit agreement and the future relationship agreement is vitally important to ensure an orderly exit and to provide certainty for citizens and businesses. Ireland will be on the EU 27 side of the table when the negotiations begin and we will continue to work with other Member States to ensure that they fully understand and address the nature and scale of the particular challenges facing Ireland. Domestically, we will continue to monitor the economic impacts closely and to frame budgetary policy in the context of the challenges of Brexit.

I reiterate that the Irish economy remains resilient. Government actions in recent years have laid the foundations for a solid and sustained economic recovery. The Government has put structures and resources in place to ensure that deep analysis is conducted across all sectors, with all Departments and agencies charged with making Brexit a priority. The challenges that we face as a result of Brexit is main-streamed across my Department and we have co-ordination happening at key levels across government. Ireland will negotiate from a position of strength, as one of the 27 member states committed to the European Union. We will pursue our national interests and priorities forcefully within the established legal and political framework for the negotiations. We are entering these negotiations, as a member of the EU 27, with the strong view that an agreement can be reached that caters to the needs of all to the greatest possible extent.

Declan Breathnach (Louth, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I pondered speaking on this historical mistake and thought for a title on my Brexit statement. I decided to call it "Breathnach ag caint faoi Bhreatimeacht". It is rather appropriate that history would record it as such.

Wednesday, 29 March 2017, when Article 50 was invoked, will in my view be remembered as May Day for obvious reasons. I believe the time for talk is over. Appropriate action needs to happen immediately, especially on the myriad sectoral issues that have been identified through the Ceann Comhairle's dialogue in the Mansion House, the two civic forums and their break-out groups as well as the need to soften the mitigating circumstances that these sectors have identified as problems. The Government needs to have a national response to Brexit which has not been seen thus far. This is a national event and we are not seeing a national response. I have called the response that is needed the "Fixit Focus".

Britain leaving the EU will present unprecedented political, economic and diplomatic challenges to Ireland. Fianna Fáil has been seeking to have a Minister for Brexit appointed. This should be done now and that Minister should remain in place through any future Cabinet reshuffle. I am satisfied that the response from the European Union recognises the Irish-British relationship. The draft EU document contains important reassurances on protecting peace and avoiding elements of a hard border. Today Michel Barnier in his European Commission speech stated:

For the borders, particularly in Ireland: as Gabriella Zimmer said, we will work towards arrangements that do not call into question the existing peace process and dialogue, particularly the Good Friday Agreement, whilst being compatible with Union law.

The House of Commons Exiting the European Union Committee published its report on the UK Government’s Brexit negotiating objectives this morning. That report also asserts that the UK and Irish economies are deeply integrated with more than £43 billion of annual trade between the UK and the Republic of Ireland. In the event of no UK-EU deal, the UK would revert to trading on WTO terms with the Republic of Ireland. The high tariffs that could be imposed on dairy and agricultural produce as a result would have an extremely serious impact on the agrifood industry on both sides of the Border. I am sure every Deputy in the House knows that 80% of the goods produced by individual firms in the agrifood sector are exported to the UK.

We know already that Brexit poses one of the biggest risks to our farming community, exports and agrifood jobs since the foundation of the State. At the end of the separation period in approximately two years’ time, the UK could, for example, impose tariffs which tend to be high for certain foods like dairy and beef. Meat is the food with the highest possible tariff at almost 50%. The UK could equally decouple itself from EU food standards, adding many new regulatory checks, delays and costs. It could remove tariffs from low cost regions such as South America, making it extremely difficult for Irish farmers and producers to compete. It could impose Border controls around Northern Ireland, making it harder, slower and more costly to move products and people from North and South.

Others have referred to Bord Bia's estimate that €570 million in trade has already been lost in 2016, with exports to the UK falling by 8%. The Irish Farmers Association has stated that beef farmers' income was down €150 million in 2016. Deputy Mattie McGrath referred to the mushroom industry. It was badly affected, with €7 million in exports and 130 jobs lost. IBEC has estimated that every 1% fall in sterling reduces Irish agrifood exports to the UK by 0.7%. It has also stated the euro climbing to 90p translates to a €700 million drop in Irish exports and potential job losses of 7,500. If parity of the euro and sterling occurs, IBEC has already told us that this could realise a loss of more than 75,000 jobs on this island. The seriousness of any currency fluctuations at this time cannot be understated.

The House of Commons report also stated that there is a particular concern in the Republic of Ireland about any return to customs checks at the Border with Northern Ireland because this would provide an opportunity and a focal point for those who wish to disrupt the peace process, not to mention the slowing of logistics and movement. I am happy that this report places a real emphasis on maintaining and building on the considerable progress made as a result of the peace process and the Good Friday Agreement.

They are hoping a mutually acceptable solution can be found. Objective 4 in the report is entitled Protecting our strong historic ties with Ireland and maintaining the common travel area. It is evident that the United Kingdom does not want a hard border and wishes to maintain its strong links to Ireland. However, this will be a matter for the other member states of the European Union to decide. Nevertheless, we need a proper, co-ordinated national response. Thus far, Government agencies have hired few new staff to deal with the fall-out. Bord Bia and IDA Ireland have hired a handful of staff to deal with Brexit, which is entirely inadequate. Much more needs to be done. The Government needs to have a strong voice at the negotiating table. We must secure an early agreement on the transition period and engagement in existing and new bilateral discussions.

Northern Ireland is the most exposed part of these islands in respect of Brexit, with no leadership to protect its interests. Northern Ireland needs to get its act together and return its power-sharing Government in order that it is in the best position to protect its interests in light of Brexit. As co-guarantors of the Good Friday Agreement, the Irish and British Governments must add greater impetus to reaching a solution to reactivate the Assembly before the deadline of 17 April set by the Secretary of State, Mr. James Brokenshire.

