Peadar Tóibín (Meath West, Aontú)
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I move:

That Dáil Éireann:

recognises that: — Ireland is the most exposed country in the European Union (EU) to a United States (US) tariffs war, and while a reprieve has been given to the pharma sector, the landing zone on tariffs is still not known;

— a full-scale tariff war will affect Ireland disproportionately, and while Ireland exported €223.8 billion of goods and services last year, one third of these exports, €72 billion, went to the US, of which €58 billion of this is made up of pharmaceuticals and chemicals;

— Ireland is a small open economy, and a fall in international trade, precipitated by the increase in global tariffs, will hit Ireland hard;

— Ireland is potentially facing a fall in employment and job creation, leaving many indigenous businesses, especially in the agri-food sector and drinks sector, badly hit;

— corporation taxes are likely to fall, and future public spending is in real danger; and

— the all-Ireland economy and the Windsor Framework will face significant challenges with differing tariff regulations on each side of the border, and products with integrated North–South supply chains will face major difficulties; acknowledges that: — Ireland's economy is unbalanced, and Ireland is heavily reliant on the foreign direct investment (FDI) sector and has a small, weak indigenous enterprise sector;

— Ireland has become a very expensive location to do business and has the most expensive net electricity prices in the EU;

— Irish firms seeking to grow are often located outside of Ireland; and

— Ireland has capacity shortages in many key infrastructure areas, from housing to transport to energy; and calls on the Government to: — take a stronger and more direct role in negotiating with the US administration, as the stated objective of the US administration is to reduce the perceived trade imbalance between the US and the EU, and seek if this can be addressed while protecting the Irish economy;

— demand that the EU pursues a pragmatic policy of de-escalation;

— ensure that the EU does not make retaliatory tariff decisions that makes a target for the US of key Irish enterprise sectors;

— significantly increase Ireland's diplomatic footprint in Washington DC, with the Republican Party in the US, and in the office of Permanent Representation of Ireland to the EU;

— develop Covid-19/Brexit magnitude supports for indigenous enterprise sectors that will be worst hit, providing export and market diversification supports, and provide increased grant funding for increased research, development and innovation;

— create sectoral taskforces to include relevant stakeholders, including employers and trade unions, and provide adequate income supports to workers who lose their jobs;

— continue to attract and support FDI, but also start to develop a stronger indigenous enterprise sector which is less mobile and less likely to move out of Ireland;

— reduce the reliance of corporation tax in Ireland's enterprise policy by investing in other competitive advantages, such as transport, housing, communications, energy, water and education infrastructure;

— reduce input costs to businesses, such as electricity, property, banking, insurance, and other utility costs;

— review non-human resource regulation on indigenous enterprise, with a view to cutting unnecessary red tape and bureaucracy, which will simplify and speed up the planning process, and improve investment opportunities for growing Irish firms;

— create a better regional and spatial delivery of Enterprise Ireland and IDA Ireland investments; and

— reinstate the Oireachtas Joint Committees on Enterprise, Trade and Employment and on Finance, Public Expenditure and Reform, and Taoiseach immediately.

I am proud to move the first Aontú Private Members' motion in the Dáil this morning. We have decided to use our time as best we can in an effort to make sure we fight for Irish jobs, which are in significant difficulty, fight for the standard of living for families and fight for the economic health of our country. All of these issues are in grave danger today. I believe this is a dark day for world history. It is definitely a dark day for the Irish economy and it has been a shock to many people as to how little time the political establishment has spend on this particular issue since the election. It looks like this particular issue has been eclipsed, in many ways, by the chaos in the Dáil over the last number of months.

Trump's global tariffs come into effect today in many parts of the world and the size and breadth of those tariffs are eye-watering. Absolutely nobody in this Chamber would have believed we would be looking at the size of the tariffs being implemented today. The idea that a 104% tariff is being placed on goods from China into the US is absolutely startling. It completely eviscerates the world economic order for the last 30 or 40 years. The EU is now facing 25% tariffs on cars, steel and aluminium, and the so-called reciprocal tariffs on all other EU goods of 20%. This creates an enormous challenge for so many Irish businesses.

Maroš Šefčovič has threatened to create an EU anti-coercion instrument, the ACI, which could have an enormous affect on US businesses, their services to the EU and their access to public procurement tenders in the future. In fairness to him, the Minister for Foreign Affairs and Trade, Deputy Harris, rightly stated this would be the nuclear option in terms of the tariffs imposed on the world.

Ireland is the most exposed country in the European Union to the United States's tariffs. We have seen a reprieve for pharma so far, but the pharmaceutical sector was targeted again in the rhetoric of Donald Trump last night, which means it is very likely to be hit by a significant tariff in the near future. A full scale tariff war would affect Ireland disproportionately. Ireland exported €223 billion of goods last year and a third of these exports, €72 billion, went to the United States of America, of which €58 billion were made up of pharmaceuticals and chemicals. This is an enormous exposure.

It is interesting if you compare and contrast our exports to the rest of the EU. We exported €81 billion worth of goods to the EU in 2023. The EU is our biggest trading partner but it is not that far off where our trade with the United States is. There is only 12% of a difference. The Irish economy, as it is currently structured, is significantly integrated into the US economy. Ireland is in real danger and in serious trouble if this escalates. Escalation is the enemy of the Irish economy in the trade war with the United States.

We are not only exposed to the US. We are, by our nature, a small, open economy. Anybody who studied economics for the leaving certificate or in university will have learned all about the fact we are very exposed to international trade as well. This increase in global tariffs will affect international trade in a significant fashion. It is estimated that there is a 60% chance of a global recession and this will hurt Ireland hard.

There is no doubt in my mind that we are exposed significantly because of the economy that has been build by generations of Fianna Fáil and Fine Gael governments. The indigenous sector has been the poor relation of enterprise development over the last number of decades and, as a result, we have a massive exposure to FDI. I want to say very clearly that FDI is good, FDI has a significant positive effect in this country and FDI should be nurtured but our dependency on the FDI sector has put us in this over-exposure situation at the moment.

We have another difficult aspect to consider here and that is the all-Ireland economy. As there are now two different tariffs in both parts of Ireland, that means we have an added complexity. In recent years, we have tried to navigate through the Windsor Framework to make sure the all-Ireland economy can function but now we will have a situation where whiskey from Cork has one tariff while whiskey from Antrim has another tariff. There are many enterprises along the Border that have integrated supply chains, which really makes it very difficult to understand how these companies will be dealt with in terms of these tariffs.

The economic vista facing this country is significantly poorer. Unless there is a resolution of this, we could be a looking at a situation not too dissimilar from the economic crash in 2008. We could be looking at situations where we are talking about reduced taxation receipts, reduced public expenditure and the word "austerity" word could be used in the next two or three years. This is how deadly serious the situation we are in at the moment is.

I mentioned FDI and so on but one of the things we have to do is use this situation as an opportunity to reset the Irish economy to a certain extent. I said that FDI was good but FDI is normally used as a transitional economic policy by developing countries. Typically, a developing country would use the FDI to bring in capital and expertise to be able to grow its economy so it can then develop a strong indigenous enterprise. That has not happened. That second element of government policy has never really happened in this country.

As a result, Ireland is very much exposed to the movement of FDI. Indigenous enterprise is stickier, less mobile and less likely to leave this country if the prevailing wind changes. Foreign direct investors are far more likely to leave.

One of the other threats to this country concerns corporation taxes. Again, the Government has really focused on a very small basket of competitive advantages, and that basket contains, primarily, low corporation taxes. It is true that Ireland’s membership of the EU attracts FDI, that Ireland’s being an English-speaking country is useful to US firms and that Ireland has had a well-educated workforce, but the primary tool Fianna Fáil and Fine Gael have used to attract FDI has been the provision of bargain-basement corporation taxes over the years. Fianna Fáil and Fine Gael have made this country a tax haven. In fact, Ireland is considered by the Tax Justice Network to have leapfrogged the Bahamas to become the ninth most significant tax haven, according to its ranking. That makes us a target of the US because Trump sees our corporation tax rate as a threat to his economic model.

Let me show how precarious the situation with corporation taxes is. Ten CFOs are responsible for 40% of the corporation tax paid in Ireland. That is an incredible figure. Considering that corporation tax now represents 27% of the Irish net tax intake and is the second biggest head in tax receipts, and that ten individuals determine 40% of the corporation tax paid, it is startling that we would have such a narrow tax base. We are here all the time listening to the Government on the need to broaden the tax base, yet the reality is that it has become narrower and we have become significantly dependent in our budgetary expenditure on that narrow tax base. That shows how under threat our expenditure will be if we lose the significant elements of the corporation taxes. For sure, manufacturing companies will not leave overnight, but much of the corporation tax is paid on intellectual property and already we are seeing a reduction in intellectual property in Ireland.

Ireland has an incredibly unbalanced economy, so we really need to develop our indigenous sector. We need to build a strong one that is able to compete internationally so we do not have the weakness in the future. How do you build a strong indigenous sector? One of the first things you do is make Ireland a good place to do business. Right now, Ireland is extremely expensive. Irish electricity prices are the highest in Europe and that is hurting foreign direct investors and indigenous businesses alike. Ireland has endless capacity shortages. We have shortages in key infrastructure, from housing and energy to transportation, and these represent competitive disadvantages in business.

Most businesses will tell you they want a number of things. They want low-cost inputs, to be able to transport their products with ease in and out of the market, to be able to communicate properly with the rest of the world, to be able to ensure red tape and bureaucracy do not hamper their development, a good investment environment within the economy, and well-educated people. If most businesses have these, they will be happy to do business in a location. However, we do not have them. The main frustration for so many people has been the incompetence of the Irish Government in making sure the infrastructure in this regard is built.

What we are looking for in this motion is simply for Ireland to take a far stronger negotiation stance with the US Administration. Aontú and I believe Ireland could be a bridge between the US and the EU in terms of the negotiation. We also need to understand what the US wants. The US has a perception that there is a significant trade imbalance with the EU. We have to address that perception to be able to properly negotiate with the US. We also need the EU to be pragmatic and de-escalate. An escalation would be massively damaging to this country. The EU cannot out-bravado Donald Trump. Donald Trump is unencumbered by common sense, political pressure and international convention, so the idea that we can somehow out-bravado him on this, given that he has launched a 104% tariff on China, is absolutely wrong. I actually believe the best retaliation is no retaliation until we properly negotiate what the EU does.

