Dáil debates
Wednesday, 24 May 2017
Ceisteanna - Questions
Cabinet Committee Meetings
2:20 pm
Micheál Martin (Cork South Central, Fianna Fail)
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6. To ask the Taoiseach when the Cabinet Committee on Economy, Trade and Jobs last met. [23333/17]
Gerry Adams (Louth, Sinn Fein)
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7. To ask the Taoiseach when the Cabinet Committee on the Economy, Trade and Jobs last met; and when it is scheduled to meet again. [24272/17]
Brendan Howlin (Wexford, Labour)
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8. To ask the Taoiseach when the Cabinet Committee on Economy, Trade and Jobs last met; and when it next intends to meet. [24723/17]
Enda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 6 to 8, inclusive, together. The Cabinet Committee for the economy, trade and jobs last met on 10 April 2017. The next meeting will take place shortly.
Micheál Martin (Cork South Central, Fianna Fail)
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Some of this was dealt with yesterday when the Taoiseach replied at length but he did not answer all of the questions. The disruption of Brexit will be profound and it is not yet clear what the scale of the response will be from the Government or the European Union in terms of the facilitation of solidarity mechanisms which might enable us to help industries under pressure or help industries to transition as a result of Brexit. In monetary terms, Brexit could be very significant for the country. The Taoiseach mentioned yesterday that an economic paper is being finalised. I accept there is a balance here and the Government wants to promote the country and its well-being but we cannot understate the scale of the challenge. There is no point in telling people not to be so negative about Brexit and not to talk down the economy. The reality is Brexit is a fundamental change to our economic model. It is a once in a generation change that changes how we have been operating for 50 years. It obviously depends on the trade component of the Brexit deal between the European Union and the United Kingdom. It is about damage limitation. Can the Taoiseach indicate what the current estimate is of how much trade may be undermined by Brexit? Will he confirm which sectors will be worst hit? There is ongoing coverage of Ireland bidding for EU agencies to locate here. Is there any update on these bids? Are the reports today true that the State may have to cover rent to land EU agencies? Will the Taoiseach outline where we are in terms of that competitive bid?
Gerry Adams (Louth, Sinn Fein)
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We all recognise that Brexit is the greatest threat facing the economies of this island and particularly the imposition of an economic border. There was confirmation by Revenue at last week's meeting of the joint Oireachtas committee on finance that there will be significant customs checks, which flatly contradicts the Taoiseach's denial that it will happen. Revenue told the committee at least 8% of the 2 million heavy goods vehicle journeys between North and South each year will need to be checked, including physical inspections.
This means that approximately 160,000 heavy goods vehicles will be subject to customs checks each year. Will the Taoiseach update the Dáil on the work taking place to prepare for customs checks and, in light of his denials that Border checkpoints or customs checks were being planned, perhaps set the record straight? How many customs officials is it anticipated will be needed? Has the Government estimated the likely cost of implementing European Union law in respect of border customs security?
At the same meeting, an official from the Department of the Taoiseach confirmed that the Government has never raised designated status for the North with the European Union. I have been asking the Taoiseach questions on this matter for a long time and he has always avoided confirming this. The Dáil, Seanad and Joint Committee on Jobs, Enterprise and Innovation have all endorsed the need for special designated status for the North. The vast majority of people in the North voted for this status, or at least they voted to remain in the EU, and the majority of MLAs support it. The Taoiseach's responsibility should be to defend this vote. Will he start to do so? Will he indicate when the Government's additional paper on the economic implications of Brexit will be published?
2:30 pm
Brendan Howlin (Wexford, Labour)
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I raise a different issue, which is of great concern. It is my understanding that, in determining the fiscal space available to the State, the Government decided to disregard the 2015 figures on gross domestic product, GDP. While we happily took the additional corporate taxes generated in this period from the relocation of corporate profits to the island of Ireland, for some very odd reason that I genuinely do not understand the Department of Finance decided not to take advantage of the 2015 growth rate. I understand the European Commission was happy to accept the 2015 figure, which would have given the State an additional €7 billion of fiscal space. This money is needed to invest in infrastructure. Why arbitrarily reduce by €7 billion the fiscal space available between now and 2021 by ignoring the 2015 growth figure? This was a political choice that will impact on our capacity to invest in infrastructure at a time when, as the Taoiseach noted, money is cheap and available.
