Kieran O'Donnell (Fine Gael) | Oireachtas source

I welcome the Minister, Deputy Flanagan, to the House. Last Friday night, like many others, I watched the BBC news at midnight. I assumed I would watch the programme for ten minutes and go to bed, but I suddenly found I was still watching it at 2.30 a.m. because of the way the vote was unfolding. It was a stark reminder to all of us and to the European project that we have to reflect and at all times take heed of what ordinary people are thinking and how they believe Europe impacts on their lives.

There was a complete polarisation of the vote in England where, in effect, London and its greater suburbs voteden masse to remain in the EU, while the north east and all other areas outside Scotland and Northern Ireland voted to leave. One has to ask why, but a number of issues have arisen. Immigration is the elephant in the room and it needs to be examined at a European level. I abhor racism, but it was clearly a factor in the decision taken by the UK.

A lot of it is about perception. I was told by a friend earlier today that he met a friend in London two weeks ago who had been waiting three weeks to see a GP. That type of experience feeds into the process. There are issues that need to be examined. In the wider context, we need to address immigration to ensure there is no possibility of racism arising. If people have issues about the transparency of our system, they should be able to articulate it. Europe needs to reflect the views and wishes of the people and how they directly affect their lives. If people think Europe is detached and bureaucratic they will vote against it, and that is something we have to take on board.

Brexit will involve three stages. The most important thing is that there is no sense of panic. I very much commend the Taoiseach and the Minister for Foreign Affairs and Trade on their approach. I am looking at things in an Irish context. The more immediate issue for us is the sterling to euro exchange rate. Many small businesses export to the UK. Some 17% of exports go to the UK - the US is our largest exporter. If we drill down to the small family-owned businesses that are exporting, the figure is far higher than 17%.

The exchange rate today is about €0.82 or €0.83. In November, it was €0.69 and it rose to about €0.79 last week. If the rate rises to €0.85, businesses will be under pressure. If the rate rises to €0.90 a lot of them will be out of business. I very much welcome that the Government is using Enterprise Ireland, Bord Bia and the Departments of Agriculture, Food and the Marine, Jobs, Enterprise and Innovation and Transport, Tourism and Sport to ensure that measures are introduced to protect the interests of businesses that are exporting. I include in that category the tourism sector. Some 400,000 people are employed in the tourism sector in Ireland. One of the largest category of visitors to our shores are those from the UK.

Other issues involve practicalities. We needed to reassure people in Ireland that if they have sons or daughters in third level education in the UK, fees will not rise next year. If people are ill, they need to know that their health requirements can be dealt with within the EU.It is also key that the position with regard to energy interconnection be made absolutely clear.

The second issue will be the negotiations between Britain and the EU. I hope that common sense and reason will prevail. Britain is better off inside the EU. If it were to remain, it would be better for Britain, the EU and Ireland. There will probably be a new UK Prime Minister within the next six months. A period of reflection needs to take place and this should not be rushed. If there is any way at all that a new form of referendum could be run within the UK to ensure it stays within the EU, that would be better than effectively trying to reinvent the wheel.

The turbulent period will be post-exit. This is critical. If one considers certain moments in history, this is probably the most significant development since Ireland joined the then EEC in 1973 in terms of the impact on Europe. We must tread very carefully.

Ireland is separate country Britain and we must exploit business possibilities. The CEO of IDA Ireland has been talking to companies in the UK. It is extremely important to ensure that Ireland's legislation in respect of financial services and other matters is fit for purpose in order that Ireland can attract companies to Dublin, Limerick, Cork and other centres rather than to Frankfurt. That is extremely important. Ireland is both an English-speaking country and a gateway to Europe.