We also need to ensure the EU does not make targets of Irish sectors for retaliatory tariffs. There was a danger regarding bourbon and Irish whiskey, and I am thankful for the efforts the Government has made to knock bourbon off the retaliation target list from the EU perspective. We need to significantly increase Ireland’s diplomatic footprint in Washington DC and the Republican political party. Most of Ireland’s influence over recent years has been on the Democrats. It has been weaker in respect of the Republican Party, and we in Aontú are reaching out to that party at the moment.

We also need to increase the staffing of the Permanent Representation of Ireland to the European Union, which is not at the level that is necessary at present. We need to develop what I would say are Covid- or Brexit-magnitude supports for indigenous businesses to ensure they are ready in those sectors most hit in terms of exports. We need to provide export-diversification supports and ensure relevant firms have the ability to hold on to staff if they go through a period in which income has collapsed. We need to create a sectoral task force where relevant stakeholders, including employers and trade unions, can start to steer its direction. Those stakeholders would have far more knowledge about their own sectors than most people in this House.

We need to continue to attract FDI but we really need to develop stronger indigenous enterprise, which is less mobile and less likely to leave the country. We need to reduce our reliance on corporation taxes by properly investing in other competitive advantages, such as those associated with transport, housing, communications, energy, water and education infrastructure. I am aware that the Government is going to state it has changed the corporation tax system and accepted the OECD’s best formula on corporation tax; however, truth told, the Government was pulled in that direction kicking and screaming. At meetings of the finance committee, I sat in front of Fianna Fáil and Fine Gael Ministers who were absolutely against the idea of changing and regularising our corporation taxes to make them more internationally fair. Corporation taxes are very important.

Richard O'Donoghue (Limerick County, Independent Ireland Party)
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What is our first problem when we see tariffs? Trump met our Taoiseach before St. Patrick’s Day and invited Conor McGregor to meet him on St. Patrick’s Day. That is what he thinks of Ireland. He looks at Ireland as a tax haven for companies but what he needs to realise is that it is a tax nightmare for workers. Trump also needs to realise that one in every ten people in the US claims Irish ancestry. I ask the people in the US who have Irish in them to make that quite clear to him. He also knows that, to Europe, Ireland is a pimple on its backside. Europe does not really care what happens to us because we are that minute.

The damage Trump has done in the world markets and the uncertainty he has caused are already wreaking havoc in Europe, including Ireland, and are scaring people considerably. As it stands, this country cannot withstand tariffs from the US. It cannot, because of its size and nature, withstand world economic uncertainty. It cannot withstand it because of regulations applied to our agri- and business sectors that mean we probably have some of the highest taxes in Europe to try to survive.

I went across the road yesterday to try to support a local business and Deputy O'Flynn was with me. We went in to get a cup of coffee and up on the wall it showed the breakdown for a cup of coffee in this country. If you look down through it, 50 cent of it is VAT on a cup of coffee. That is for something small that somebody might want. That person straight across the road from Leinster House is probably the cheapest person in Dublin to go to for a cup of coffee. There is a full breakdown of what it costs, from the lid all the way to the wages and the whole way along, to show what it means to survive in this country. We are facing tariffs in this country. We are also facing the amount of money this country has made in taxes and the lack of value for money for what we have done.

The Irish Timesreported on the mistake that was made in the last economic crisis in this country - the lack of putting in infrastructure. If we put in infrastructure, it brings down the price of housing because it is in. If we put in infrastructure, it brings down the price of travelling across this country. In this country at the moment, however, for every euro people spend on fuel to go to work, they are paying 50 cent in tax on diesel and 43 cent on petrol. People go to work and then they pay tax on their wages. They come out then and pay taxes on every single thing they buy. If a person never works a day in this country and gets to a ripe old age and needs to go to a nursing home, he or she automatically qualifies for everything in the fair deal scheme. However, if someone works in this country and has any few bob in savings and wants to leave it to the grandchildren, he or she has to pay if it is over a certain amount. This is what the tariffs are going to mean for this country. We are already exhausted trying to keep going and put food on the table for the people who are here working and the vulnerable people we are trying to cater for, and not one person in Ireland who works has any problem with looking after the vulnerable. However, we have a massive problem on the wastage of money and the unaccountability of wasted money in the public sector from the point of view of the Government and Departments. That is our problem. The tariffs we have coming down on top at the moment are going to put this country in major trouble.

Thomas Byrne (Meath East, Fianna Fail)
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I move amendment No. 2:

To delete all words after "Dáil Éireann" and substitute the following: "notes that the United States (US) has implemented tariffs on all of its trading partners, with the European Union (EU) and Ireland facing tariffs of:

— 25 per cent on steel, aluminium and derivatives since 12th March;

— 25 per cent on the automotive sector since 3rd April; and

— 10 per cent on remaining goods since 5th April, rising to 20 per cent on 9th April;

further notes that the pharmaceutical and semiconductor sectors are excluded from tariffs at this moment, along with the commodities of wood/lumber and copper;

regrets that the US action will undermine the global trading system and economic integration which has delivered immense benefit to all countries and has helped lift hundreds of millions out of poverty across the world;

recognises that:

— the Government is working intensively with EU partners on the EU response;

— the European Commission, in line with the EU Treaties, holds the competence for Trade policy and will represent the Union's interest and the interests of all EU member states in negotiations with third countries;

— the EU, while preparing for a proportionate response, at all times has emphasised its openness and willingness to negotiate and that Ireland has strongly supported this position;

— the Government, working in close coordination with the European Commission, is also in regular contact with the US administration, to reinforce our collective interests in negotiations with the US;

— the Government continues to engage extensively with stakeholders here, particularly through the Government Trade Forum, in shaping the Irish and EU response to the issues; and

— the Government is conscious of the potential impacts of differential US tariff rates on the EU and the United Kingdom in Northern Ireland, and on the all-island economy, and is in ongoing contact with the Northern Ireland Executive and the British government in this regard;

acknowledges that:

— the success of the Irish economy is based on openness to trade and investment with all countries and this model has served the Irish people extremely well;

— employment in the economy is at high levels, with 2.8 million people at work;

— effective management of the public finances has allowed the previous Government to establish the Future Ireland Fund and the Infrastructure, Climate and Nature Fund;

— Ireland has a diversified trade profile with strong exports to all regions of the world, with total trade in goods and services in 2023 of over €1 trillion; and

— Ireland and the US have a significant and mutually beneficial economic relationship, and that Ireland is the 6th largest source of foreign direct investment into the US, and more than 200,000 people are employed by 770 Irish companies across all 50 states;

welcomes:

— the Programme for Government commitments to:

— support an open, multilateral, rules-based trade system, promoting free trade policies and economic growth;

— support an ambitious EU trade agenda, promoting new Free Trade Agreements, with proper assurances regarding sustainability, human rights, and the protection of our agricultural sector;

— strengthen our political, cultural, economic and trade relationship with the US at all levels, recognising the unique significance of the transatlantic relationship between us;

— prioritise economic competitiveness both in the EU as a whole, and in Ireland in particular, and in this context continue to promote international trade, which is vital to the Irish economy; and

— publish a whole-of-Government Action Plan on Competitiveness and Productivity which will cover industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development and innovation;

— the development of a new global Ireland 2040 strategy this year, which will outline an overarching masterplan for further enhancing our influence in international affairs and trade;

— the development of a renewed trade and investment strategy to be developed in 2025;

— continued development of the Ireland House model and the co-location of Irish Embassies and State enterprise agencies to support Irish business globally; and

— in addition, the development of a new action plan on trade diversification for consideration by Government by end-May 2025.".

As everybody appreciates, the events of last week have fundamentally changed the international trade landscape. For Ireland and our partners, a sweeping 20% tariff on all goods entering the US marks a serious escalation in a trade dispute that began last month, first with tariffs on steel and aluminium and subsequently on the automotive sector. It is important remember as well that this debacle at international level effects both foreign direct investment into this country but it also seriously affects the indigenous sector. The Government has been and will be honest and upfront on this.

The potential consequences of these measures to the Irish and European economy are serious. It is important to remember as well that the Irish economy is anchored in the European Union and our location therein and membership thereof has been a significant factor in our economic success over the past 50 years. We have gone from 1 million people employed at the time of joining the EU to 2.6 million or 2.7 million at the moment. The tariffs jeopardise global value chains and supply chains that have been carefully built over decades. They create instability and uncertainty for businesses and consumers alike. Inflation is now going to be driven. Consumers will be hurt by these tariffs on all sides. Nobody is going to be exempt from this.

It is also important to note that the tariffs do not affect the UK in the same manner, and they will, of course, as has been mentioned, have an impact on the all-island economy. That is a fact. That has been imposed upon us. The Government is very conscious of this and we are working through these issues at all times. There are no winners. US taxpayers will be losers as well and they will bear the burden of higher costs. The negative effects, of course, have been seen in the stock market. All around the world, significant losses have happened as President Trump has maintained his stance. It is deeply concerning, but the response of Ireland and the response of Europe must be calm, strategic and measured.

When we ask about the European Union, we must remind ourselves that we are the European Union with all the other member states and all the peoples of Europe. We must continue to seek negotiated solutions. Every disagreement must end in agreement. This is our focus because there is time to strike a deal. Following the White House announcements, President Ursula von der Leyen has repeatedly been clear that the EU will prepare its response, but she has also stressed that there of course remains time to address concerns through negotiations. I said likewise publicly, but also directly in my discussions with Commissioner Maroš Šefčovič. This was the tone indeed when the Tánaiste met with Maroš Šefčovič and fellow trade ministers in Luxembourg on Monday to review the situation and consider the best way to respond. There was a strong sense of unity in Luxembourg in the EU response.

The EU will seek to find a negotiated solution, but it will do so from a position of preparedness. The EU will respond in a proportionate manner that protects our businesses and our citizens, and we will take the necessary steps to safeguard our interests. In this respect, the European Commission has confirmed that it will seek the agreement of EU member states to impose rebalancing measures related to steel and aluminium tariffs this week. We expect that decision will be taken today, maybe as we are speaking. There have, of course, been many media reports on this, but we are still awaiting the formal decision.