EU citizenship is a right protected by international treaties and one we must respect. As my party leader noted last night in his statement on Brexit, 1.8 million people in Northern Ireland will be entitled to claim EU citizenship. This is just one of many urgent issues the British Government appears unwilling to tackle. We need a proper response to the unique position of Northern Ireland and Border regions. This requires creative approaches to cross-Border health care arrangements, tourism, marketing, energy supply and education, to mention only a few areas. Creative joined-up thinking is required on how to solve Border related problems. We know a hard Border would be repulsive to everyone on both sides of the Brexit campaign.

The Border leaks at multiple points, as it did even in times of old. There are 38 Border crossings in my home county of Louth. It is important to note there are more crossings between North and South in this country than there are crossing points in parts of eastern Europe along the length of the European Union's boundary. We need to be careful about the potential for goods and illegal immigrants crossing the Border. As I have asked on numerous occasions, if the UK is no longer subject to EU food standards, what would stop cheap US hormone saturated beef imported into the UK, which contravenes EU health standards, being smuggled into the South? Such a scenario would not be in anyone's interest. It would damage the integrity of our excellent food standards and reputation and question our integrity regarding our green food supply to our valued markets.

It is evident that the challenge to peace and prosperity will have to be addressed and the period of negotiation ahead will define the future, North and South, for generations to come. While it will not be easy to come up with solutions, Prime Minister Theresa May’s priorities appear to be elsewhere and everywhere. She has not shown any real willingness to deal with the economic and social problems which confront us. She has been trying to sit on two stools. Ní féidir do thóin a bheidh i gach áit. In fact, she is using Ireland's negotiating skills with Europe while continuing to play high poker stakes with both islands' economies in an effort to create chinks in the united European Union arrangement. There are, however, good omens for a hybrid solution according to an article in the Belfast Telegraphtoday. I hope solutions can be found in a collaborative fashion, with a recognition that we all must survive in an all-Ireland, east-west and North-South economy.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I agree with Deputy Breathnach's point that we are taking part in what is unfortunately an historic debate. The context is the triggering one week ago of Article 50, setting off two years of negotiations for Brexit. In this short period, the Government managed to get off to the worst possible start, being left red-faced by Spain securing a veto over the future of Gibraltar.

Sinn Féin has been advocating since the Brexit referendum in June 2016 that the Government call for a special status designation for the North. This would not only substantially benefit North and South but would also address the serious concerns people have about the return of a hard border. Today, we again call on the Government to get its act together and put the interests of citizens, North and South first. Sitting on the sidelines in anticipation that Europe will secure a good deal for Ireland and protect our interests is not good enough. We must be more upfront in our demands and requirements.

In February, we saw the Taoiseach advocating for the future needs of a united Ireland in Europe, which was a very welcome change. However, the immediate need is for special status for the North and this should be at the forefront of negotiations. Ireland is a special case in the European Union; it is unique. Our position is different from that of every other member state. In 2014, InterTradeIreland estimated that North-South trade amounted to more than €3 billion. IBEC estimates that 35,000 people cross the Border every day, the vast majority of whom commute to work. Thousands of students travel across the Border in each direction to study, and small and medium enterprises in Border communities depend on customers from both sides of the Border to keep them in business.

While it is welcome that none of the parties to the negotiations wants a return to a hard border, unfortunately this objective is not realistic. No one is fooled by the mantra of using technology and flexible means to maintain the free flow of people and goods, North and South. It is ridiculous to believe we can maintain this position if one jurisdiction has totally different immigration and tariff rules from the other. This line fools no one, except perhaps the Government.

In February, the Dáil passed a motion on special status for the North. The motion demanded that the Government seek the designation of special status for the North in the European Union in the Brexit negotiations. It received welcome support from the Fianna Fáil Party which must be backed up. Given that this minority Government depends on Fianna Fáil support, it has the power to enforce the position set out in the motion passed by the House.

In March, the Joint Committee on Jobs, Enterprise and Innovation published a report entitled, The Likely Economic Impact of Brexit with Particular Emphasis on Jobs and Enterprise, which included the recommendation that as "part of the Brexit negotiations, it is essential to argue the case for designated special status for the North within the European Union". This, the report states, includes protection of the peace process and protection and full implementation of the Good Friday Agreement and subsequent agreements; access to the EU Single Market; retention of access to all EU funding streams; continued participation in the common travel area; maintenance of access to EU institutions, including the European Court of Justice, the European Court of Human Rights and EU sectoral agreements; protection of access to EU rights pertaining to employment, social security and health care; and protection of the right of Northern Irish citizens as Irish and, therefore, EU citizens and all rights pertaining thereto.

Only today, the European Parliament voted to "recognise the unique and special circumstances confronting the island of Ireland ... ensure continuity and stability of the Northern Ireland peace process and avoid the re-establishment of a hard border". There is no reason the Government should not campaign for special status for the North. It is the closest equivalent to the current status quoand would leave the door open for the North to be reunified more easily with the South in future. The Taoiseach must tell us why he is opposed to a special status designation for the North. Will he explain the reason Ireland does not have rights similar to those secured by Spain last week? Did we ask for these rights and, if so, was our request refused or were we afraid to speak up and outline our demands? What is the Taoiseach's plan? It is not fair to citizens to be left waiting to hear what future awaits the country.

This is not only a call on the Government to do more. Fianna Fáil, the so-called republican party, is propping up this minority Government. It could, if it wished, insist the Government take a harder approach to negotiations around Brexit and set out its position on a special status designation for the North.

The way of life on this island has been hard fought for and demands absolute defence in these negotiations. Both Fine Gael and Fianna Fáil need to get their priorities in order. They must stand up for the rights of citizens, North and South, and ensure our support for any Brexit deal will be conditional on a special status designation for the North. The Dáil has clearly spoken on this issue and it is time for this minority Government to act on what this House has said.

