Seanad debates

Tuesday, 12 March 2019

Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019: Second Stage

 

12:00 pm

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael) | Oireachtas source

As I outlined earlier, and as many Senators have stated, the decision of the United Kingdom to leave the European Union has presented Ireland with unprecedented political, economic and diplomatic challenges. Our relation with the UK is unique in its depth and strength. Having joined at the same time, our co-operation, for more than 45 years, has been underpinned by our common EU membership. The complexity and scale of that challenge has become all too clear since 2016 when the referendum took place. It has reminded us just how much our economies and societies are intertwined through our EU membership. From economy and trade, to education and research, from travel and citizens' rights, through to the Northern Ireland peace process, the EU has positively impacted our relationship in all of those areas. We profoundly regret the decision of the UK to leave the EU - a Union which, together, we have helped build. We also regret that the British Government ruled out ongoing membership of the EU customs union and the Single Market, but we respect the vote of the British people and the red lines set out by their Government. We set out our approach at the outset and it has remained the same. We identified our unique concerns and our priorities for the negotiations and those have remained consistent and have not changed throughout the process. These are, first and foremost, protecting the Good Friday Agreement and the achievements of the peace process. The second is to minimise the impact on trade, jobs and the all-island economy. The third is to maintain the common travel area and its associated benefits; and finally, to continue to reaffirm our place at the heart of a strong and prosperous European Union.

From the very start, we have worked to ensure that our concerns were understood by our EU partners. This has involved more than 1,000 meetings at senior official and political level, with member states and with the EU institutions, all since the referendum took place. I take this opportunity to thank the Members of this House who have played their part in helping to ensure that Ireland's concerns were communicated and understood through their party and interparliamentary networks. The support, understanding and solidarity we have received from our partners in the EU has been remarkable. They have taken Ireland's concerns to heart and have made them European concerns and they have certainly made them their own.

I concluded my opening statement by saying there is no greater demonstration of the benefits of EU membership to a country like Ireland than the unity and solidarity shown by our EU partners in the face of the UK's withdrawal. The withdrawal agreement was agreed between the European Commission and the UK Government in November. It followed two years of detailed and complicated negotiations, and was the result of real compromise on both sides. It fully secures the negotiating objectives we set out at the start. Most importantly, it fully protects the Good Friday Agreement, and ensures the avoidance of a hard border on the island of Ireland. Importantly, it also provides for a transition period, providing certainty for citizens and businesses while the future relationship is negotiated, a certainty people crave. The withdrawal agreement represents a finely balanced compromise between the concerns and priorities of all 27 countries involved. Ratifying it remains the best and only way to ensure that we have an orderly Brexit.

Last night, Prime Minister May met President Juncker in Strasbourg where they agreed an interpretative instrument on the withdrawal agreement and a joint statement on the political declaration on the future relationship between the EU and the UK. The documents are complementary to the withdrawal agreement and the political declaration agreed last October. They aim to provide an additional layer of interpretation, clarification and elaboration to the UK ahead of a further vote in Westminster this evening. The documents do not reopen the withdrawal agreement, or undermine the backstop or its application. They do, however, reiterate our wish to establish a future partnership with the UK, one that is as close as possible, and marks our commitment to ensure that no negotiations on that future relationship will be delayed and that they can begin as soon as the UK leaves. We now need to see the agreement ratified by Westminster and by the European Parliament without further delay, so that we can get on with the important work of building the closest possible relationship between the EU and the UK.

In terms of our preparedness and given the ongoing uncertainty, we are, however, also obliged to continue to move forward with our no-deal preparations. Brexit of any kind means change, but a no-deal Brexit would be the worst possible outcome for all involved. Our preparations, including through our legislative proposals, are focused on minimising those impacts. I reiterate, however, that managing a no-deal Brexit is an exercise in damage limitation. No matter how much work we do, we cannot be 100% prepared for a no-deal scenario or what it might possibly bring because we simply do not know. Many Senators raised questions about preparedness, the level of support and the level of information we have provided. The Bill is just one piece in what is a very large jigsaw that has been put together for almost three years.We have, rightly, not brought it before the Houses until now because our focus has been on ensuring we will reach an agreement. The political dimension has changed. Since last October, the focus of all officials in the nine Departments, led by the Departments of Foreign Affairs and Trade and the Taoiseach, has been on providing this legislation. I thank all Senators for their support in ensuring it will be passed as quickly as possible. It would have been premature to introduce it sooner.