In recent weeks, the Government has conveyed Ireland's sensitivities to the Commission, and I have done that myself directly with Commissioner Šefčovič when I met him, with regard to the inclusion of bourbon and dairy on the list of products for EU countermeasures. We understand that both spirit and dairy products have been removed from the list of EU countermeasures, and this is welcome. It is very important to remember as well that those products are already tariffed. What we did not want were super tariffs on them on top of what has already been imposed. When we talk about the spirit and dairy industries, we are talking about the indigenous sector. Deputy Tóibín was talking about FDI and problems with that, but this is the indigenous sector. There are only so many million people on this island. They have to export to create markets for themselves. There are not enough people on this island to eat all the food and drink that we produce. We have to export it, and that sector has been very badly affected and people have expressed this publicly.

Ireland's response is grounded in some core principles, that is, unity with our EU partners, clarity in our national interest and a relentless commitment to dialogue and negotiation. This commitment to dialogue and negotiation also extends directly from the Irish Government to the US Administration. Indeed, the Tánaiste is meeting the US Secretary of Commerce in Washington today. With regard to this idea that somehow we do not have links with the Republican Party, I can say that I have met as many Republican members of Congress in my time as Minister as I have Democrats, and the Taoiseach was one of the few Prime Ministers in the White House with a Republican President. Our embassy has attended the Republican and Democratic conventions and, indeed, the Cathaoirleach of the Seanad, Senator Mark Daly, has set up Irish caucuses is in every single state house in the United States. The key thing about them is they are bipartisan. When I go to America, there are only about two or three issues on which the American Congress is united. I always say that we appreciate very much the bipartisan approach they have taken in the USA to Northern Ireland. We very much continue and maintain dialogue with Republican politicians in the United States. It is really important. In fact, we have nine offices in the US and our consuls and diplomats there maintain excellent contacts with politicians across the aisle.

It does remain to be seen what the US approach to tariffs on pharma is. We of course heard what the President said last night, and uncertainty obviously remains. The pharma sector has operated with zero tariffs for 30 years and there are obvious reasons for that. There is real concern among people and businesses about the potential impacts these tariffs may have on the Irish economy, so it is good that this motion is before the House. There will be Dáil statements separately as well. Some of the claims need to be rejected, however. As I said, the Government is taking a strong role in engaging with the US Administration, and we are encouraging our EU partners to pursue pragmatism and negotiation while also demonstrating our preparedness to act if necessary. Our economy is in good health, and it is the prudent management and stewardship of our country's finances over the past decade that has prepared us for challenges that may come. Indeed, from Seán Lemass on, we opened up our country not just to foreign direct investment but also to innovation here in Ireland and that has also prepared us for the challenges.

FDI has been integral to the success of our country. On this idea that Aontú proposes that it is only for developing countries, why does it not say that to an investor? I dare Deputy Tóibín to say that to some investor coming into County Meath because he would not say it to them?

Peadar Tóibín (Meath West, Aontú)
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The Minister of State is corrupting what I have said.

Thomas Byrne (Meath East, Fianna Fail)
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He absolutely would not say it to any investor.

Peadar Tóibín (Meath West, Aontú)
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I said that FDI was good and I welcome it.

Thomas Byrne (Meath East, Fianna Fail)
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From this Government's perspective, investors are welcome to Ireland. We have one of the most educated countries in the world-----

Peadar Tóibín (Meath West, Aontú)
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That is what I said.

Thomas Byrne (Meath East, Fianna Fail)
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-----and one of the best workforces in the world-----

Peadar Tóibín (Meath West, Aontú)
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The Minister of State's peak argument is not what I said.

Thomas Byrne (Meath East, Fianna Fail)
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-----and we are one of the most advanced countries and democracies in the world. We have a competitive, consistent and a transparent corporate tax regime, good access and connectivity and an excellent return on investment.

The Irish sites of leading global companies play a key role in creating or adding value to the goods and services that underpin the modern global economy anchored in our membership of the European Union. Policies, strategies and the legislative toolkit are kept under constant review.

Deputy Tóibín mentioned corporation tax and he eventually mentioned that we are part of the OECD Base Erosion and Profit Shifting, BEPS, process and, yes, we did work to protect our vital national interest throughout the process. We did not just jump in at the start because we were working to protect Ireland's interests in that, and we have very much done that.

We have a very strong indigenous enterprise sector which successive governments have supported and the Deputy does not seem to know that Ireland is the sixth or seventh biggest investor into the United States. Much of that is indigenous industries and they are working with Enterprise Ireland all around the world to boost and lift them up and to expand them into markets all over the world. We are proactively engaging with businesses to make them aware of these supports. The Government will not be found wanting when it comes to resourcing and supporting Irish SMEs, which are the backbone of the economy.

One of my key jobs at the European Union table, as Europe Minister of State, is working on what is called "simplification" which is basically reducing red tape for businesses, including SMEs. That is a big project under way at the moment and I think it should get strong support from across the House. We are fourth in the world competitiveness rankings. Yes, we have difficulties and the Opposition outlines them all of the time but we are very competitive.

Our membership of the EU makes us part of a growing network of EU free trade agreements. EU free trade agreements support more opportunity for exports and investment; help to support jobs and growth at home; maintain strict EU standards on food safety, animal and plant health; and support better environmental and human rights standards around the world because it is at times like this that we are reminded of the importance of agreeing and strengthening new and existing free trade agreements. Of course, Deputy Tóibín and the entire Opposition utterly opposed the free trade agreement with Canada. In fact, some parties told us it was a threat to our national sovereignty. What the Comprehensive Economic and Trade Agreement, CETA, was doing was giving new opportunities to indigenous enterprises and service providers from Ireland to operate in what is known as the friendliest country in the world-----

Peadar Tóibín (Meath West, Aontú)
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With unfair regulations.

Thomas Byrne (Meath East, Fianna Fail)
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-----and the sooner that trade agreement is fully ratified, the better because it is of huge benefit for our indigenous sector, which Deputy Tóibín talks so much about. We should really have a united front on this because that reduces the burden, and economic cost and gives huge opportunities for businesses here in Ireland.

We are living together in challenging times. There are no winners if tariffs are introduced. We believe in free open trade and investment. Trade is the source of our prosperity in this country and I again support the Government's countermotion, having moved it.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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I thank the Acting Chair. It is time we stopped pretending that we were caught by surprise with these tariffs. Over the past year, it has been crystal clear that Donald Trump was on fast track to the White House and with him the threat of escalating trade tensions, protectionism and tariffs which could hit Ireland right between the eyes. What was this Government response? It was nothing - no planning, no urgency and a serious lack of leadership. It is the same sluggish, slow sloth-like reaction that we have seen time and again from this Government, hoping that the storm will pass rather than securing the roof. The reality is that Ireland is dangerously exposed. Our economy is built on export. Our ties with the United States are deep and our industries from pharma to tech, to dairy to cosmetics, are directly in the firing line.

Tariffs just will not dent the profits of companies, they will close companies and small businesses. They will gut the tax base which we rely on to fund our hospitals, schools and public services. This should have been front and centre of the Government policy for the past 12 months. Instead, we had two Ministers for Foreign Affairs in the past 12 months who have proven themselves - let us be blunt in this House - utterly ineffective on the global stage. This particular moment demands a strategic diplomat and a doer. Instead we have a TikToker press releasing machine posing and spinning but never delivering. Now we are playing catch up.

Let us be clear. The issue is not just across the Atlantic. The cracks are here at home. In fact, there are some chasms here at home. Our economy is too fragile and unbalanced and this Government has tried for years but has done nothing to fix it. What has it done? We are still over-reliant on foreign investment. Indigenous businesses are under pressure, over-regulated, over-red-taped and overtaxed. Energy prices are crushing our competitiveness at home whether the Government likes it or not. Infrastructure, such as housing and transport, is light years behind where it needs to be.

What we need right now is to wake up diplomatically. The Taoiseach and the Tánaiste must stop hiding behind the grandiose statements of the European Union. We must be direct and forceful and use our contacts in Brussels and in Washington and we must use whatever influence we have left, and actually use it this time. We must protect our local businesses, our SMEs and our exporters. We must support them immediately, not fix this in six months and not announce something for them in the budget. We must do it now.

I commend the Minister, Deputy Burke, who yesterday brought in some emergency measures but they do not go far enough by any means. We need to cut costs for real and slash our energy costs, fix our planning delays and reduce the amount of red tape across this country. I believe we have far more red tape in this country than any of our European counterparts.

We must not just talk about competitiveness but we must actually fight for it in the new markets that are emerging. We must invest in resilience, housing, clean energy and public transport. These are not just side projects of Government but are the backbone of any stable economy, if history has taught us anything.

We need a government which needs to see the storm coming. We need a government that is strong from the outset, that sees the storm coming and gets to work, and not a government that stands there soaked and surprised when the rain starts.

Let me be direct to the Irish people watching this debate today and to the fellow Members. This Government had its time, it had its warning and it did nothing. The people of Ireland deserve better, better planning, better protection and better leadership. This is our economy, our jobs and our future and it should not be gambled away by a Government asleep at the wheel. We in Independent Ireland support this motion but, more importantly, we in Independent Ireland support a vision of Ireland that is prepared, ambitious and brave, not slow, not scared and not stuck.

Paul Lawless (Mayo, Aontú)
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As I rise to speak on this motion today, I want to thank the Aontú team behind the scenes, who put so much work into this motion, our leader, Deputy Peadar Tóibín, and Senator Sarah O'Reilly. It is an historic day, in that we have moved our first Private Members' motion in the Dáil this morning.

The issue of tariffs is one of the number one concerns to the public at the moment. The actions of the US Administration are unprecedented and could have huge ramifications for the global economy but particularly for Ireland. Given our unique economy, we have the tendency by Fine Gael governments to rely too heavily on foreign direct investment, to the neglect of our own indigenous industry here.

In fairness to my leader, Deputy Peadar Tóibín, and before I was ever elected to the Dáil, he was warning about this day for many years. Whenever a budget surplus would come, I always remember Deputy Peadar Tóibín highlighting the over-reliance on FDI. Whenever Government politicians danced with joy, Aontú was drilling into the detail and highlighting how over-reliant we were on corporation taxes.