The leader of the Fianna Fáil Party is pushing for more public private partnerships, PPPs. I argue for a cap on PPPs because they are the most expensive approach. When the State can borrow money at very low interest rates, it does not make sense to have PPPs rather than direct investment, although PPPs make sense in some areas. We must have a debate on the infrastructural needs of the country and how they should be funded. I am puzzled by the arbitrary political decision, despite the views of the Commission, to lessen the capacity of the State to invest in infrastructure.
Enda Kenny (Mayo, Fine Gael)
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Deputy Micheál Martin is right that the outcome of Brexit will have profound implications. There is no denying that as this is a totally new situation. When Article 50 was written, no one envisaged that a country would decide to leave the European Union. This has happened, however. In addition, the British Government, in respecting the wish of the electorate, has decided to remove the UK from the Single Market. A changed situation arises in respect of the trading negotiations.
It is true that we export 90% of what we produce. Some elements involved in addressing this will be to have a much stronger concentration on the eurozone and arrange trade missions to sell the agricultural and food products we produce. The agriculture sector is already under pressure. As Deputy Micheál Martin is aware, currency fluctuations mean we are down €500 million in six months. Our response has been to provide low interest, longer-term loans and increase the capacity of Enterprise Ireland to further assist exporting companies.
Micheál Martin (Cork South Central, Fianna Fail)
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Did the Government provide €500 million?
Enda Kenny (Mayo, Fine Gael)
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No, €500 million was lost as a result of fluctuations in the value of sterling.
In respect of the European Medicines Agency and European Banking Authority, we have applied to have both agencies relocate here and we are obviously in competition with other countries. The matter will go through the normal process and will come before the European Council for final decision in the autumn. There are major implications and opportunities for whichever location is chosen. Ireland has made a case for hosting both organisations and we will compete with many other countries.
Deputy Adams referred to customs controls. The official who spoke at the joint committee last week was referring to hypothetical scenarios. We have an agreement politically that there will be no return to the Border of the past. Nobody wants the to have a situation such as that which applied at the Killeen crossing and right along the Border for years and which brought with it, as Deputy Adams is aware, sectarian violence and militarisation. As I stated previously, if, arising from the Brexit discussions, tariffs are not applied to goods moving between the Republic and Britain or Britain and the rest of Europe, we will still have two different jurisdictions and a way will have to be found to deal with that. What we agreed with the British Government and Mr. Michel Barnier, who addressed the Dáil only a short time ago while standing next to where Deputy Adams is seated, was that the solution will have to be creative and imaginative. The independent members of the Revenue Commissioners will say that they may well have a job to do here and will look at the different options. However, the committee also agreed that it is not clear what will be the outcome. What is clear is that there is a political imprimatur of no return to what we had in the past. Deputy Adams knows the importance of that as well as I do.
Designated status is an issue I have always referred to in the sense of our particular and unique circumstances, which were outlined to the House by the chief negotiator on behalf of the European Union when he referred to our citizens, economy, jobs and relations with the United Kingdom, the protection of the common travel area, our place in Europe and the fact that we do not want to return to what we had before. We unreservedly condemn the latest atrocity in Manchester. I was glad to hear the First Minister, Ms Arlene Foster, express the hope the other day that an Executive would be formed. While there are political differences, it is important that the Executive faces in the direction of the future and we will be able to have the North-South Ministerial Council, the cross-Border agencies and the development of infrastructure into the North, which are very important for the future.
I will have to revert to Deputy Howlin with some detail on the matter he raised. I do not want to lead him astray but I think the issue is related to the arrival in Ireland of a great deal of intellectual property from corporate firms, which caused a spike in the figures.
Brendan Howlin (Wexford, Labour)
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Will the growth figures be accepted?
Enda Kenny (Mayo, Fine Gael)
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I will provide the Deputy with detail on the position if I may.
Pat Gallagher (Donegal, Fianna Fail)
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I apologise to Deputy Burton who indicated she wished to ask a question on the inner city of Dublin but we must move on.