Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I am grateful for this opportunity to again brief the Seanad on developments on Brexit. Political developments in the United Kingdom cast a long shadow and we are in a period of extraordinary uncertainty and volatility. In this challenging environment we are continuing our efforts across Government to protect Ireland's priorities and to mitigate the effects of the UK's withdrawal on Irish citizens and businesses. Ireland and our EU partners stand by the withdrawal agreement agreed with the UK in November of last year. We believe it is a fair and balanced outcome that addresses the key concerns of both sides. It remains the best way to ensure an orderly withdrawal and to move on to building a strong new relationship with the UK which we of course want to be as positive as possible after the UK’s departure. However, Prime Minister Johnson has stated that he wants a different deal. We want to be helpful. We have made it clear that we are willing to consider proposals that might break the impasse but only so long as they provide the same operational and legal protections as the backstop.

Ireland cannot move away from an agreed negotiated position to an unknown and untested solution. There remains a serious and significant gap between what the UK is putting forward and what Ireland and the EU can or are willing to accept. There has been a great deal of commentary on a reported British non-paper that was leaked last night regarding customs posts. The status of these reported proposals is unclear. The Secretary of State for Northern Ireland speaking on radio this morning acknowledged the difficulty of what was being proposed. I would not intend to comment on them any further other than to note that they clearly do not amount to a credible proposal that meets the obligations of the British Government to satisfy the objectives of the backstop. Quite apart from what emerged last night, the proposals that the UK has put forward to date do not constitute formal proposals and do not amount to a legally-operable solution. The UK instead wants these to be fully developed during a transition period. Significantly, they would require a regulatory and customs border on the island of Ireland. Let us be clear: these fall well short of satisfying the objectives of the backstop which is already in the agreed withdrawal agreement. What both sides committed to in December 2017 was to avoid a hard border on the island of Ireland, protect the all-island economy and North-South co-operation, and to preserve the integrity of the Single Market and Ireland's place in it. We cannot allow Ireland to become collateral damage to the UK's Brexit process. We need real and honest solutions to the challenges of Brexit and they are complex. These issues cannot be kicked down the road for future discussions. It is the UK's responsibility to come forward now with legally operable solutions that are compatible with the withdrawal agreement. The UK must match its stated aspirations with real and credible actions.

The Government continues to maintain close contact with the EU Commission and with our EU partners. The Taoiseach met with President Tusk in New York last week and I met Michel Barnier last Friday afternoon. I meet regularly with EU colleagues. Everywhere our EU partners express their continued full solidarity with Ireland and on the importance of the objectives of the backstop. The EU remains strong and united in its approach. We also continue to engage with the UK. As well as the Taoiseach's meetings with Prime Minister Johnson, over recent weeks I have met with Secretary of State for Foreign and Commonwealth Affairs, Dominic Raab, the Secretary of State for Exiting the European Union, Steve Barclay, and several times with the Secretary of State for Northern Ireland, Julian Smith, as well as with Michael Gove.While we have plenty to discuss, we are always very clear with our EU counterparts that Brexit negotiations cannot be made bilateral and must be conducted with the European Commission through the Barnier task force.

In regard to the Border, let me make a few remarks about the backstop. The key priority for Ireland, shared by our EU partners, has been the need to protect the Good Friday Agreement in all of its parts. Prime Minister Johnson has referred to the "delicate balance" of the Agreement. In this, he is right. Brexit, however, is a seismic event. The EU set stable and predictable foundations for trade in goods and services, freedom of movement and questions of equality and rights, citizenship and identity, cultural and educational exchanges and cross-Border co-operation on this island. Brexit fundamentally alters these relationships of trade, transport, co-operation and people-to-people connections that have flourished since the Good Friday Agreement. The backstop is an essential part of the withdrawal agreement because it provides the guarantees that it does. The backstop was shaped by the shared understanding of the EU and the UK of what needed to be addressed regarding the Border, along with the UK's red lines on leaving the customs union and Single Market. It was a complex puzzle to solve and it took us two years of negotiation to get there. It is a compromise. It is not the status quo, nor is it the same as Northern Ireland staying in the EU - far from it. It is a guarantee that there is a clear plan to preserve the delicate balance of the Agreement and the peace process. That is if it is needed at all. The point of the backstop is that it is a default fallback position if future negotiations are not able to resolve the Border issues. However, it needs to be agreed and in place now to settle nerves for obvious reasons.

This approach is fully supported by our EU partners. It has also had the strong support of a cross-community majority of people in Northern Ireland since it was negotiated. It remains the only viable solution on the table that avoids any physical infrastructure and related checks or controls, fully protects the Good Friday Agreement and North-South co-operation and preserves the all-island economy as well as the integrity of the EU Single Market and Ireland's future place in it. No one has yet come up with any alternatives aimed at avoiding a hard border that match what is safeguarded in the backstop text. It is deeply disappointing that the British Government has now decided to step back from these commitments of December 2017 and appears to seek a managed Border. Equally, its stance on the future relationship, its wish to diverge from the EU and its rejection of level playing field issues make things even more problematic. In simple terms, the Boris Johnson approach has been to remove the solution to a very complex problem in Ireland and to create a much bigger problem in signalling the direction the UK wants to take in the future in terms of divergence from the rules and standards of the EU.

This issue cannot be dealt with through piecemeal measures. Elements of an all-island sanitary and phytosanitary, SPS, area have been floated. The alignment of SPS rules should of course form a part of the solution, but would clearly not be enough in itself. Agreeing to this limited approach would have considerable negative impact on life on both sides of the Border without the additional regulatory alignment provided for in the existing protocol.