The people of the west of Ireland where I come from are deeply concerned about what is happening at present with regard to tariffs. The medtech sector employs 15,000 people in Galway in companies such as Boston Scientific and Medtronic. In Mayo, 2,500 people are employed by medtech companies such as Baxter healthcare in Castlebar. If you are a factory worker, it is not nice waking up to the realisation there is such uncertainty about your future. This crisis needs to be taken seriously by the Government, similar to how we dealt with Covid and the Brexit negotiations. Our voice in the EU needs to be heard loudly and clearly. We need to be centre stage in these negotiations. Ireland is a small country but we have considerable clout in the EU and the USA. My colleague Deputy O'Donoghue spoke about the sheer size of the Irish-American population. We also know that US politicians regularly rely on the Irish vote to get them elected. We need to remind them of that. Ireland occupies a unique space in the political system in the United States and it is very important that we highlight this to the US Administration.

In terms of the EU, obviously this country has a seat on the Commission. Michael McGrath should come before the House to outline the efforts he is undertaking in the teeth of this crisis. We in Aontú are deeply uncomfortable with the idea of retaliation. The idea that we will hit back with tariffs on the USA higher than those it is imposing on us is, to me, the worst possible decision. Does the Minister of State not fear it will simply result in Trump going higher on his tariffs? The actions of the EU will result in escalation rather than de-escalation. We need to take an active role in these negotiations in conjunction with the EU. We can no longer be a bystander. It is very interesting listening to Ministers because we appear like bystanders in these negotiations. We need to ensure we play a crucial and important part in these negotiations.

Pádraig Mac Lochlainn (Donegal, Sinn Fein)
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Sinn Féin has warned for some time that the policies of successive Governments have left Ireland uniquely vulnerable to a change in the economic climate and to tariffs. This is due to their failure to invest in infrastructure, their excessive reliance on tax incentives, and their failure to build up our indigenous industry. These moves by Donald Trump and his Administration to introduce tariffs have caused a great deal of concern among the thousands of people working in US multinational companies, particularly in the pharmaceutical industry. Each day we see more concerning news. There are threats today of further tariffs on pharmaceuticals and there is the imposition of enormous 104% tariffs on China. The trade wars are heating up and there will not be any winners, certainly not among workers and taxpayers.

It is important to understand that tariffs not directly levied on Ireland or the EU can still affect us through implications for supply chains. Many exporters will only see the full implications in the coming time but existing tariffs on other countries can bite here. The Government must outline to people what it intends to do to safeguard their jobs and livelihoods, and to offer them reassurance. It is clear that the only way to win a trade war is not to be in one. Tariffs on pharmaceuticals would result in significantly higher costs for American consumers. It is also the case that the industry here exports significant amounts to many other markets, including Europe and right across the world. We need to ensure this is widely understood.

Sinn Féin has tabled an amendment to the motion as we are very concerned that the EU will follow Trump's approach and implement tariffs that are economically damaging. We are clear that the blame currently lies with Trump and that all options should remain on the table. We welcome the opportunity to debate this issue, though we do not accept, and we are concerned this motion does accept, the Trump justification for tariffs and that the only response to them should be acquiescence or to appease. However, we are watching this unfold in real time and the scale of the economic impact is not yet known. In that context, we should refrain, for the time being, from adding fuel to the fire. We have to put Irish interests front and centre as the EU prepares to respond, and it is for this reason that we have chosen to table an amendment to the motion. It is crucial that we protect the all-Ireland economy and we need to see the Government convene the North-South Ministerial Council as soon as possible.

Going forward, we hope cooler heads will prevail and we encourage dialogue. There should not be panic but we must be clear-sighted about the risks we face. We urge the Government to engage intensively with the EU to advocate on behalf of key industries of interest to Ireland such as pharma, and also agrifood, drinks, aircraft leasing, tech and financial services. It is welcome that it appears whiskey and dairy products may not be included in the EU list, something we have raised since February. These are key industries for Ireland which would be uniquely hit by knee-jerk reactions, and this would not be helpful. The Government must be to the fore in ensuring that retaliatory measures take account of the industries that Ireland relies on. The Government must also outline what preparations it will put in place for mitigation and support measures for businesses affected. As I said, while all options should be on the table, it is a time for cool heads.

Paul Donnelly (Dublin West, Sinn Fein)
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I welcome the opportunity to speak on the motion. We must all be clear that the blame for the current trade tariff situation is laid firmly at the door of Trump and his cabinet of billionaires. While the scale of the tariffs and the response from the EU are still fully unknown, we need in the first instance to look after Ireland's interests. Any knee-jerk reaction from the EU could have the potential to cost Ireland more in the long term.

As we prepare for a referendum on Irish unity, likely within a decade, we must also look at the impact of tariffs on an all-Ireland basis. It is critical that a meeting of the North-South Ministerial Council is convened immediately. The Government needs to allow time in the Chamber this week to reinstate the Oireachtas committees on enterprise, finance and the Good Friday Agreement, as the all-Ireland economy and the Windsor Framework will face significant challenges with various tariff regulations in the Twenty-six Counties and Six Counties. Products with cross-Border supply chains will face significant challenges.

While it is imperative for all EU members to stick together to give the EU a strong negotiating position, Ireland has a large and influential voice in the United States through our diaspora, and an influential position through our links with trade unions, various political parties, employer organisations and a large vote in the Irish-American community. Ireland should prioritise increasing its diplomatic footprint in Washington, not only to deal with tariffs but other potential issues that may affect our island and build on the support in the United States for a stronger economy in a united Ireland.

As a small island, we need to continue to attract foreign direct investment and develop a strong indigenous enterprise sector. Unfortunately, Ireland has become a very expensive place to do business. In my role as Sinn Féin spokesperson on small business I have spoken to various sectors, which all flag the cost of trading as difficult. In particular, the cost of insurance and the rise in compensation amounts awarded by the Judiciary are crippling small business. We need to reduce electricity and energy costs, property and banking taxes and other utility costs. We need to make it easier to trade within regulations by cutting unnecessary tape and bureaucracy to allow firms to grow and expand quickly.

While the trade war declared on the world by Trump and his billionaire cabinet no doubt presents great challenges for our economy, especially our small businesses which rely on the tech and pharma industries, it is also an opportunity for the country as a whole, North and South, to look again at our economic strategy. There is no doubt we would be stronger in a united Ireland. With proper investment we can create a viable alternative to the heavy reliance on low corporation tax to attract FDI.

Investments should be made in other areas such as housing, transport and communications. The opportunity green energy offers to local authorities is enormous and could be a game changer for society. We no doubt face serious challenges but in those challenges are opportunities, and we need to grab those opportunities for our country's future social and economic growth.

Donna McGettigan (Clare, Sinn Fein)
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I am sure we are all relieved that so far pharmaceuticals and chemicals have been exempted from the 20% tariff imposed on exports to the USA from the EU. However, reports are now suggesting that President Trump will be introducing tariffs on these sectors.

While tariffs are usually seen as a tool to protect local industries, they can also have a negative impact for small, export-driven economies likes ours in Ireland. Tariffs imposed by the USA in 2018 and reciprocal tariffs imposed by the EU resulted in reduced trade in steel and aluminium. That should have been a wake-up call that tariff trade wars damage everyone, and that the State cannot be over-reliant on one export market. We have heard for years that we have a small, open economy which is highly susceptible to international economic factors, but we have seen few, if any, tangible measures to reduce this susceptibility. The Government must do more to promote indigenous industry rather than depend on international actors who do not have the interests of Ireland at heart. Successive Governments have been far too reliant on multinationals attracted here using tax incentives.

County Clare is home to a number of manufacturing firms, but it is also home to small companies, family-run farms, high-tech manufacturing and global firms in the Shannon free zone. They rely heavily on smooth tariff-free trade with countries and are likely to suffer as a result of tariffs. Some 77,500 people are directly employed by pharmaceutical and medical device manufacturing companies in Ireland across 213 factories. Many thousands more are employed indirectly. Companies will need to adapt to this and inevitably jobs will be lost as a result. This will affect those already struggling with the cost-of-living crisis.

The agriculture sector is also likely to be impacted by tariffs. The US Government has also blamed non-tariff barriers for their trade deficit. This means environmental, food, agricultural and other standards must not be sacrificed, undermining our standing as an agricultural producer and our sovereignty.

We are hugely overexposed to the USA due to the policies of previous Governments. Some 32% of exports from this State go to the USA, and the next highest in the EU is Italy at just 10%. We must ensure the EU does not take any retaliatory actions that are likely to negatively affect us disproportionately. The primary job of the Government now is to protect the interests of Ireland, both with the USA and the EU. The outworkings and changes of these tariffs are not yet known. The fact that pharma has not been hit with these tariffs gives us the space to put contingency plans in place and make sure supports are put in place for workers and industry. However, this needs to be done quickly as we do not know when these tariffs will change, so we must keep all options on the table. It is essential to continue with the pharmaceutical tariff elimination agreement that has been in force since 1995.

Having two regimes on our island is also likely to disproportionately impact on our Border communities. Assistance measures will be needed as we are all too aware of the devastation the Border can have on communities on both sides as companies move to the side where they can maximise profits at the expense of the other side of the Border. The real solution to this problem is reuniting Ireland. In the immediate term, the Government must call a meeting of the North-South Ministerial Council to protect the all-Ireland economy.

We have seen a number of election promises abandoned in recent weeks. This cannot become an excuse to renege on more of them. Our housing, healthcare, childcare, transport, infrastructure and education sectors, and other sectors, all need urgent investment and development. While it seems likely there will be a drop in tax receipts because of tariffs, we need countercyclical investment from Government to offset this.

Maurice Quinlivan (Limerick City, Sinn Fein)
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I welcome the opportunity to speak on this motion. While there will be further statements on tariffs this evening, it is positive that we are holding this debate now regarding how the economies on this island, both North and South, can be protected against the impact of tariffs announced on 2 April by the President of the United States of America. The announcements on 2 April by the US are a form of economic aggression on its supposed partners and allies while simultaneously being an act of self-harm by the same country. They are a threat not just to the world economy but to the economy of the United States. We know in this State we have a multitude of challenges that have not been addressed from the cost of living to the emergency that is housing and the ongoing crisis in our health service. We cannot and will not allow the imposition of, or the threat of future, tariffs to drop election commitments or, worse, herald in austerity measures. Now, more than ever, we must prepare ambitious investment on housing, health, infrastructure and, crucially, green energy, especially offshore wind.

Renewable energy has the potential to be a vital source of revenue and energy for our market. The development of offshore energy is our chance to eventually become energy independent. We can harness this energy and export the excess energy that Ireland will not need, or we can import it from abroad. That is the choice. It is as simple as that. We can either harness the energy from wind or purchase it from abroad. The impact of these tariffs and how we react to them will affect our resources, but this must not distract from the investments needed to advance the well-being of all our citizens.