Carol Nolan (Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Tá mé buíoch as ucht an deis chun caint ar an ábhar fíorthábhachtach seo. All Members will agree that Brexit presents the biggest threat to the Good Friday Agreement and to the social and economic future of the people of this island. In the education sector, for instance, we are facing significant issues in respect of funding for research projects under EU programmes, the prospect of students being charged international fees to study in their own country and restricted access for pupils travelling to schools in Border counties. Educational institutions have been plunged into uncertainty and long established traditions and cross-Border co-operation are jeopardised as we are threatened with a hard border running through this small island, yet the Government is asleep at the wheel. The British Government has ignored the democratic wishes of the people of the North. It is quite happy to drag them out of the EU, despite the devastating consequences it will have for all the citizens of this island.

Special designated status for the North within the EU has the majority political support of parties in the Oireachtas, yet the Taoiseach refuses to accept this position or take any action to promote it. This should be contrasted with the veto the Spanish Government has been granted in respect of the future of Gibraltar. It has been afforded a veto in the draft Council guidelines over any future exit agreement concerning Gibraltar. Logically, such an option must also be available to us and the question on everyone's mind is has the Government even sought such a veto. If not, why not? If it has, what are the grounds for us being treated differently from Spain, given we are an EU member state?

I fear, as we have witnessed during countless other episodes, that our Government has failed once again to defend the best interests of the country on the international stage. The Fine Gael Party is more concerned with the petty political squabble over its leadership than with the future of our country. Citizens do not care whether Simon or Leo claims the dubious honour of leading the party; they care about the future of their children on this island. The Government has failed its first big Brexit test. Even the European Parliament has been more successful in fighting for Ireland’s interests than our Government, which says it all. The bitter truth is that previous Governments who sat in this Chamber abandoned the people of the North throughout the decades and allowed the British Government to wreak havoc on part of our island. That is inexcusable and unforgivable. However, now is the time to put an end to the prospect of the British Government wreaking even more havoc on our island. All 32 counties need to move forward and we must uphold the democratic wishes of the people of the Six Counties.

The resolution adopted by the European Parliament acknowledges that a majority of people in the North voted to remain in the EU and that must be respected. It states the position and interests of Ireland need to be represented in negotiations, recognising that Brexit will have significant ramifications for our country. The resolution expresses special concern about the impact of Brexit on the North and demands that the Good Friday Agreement be protected in all its aspects. The Government seems to have forgotten that it is a co-guarantor of the Agreement. Now is the time to remember that and stand up for the interests of all the people of this island.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

"Each time great events and crises sunder the closed horizon of waiting, sweeping away the boredom, they thereby disturb the illusion of a future in which the main features were thought to be fixed but this ought not to surprise us because reality is fundamentally unpredictable." Those words were written by an adviser to a former President of the European Commission prior to Brexit and elections in other parts of the world that have been cause for such reflection in Ireland and elsewhere. They reflect that the order in which our country is located is now slowly changing and shifting. The nature and form of the EU is shifting and the nature and form of political debates in other parts of the world is beginning to change as well. This fundamentally matters to Ireland because we are an open trading economy. We import and export twice the value of our national income each year. These kind of changes for economic and political reasons have such a profound effect on Ireland.

Deputy Breathnach accurately outlined the different challenges this will pose for different parts of our island and different sectors of the economy. This is a crucial area in which the Government will now have to continue its engagement in light of what we have achieved in the European mandate. The Sinn Féin Deputies raised a question about the status of Gibraltar and I ask it two questions in return. Can they explain to me how that would be consistent with the Good Friday Agreement? How would the reaction this issue has prompted in the UK and Spain be helpful if it was replicated on this island? For a party that pretends to be such custodians of the Good Friday Agreement, I would like an explanation at some point in the future as to how the deployment of such a mechanism would be in the spirit of the Agreement. Given the consequences it is having in the political debate in England and Spain, how do Sinn Féin Deputies think that would be helpful for the security of this island? For Deputy Nolan to stand here and claim successive Governments have abandoned the North and have not tried to help-----

Carol Nolan (Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Government has not. It is doing so again true to form.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The track record of successive Governments from many parties, excluding the Deputy's party, has been to play a leadership role successfully in dealing with the challenges in the North and to try to create an environment in which the peace process can prosper. It is such a pity that the spirit and tone we hear from Sinn Féin in the North regarding the role the Government is playing in trying to secure the interests of Northern Ireland could not even be mirrored minutely here as we are subject to the divisive tone of Sinn Féin Members in this Chamber continuously regarding the challenges facing this island.

The challenges are great but there will be opportunities. However, our country has shown itself capable of responding to similar challenges in the past such as when we decided to move away from a protectionist approach to running the economy to one that embraced the outside world. We faced the same challenges when the country decided to enter the Single Market and to enter the euro when the British Government decided not to do the same. The approach that was used then and the broad change that happened in our economy and in our society to ready the country for the challenge will be needed again.

What the Government is doing and the actions it has taken can be broken into two categories. The first is what we need to do externally. Many speakers pointed to the statements made by Prime Minister May, the draft mandate that has been laid out by the European Council and the debate in the European Parliament. Does the House think these are happening by chance? They are happening because the Government and our ambassadors are out there putting the Irish case forward. The Council in its draft mandate made reference to Ireland and its needs because of the efforts of the Government and some other Members of the House. This happened because we have a Taoiseach and a Government that have engaged with an entity that Sinn Féin has been against for 40 years to try to ensure the country and this island are recognised in the new environment into which we are moving. The second category is the need to develop different and new allies. The British Government on many occasions has been most closely aligned to Ireland on issues it has raised. We will have to develop further alliances depending on the policy area in which we are looking to advance our interests.

The issue regarding the North, over which no party has a monopoly, is at the heart of our national interest.

