Seanad debates

Thursday, 13 October 2016

UK Referendum on EU Membership: Statements

 

10:30 am

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Sinn Fein) | Oireachtas source

The title of this debate is statements on the decision by the United Kingdom to leave the European Union. I want to reflect on it. The most serious consequences of Brexit will be for the Six Counties. It cannot be said it was the decision of the people of the North of Ireland or Scotland to leave the European Union; it was not. The opposite is true. Last Saturday in Bridgend, County Donegal, on the Border with Derry city, I attended a demonstration organised by Border Communities against Brexit. It was one of six protests held at various locations along what had been a hard border and which could evidently be one again if the Tory Party has its way. The protests were organised and attended by members of community, business and sports groups and included attendees from both sections of the community and both sides of the Border. Brexit has united people like never before because it does not make sense. A mock Border post was constructed in Carrickcarnan. It was done in jest, but the reality is that this will be the case unless the Oireachtas stands up for citizens and negotiates to prevent it from happening. Delays at checkpoints, tariffs on trade and passport controls will be standard.

Budget 2017 contains Government measures devised to address issues that will arise from Brexit. They include various tax and economic responses such as reduced capital gains tax, an amendment of the foreign earnings deduction, an extension of special assignee relief, an increase in the earned income tax credit for self-employed persons, income averaging in the agriculture sector and retention of the 9% VAT rate for the tourism industry. Economics will be a major factor in dealing with the consequences of Brexit once Article 50 is invoked by the Tory Government, about which we are extremely worried. There are many other consequences that will impact on people's lives and the Tory Government is at sixes and sevens. Sterling was in free fall earlier in the week owing to the hard rhetoric being spun at Westminster and by the Prime Minister, Theresa May. Sterling is probably now the most politicised currency in the world which is extremely dangerous for Irish businesses. We do not know what form Brexit will take because the British do not know. It was bravado and chest pumping by right-wing cheerleaders who were full of nationalistic pomp, but they are now picking up the pieces of what was a reckless act.

What can we do to pre-empt the consequences of the fallout from Brexit? I note in the Getting Ireland Brexit Ready document that we will have a number of arrangements to ensure a whole-of-government response. They will include the establishment of a new Cabinet committee, giving the Department of Foreign Affairs and Trade a bigger role and providing for a more focused EU function under a new Secretary General in the Department of the Taoiseach, integrating international, EU and North of Ireland functions. These are all welcome developments, but the Government is way behind the tide in developing a response. It is welcome that the Taoiseach has confirmed an all-Ireland forum will take place in November, but we need to know immediately when it will take place. In time the DUP, as chief detractor, will be found to be way behind public opinion, as it was when pushing for a "Leave" vote. It took its position, over which it stands, but it was wrong then and it is still wrong. This is the time to move on without it and go with the best interests of communities across the island.

IDA Ireland and Enterprise Ireland will be crucial in the months and years ahead. There have been trade delegations and there are more to come. I hope they went and will continue to go well and encourage far more in the coming period as we need to support Irish businesses in opening new markets. Like all State agencies, in recent years they suffered staff and resource cuts. There has never been a more important time to fully resource both. This needs to happen now. We need to get back ahead of the tide. Protecting existing jobs is of crucial importance. We have already lost jobs owing to the effects of Brexit on the mushroom industry. At the Joint Committee on Agriculture, Food and the Marine we listened to deeply worrying contributions on the threats posed to that sector. These job losses and the volatility in the sterling exchange rate are only the tip of the iceberg. If direct Government intervention is needed in the form of finance to support these businesses and protect jobs in the short to medium term, we will have to look at providing it.

At the protest last weekend I noted the worries of Irish traders, particularly in the Border area. Traders on this side of the Border are worried about the impact in trading across the Border. I live on the Border and, as a Buncrana man, this has been a real issue. Depending on the currency exchange rate, businesses in my part of the Border region benefit and the benefits rotate towards Derry and Strabane where one will again see the supermarkets packed this Christmas to the disadvantage of businesses in County Donegal.

The sentiment in the United Kingdom that led to the vote in favour of Brexit was one of anger and resentment, particularly in working class areas in England, but they turned their anger the wrong way. This may also happen in America if people vote for Donald Trump, as well as in other elections across the world. Sometimes people who have been failed by the political system turn their anger the wrong way and vote against their own interests. The economic, social and political ideology of the Government which is all too similar to that of the establishment elsewhere in Europe needs to change. Sinn Féin was critical of the European Union when it needed to be in the past and has sought to hold it to account.We have four MEPs seeking to hold the European institutions to account. The system is not perfect. It has let people down. We were left with debts of €64 billion.

With every crisis or threat, there is an opportunity. Brexit is an opportunity - not like the one mentioned by former Minister, Senator James Reilly - for people across the island to discuss the reunification of our country and to assert that having one economy, currency, taxation system, health system and education system makes eminent sense. Those of us who believe this need to persuade the doubters. We need to win hearts and minds.

Last week, our party held a public meeting in this city to argue the case for the economic merits of a united Ireland. Our guest speaker was Professor Kurt Hübner, director of the Institute for European Studies at the University of British Columbia, Vancouver, Canada, and co-author of the recently published and peer-reviewed report Modelling Irish Unification. I urge all Members to read these important findings. The lazy assumptions of too many commentators about the economic impact of a united Ireland on the State are robustly rebutted by this independent study and report. Irish unity makes absolute sense. The crisis and threat caused by Brexit serves to remind us all of this reality once again.

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