In my constituency of Limerick, we have several technology parks with American IT, medical devices and pharmaceutical companies that employ thousands of people both directly and in associated companies. Thankfully, for now we are fortunate that 75% of our exports to the US fall within exemption categories and this may mitigate the damage caused to our economy by these tariffs, although last night's comments might scupper the hope we have at the moment. Thousands of people in counties Limerick and Clare work for these organisations. Following the 2 April announcement, many of these employees are concerned for their future. They are concerned as to whether their jobs will be there in a few years' time, how these companies will react and how these tariffs will impact the availability of future investment and promotion opportunities that exist in these companies already. These companies have been, and continue to be, vital to the local economy of the mid-west region. It is hoped that those that were planning expansions will continue to do so. They have been good for Limerick and the mid-west region and have contributed enormously to Limerick and the surrounding counties.

As I said, exports are critical to our economy. If these tariffs dramatically impact our exports, we will face serious challenges, not just in the export sector but across the whole of our economy. CSO estimates show that exports in 2024 were valued at €223.8 billion, with imports valued at only €133 billion. Clearly, in welcoming large volumes of foreign direct investment, the focus on our domestic economy was often not prioritised. However, before 2 April, we still had a shortage of craftsmen and apprentices, we were watching the decline of our city centres and our SMEs were not supported as they should and could have been.

The issue of apprenticeships was raised by me with the then Government in 2018. At the time, my colleague Kathleen Funchion, now an MEP, launched a document, Apprenticeship Reform Proposals, in which, recognising the future need we would have, we sought the tripling of spaces on apprenticeship programmes. Unfortunately, our proposals were not adopted by the Government, and we now have large-scale shortages in many areas. Yesterday was the time to prepare, but we are where we are now, and we must prepare for the impact of these and any future tariffs and external shocks that may present themselves. We need to be ready with supports akin to those introduced in the responses to Covid and Brexit, while also looking at market diversification supports and better support for our SMEs, businesses and companies.

Although, as I said, FDI is very important and has been excellent for Limerick, it is clear we have become over-reliant on that sector of our economy. The dangers of over-relying on tax incomes from multinationals has been well flagged by me and others, but this and previous Governments have not done enough to encourage balanced development of our economy by strengthening and supporting our SME sector. I have previously called for and launched policy documents on the need to establish a State-wide Irish enterprise agency. It would take over responsibility for the current local enterprise offices, make best practice uniform and provide the Government with advice on what retailers and other SMEs want and help them to grow, sustain and build their businesses. An increase in personnel would include new mobile business advisers to travel to businesses and provide advice on business plans, grants and strategies on site. In the immediate term, we must also seek to protect jobs across the island. To that end, I urge an increased level of engagement with the Executive in the North and, as my colleagues said, for the North-South Ministerial Council to meet as a matter of urgency.

11 o’clock

We, along with our European partners, must respond in a measured way. Aggressive counter-tariffs could damage our economy. Along with our European colleagues, we must do all we can to avoid a tariff war, one which serves the interests of no one and would expose our island to the worst impacts of such a tit-for-tat response. We must rather look to enhance our competitive advantages such as third level education, our people and our unique location between Europe and the United States. Simultaneously, we must develop our indigenous enterprise sector, which has been left behind in recent years. To do so, we must reduce the cost of doing business in this country. We have the most expensive net electricity prices in the EU. This must change if we are to be competitive. We must look at ways to reduce utility prices more generally, while doing similar with property and banking.

We must be measured in our response and never lose sight of our greatest strength, which has always been the people of Ireland. Businesses invest in our country because of our hardworking and highly educated workforce. While things are uncertain at the moment and a lot of workers are really stressed, investment in our key advantages, such as our workforce and our SMEs, will see us through these aggressive self-destructive tariffs imposed by the US President.

Gerald Nash (Louth, Labour)
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Trump’s trade tantrum is having a real world impact, just one week after that bizarre event in the White House Rose Garden where an American President held up what looked like a bookmaker’s betting board as he gambled away the world economy in service of his own ego. It is quite bizarre that the country that has done the most to design the current global world economic order is now set on destroying it. The country that has benefited the most from it is upending that very order itself.

It would be comical if it was not so serious. The real world ripples of President Trump’s decisions have already hit our shores at the weekend. The first email I received on Saturday morning was from a Louth-based firm which, last Friday, lost all of its US orders, which that business and its workforce very much depend on. We must remember that this is not about economics, nor is it necessarily about business and trade for President Trump. This is a political project. That is what it is about. It is an ultra-nationalist political project first and foremost. It may well look like, at some point soon, he will be presiding over the ashes of a destroyed US economy and all that entails for the world economy.

Companies the length and breadth of this island which trade into the United States will be facing similar news this week to the news received by that Louth-based company late last week. In the weeks to come, the Government must move to put in place supports that companies like that firm in Louth and hundreds - possibly thousands - of others will need over the next period of time to help us to ride out what we hope will be a short- to medium-term storm.

To that end, the Labour Party and I have been calling for the introduction of a temporary short-term work scheme, an anchor initiative, that will keep workers tied to their employer, avoid redundancies and prevent companies from shutting their doors. The Labour Party and IBEC are on the exact same page in this regard. We are ad idem. However, it seems the Government has, in a rather kneejerk fashion, set its face against it. I suspect this is the case because it raises the spectre of the employment wage subsidy scheme. What we are proposing is very different, however. In my view, that scheme has been deliberately misrepresented by some Government figures in recent times to scare the horses with regard to the scale of resources that needed to be deployed for the wage subsidy scheme with which we are all most recently familiar. The scheme the Labour Party is proposing is built on the principles of the German Kurzarbeit model, which keeps workers close to their employers during periods of uncertainty or turbulence. It would not be paid from common spending but from the Social Insurance Fund and the National Training Fund, both of which the Minister of State will know are in substantial surplus. This is the kind of scheme that prevented workers in Germany from experiencing mass redundancies during the last great recession and ensured hard-won skills were retained in the German economic model. The social and economic cost of job and skills displacement is enormous. There is ongoing and continuous scarring for individuals, communities, families, economies and firms in this regard. We cannot run that risk in the context of what we are about to face.

This is the kind of scheme that, for example, the Irish Congress of Trade Unions called for during Brexit. IBEC, as I said, is calling for it now. For years now, it is something the Labour Party has been consistently calling for. In fact, this concept should form a feature of Ireland’s labour market model - full stop - to deal with turbulence and shocks as they arise in a time-limited and targeted fashion. It would support companies impacted by tariffs to hold onto skilled workers as they adapt to changing circumstances and are allowed to be assisted by Enterprise Ireland, for example, to develop new markets. It also protects workers from redundancy with State subsidies and shorter working hours when companies encounter difficulties outside of their control.

I will say one thing that is intrinsic to any scheme the Government may be considering. I notice the Tánaiste has changed his tune somewhat from comments he made last weekend. He seems more open to be persuaded of the merits of a scheme. There should be no subsidies from the State without conditionality. Those kinds of conditions should include a commitment to retain jobs. A good example where a short-term scheme would have made a difference in the last recession is in the construction sector. If we had been able to hold on to more of our skilled construction workers during and after the crash, we would be in a much better position now with the housing crisis.

We will also have to look at how we grow our trade connections with the rest of the world and how we develop new global markets. We all know the reasons that CETA, for example, has been held up. Those issues need to be addressed. We know there are concerns principally in the Minister of State’s own party, Fine Gael, in Fianna Fáil and on the Independent benches about the prospect for certain sectors of the Irish farming community in the context of Mercosur. These are issues the Minister of State will be aware of and issues on which, if we are serious about trade, we need to have an open and frank discussion in this House to address those concerns head on.

If we are to improve our competitiveness, as colleagues said earlier in their comments, we have to address the infrastructural deficits we have, develop our new energy resources with offshore wind, improve our water infrastructure and scale up housing provision and transport investment. I listened to the Taoiseach last week on “Morning Ireland” after I was on that programme myself. He talked about how we all need to do these things. When did this suddenly dawn on the Taoiseach that these are problems for Irish society and our competitiveness? We in the Labour Party have been saying this for years. During the recent election campaign, I said publicly on whatever platform I was provided with that the biggest threat to the Irish foreign direct investment model at that point in time before the election of Donald Trump was the Fine Gael and Fianna Fáil government and its re-election. That is a reality. We have not delivered on the infrastructural requirements we need and our society, jobs and businesses are paying the price. We are not prepared to enter into this tumultuous period for our economy. That is on the Minister of State and his colleagues. It is as simple as that.

President Trump is trying to turn the clock back to a golden age that only exists in his own imagination. This is a massive act, in my view, of self-harm against his own people and we are being caught in the crossfire. While it is a time for calm nerves and cool heads, that does not suggest it is a time for inaction or inertia, nor a time for Fine Gael, Fianna Fáil and their colleagues on the so-called Independent benches to decide to take their concerns out on ordinary working people in Ireland. The view always among some Deputies on the Government benches is that we should not waste the opportunity of a good crisis to drive down the pay of working people and their working terms and conditions.

The Government started this process yesterday when it not only delayed the extension of additional sick pay benefits for Irish workers, but stopped it entirely. Let us not misrepresent this. A commitment was made in various election manifestoes and in the programme for Government to ensure we move towards European norms on sick pay for Irish workers. They are being stopped and next in the firing line will be the national minimum wage. That is what is going to happen. Fianna Fáil has form on this. During the last economic crisis, the first thing the party did was destroy the national minimum wage by reducing it by one hour. There was no economic evidence whatsoever, anywhere in the world, to suggest that this would retain or add a single job and it did not. In my mind, Fianna Fáil will forever be associated with that. This is not a time to be driving down the pay and benefits of working people. At a time when the indigenous Irish economy will require support and when demand in local economies is important, we need to be providing support by ensuring that those who are earning the least are supported by us as best we can.

In the short term, we require a short-term work scheme and a marketing fund for the worst-affected sectors, such as dairy and whiskey. They are out of the firing line at the moment but that may change. We also need a credit guarantee scheme to support affected businesses. We support the motion.