As Minister for Public Expenditure and Reform, I have been directly responsible for the status of European funding programmes on both sides of the Border. In the immediate aftermath of the Brexit result, the Government secured a framework within the European Union to ensure current commitments are met and that they are funded to offer clarity on them up to 2020. What we are now going to do is begin the work within the European Union of looking to succeed and deliver replacement programmes based on work that happens elsewhere and outside of the European Union.

Here at home, as the Minister for Finance, Deputy Michael Noonan, has outlined, the challenges and needs are great. For all of the deep challenges we face now, it is irrefutable that we would be in an even more challenging place to deal with them if we could still not borrow to fund public services and unemployment was increasing. That neither is happening at least offers a platform upon which we can build. The need for diversification, as outlined by Deputy Breathnach, is great. We will have to make choices and decisions regarding how we support industries and sectors and parts of the country that will need further supports in the future. The scale of those challenges will be far bigger than anything we face in the current debate on water. We need to put those kinds of challenges into context because they are approaching the country and the economy and we will need to respond. This is a challenge and a change that Irish companies have already responded to in the past. We should look at the success of a company such as Glanbia and how it has gone ahead with a diversification programme. We should look at companies such as Cement Roadstone and some of our retailers and the way they have diversified abroad. It is a model and a challenge that our country has responded to in the past. We will need to do that again.

We cannot be under any doubt, which few speakers are, regarding the scale of that challenge and the scale of the turbulence and volatility that is abroad. The order we have taken for granted in the past may not be there in the future. It is by no means certain that the generations that follow us will have the kinds of political freedoms that we have been privileged enough to experience. The political institutions that we have assumed to be stable may now be experiencing a challenge, the scale of which is only apparent to us now. All of us in the House, who care about and want to see a form of centrist politics work, need to be aware and acknowledge the scale of the challenge, which most Members of the House do.

I will end where I began with the writer I referred to a moment ago. He concluded in his book, "When a storm becomes too fierce and the wind blows your boat towards the open sea, it is sometimes better to have a good compass than an anchor." From an Irish perspective, we have had a compass. We have had the compass of being members of the European Union, of being firm and successful members of the Single Market, and using the euro as a platform on which Irish companies and Irish farmers can ensure the valuable goods and services they have created can be easily bought and sold by other parts of Europe. It has been clear where we stand in that debate. It has been clear about the fact we have a European future. I want to see one that will encompass all parts of our island. Being clear about that horizon when so much change and volatility is happening elsewhere is the best compass we have for navigating waters that at the moment are volatile but that it is increasingly likely will be stormy in the coming period. The Government and many Members of the House know where we stand in that debate. That kind of steadiness will be essential in the debate and choices to come.

Fiona O'Loughlin (Kildare South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

There is no doubt this is a very historic turning point for the country and Europe and the European Union. I am glad to hear the Minister mention Northern Ireland because it seemed to me from previous dialogue that the special circumstances of Northern Ireland had not been appropriately or properly acknowledged. There is no doubt that there needs to be a special status for Northern Ireland and for the Border region that my colleagues represent. We need absolute urgent engagement to address the many serious issues we have with regard to Brexit. These are primarily those that impact on citizens, the economy, Northern Ireland, the common travel area and the future of the European Union. My party is very concerned about the inadequate response of the Government to the many challenges the State faces from Brexit.

In the time I have I will refer to two particular areas. As Chairman of the Committee on Education and Skills, I will comment first on the challenges and opportunities that Brexit poses to the education system. The challenges are complex and manifold. On an annual basis, the number of Irish students studying in Britain is between 12,000 and 15,000. They come mainly from four categories. If that number of students choose not to go to the UK because there fees will absolutely go up, it will have a very significant knock-on effect on CAO points, the CAO system and university places here. It will put a lot of strain on universities that are already struggling with capacity. We know from the Cassells report that our third level institutions are underfunded and are already in crisis. They face a huge demographic challenge as it is without including those 12,000 to 15,000 students. The SUSI grant scheme will also be affected. Within the terms of the current scheme, the almost 2,000 students that go from Ireland to the UK or Northern Ireland will not be eligible to carry their grant support them. When we look at the UK students in Ireland, if a hard Brexit emerges, Irish students could be treated as international students in the UK. The British students coming to Ireland will be classed as non-EU students and will probably be charged non-EU fees. UK students currently represent almost 45% of the EU students in Ireland. This increase in fees could certainly act as a major barrier to those students. There will also be a big impact on Erasmus students coming from Europe, who have traditionally been going to England. That challenges our capacity. The final category it will affect is traineeships. Traineeships are fundamental to many degrees such as aerospace technology, car manufacturing and construction. There could be a reduction in the number of graduates qualified in some of these professions as traineeships decrease. There are certainly some opportunities available as Brexit could provide a useful opportunity to reverse the brain drain we have had. The UK stands to lose most or all of the €1 billion a year it receives in EU research grants. We have to fight hard to get a share of that.

There are things we must do. We must improve language skills among workers and students and we need to continue areas of all-Ireland research and innovation excellence. It is really important Brexit does not contaminate the perception of Ireland abroad as welcoming to international researchers and students.

I will also mention the effect Brexit will have on the equine industry in Kildare. Kildare is the thoroughbred county and counts for much of this industry; we are, therefore, very worried about the implications of Brexit. The horse racing and breeding industry contributes €2 billion annually to the economy and 28,000 people work directly in the industry and 58,000 indirectly. Many jobs are possibly at risk. Britain is the main market for both flat and national hunt horses. That would be at risk. The two countries have effectively operated as one industry for a number of years and they operate a single stud book. Any barrier to trade flows or the exchange rates could make Irish horses more expensive or result in lower returns in the industry. In particular, the freedom of movement of horses needs to be protected. The existing tripartite agreement between the Republic, the UK and France, allowing racehorses to move freely between the three, may be called into question due to Brexit. It is the same with labour. Breeders on both sides of the Border will have the same issues. The industry needs to be protected from the negative impacts of Brexit and mechanisms need to be put in place to protect this sector.

