Stephen Donnelly (Wicklow, Fianna Fail)
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3. To ask the Minister for Foreign Affairs and Trade the Government's priorities for phase two of the Brexit negotiations; and if he will make a statement on the matter. [3506/18]

Stephen Donnelly (Wicklow, Fianna Fail)
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My question is about the Government's priorities for phase two. We have had the December agreement. We are moving into phase two on Brexit. At stake this year are Irish jobs and Irish trade and our future relations with the UK. Implementation of the December agreement is critical in ensuring that there is no future border for Northern Ireland. Fianna Fáil has worked closely with the Government on the international aspects of Brexit. We disagree strongly with the Government on the domestic response. We think that has been extremely poor to date.

What are the Minister's and the Government's priorities for Brexit this year?

Simon Coveney (Cork South Central, Fine Gael)
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I do not agree with all of the comment but they are very much fair questions. First, we are focusing on the negotiations themselves, as we did before Christmas, to make sure an Irish perspective is understood and incorporated into the various different things happening.

Next Monday, in the General Affairs Council, there will be a proposal in relation to transition arrangements. We want to make sure that the full EU acquis applies for the full transition period. In Britain it is referred to as an implementation period but it is the same thing. In particularly sensitive areas, like fishing for example, we want to ensure that the full EU acquisapplies in terms of protecting our interests but also protecting EU interests. A transition period is a period that allows both British and EU interests to respond to, prepare for and finalise the preparations for new realities in terms of the future relationship. That is very current.

In relation to the withdrawal agreement, I think we can expect a draft withdrawal agreement coming from the EU side by the middle of February. Again, a key thing for Ireland is that all of the commitments we had in writing in December are reinforced in that withdrawal agreement so that we can have, as it has been described in EU language, no backsliding from previous commitments. That is a real focus for our negotiating team. Moving towards the future relationship itself, Britain has choices to make in terms of the signals that it wants to give to the EU negotiating team in respect of what they want to negotiate. Do they want a classic free trade agreement? Do they want a Norway-style arrangement with some flexibilities? Do they want to be part of some customs union partnership, to use British language, in the future or do they not?

These signals and these decisions in regard to future direction for Britain will determine how the EU negotiating team can respond to try to facilitate that. I will be in London shortly to advocate for the kind of things-----

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the Minister.

Simon Coveney (Cork South Central, Fine Gael)
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-----that the Taoiseach the has been advocating for today. In relation to the domestic agenda, perhaps I will come back and give the Deputy an answer later.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the Minister for his co-operation.

Stephen Donnelly (Wicklow, Fianna Fail)
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I thank the Minister for that. I will stick to the international response now. If the Minister wants to come back on what his priorities are domestically, we can go into that.

A few things. Deputy O'Brien and myself were in Westminster last week. We met various Government Ministers and cross-party MPs. We put the December agreement to all of them. We said our understanding, the Government understanding, briefed directly from the Taoiseach, is that it is full alignment North-South. It means, essentially, that nothing can be done in the Northern Ireland economy that would lead to future border controls. I asked three separate Under Secretaries if that was also their agreement. They would not agree to that: they hedged. Does the Minister accept that the British Government has a different view as to just how solid and categoric the December agreement is? Will the Minister expand on Norway-plus? We all understand what the Norway model is within the European Free Trade Association, EFTA. When the Taoiseach and the Minister talk about Norway-plus,will the Minister explain what the plusis?

I thank the Chair for his patience. On the Common Fisheries Policy, which the Minister knows well from his previous role as Minister for Agriculture, Food and the Marine, the British Ministers reiterated, when we were in London last week, that the UK will be taking back control of its territorial waters. It will be leaving the Common Fisheries Policy. This is an existential threat to our fishing industry. What is the Irish Government doing, specifically in respect of the Common Fisheries Policy? Is the Government looking to renegotiate the basic formula to give Ireland a fair share if indeed the UK does look to take back its territorial waters?

Simon Coveney (Cork South Central, Fine Gael)
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There is a lot there. I am not going to be able to answer all of it. I would happily answer in some detail if Deputy Donnelly wants to talk to me about it later.