Sinéad Gibney (Dublin Rathdown, Social Democrats)
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We welcome this motion and thank our colleagues in Aontú for putting it forward. We welcome the opportunity this morning and later today to speak on tariffs. We urged that this time be made available so that we can discuss this crisis. We in the Social Democrats share deep concerns about the impact of these tariffs on Irish jobs, the economy and consumers. These concerns are shared across the globe because so many people will be impacted by them. In particular, I want to mention the news we woke up to this morning that pharma, as we had suspected, is going to be in President Trump's crosshairs. I want to speak to the people who have jobs in the sector and who are surely enduring incredible anxiety now as to what the impact will be for them. We anticipate that the tech sector may also be caught up in this. I urge that we do everything in our power to prevent this from happening.

I will speak on the motion on three levels; the domestic, European and global contexts. I have found it really disheartening that, over the past few days, Government spokespersons have essentially ruled out the types of supports we think are crucial for maintaining the connection between employer and employee. We have heard from the Minister for Finance and from the Taoiseach that the supports will not be made available. However, other spokespersons seem to have had a softer approach to it. I want to be clear that nobody from the Social Democrats is suggesting that we need to see the same scale of supports that were provided throughout the Covid pandemic. However, we learned from the Covid pandemic how important and positive it was to maintain that link between employer and employee. We believe that we can see a similar approach taken when we know exactly what sectors will be affected and how they will be affected. Then, we can provide those supports on a sectoral level so that those jobs can be maintained and so that our wonderful indigenous Irish businesses can be supported to pursue supply chains and markets which might replace those they have lost because of these tariffs. This will help them, in a transition period, to diversify their operations and offerings and to reposition themselves into a more tenable position. We believe that those supports can and should be provided. I also urge the Government to look at the Kurzarbeit programme from Germany. This was heralded by the OECD as an incredible programme. I think it can be used as a potential model for our approach.

We also need to be careful about not ruling things out. Prior to these announcements, the Minister for Finance said that there will not be the same cost-of-living measures in this year's budget. As a party, we have been critical that over the last few years, the cost-of-living measures which were introduced as a response to inflation were not targeted enough. However, they have become something that people rely on. This is not the time to remove them. We urge that they become more targeted measures. For those Irish consumers who will face into increasing danger of poverty, cost-of-living measures have to be considered in the coming months in the run-up to the budget.

The economic emphasis of the country also has to be addressed. I refer to the surplus we have seen over the last number of years. Unfortunately, there has not been the investment in infrastructure and housing that we would have hoped for. It is the case that many multinationals face not only the barriers from Trump, but the existing barriers. We need to know that they can support their workers with the public services and housing that they would expect.

During the Brexit crisis there was great analysis across the Civil Service in terms of preparedness for the economic impact it was going to bring about. That can now be re-enlivened and reimagined for this crisis. I commend the work that has been done in that area and suggest that we double down on it in the new context.

On a domestic level, I want to speak about the danger of the differential tariff we have seen across the Border. It is crucial that we take into consideration any potential impacts that differences in tariffs and export and import measures will mean for peace and stability on this island. This threat cannot be underestimated. We saw this threat during Brexit. The Windsor Framework is delicately holding that together but is now under further threat. We need to also exploit it, as it can be a potential economic gain for companies here.

Most of what will be done in terms of negotiation will happen at EU level. We welcome the engagement that the Government has committed to over the past few weeks and in the weeks to come, to represent Ireland's interests at EU level and to make sure that we punch above our weight in terms of how our different sectors that may be impacted will be represented. Most importantly, escalation needs to be prevented and we need to be prevented from being dragged into further tit-for-tat and retaliation.

We also urge Ministers representing Ireland at EU level to seek partners in the pharma sector that will be similarly impacted by today's announcement, such as Denmark, Belgium and Germany, to see how we can collaborate with them to ensure that our joint interests carry additional weight. We also need to make sure to look at every avenue in which the European Union can offer alternative markets and supply chains that businesses will need during this crisis. Most importantly, Trump will win if he fragments the EU by pushing disunity. It is crucial that we promote unity among member states over the coming weeks, because that is a danger.

One more thing on the EU level is to suggest that the EU reignites its EU globalisation adjustment fund. We believe it is the perfect mechanism at this time to address the dangers that businesses are facing.

Regarding the global context, we welcome that the Tánaiste is travelling to the US at the moment to engage with key US Administration figures to pursue Irish interests and represent them in that forum. Although the motion does speak about the footprint that needs to be increased in those different arenas in the US, it does not mention the Democrats. I urge the Government to look strengthen our alliance with the Democrats in the US, because the domestic context has to be recognised. Trump is a megalomaniac and anything that can potentially affect him will probably come from the disturbances we are seeing at domestic level, because this is not all that he is doing. The tariff war is not the only action he is taking. He is laying off massive numbers of people in the public sector in the US, through the DOGE cuts. He has cut US aid, which is having massive impacts globally. In many ways, we are seeing a response to this in the US. We have to take that into consideration in how it will affect the potential for the roll-out of these tariffs.

It is crucial at global level that we prevent a race to the bottom. Trump has also indicated that it is not just tariffs he is after, but trade barriers as well. He is complaining that markets are not willing to import US goods because of other reasons, for example, chlorinated chicken or lower standard beef, and so on. We have to make sure that there is not any dismantling of the standards that we uphold in the European Union and the Irish market. This protects consumers and maintains a quality for consumers that they can rely on. At global level we also have to look at other partners.

We could potentially take a co-ordinated approach beyond the EU, if we try to partner with Asian countries, Canada, Mexico and so on. For example, we could identify a widget in the supply chain of a key sector in the US and look at how we could jointly bring about an increased impact. That is something I would like the EU to pursue.

The Social Democrats support the open economy Ireland has enjoyed and we recognise the threat that the tariffs bring to it. We must ensure we do not use them as a mask to once again pursue austerity measures. It is sinister to see that potentially emerging in recent days in the context of employment rights and other issues. This seems to be an attempt not to waste a good crisis. That cannot happen. We must hold strong, uphold our standards and make sure we protect consumers and businesses in the best way possible through the supports I mentioned at the outset.

Ruth Coppinger (Dublin West, Solidarity)
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What we are seeing in the world economy right now is a historic turn-away from free trade and globalisation to protectionism, but it is a trend that has been under the surface for some time. The context for this is that post 2008 when the financial system collapsed and capitalist growth slowed, there has been an economic malaise in general and increased competition between the US and China. The multinational companies that Trump hopes will relocate to the US have done very well from globalisation but, nevertheless, the US economy has plummeted in recent years. The MAGA strategy is to bring industry home, to reindustrialise, and to trigger a ruthless pursuit by capitalism of a share of world markets over rivals.

It is disgraceful that the trade union leadership in the US has supported Trump in these plans because the interests of workers and the interests of the broligarchy that Trump has around him are completely and utterly different. I welcome the fact that protests have started to bubble up from the ground in many cities against Trump's attacks on democracy and economic rights. Tariffs of 46% have been imposed on Vietnam. It is pure folly to think that workers in the US are going to accept the pay and conditions that are forced on workers in Vietnam.

The Irish economic model is the topic of this motion. The game is up on the bubble in tax receipts and the tax haven economy that has been developed by successive governments over a period. Foreign direct investment is now under pressure and this model is in decline as a way forward for people. In terms of the impact on jobs in the Irish economy, it has been estimated that 30,000 of the 50,000 people who work in pharma here work in US plants. Paschal Donohoe has noted that between 50,000 and 80,000 jobs could be on the line, although this includes jobs that could be created going forward. It should also be noted that one company, Pfizer, has invested €7 billion in plants in Ireland, and it is expanding, so any impact is unlikely to be immediate. In a separate internal Government economic model seen by The Sunday Times, it was estimated that between 56,000 and 60,000 fewer jobs would be created. This will have a massive impact in rural areas as well.

Davy stockbrokers estimate that tariffs are expected to slow down the economy, in particular in the pharmaceutical and food and drink sectors. The main threat is expected to be internal challenges such as the housing crisis. The cost-of-living crisis is very likely to get much worse. Already, we have seen the Government put forward ideas like water charges, and it has removed the reduction of €1,000 in third level fees. There has been talk of taking away the one-off payments for electricity that helped some families in the most desperate situations.

How has the economic model that is so lauded by Fine Gael and Fianna Fáil in particular, but also many other parties in the Dáil, delivered for the majority of people in Ireland? We have a massive housing crisis. We have Third World disability services in many cases. Children with scoliosis have been suffering continuously for years. We do not have a decent public transport system. When we go to any other country in Europe we are embarrassed by the public transport system that we have. The idea that the economic model of relying on foreign direct investment, paying low or no tax in this country, has worked for the majority is not correct. Houses are completely unaffordable. Young people are taking the decision to emigrate.

It is vital that we begin to see workers who are threatened get organised. All workers are threatened but those in these industries are especially threatened. We reject the notion that workers should pay for the crisis in the form of their pay and conditions. The interests of ordinary people are not the same as those of the industrialists. We must also ensure there is a strong movement to oppose the neo-austerity measures that the Government will implement. Not one cent should be taken from public services such as health, disability, education and welfare. None of these services should pay the price for the crisis in global capitalism. Every job should be defended and there should not be pay cuts or price gouging, although we are very likely to see that. Prices have already started to increase. The Government must intervene. It has the legal power to control prices. It refused to do that during the recent cost-of-living crisis, but it must do it now. Instead of relying on the private sector and on multinational companies to come here, we must have a programme of public investment to create jobs where they are needed – in health and housing. We need a model of economic development that protects the environment while ensuring a rapid and just transition.

Pharmaceuticals and tech are sectors that can provide socially useful essential goods and services. They must be repurposed and geared towards satisfying the needs of people, here and internationally. We need State intervention to defend and create jobs. We cannot rely on multinationals and the profit motive to deliver jobs and security. Essential industries should be taken under public control to defend jobs as well. In no way should ordinary workers pay the price. The Irish trade union movement has not responded in any way to this threat. To use Trump's phrase, it is time for the unions to make themselves relevant again. Even where workers are not in unions, they should come together and discuss how they can organise against what is likely to face them down the line in workplaces and also in communities. I refer to water charges and one-off payments. All of the things that are threatened should be resisted. I believe that they will be by communities and workers as well.

Danny Healy-Rae (Kerry, Independent)
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We have a new Cathaoirleach Gníomhach in Deputy Keogh. We wish her well.

We now find ourselves in an unfortunate position. We hope the Government can deal effectively and efficiently with it. We are a small nation but we have a lot going for us. We need to get our act together. The first thing we have to cut out is spending on waste and ridiculous things that are not of significant importance to the people we represent here in Dáil Éireann.