Pat Casey (Wicklow, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Today, the European Parliament heard from the head of the EU negotiation team, Mr. Michel Barnier. It is appropriate that Brexit is being discussed in the directly-elected European Parliament, as well as our Parliament, as the major challenge to our democratic institutions for the coming years. Brexit must mean that we examine the reasons on our side for a narrow decision of the British people to leave the EU. Valid criticisms of the EU have not yet been addressed by the remaining member states. I say this as someone who believes strongly in the EU but notes that its democratic institutions are increasingly seen as distant and irrelevant to the lives of our ordinary citizens.

As a businessman, I tend to take a pragmatic approach to decision-making. When a business makes a decision that proves down the road to be mistaken, the only sensible, mature and responsible action is to cut the losses and reverse that decision. I say this because I firmly believe that Ireland and the EU need to construct a negotiating framework that allows the people of the UK to reflect on the massive implications of a simplistic referendum result. Of those who voted, 48% did not want to leave. There are profound and long-lasting negative consequences for the people of the UK that were never sufficiently discussed during the charged and highly-emotive campaign. In fact, the unity of the UK has been put at risk by Brexit.

Ireland and the UK have often shared the same criticisms of the EU. The immense amount of European red tape that frustrates businesses, farmers, rural communities, fishermen and all other citizens is but one example of the distance that needs to be bridged between EU institutions and programmes and the ordinary EU citizens. The challenge is to deepen the EU. We must deepen the relationship between each EU citizen and the EU. That is a long-overdue conversation. If the EU addresses some much-needed reforms that bring the Union closer to citizens and the negotiations are conducted by the EU in a forthright and fair manner, I am convinced that there will be a serious and cross-party movement within the UK to rejoin the EU.

I say this because of my background in the tourism industry in Wicklow, where I have worked all my life and where visitors from the UK comprise the largest and most important market. I have been serving UK visitors for decades and know that they are pragmatic, common-sense customers. I know from the tourism industry in Wicklow that UK visitor numbers have fallen since the final quarter of 2016 and that the UK as an alternative tourist destination is increasingly becoming more competitive and attractive to our international visitor market, which is another threat to our tourism sector that is hardly ever mentioned in this debate.

Tourism is a major industry for Ireland and a key pillar of Wicklow's economic model. Brexit is the greatest threat to Irish tourism since the start of the Northern Troubles in the 1960s. We must face the challenge to tourism with appropriate gravity and evaluate and exploit whatever opportunities may exist. There are thousands of jobs at stake in Wicklow and east Carlow between farming, agribusiness and tourism. Brexit is potentially an economic disaster for those sectors. The Irish Government needs to put together a package of measures with EU buy-in that protects and enhances the economic model in counties such as Wicklow and Carlow.

I will conclude by mentioning an industry that rarely gets attention in the debate on Brexit, that is, fishing. Wicklow's fishing industry has not been well served by the EU, to say the least. Brexit probably represents the last opportunity to reset the relationship between the remaining Irish fishing communities and the EU. The decline of the Irish fishing industry is a hidden scandal that has been ignored for too long. We need to use Brexit to reopen the rules pertaining to the fishing fleet, the quota system and access to our own and UK waters.

This is a critical moment for Ireland, the EU and the UK. I implore the Government and the EU to reform our own failings, to treat the UK with respect and generosity of spirit and to lay the groundwork for the day when we can celebrate the return of a valued partner.

Fiona O'Loughlin (Kildare South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Well said.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am pleased to have the opportunity to make a statement on Brexit. A whole-of-government approach to Brexit issues is in place. My Department and its agencies are to the forefront of that effort. The UK's decision to leave the EU will impact on all policy fields of my Department and agencies. I have tasked my departmental officials with making Brexit their No. 1 priority.

In advance of the referendum, my Department conducted a contingency risk assessment of the potential impacts of Brexit across the relevant policy areas. We have since been refining our analysis and working with agencies to put in place actions to mitigate risks and maximise opportunities. We have also been working with colleagues across the Government to analyse potential sectoral impacts and consider the implications of various scenarios that may emerge as a result of the UK leaving the EU.

As the Minister with responsibility for supporting business across all sectors, and in order for me to support those impacted by Brexit in a targeted way, I must fully understand the concerns and needs of business. I have taken every opportunity to hear the opinions of sectors and companies. I have met a wide range of representative organisations, including IBEC, ICTU, ISME, the Construction Industry Federation, CIF, the Small Firms Association, the Irish Exporters Association, American Chamber of Commerce Ireland, the Dublin Chamber of Commerce, the Irish Farmers Association and many more. I hosted a Department of Jobs, Enterprise and Innovation Brexit stakeholder engagement event in Carrick-on-Shannon on 30 January that was attended by more than 200 stakeholders. I have also presented at other Brexit meetings at which there was a total attendance of more than 400 people.

I met a number of my EU counterparts in Brussels, London and, most recently, the Netherlands and Denmark to convey the unique impact of Brexit on Ireland. These meetings are part of a series of bilateral visits to key member states that my Department is undertaking. We want to enhance the understanding of Ireland's unique position and deepen and strengthen Ireland's relationships with other EU member states in preparation for the upcoming negotiations. Our diplomatic efforts are paying off. I am pleased that the draft guidelines circulated by European President Tusk include strong acknowledgements of Ireland's unique circumstances - the need to protect the peace process and the Good Friday Agreement, and our intention to maintain bilateral arrangements - such as that relating to the common travel area - with the UK. The guidelines also express our shared desire to establish a close partnership between the EU and the UK after its departure. This will be important for our future trade relationship.