Our understanding, and I think anybody's understanding reading the words that were agreed and put down in black and white regarding "maintaining full alignment with the rules of the Customs Union and Single Market" is clear. It is clear to me what that means, "in order to maintain North-South co-operation and the all-island economy". The EU task force is clear what that means. We have checked that. If others want to make commentary seeking to recategorise what that means, that is a matter for themselves. However, as far as the EU negotiating team is concerned, it is negotiating on our understanding of this and we need to ensure that is part of the withdrawal agreement. I heard some concerning commentary in front of a committee in London yesterday. I will have an opportunity today to meet some of the members of that committee who are in Ireland. I think that will be a useful discussion.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the Minister.

Simon Coveney (Cork South Central, Fine Gael)
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In regard to what I mean by Norway-plus, at the moment, as people will probably know, Norway is not part of an extended customs union. That means that there is a border and border checks between Norway and the EU. If Britain chose to effectively become an extension of the Single Market, we would like to see the option for it also to be in a customs union partnership. That would be a Norway-plus model that would require no border checks, because then the UK would be part of the same customs union, unlike Norway.

11 o’clock

That is what I mean when I refer to a Norway-plus model.

This is difficult for Britain – I absolutely accept that. It is complicated for Britain to be simply an extension of the Single Market but not involved in setting the rules of the market in the EU institutions. It is something that needs a great deal of consideration.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I am being flexible because of the importance of the issue, but I appeal to the Minister and the Deputy to adhere to the one-minute rule. If they do not, I will have to cut them short.

Simon Coveney (Cork South Central, Fine Gael)
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The Department will address any further questions in the meantime.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I did not want to interrupt the Minister. Deputy Donnelly has the final minute.

Stephen Donnelly (Wicklow, Fianna Fail)
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My understanding is that the Minister does not get to respond, but I will make some points. The Common Fisheries Policy is really urgent. It was reiterated to us in Westminster last week that the UK intends taking it. I was in Greencastle, County Donegal, on Monday talking to people from a fishing co-operative. There are things we can be doing. If the UK insists on taking back its territorial waters, we need to open up a conversation about renegotiation back to the position in 1972 and explain how things have fundamentally changed for us.

My position and that of Fianna Fáil on the domestic front is that little is being done but a great deal can be done. The Government lists websites, access to funds and so on. However, I have spoken to fishermen, farmers and SME owners throughout the country. I have asked whether they are being helped in a substantial way in terms of access to credit, relaxation of state-aid rules, feasibility studies for new EU markets, changes to supply chains and pricing strategies. I have asked them whether they are getting a comprehensive response from the State and its various agencies to help them not only mitigate the risks of Brexit but to actually use it as a nudge to become bigger, better, stronger and trade more. The answer I have received from people throughout the country from every sector is "No". They acknowledge that there is a website and that there is a new fund available which offers lower-cost credit. However, they maintain that they are not getting a comprehensive national response.

The Taoiseach responded to Deputy Micheál Martin and myself in reply to a parliamentary question confirming that the Brexit Cabinet committee has not met since September. It seems that we are desperately in need of and missing an all-of-Government response. I hope that is something we can work on providing this year.

Simon Coveney (Cork South Central, Fine Gael)
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At recently as this morning, we had a Brexit stakeholder meeting for an hour and a half or so at which all these interests were represented. We are trying to prepare small and medium-sized businesses as well as larger businesses throughout the country for the potential impact of Brexit. All the State agencies are geared up to do that. People will see us do it in a far more visible way in the coming months with significant seminars and roadshows. The idea is to bring companies in, essentially to tutor them and talk to them about the potential impact of Brexit. The State has a responsibility to do that.

Many of the things Deputy Donnelly has talked about are happening. We are making funding available, looking at the options for state-aid rules and reaching out through the State agencies to many of the companies concerned. I accept, however, that more work remains to be done in this area and that we need to intensify those efforts as Brexit gets closer. That will happen.