We have been exposed by our over-reliance on multinational companies.

It has not gone unnoticed by me and many others that every other country in Europe has suffered economically in recent years, but Ireland seemed to stay riding high. It all comes down to 25 or 30 companies that provide great jobs and give great employment, which effectively means higher incomes. It is good for people in the areas they are providing the employment. We hope that nothing untoward happens to the workers because families depend on workers - a whole lot of families - and other spin-off industries depend on these high-level jobs where people earn massive amounts of money and that means a lot to our economy.

However, as I said at the start, we have to cut out waste. These bicycle sheds and all the stupid notions that cost massive amounts of money without people getting any real benefit from them must be gone. Many people have been advised to go electric with everything and that is fine if it makes common sense, but we should not be enticing or telling people to do this or that when it will hurt them economically. When we were told to go electric, no one told us the cost of electricity would go up like it has. It is a massive noose around everyone's neck. Since the day Bord na Móna closed Lanesborough and Shannonbridge, the cost of electricity has gone up day after day. There has not been one day when it came down. That has to be realised.

We had a former Minister - I do not like talking about lads who are gone and not here any more to talk for themselves - who came down on people who were cutting a bit of turf to keep themselves warm. How ridiculous can we get? Whatever we do on this earth, we will not change the weather. I am all about reducing emissions if it is economically viable for people and making it attractive for people to do that, but forget about changing the weather. We are not going to change the weather. No one here on this earth will. We can do simple things. People are having fierce trouble putting a roof over their heads and one of the simple things we can do in Kerry is to allow people who want to build close to their homes to get planning permission. It is working out grand for farmers' sons and daughters, but it is not working for all the other people who have land close by and want to allow their son or daughter to build a house so they can be near them. There is nothing wrong with that, but there is a clause insisted upon by the Planning Regulator, which is "urban generated pressure". These people are not coming out. Urban generated pressure is to stop people coming out from an urban set-up, but that is not what is happening. It is happening to the local people who want to build locally and to be near their parents.

Then we have such things as the Rock Road in Killarney, where there are new footpaths built wider than the road for the cars and other vehicles. There are two footpaths, one on either side, with cycle lanes. A traffic count was done of how many bicycles passed. On one day, 14 bicycles travelled on that cycleway. It cost €1.2 million and one of the bicycles travelled up and down there four times. It went up and down twice so that was four of the 14 movements in 24 hours that used the new cycle lane on the Rock Road in Killarney which cost €1.2 million.

Gillian Toole (Meath East, Independent)
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Gabhaim buíochas to the Independent Technical Group for tabling this motion for discussion this morning.

I will make it slightly smaller and more personal. If you run a home or small business, the word "threat" is also frequently used. There may be internal or external threats. Threat is one part of the business and sporting acronym, SWOT, which stands for strengths, weaknesses, opportunities and threats. I am a firm believer that where there is a threat there is also an opportunity and where there is a weakness there is a strength. We need to be careful about the language we use and about personal commentary on leaders of other areas. At the end of the day, we will still have to sit down and negotiate. We have to stick to the facts and leave personal commentary out of it because it is all observed.

I will go back to small businesses and homes. I remember opening a small business back in the early 1990s and Blanchardstown shopping centre came on stream. It was only an approximately 15 minute drive up the road. That was a threat. It forced me to look at the operations of the business and the conditions and terms of the fantastic team I had with me, many of whom are still with the current owner. It focused the mind on waste, paperwork and the conditions of those working on the team, such as how we got along together, what their needs were, whether their needs were met and, in tandem or balance with that, how we served the customer in a healthcare environment that is heavily regulated, but we got through it. Another threat came along in the foot and mouth epidemic. Again, we pulled together by breaking down the essentials, minimising waste and streamlining the paperwork. Let us cross-reference that with the programme for Government and the messages coming from Europe at the moment about minimising bureaucracy, streamlining red tape and making it easier for business to take place. That process will relieve to a certain extent the burden on the teams of people who have to deliver the different work streams.

Many members have spoken about another area we need to look at, which is local authority waste, different Departments and State and semi-State organisations. Do we need to look at incentivising or penalising senior management? Accountability and all these areas are relevant. Key to all this is people. Even in the age of artificial intelligence and digitisation, at the end of the day, people are central to this. We cannot have a minimisation of services. Healthcare, education, community safety, public transport, and housing are areas we discuss here daily and that we hear about in our community clinics. They cannot be sacrificed. There are opportunities to make savings and we must utilise every one of them. The cost of living has been mentioned by colleagues, as has the area of renewable energy. State investment in that is essential. We cannot allow other jurisdictions to have the majority shareholding. The developer-led model of renewable energy as it currently stands must be investigated and Irish State investment in it must be worked towards.

My final point is about what the Welsh Parliament has done. In 2015, it enacted the Well-being of Future Generations (Wales) Act. It looks at every Government department and Parliament department and plans ahead for two to three generations. We have that opportunity in Ireland because we tend to have multiple steps forward and many more backwards. While the language in the motion is "threat", I would cross-check that with the acronym of SWOT. In the threat, there is an opportunity and in the weakness there is strength. Ní neart go chur le chéile.

Alan Dillon (Mayo, Fine Gael)
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I thank the Cathaoirleach Gníomhach and wish her luck in her new role chairing the Dáil.

I thank all the Deputies for their engagement in today's debate. The interventions we heard reflect not only the gravity of the current situation, but also the breadth of concerns across the Dáil for our economy, our trading relationships and Ireland's place in a changing world. We are all experiencing and getting to grips with a fundamental change in how the world's largest economy has decided, at least for now, to conduct its trade policy. The implications of a blanket 20% tariff on all EU goods represent the most serious challenge to transatlantic economic relationships in generations.

Several themes have emerged throughout this debate, including concerns around sectorial vulnerabilities, questions about Ireland's preparedness, fears about our place in the global economy and legitimate anxiety about what the next developments might mean for jobs, investment and growth. Let me address some of these themes.

Ireland is a full and equal partner in contributing to the European Union's collective response. In doing so from the outset of this trade dispute, we have been both a vocal and a constructive voice at the table, ensuring that the EU's approach is a measured and proportionate response. Alongside his counterparts for all 27 member states, the Tánaiste attended an extraordinary meeting of the Foreign Affairs Council on trade last Monday. There was an unequivocal message of unity around the table that the EU's response would be firm, proportionate and measured and that the EU would continue to seek negotiations and dialogue with the US. At that meeting, the European Commission updated Ministers on the timeline and the scope of potential countermeasures, including those designed in response to earlier US tariffs on steel, aluminium and derivative products that took effect in March. It was confirmed that the intention was to proceed with counterbalancing measures, which are expected to take effect from 15 April. It is also important to note that the countermeasures have been designed to reflect the EU's commitment to targeted and proportionate responses.

We understand that dairy and spirits products have been removed from the list of EU countermeasures. This is very much welcome. The Government has conveyed at every opportunity our sensitivities in this regard to the European Commission. The approach at the EU level is determined and disciplined. Ireland has helped to shape this response, not with threats or treaties, but with strategy, solidarity and sustained engagement. As the Minister of State, Deputy Byrne, referred to earlier, our efforts to de-escalate this dispute also extend to direct contact with the Government of the United States. The Tánaiste recently had a call with the US Secretary of Commerce, Howard Lutnick, and will meet him in Washington DC today. Indeed, the Tánaiste spearheaded several engagements prior to the announcement of this series of tariffs with the trade ministers of many EU member states sharing similar economies and sectorial challenges. This visit is not just symbolic but a vital opportunity for the Government to reiterate our message that these tariffs are harmful to both sides and create unnecessary economic pain and there is still time to de-escalate through negotiations. The Tánaiste will also raise the crucial role played by companies based in Ireland in US pharmaceutical supply chains. This is a reminder that in today's world, economic interdependencies run deep. Indeed, this is a sector that starkly demonstrates that punitive trade barriers not only hurt foreign exporters but also damage domestic supply chains, customer access and health services.

Several Deputies raised concerns about the potential impact of these developments on Irish businesses, especially SMEs. I reassure the Dáil that the Government is taking these concerns very seriously. Following the announcement of the new tariffs, the Tánaiste immediately convened the Government's trade forum. This meeting brought together key Ministers, enterprise bodies and business leaders to shape and inform about potential risks. Additionally, it sought to ensure that we have a co-ordinated response. The development of a detailed trade diversification action plan was agreed, which will support Irish exporters in exploring new markets, while also leveraging existing EU trade agreements and strengthening our international presence. We will continue to assess the exposure of sectors to these tariffs. Our enterprise agencies stand ready to assist. Enterprise Ireland, IDA Ireland and our diplomatic network will keep supporting firms in accessing alternative markets, navigating new trade conditions and adapting their strategies. Ireland's economy is currently robust and we must not lose sight of this amid the noise. Our public finances are in good order, our employment levels remain strong and our investment attractiveness is undiminished. We remain one of the top countries globally for competitiveness. We have a young, skilled and mobile workforce and we offer stability, legal certainty and a strong regulatory environment. We are also the largest English-speaking country in the EU, with access to more than 450 million consumers. We have proven time and again that we can respond to disruption not with panic but with purpose. We have navigated previous crises in the past, be it Brexit or Covid, with strong leadership and know-how. This moment is no different. Some have asked whether our model of foreign direct investment is under threat. I think the simple answer is "No". FDI has been an integral part of our economic success. We have many sites throughout the country where leading global companies are playing a key role in providing goods and services that underpin our modern global economy.

It is concerning that Aontú has described the high-quality employment provided by many of these large FDI and multinational companies by referring to their profitability receipts as bargain basement. This is a commonality Deputy Tóibín has brought up in this Dáil numerous times. I remind Deputy Tóibín, from County Meath, and Deputy Lawless, from County Mayo, that these are counties that are home to many of these multinational companies. There are 16 companies in County Mayo supporting more than 5,500-----

Peadar Tóibín (Meath West, Aontú)
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We are criticising the Government's policies and not the outcomes.

Alan Dillon (Mayo, Fine Gael)
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I did not interrupt the Deputy.

Paul Lawless (Mayo, Aontú)
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We are trying to protect these jobs. It is incredible that today is the first day the Minister of State has spoken about this issue.

Alan Dillon (Mayo, Fine Gael)
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The Deputies are far from protecting them.

Peadar Tóibín (Meath West, Aontú)
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It is incredible.