Brexit presents a range of challenges, but also opportunities, for our companies. With its small, open economy, Ireland relies on external demand and international markets for sustainable and continued growth. The UK is and will continue to be an important export market for us. Given our geography and trading relationship with the UK, certain sectors will face particular challenges as the UK leaves the EU. While we want to secure the closest possible economic and trading relationship between the EU and UK, access by the UK to the Single Market must be on the basis of full acceptance of all four freedoms, namely, goods, services, capital and people, which is the stated position of the EU 27.

My Department and the enterprise agencies are fully committed to supporting business and all of our stakeholders in the period ahead. Enterprise Ireland and the local enterprise offices, LEOs, are steadily working with companies to ensure they will be better prepared to respond to the challenges Brexit will bring. Last week Enterprise Ireland launched a Brexit SME scorecard to help companies to self-assess their readiness for Brexit. Companies engaged in cross-Border trade are particularly exposed to the impacts of Brexit. We will do our utmost to protect the interests of these companies. InterTradeIreland, with which I met last Friday, plays a critical role in helping them to prepare for Brexit. Supporting its work will remain a priority for me in the time ahead.

In our collective efforts to address these challenges we should not overlook opportunities that may emerge for Ireland. One such opportunity is the possibility of attracting increased foreign direct investment. I have directed IDA Ireland to explore the potential for winning more on account of Brexit. The agency and its staff are working hard with this goal in mind. It is constantly engaged with clients across its entire portfolio in actively pursuing any opportunity for mobile investment. In our efforts to win more foreign direct investment we can continue to rely on the selling points that make investing in Ireland so attractive in the first place. Ireland is remaining in the European Union and open to business and trade. If investors are looking for a sound and certain location, Ireland is that location.

There are also opportunities for Ireland in the area of research and innovation. My Department is working closely with Science Foundation Ireland to maximise these opportunities. The UK vote has led to uncertainty in our trading relationship with the United Kingdom, one of our most important trading partners. Extensive research carried out by Behaviours & Attitudes on behalf of my Department points to the challenges, including the need for business to diversify to be less reliant on the UK market, to drive down costs, to innovate in the way they do business and to revisit their product range. My Department is working closely with the Department of Finance, the Strategic Banking Corporation of Ireland and Enterprise Ireland in looking at supports already available to business and what other supports may be required down the line.

Brexit will have a profound impact on all policy areas of my Department. We will continue to assess its possible implications and impacts on enterprise. My Department and its agencies are working hard to ensure the most advantageous outcome for Ireland and the European Union and the benefit of Irish enterprises, employees and consumers.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for that important contribution. I understand Deputies Eugene Murphy and Niamh Smyth are sharing time. Is that agreed? Agreed.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am somewhat alarmed by the Government's lack of imagination and half-hearted approach to Brexit, one of the biggest challenges this state has ever faced. Numerous reports have indicated that a hard Brexit will have profound negative implications for Ireland and that the knock-on effects will be most keenly felt in rural Ireland, in particular. Farmers, agri-businesses and suppliers throughout my constituency of Roscommon-Galway are worried about the potentially devastating consequences of a hard Brexit. Agriculture is one of the main priorities in rural counties such as Roscommon and Galway. Reduced access to the UK market, owing to tariff barriers, a diminution in the value of the UK market through increased imports from lower cost countries and a potential reduction in the CAP budget post-Brexit present significant threats to the future growth and development of the Irish farming and food sectors. In a scenario where there is a 10% reduction in the CAP budget and a reduction in UK food prices resulting from reduced tariffs on imports, Teagasc has estimated that farm incomes could fall by a whopping 26%. When applied to the national farm income figure of €2.5 billion in 2016, this would mean a reduction in farm incomes of almost €700 million. I am sure the Minister for Enterprise, Trade and Innovation, Deputy Mary Mitchell O'Connor, and the Minister of State, Deputy Helen McEntee, will agree that this would have a crippling effect on rural Ireland where farm families are already struggling to survive. Beef farmers are particularly worried as cuts of 37% to cattle farm incomes would gravely undermine the viability of suckler beef production in Ireland and substantially reduce the size of the 1 million suckler cow herd. This would jeopardise the livelihoods of the 100,000 farmers involved in livestock and beef production, resulting in thousands of job losses and the loss of export earnings.

An analysis undertaken by the Economic and Social Research Institute, ESRI, of the impact of a hard Brexit on trade flows - with World Trade Organization trading rules applying following the UK exit - showed a potential reduction in EU trade to the United Kingdom of over 60% in dairy products and a whopping 85% in meat products. In an Irish context, the value of meat exports to the United Kingdom would fall by €1.5 billion, while the value of dairy exports could fall by over €600 million. A strong CAP budget post-2020 is critical for farm incomes, farm output and wider economic activity. A reduction in spending power in Irish agriculture, arising from a cut in direct payments to farmers, would have a significant and negative knock-on impact on the demand for goods and services in the rural economy.

While the Article 50 trigger letter and draft guidelines issued by the European Council make reference to Ireland, which is welcome, this is only the beginning of a complex process. The Government must step up to the mark and do more to protect Ireland's interests. It must ensure Ireland's distinct concerns will not fall off the negotiations agenda in the months and years ahead. Furthermore, it must provide support for Irish businesses and industries so as to insulate them from the instability caused by Brexit, to help them to diversify into new markets and to ready themselves for a new trading environment. It is clear that it is not business as usual. As stated by my colleagues, there is need to have a Brexit Minister to co-ordinate the required across departmental and cross sectoral response. We call on the Government to advocate for a trade agreement that would be as close as possible to what we currently have. Some 14% of Ireland's total exports go to the United Kingdom. A trade regime based on WTO tariffs would be a disastrous outcome for Ireland. An ESRI report published in November 2016 indicated that a WTO scenario would result in the level of GDP being 3.8% below what it otherwise would have been in a no-Brexit scenario. We need the Government to seek what it otherwise would have been in a no-Brexit scenario. We need it to seek clarity on the future trading relationship as soon as is feasibly possible in order to provide certainty and stability, which are essential for Irish business, Ijobs and the economy.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am delighted that the Minister for Enterprise, Trade and Innovation, Deputy Mary Mitchell O'Connor, and the Minister of State, Deputy Helen McEntee, are in the House because I have had many conversations with the Minister about Brexit and how it might affect Border counties. It is one of the biggest challenges the State has ever faced and numerous reports have indicated that a hard Brexit would have profound negative implications for Ireland. For the Border constituency of Cavan-Monaghan, this raises serious concerns for those living at the coalface about a possible return to customs checkpoints.