We have provided over €900 million in supports through, for example, the Brexit loan scheme, the longer term loan scheme, additional support for State agencies, the opening of a new embassy in Wellington and a consulate in Frankfurt, the additional 25% in capital spending this year or direct funding support for industry sectors and individuals. While I do not have exact figures to respond to some of the questions raised, I will come back tomorrow with them when we will deal with specific amendments.

There has been a significant outreach to individuals and businesses through the all-island civic dialogue and at Brexit roadshows. As a Deputy from County Meath, I know that there are thousands of small and medium-sized enterprises and many individuals who may be impacted on by Brexit. It is important for Members to work with the agencies, local authorities and local enterprise offices to ensure businesses will have information and support available to them. It is incumbent on all Members to work in their constituencies and with various sectors and industries in that regard.

Yesterday the Minister for Finance briefed the Cabinet on our economic preparedness for all possible scenarios. It followed a meeting with the chief executive of the National Treasury Management Agency, NTMA, the chairman of the Revenue Commissioners and the deputy governor of the Central Bank to discuss the detailed preparations being made. We are prioritising the building of resilience in the economy to ensure, in the event that there is a no-deal Brexit, we will have the capacity to deal with any resulting adverse economic shock. We are building our budgetary capacity, balancing the books, reducing the debt burden and establishing a rainy day fund. We are engaging with the European Union on the additional support it can provide for the various sectors which will be affected more than others such as agriculture, pharmaceuticals and retail.

The Minister for Business, Enterprise and Innovation has announced that the European Commission has given approval for a state aid budget of up to €200 million for the rescue and restructuring scheme. Only two weeks ago, we saw how an Irish company was the first to avail of that support. There is ongoing engagement with the Commission to ensure we will receive additional support and that it will be in place when needed.

The Bill is one of the most tangible expressions of the deep and broad preparations which have been under way across government for some time for Brexit in whichever form it will ultimately take. It complements and builds on the cross-government preparations set out in the Government’s contingency action plan which was published in December and updated on 30 January.

Protecting the Good Friday Agreement, in all its parts, has been a key priority in the Government’s approach throughout the Article 50 process. The priorities are reflected in the withdrawal agreement and also underpin several provisions included in the Bill. The legislation provides for continuity in key arrangements with the United Kingdom, protecting citizens and supporting the economy, enterprise and jobs in key economic sectors.

Senators raised the issue of protecting citizens’ rights north of the Border and elsewhere in the United Kingdom. The best way to do it is through ratification of the withdrawal agreement and the Irish protocol. In a no-deal scenario that will become much more difficult. The commitments provided for in the Bill, particularly those which focus on the common travel area, address many of the concerns raised.The issue of a Border poll was raised. While I respect and understand where this is coming from for many Senators, along with many of my colleagues, I believe that now is not the time to raise this as an issue and it is not the time to pursue a united Ireland. Brexit and a possible Border poll are two distinct issues. Given the sensitivity of the current discussions, it is important they remain separate.

If the UK ratifies the withdrawal agreement, the Bill also provides for the application of a transition period. Only then can we start to work on the agreement which frames our future relationship which we want to ensure is as close and comprehensive as possible. The Government is fully committed to building on our strong and constructive relationship with the UK and our close bilateral co-operation over the coming years.

Our hope is that this legislation is not ultimately required. If it is, however, it is important to remember that Ireland is working on preparedness contingency planning as part of the EU 27. An array of work across sectors is under way at EU level. Ireland’s preparedness work very much fits into this wider EU picture. This reflects one of our principal underlying mitigation measures, which is the fact that we are remaining in the EU. Our place in the Single Market and customs union brings with it a wide range of benefits and support which will help us to mitigate the impact of Brexit. We will face the challenge with the support and solidarity of our partners in the European Union.

I thank all Senators for their positive contributions today and the constructive approach they brought to the Bill. I thank Senator Richmond for chairing the Brexit committee. I accept the sincerity of the amendments put down by Senators. We will engage with them in the same way we did in the Dáil. For any of those ruled out of order, I expect the Cathaoirleach to give a full explanation as to why. If there are areas or sectors which we have missed, we are willing to work with Members, experts and officials to ensure they are addressed.

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