Dáil debates

Tuesday, 10 July 2018

Ceisteanna - Questions (Resumed) - Priority Questions

Brexit Issues

5:05 pm

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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67. To ask the Minister for Jobs, Enterprise and Innovation the plans being put in place for a hard Brexit; and if she will make a statement on the matter. [30826/18]

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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My question is about the plans being put in place for a hard Brexit. That is a real possibility now after what has happened in the past week and especially last weekend with the British Cabinet in disarray. Is the Minister developing contingency plans for a situation where the landbridge through Britain becomes unusable for Irish lorries travelling to and from the Continent? Businesses need answers on this issue. It is a crucial issue that is arising with all the stakeholders I have met, as many retailers and exporters rely on this route. Also, why was a portion of my question sent to the Department of Foreign Affairs and Trade for a reply?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank the Deputy for raising this matter. On his question about why a portion of his question was sent to another Department, I cannot answer that and I do not know. I presume it was a decision made in the Ceann Comhairle's office.

Co-ordination of the whole-of-Government response to Brexit is being taken forward through the cross-departmental co-ordination structures chaired by the Department of Foreign Affairs and Trade, and my Department is central to those efforts. Contingency planning for a no-deal or worst case outcome, bringing together the detailed work being undertaken by individual Ministers and their Departments on issues within their policy remit, is now well advanced. Its focus is on the immediate economic, regulatory and operational challenges which would result from such an outcome.

This work is therefore providing baseline scenarios for the impact of Brexit across all sectors, which can then be adapted as appropriate in light of developments in the EU-UK negotiations, including in regard to transition arrangements and the future relationship. However, the Government is already acting to get Ireland Brexit ready and this is a priority for my Department and the enterprise agencies. Our objective is to support firms to adapt to the challenges and opportunities Brexit presents by ensuring we have fit-for-purpose policies. Our strategy is to minimise risks and to maximise opportunities by ensuring the growth and resilience of Irish enterprise post Brexit working across four pillars which are: helping firms to compete; enabling firms to innovate; supporting firms to trade; negotiating for the best possible outcome.

Several important steps have been already taken to prepare our economy, including through a range of measures announced in budgets 2017 and 2018, as well as commitments set out in the Action Plan for Jobs, 2017 and 2018, and the targets included in the trade, tourism and investment strategy. My Department has secured an additional €6 million which will enable the Department and its agencies to recruit up to 100 additional staff focused on helping Irish exporters grow their international sales, diversify their markets and secure new investments in Ireland.

The enterprise agencies are atthe forefront in working with firms to ensure they are equipped to deal with Brexit and to enhance their performances in an increasingly competitive global trading environment through lean programmes, skills development and reducing business costs. This is being achieved through the provision of information, advice, training and other supports.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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The Minister will be well aware that exports worth €26 billion were destined for the other 26 countries in the EU, excluding Britain, last year. Getting these goods to the Continent could become an issue if a hard Brexit occurs. Currently, it takes approximately ten hours for a truck to travel from Dublin through Britain to Calais. If this route becomes unusable, due to restrictions, checks or massive queues at the Channel tunnel, the alternative direct route to Zeebrugge in Belgium can take 38 hours. Any additional time in transit will cost businesses money and every hour counts in the transport of perishable goods. What contingency plan has the Minister prepared to date in this regard? Has she explored using bonded warehousing in Britain and is that part of the negotiations? In addition, could IDA land be used to set up large warehousing depots in Ireland to replace similar ones the Irish companies currently use in Britain?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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EI and InterTradeIreland Brexit advisory clinics focus on priority areas for contingency action in financial and currency management, strategic sourcing, customs, transport and logistics. There is also a customs and logistics component of EI's Brexit: Act On Initiative, which involves the provision of independent consultants to client companies for two half-day sessions. This is designed to help them decide on specific actions over a short period to address the risks and opportunities of Brexit. The Revenue Commissioners have extensive engagement with industry and are providing advice on long-term planning around skills for customs post Brexit. Industry representative bodies are also playing their part. Customs awareness and clearance training is being offered by the Irish Exporters Association, Freight Transport Association Ireland and the Irish International Freight Association. Private sector providers are also active in this space. A great deal of work is taking place in that regard. Enterprise Ireland, InterTradeIreland and the local enterprise offices are providing many supports to businesses. They are asking the businesses to identify the risks that Brexit presents and to mitigate those risks.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I thank the Minister. However, I am still deeply concerned that the Department does not have more plans to date on the specific issue I raised. If the country is not prepared for a hard Brexit there will be a devastating effect on Irish businesses, exporters and farmers. Unfortunately, I believe that is where we are heading. Businesses need to know what structures will be in place. We can no longer wait for the Tories and their partners in the DUP to come up with a solution. The state of that government is very worrying and is making a hard Brexit more likely. It is clear the Tories are so fractured they will be unable to come up with a solution by next October or March. Has the Minister considered increasing air and shipping capacity in the short term should a hard Brexit occur, by which I mean the State taking a role in providing extra capacity at a reasonable cost for businesses should the landbridge become unusable? In addition, is there an internal report entitled "Disorderly Brexit Contingency: executive summary paper" and, if so, what does it contain?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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As I said, contingency planning across Government for a range of Brexit scenarios is well advanced. Co-ordination of the whole-of-Government response to Brexit is being taken forward through the cross-departmental co-ordination structures chaired by the Department of Foreign Affairs and Trade. Contingency planning for a no-deal or worst case outcome is well advanced and is focused on the immediate economic, regulatory and operational challenges which would result from such an outcome.

The Brexit negotiations are ongoing and, therefore, there is still a lot of uncertainty around for what we need to prepare. However, there are certain changes for which the Government can prepare, including getting our ports and airports ready for what may be a changed trading relationship with the UK at the end of March next year or the expiry of the transitional period in December 2020. In this regard, additional customers officers, veterinary inspectors and infrastructure will be required at our ports. This work is well advanced and the Government will be in a position to take the necessary decision if and when required. In the meantime, we are advising business to prepare for the worst outcome, while the Government negotiates for the best.