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Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: Is that a possibility?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: Is it not in the interests of the United Kingdom to have a transit arrangement in view of the fact that some of the trucks from the North come to Dublin or trucks coming into Wexford travel to the North?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: I wish to focus on costs and I will put questions to either Ms Lynch or Mr. Keegan. We were trying to work out the transport costs to the exporting company. Earlier, when we were trying to extrapolate the figures, the estimated cost ranged from €320 million to €500 million. The cost to business will be significantly more regardless of what happens. Companies will have to...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: Let us take the example of a haulier who is servicing the English market. His or her job will be to pick up a load in Kilkenny and complement that load. As a result of the fact that he or she is a groupage operator, he or she will heads towards the Border area and try to fill the container so that he or she has a full load of 50 different consignments. The driver has to have the paperwork...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: If there is a problem with one of the consignments in that shipment, however, it will be an issue for the eight or nine other companies with goods in the container.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: That will cause trouble for the logistics operator, which will have to be careful about what goods are picked up in order to avoid the possibility of a customs examination.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: As I listen to the exchanges this morning, the real difficulty is for the small operator, namely, the haulier with just a few a trucks. He or she will have to have a number of different consignments and should one of them cause a problem at customs level, the other exporters who have their consignments on his or her truck will suffer a delay in terms of their being delivered to the United...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: How aware is the Government of the issues we are discussing? Is it prepared? Is there a response unit that will assist Revenue or the exporters, not necessarily those who would qualify as EI exporters in terms of size?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: Who should take responsibility in that regard?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: It is the bit in between.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: It may be their challenge, but in answering that challenge it may affect those who are transiting going across that bridge.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: My last question also relates to costs to small businesses. Since e-commerce took on and consumers now buy their goods online, small companies also buy their parts and back-up material online. Such companies do so at the last minute in order to save costs. That will change dramatically now-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: -----if they buy online and if they buy from the UK, which most of them do. If one is using Amazon UK or something else to buy parts, that will affect them on cost. First, there will be a time factor. They will have to order earlier and they will have to carry the burden of the cost of that longer. They will have the extra costs of getting it in. They would rely on the courier companies...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: -----and for the future of that SME that relies on quick delivery from the UK to Ireland at present.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: They come in from the UK to Ireland. They come straight off the ferry in 40 ft. lorries to service their customers or the chain in which they are involved, and all of that will change.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: My sense of it is that it has not got down, in any way, shape or form, to that level of the SME. Those are the ones that need to be protected the most because they are reliant on all of this free trade and free movement.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: If one takes it down a step further, underneath the Enterprise Ireland client, into smaller companies not supported by Enterprise Ireland, there is a considerable range of companies employing one-to-ten staff that are not geared up for this, that do not understand the costs and that will be seriously affected by this change. That is why I asked about that sense of Government involvement in...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: From 2019 onwards?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: They are hearing this.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Brexit - Recent Developments and Future Negotiations: Discussion (Resumed) (25 May 2017)

John McGuinness: As a one-time dock clerk who filled out the customs forms and had to walk from Aston Quay down to the Customs House to get the various goods cleared, the only bright side I see in it is that I will have a role after this, perhaps as a consultant, to see them through.

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