The United Kingdom has traditionally been our largest trading partner and the two countries trade approximately €1.2 billion worth of goods and services on a weekly basis.

10 o’clock

While all countries stand to be affected by Brexit, Ireland stands to be proportionately more affected than any other EU member state.

The possibility of a hard border between the North and South of this island would be catastrophic and might lead to end of the common travel area. A hard Brexit would be disastrous in the light of the extent of the cross-Border agrifood trade, with different stages of production taking place on either side of the Border. One of the largest milk processing plants in the country is in the Cavan-Monaghan constituency. Lakeland Dairies processes up to 1 billion litres of farm-produced milk into a wide range of dairy food service products and ingredients for export to over 70 countries across the world. It has annual revenues of over €500 million and employs 700 dedicated people across its operations. It has plants in Bailieborough and Killeshandra in County Cavan and Lough Egish in County Monaghan. It depends on milk sources from across the Border. Lakeland Dairies is a major dairy processing co-operative. It operates within a 15-county catchment area across the north of this island. What does the future hold for agrifood businesses like Lakeland Dairies, which are so vital to our economy?

Sadly, the first wave of Brexit job losses has already started. Producers in the horticulture sector have ceased production and laid off workers as a direct consequence of the fall in the value of sterling. Irish businesses across the entire economy need predictability and stability. Ireland must seek immediate assurances from our European colleagues that CAP payments are secure for the current window up to 2020 and beyond. It is vital as a policy action and as a transitional aid measure that we secure increases to current EU state aid thresholds to protect agrifood enterprises and exporters hit by a hard Brexit. We believe the Brexit vote demands an immediate review of the Food Wise 2025 strategy. The targets in the strategy as it stands were set on the assumption that the UK would remain within the EU. The UK's proposed exit from the EU is a clear and present danger to the Irish agrifood sector. It represents one of the biggest risks to farmers, exporters and jobs since the foundation of the State. The agrifood sector supports 270,000 jobs in rural communities. It is the most exposed sector of our economy, given that 37% of all Irish food exports go to the UK. These exports accounted for €4.1 billion in value in 2016. As the Irish farming and food sector has a higher dependence on the UK market than other sectors in Ireland, it is most exposed to any negative economic impact of the UK Brexit decision. The mushroom industry in counties Cavan and Monaghan has been thrown into turmoil and virtually wiped out since the UK referendum, with some €7 million worth of mushroom exports and 130 jobs lost.

We need increased diplomatic engagement with EU member states, particularly in eastern Europe, to ensure there is a full understanding of the distinct position of the island of Ireland with regard to Brexit. We need increased resources for State agencies, including IDA Ireland, Bord Bia and Enterprise Ireland. We need an exporters fund to help companies to diversify into new markets and to maintain their UK market share. Export credit needs to be made available in order that finance can be offered to companies for international export operations and activities. Online trading supports are needed to help companies to grow their online business and e-commerce sales. The online trading voucher should be expanded to a greater number of Irish retail SMEs to help them to develop and expand their online business. We need regulations to allow credit unions to lend to businesses across the South. As the Minister is aware, IDA Ireland's track record in the Border region is abysmal. It needs to step up to the mark by supporting the regions and providing targeted measures to ensure Brexit does not contribute to greater regional imbalance.

Helen McEntee (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Ireland faced many robust challenges before Brexit in the past 100 years. The fight for our independence and the subsequent Civil War was a time of huge upheaval. Many of these challenges have persisted until the present day. The State prospered and continues to prosper. We need to channel that energy and experience. We have always faced these challenges with determination and resilience. I believe we will face Brexit in the same spirit. During this debate Opposition Deputies have accused us of not looking after this country and not putting it first. I suggest we need only look at what has happened at the water committee in the past two days to see that Ireland is the only party putting this country first.

Declan Breathnach (Louth, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

That is not what was tweeted.

Helen McEntee (Meath East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government has always been clear in its view that the UK's departure from the EU would have significant repercussions for Ireland politically, economically and socially, especially for the North and the Border counties. That is why Ireland's overall priorities - protecting the Northern Ireland peace process, which has been so hard fought; minimising the impact of Brexit on trade and the economy; maintaining the common travel area; and influencing the future of the EU - remain unchanged. It is important that we remain at the heart of the EU. All of the preparations that have been made ahead of the departure of the UK from the EU have focused on protecting and advancing the interests of Irish citizens in the context of this country’s continuing membership of the Union.

As Minister of State at the Department of Health, it is important for me to set out some of the principal potential impacts of Brexit for the health sector. I note that the UK has not yet left the EU and remains a member with all of its existing rights and responsibilities. This means there have been no immediate changes in the area of health care, nor are such changes expected during the negotiation period. Work is under way to examine and address any implications for the health sector in the longer term. We have two key priorities in that context: first, to ensure there is continuity in the provision of health services; and, second, to avoid changes in the current situation that would have a negative impact on the health of the citizens of this country.