Alan Dillon (Mayo, Fine Gael)
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The Deputies are describing them as transitional jobs. In one sense, they are-----

Peadar Tóibín (Meath West, Aontú)
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No, we are not. We referred to it in terms of transitional policy. The Minister of State has got to tell the truth.

Alan Dillon (Mayo, Fine Gael)
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-----providing uncertainty.

Paul Lawless (Mayo, Aontú)
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Be honest. The Government has neglected the indigenous SME sector.

Alan Dillon (Mayo, Fine Gael)
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They are not providing political solutions to the challenges we face. I wonder whether the Deputies have met many of these high-quality employees who provide a unique service to these companies that are extremely important to rural Ireland. If we look at the number of jobs in the regions, these companies provide more than 31,000 jobs in the west. More than 16 companies, as I said, are providing more than 5,500 jobs. These are, then, far from transitional jobs-----

Peadar Tóibín (Meath West, Aontú)
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We have the sums.

Alan Dillon (Mayo, Fine Gael)
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-----and far from being the result of bargain basement corporation tax receipts.

Peadar Tóibín (Meath West, Aontú)
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No wonder people do not believe you.

Alan Dillon (Mayo, Fine Gael)
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In one sense, the Deputies need to reflect on that point. It is quite disrespectful and incorrect to describe these companies as what the Deputies have described them. They need to reflect on this point. Certainly, no reference was made-----

Peadar Tóibín (Meath West, Aontú)
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There is a weakness in your argument when you have to tell untruths.

Alan Dillon (Mayo, Fine Gael)
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-----to the current unemployment rates, nor to the more than 2.8 million people now employed in our economy. Indeed, these FDI companies support our strong indigenous companies. Indirectly, we have seen thousands of-----

Peadar Tóibín (Meath West, Aontú)
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I will say it slowly in my closing speech so you will understand it better.

Alan Dillon (Mayo, Fine Gael)
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-----jobs created as a result of these sectors, which has been a real positive in relation to EI-backed companies now exporting back to the US.

Peadar Tóibín (Meath West, Aontú)
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We are not-----

Alan Dillon (Mayo, Fine Gael)
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In the US, more than 770 Irish companies are now creating more than 200,000 jobs. We are the sixth largest investor in the US. This is extremely important if we look at the scale of what Ireland has to offer and the mutual relationship between the countries. Additionally, Ireland has certainly built a strong reputation for global business and this is based on more than just our tax policy. Global companies are certainly here not because of tax loopholes but because Ireland is a launch pad for many of them to have their EU headquarters based here and have access to the block of more than 450 million citizens. This is not going to change. I am confident Ireland can remain a compelling destination for investment well into the future.

Keira Keogh (Mayo, Fine Gael)
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I thank the Minister of State.

Alan Dillon (Mayo, Fine Gael)
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Regarding the tariffs and challenges we have regarding the all-Ireland economy, we are working to ensure that supply chains on the island, which are deeply connected and integrated, are supported as we face the challenges ahead.

Keira Keogh (Mayo, Fine Gael)
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I thank the Minister of State. I move now to the Independent Technical Group to conclude this debate. Deputies Gogarty and Tóibín are sharing time. I call Deputy Gogarty.

Paul Gogarty (Dublin Mid West, Independent)
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Go raibh maith agat. I welcome the opportunity to have this discussion. It is also good to know we will have a further chance to talk about the current Trump slump later today.

It is widely known that in the 1940s and 1950s, the cliché was that Ireland's biggest exports were live cattle and people. Many of these people went on to create lives and send money back to Ireland from the UK and the US. These early immigrants who contributed to the United States in so many ways are part of the great diaspora that Trumps likes to talk up during elections, but then he treated Ireland people so disrespectfully on St. Patrick's Day by bringing that thug to the White House, which I referenced before. We have moved a long way since those days of live exports and people thanks to the policies of the Lemass Government at the time and in particular the great T. K. Whitaker. Ireland's economic policy to try to get manufacturing into Ireland was his brainchild. We got German and American companies, companies from the UK or anywhere else. We had a cheaper cost of production and the skills and Ireland built up a manufacturing base throughout the fifties and sixties. This morphed into IT and pharmaceuticals and because of that base we have a skill set. On one hand, we are going to face a lot of economic turmoil. It will be different from the global crash in 2008, which some would say was exacerbated by the policies of the Fianna Fáil Administrations before that, but we are going to face testing times and we need to have strategies in place to deal with that. However, it is different and we need to have a balance between scaremongering on one hand and trying to have proper schemes to deal with this crisis on the other.

Let us look first at the slightly more positive aspects, to which some speakers have alluded. The pharmaceutical sector in Ireland is massive and it is not entirely based on exports to the US. Even if a pharma tariff comes in and hits our exports in a big way, we are not going to have a massive relocation to the US because of the skill set and the base we have. The talk has been that down the line we may not get investment in newer technologies but there will not be a sudden drop-off or a total collapse of our economy. At the same time, it is a wake-up call because we do not know whether there may be a rebalancing in the House of Representatives and the US Senate two years from now and the Democrats bringing a little bit of common sense back into it. As the long-term shift in the US is going to be a little more isolationist in any event, we have to start looking to diversify. We cannot do it today but we can do it over two to three years. If there is a message I would like to send out, it is that we need to start possibly setting up a special committee on dealing with this crisis and inviting all the best experts in to it and looking at how we can move forward. In the debate later today, I will look at a few suggestions in that regard but I want to focus in the minute I have remaining in this slot on what we absolutely should be doing, which is investing in self-sufficiency in energy.

Some 80% of our energy requirements come from imports. We should start making strategic investments in a big way to get rid of the requirement for oil and gas, either through green hydrogen or through renewables. I mentioned in a number of debates in this House that it is not just about offshore and onshore wind energy; it is also about wave technology. We are ten years behind Demark and Scotland. We should be at the forefront and put some of our strategic reserves into that investment because for a small amount of short-term pain in terms of not having money to spend on other things, we will avoid having to spend up to €6 billion on those imports every year and, no matter what the world throws at us in global crises, at least we will have our self-sufficiency in energy. Countries like Iceland that have geothermal power are able to produce all sorts of foodstuffs no matter what sort of crisis the world is in. We are not as badly off as we are painting it. We do have potential and I will talk about that during the later debate.

Peadar Tóibín (Meath West, Aontú)
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FDI is good and it should be attracted and nurtured. The Government is trying to critique Aontú's criticism of its policy and twist it in a fashion to say that we are in someway criticising FDI.

Alan Dillon (Mayo, Fine Gael)
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The Deputy knows what he has said.

Peadar Tóibín (Meath West, Aontú)
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We are not; we are criticising the Government's overexposure to FDI-----

Alan Dillon (Mayo, Fine Gael)
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Bargain basement.

Peadar Tóibín (Meath West, Aontú)
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-----and its inability to create a balanced economy-----

Alan Dillon (Mayo, Fine Gael)
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It is disgraceful.

Peadar Tóibín (Meath West, Aontú)
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-----in which it makes sure indigenous enterprise is also thriving. That is a big problem. The Government has massively exposed Ireland by not developing indigenous enterprise in recent years. It has created a weakness in the Irish sector. I will give an example if the Minister of State and the Minister will stop shaking their heads for two seconds. Ten CFOs control 40% of the corporation tax coming into this country.

Alan Dillon (Mayo, Fine Gael)
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That is not pertinent.

Peadar Tóibín (Meath West, Aontú)
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Ten individuals control 40% of the corporation tax coming into this country. Corporation tax is the second biggest tax in the State. It makes up 27% of the tax receipts. That is a massive exposure. It is a very narrow tax base. It means that if decisions are made by those ten individuals, it creates a big hole in our budget.

Alan Dillon (Mayo, Fine Gael)
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Does the Deputy want them to go to the UK?

Peadar Tóibín (Meath West, Aontú)
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That is the first thing. The second issue is that we obviously need to develop FDI but we also need to develop indigenous enterprise and the way to do that is to make sure first of all that input costs are low. Input costs in this country are massively high. They are threatening indigenous and FDI business at a big rate. The other issue is that there are, or should be ,other competitive advantages in this country, such as transport, housing, communications and education, but the Government has been incompetent in its delivery in all those areas over the past two decades. That has weakened our suite of competitive advantages and narrowed our emphasis on the corporation tax element, which again has put us in the sights of the US. We need to do more.

Another element of this motion is to ask the Government to do more in terms of negotiating with the US and strengthening our case. Other than today's meeting with Lutnik and a couple of conversations that Ministers have had with Republican parliamentarians in the United States, there is very little evidence of real diplomatic efforts to make Ireland's case to the US Administration in the matter the Government should. That is not unusual because this Government outsources most things to the EU in many ways. The difficulty is that although the EU was good for Ireland in the Brexit negotiations, it was poor for Ireland in the context of the financial crash 15 years ago. It made decisions on the basis of the needs of Germany, France and Italy and not on the needs of the Irish people. The Irish people have paid 47% of the cost of that economic crash even though we were 1% of it. Another example is the Mercosur deal. The Mercosur deal is an international trade deal based on the needs of German car manufacturers and not on the basis of those of Irish farmers. When there are competitive interests within the EU, we often do not get the right shakedown with regard to needs. That is why it is really important that we do the necessary negotiations with the US. The reality is Ireland could actually be a bridge between the US and the EU in this particular crisis.

The other issue I wish to raise is that it is incredible that this is the first time the crisis around the tariffs has been put on the Dáil agenda. With this crisis looming, probably one of the biggest existential crises threatening this country and our economy, it took Aontú to be the first to put in on the Dáil agenda. It is so frustrating that we are here on the day these tariffs have been implemented and we still do not have a finance committee or a public expenditure committee or a Good Friday Agreement committee to deal with the North-South elements of this. The political establishment has spent more time in dysfunction in the past few weeks than in preparing for this particular crisis. What we are doing now is urging this Government to take a stronger role in negotiating with the United States and with the EU. We are asking the Government to make sure there is a policy of de-escalation within the EU. We propose that the best retaliation would be no retaliation for the moment for the Irish economy because a retaliation from the European side will also put Ireland in major difficulty. We are asking the Government to get real and make sure there is an urgency on this issue. Thousands of Irish jobs and the incomes of so many people are under threat. The Government needs to get active now.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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In accordance with Standing Order 85(2), the division is postponed until the weekly division time on Wednesday, 9 April 2025.