Seanad debates

Thursday, 29 September 2016

Address by An Taoiseach (Resumed)

 

10:30 am

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael) | Oireachtas source

I join in the welcome to the Taoiseach and in the recognition of the exemplary leadership he has given this country in getting our people back to work, restoring our public finances and now setting about rebuilding a normal society.

I want to address the Brexit issue. If I may, I will address it on a micro level first. In the context of the budget and governmental policies in the short term, there are a number of businesses and industries, notably in the agricultural sector - the mushroom industry being highlighted - that are suffering hugely because of the fluctuation in the value of sterling. Jobs will be dislocated in these sectors if we do not do something to help such sectors. Ultimately, that would involve a social welfare bill and a loss of dignity for people, which is not a correct policy. I therefore ask the Taoiseach, in the context of the budget and flexibility within the taxation system, that an effort be made to address the difficulty of sectors hit by the fluctuation in sterling in this budget and in the future.

On a broader level, regarding Brexit, I welcome the fact that the Taoiseach wants to have an all-Ireland dialogue. It is so important, and it was mentioned earlier, not only that there is a recognition that the people of Northern Ireland voted to stay in the EU, but also that there is a national approach to this because we do not want a return to a hard Border. We want free movement of people, services and goods right across this island and we want a normal society to continue here. The Taoiseach's attempt to achieve consensus nationally in that regard is great.

Regarding the arrangement with the UK, we need the UK to have a kind of Norwegian model. I know that the Taoiseach cannot personally or directly influence this but perhaps he can create conditions or assist to create conditions that would lead to it. We need the UK to maintain as many links and as much business and movement of goods, people and services as possible, with a certain adaptation, as in the case of Norway, which would suit its particular needs. We need as much normality as possible to continue after the result.

In a budgetary context, the 9% VAT rate, which was revolutionary and was one of the great planks in restoring our economy, has now become very important. The prognosis is that sterling will continue to fluctuate downward. As sterling weakens, our UK visitors will have less spending power when they come here. To attract tourism, our hotels and businesses need the 9% VAT rate. In that context, I would be the first to support the view that has become common, anecdotally and otherwise, that hotels must measure up in the prices they are charging. This is a Dublin issue specifically, but along the areas where I live it is very important just to keep the tourism sector alive.

The fluctuation in the value of sterling is a real issue right along the Border and right across the agricultural sector, particularly in intensive agriculture. We could lose jobs and a whole lot of progress there. I appeal to the Taoiseach to see how this could be headed off in the budget. It should be borne in mind that the ultimate cost of allowing a collapse in these sectors, which I know he does not want to see happen, is enormous in terms of social welfare, health and societal problems.

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