The principal impacts of Brexit for the health sector cover a number of areas, including rights to health services and regulatory issues. One of our key concerns in the period ahead will be to ensure there is minimum disruption to health services and essential services are maintained on a cross-Border, all-island and Ireland-UK basis. Our Border communities, in particular, have benefited from significant cross-Border health provisions and co-operation on health promotion. These interactions have been of practical benefit to many communities on the physical margins of the State and have helped to build the momentum of peace on this island. We will work to protect such arrangements between Ireland and the UK, including east-west arrangements, during the Brexit talks.

The common travel area has been in existence since Irish independence. It allows freedom of travel between the two jurisdictions for Irish and UK citizens and provides for largely reciprocal benefits of citizenship in terms of entitlements to reside, work and access services. This is of relevance for the health sector. The Irish and British Governments have consistently set out their desire to maintain these arrangements. On regulatory issues, it is clear that having a single set of rules across Europe is enormously helpful to protect human health, to ensure consumer protection and to provide a level playing field for industry. If the UK moves away from a harmonised regulatory system in relation to food safety standards, pharmaceuticals, medical devices and cosmetics, it could disrupt trade between Ireland and the UK.

As well as preparing for the challenges posed by Brexit, Ireland is pursuing opportunities. For example, we are preparing to bid for the European Medicines Agency to relocate to Dublin. A move to Dublin would ensure minimum disruption to the work of the agency which is critically important for the health of all Europeans. Dublin is an English-speaking environment which offers excellent air connectivity with EU capitals and internationally. In addition, Ireland’s national medicines agency, the Health Products Regulatory Authority, already provides significant support to the agency. This can be rapidly scaled up in the event of relocation. The strength of the relationships between Ireland and Northern Ireland and the UK will be of benefit as we work to find solutions to any problems that arise in this context. I am absolutely committed to ensuring this co-operation continues in the interests of patient safety and population health.

I would like to conclude by speaking about agriculture. In 2014, the IFA calculated that the value of agricultural exports arising from agricultural output in County Meath was €493.8 million, or almost half of €1 billion. I have no doubt that this figure has since increased in line with the improvement in the economy. Farming is the lifeblood of rural Ireland. Farm family incomes help to keep shops, pubs and cafés open in places like Nobber and Skryne. In 2014, some 2,535 people in County Meath were employed in food and drinks processing jobs which stem from the agricultural products of the county. With new businesses like the Slane Castle distillery having opened since, I do not doubt that there are many more people employed in the food and drinks sector. This must be protected and expanded upon in the forthcoming talks and trade missions. This will be difficult. It will test the abilities of Ministers, Teagasc personnel and members of the IFA and other representative bodies to the limit. I have every faith in them.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
Link to this: Individually | In context | Oireachtas source

The next speaker is Deputy Neville. I have no doubt that agriculture is strong in County Limerick also.

Tom Neville (Limerick County, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Absolutely. It is the backbone of the county. I welcome the Government's document on its priorities with regard to Brexit and the work that has been done in this context in recent months. I am a member of the Joint Committee on Jobs, Enterprise and Innovation, which has been working very closely with the Minister, Deputy Mary Mitchell O'Connor.

All stakeholders came before the committee. We interviewed them and put together a document that contains cross-party recommendations. It was launched a number of weeks ago and I encourage all Deputies to read it because a lot of work went into it. Deputy Quinlivan is also a member of the committee.

Agriculture is a major industry in my constituency in County Limerick. We have to consider Brexit in a national context. There are 130,000 farms in the country, including 18,000 dairy farms. The value of agrifood and drink exports exceeded €11 billion in 2016. Ireland exported 65,000 live cattle to the North and Great Britain in 2015 and imported over €3 billion worth of food and drink from the UK in 2014. Retail is also a factor, particularly as high-street stores import goods from the UK. Trade goes both ways. It is in the best interests of the UK and Ireland to try to get a deal that will work for Ireland in particular.

Some 9% of total milk processing in the Republic comes from Northern Ireland, representing 26% of Northern Ireland milk supplies. A total of 1,000 cattle and 10,000 pigs are exported from the Republic to the North each week. The potential effect of Brexit on the transport sector, such as border checks, could hamper exports given that there are 32,000 lorry trips per year in the milk sector. Brexit will have knock-on effects on farms that may have cross-Border land.

There are implications for farms that have land on both sides of the Border, BPS greening, research and development schemes, nitrates, cattle movements, farm import costs, the possibility of having different requirements and the potential impacts on CAP. It is linked with our domestic policies, which farmers in County Limerick have raised with me. Against the backdrop of Brexit, they have referred to the areas of natural constraint scheme and the ongoing review. There is a commitment in the programme for Government to increase subsidies by €25 million in 2018, and I have asked that we consider exploring the possibility of a further increase, given the improving economic situation, and to try to retain it at 2008 levels before the crash hit.

We also need to build a coalition within Europe when we are negotiating. We will negotiate as 27 member states, but there will be a greater impact on a number of countries - Ireland, the Netherlands, France, Germany, Spain and Italy - as a result of the fact that they engage in a considerable amount of trade with the United Kingdom. The Netherlands and France conduct €6.07 billion and €4.85 billion worth of trade, respectively, with the UK. Other countries in Europe will be affected.

We also need to consider growing markets. Our exports to the UK were worth €7.2 billion, an increase of 12%, in 2015. The figure for Northern Europe was €4.17 billion, an increase of 8%. The figure for the Asia-Pacific market was €1.59 billion, an increase of 11%, and the figure for the USA was €2.9 billion, an increase of 27%.

We need to push the Asia-Pacific market, which is enormous. There are 4.5 billion people living in Asia, which is 60% of the world's population. They are not buying Irish products so we need to market such products to them. There is a growing middle class in the region and there has been an increase in wealth. It is a growth market. Unfortunately, many people in Asia probably think Ireland is part of the UK. Some people may think that New Zealand and Australia are the same. I know this from working in the Asian markets when I spent time in the region.