This is far more than an economic issue. In areas from agriculture, environment and transport to health, education and tourism, cross-Border co-operation and community ties will be undermined by a no-deal Brexit or by any approach that does not have the level of safeguards and protections provided by the backstop. It is through these daily interactions that the Good Friday Agreement has been seen to work, and this normality helps to sustain peace every day.

As we have said all along, the backstop is an insurance policy. We have no intention or wish to trap the UK, and certainly not Northern Ireland, in any arrangement against its will indefinitely.For the avoidance of doubt, I reiterate that the withdrawal agreement and the protocol on Ireland-Northern Ireland do not go against the principle of consent. The first line of the protocol, the first clause of the backstop, reaffirms the principle of consent. The second clause reaffirms the territorial integrity of the UK and Northern Ireland. At the same time, I also want to be clear that the concerns of everyone in Northern Ireland, of all communities and backgrounds - unionist, nationalist and those who identify as neither - who are deeply anxious about the impact of Brexit matter to this Government. We understand the importance of the voice of Northern Ireland being heard in the context of the decisions on the shaping of its future. We do not want a no-deal outcome but neither can we accept a deal that risks undermining the Good Friday Agreement or puts us in a position where our place in the Single Market is jeopardised by unproven solutions or future promises without substance. A no-deal outcome will never be Ireland's or the EU's choice. There is a deal in place and without credible proposals from the UK, the best way forward still remains the ratification of that deal. We have consistently made clear that a no-deal Brexit will have profound implications for Ireland on all sorts of levels. Given the stance of the UK Government, the risk of a no-deal Brexit is significant and the Government is taking that risk very seriously.

In the absence of a withdrawal agreement, there are no easy solutions and a no-deal Brexit would result in far-reaching change on this island. Ireland is working closely with the European Commission to look at the interim arrangements we would need to put in place, in the event of no deal, which do not involve physical infrastructure at the Border. These are highly politically sensitive and technically complex issues and more precise details will not be available until discussions with the Commission have reached a conclusion. We are trying to do two things at the same time with the Commission. First, we are trying to protect Ireland's place in the Single Market by protecting the integrity of the elements of the market for which we are responsible; otherwise, we will be taken out of the Single Market by default. Second, we want to protect the peace process and the all-island economy as best we can, which are not easy to do at the same time. We aim to reach an outcome with the Commission that enables us to provide reassurance to member states that Ireland is taking sufficient steps to protect the integrity of the Single Market, thus protecting our position within it. Any arrangements for the Border in a no-deal scenario will clearly be suboptimal, as they cannot provide the same level of protection as the backstop and they will result in significant disruption for Northern Ireland and the all-island economy. Members do not have to believe me when I say that; they should believe the senior civil servants in Northern Ireland who have produced credible work on this issue.

There are, however, important reassurances for the way people, north and south of the Border, live, move and access public services. The British and Irish Governments are committed to maintaining the common travel area in any Brexit scenario - deal or no-deal. In May, we signed a memorandum of understanding to underpin that commitment for the people of these islands. The Government has been actively preparing for Brexit for more than two years to make sure Irish citizens and businesses are as ready as possible for all scenarios. This has the highest priority across government, for obvious reasons, and it involves every Department and key agencies in tandem with the EU. The common travel area means Irish people in the UK and British people in Ireland will be treated as citizens in their own country for the purposes of working, studying, accessing welfare, taking pension entitlements with them and a range of other elements. While that is good for Irish and UK passport holders in terms of free movement, all other nationalities in Ireland who are used to living, travelling and working back and forth, between Ireland and the UK, face a very different future.

The comprehensive contingency action plan, published on 9 July, set out the impact of a no-deal Brexit and the work that has been done to try to mitigate the risks.We have passed key legislation and this House was very helpful in that to protect our citizens and support the economy, enterprise and jobs in key economic sectors. We have held over 1,200 stakeholder preparedness events in all sectors right across the country. Some 102,000 businesses that traded with the UK in 2018 and 2019 have been contacted by letter or phone. Funding supports for businesses have been an important pillar of the Government's preparations for Brexit. Our last three budgets have all contained dedicated measures to get Ireland Brexit ready. We will do so again in the budget to be announced next week. Budget 2020 will be based on the assumption of a no-deal Brexit. That is only prudent. In that context, the Government is looking at provision for timely, targeted, temporary measures for the sectors that will be most disrupted and exposed. The Government is prepared for a no-deal Brexit and stands ready to support the economy in such a scenario.

We recognise the need to provide certainty of supply chains. Physical capacity at our ports and airports has been enhanced and tested. Dublin Port alone has spent over €30 million over the past 18 months. Additional staff have been recruited and will be in place on Brexit day one. We have provided training and financial supports to increase our customs capacity. At the same time, our work to facilitate the continued use of the landbridge by Irish traders is continuing. A large proportion of Irish trade gets to and from market via Britain as a landbridge. The EU's internal transit procedure will be available to businesses and, although some additional steps and paperwork will be required, this strategically important link for getting our products to and from the rest of the Single Market remains open. Despite this, as we have said in the action plan, it is likely that there will be initial delays at ports in the early weeks. This expectation is reflected in British planning also.

We will very quickly reach 31 October. Alongside our businesses and our citizens, we are working to be prepared for whatever scenario comes our way. We continue to implement the steps laid out in the July contingency action plan update. These measures are working. Businesses registered for EORI numbers now represent 90% of the value of import trade, and 97% of the value of export trade with the UK in 2018. In other words most businesses are now registered for customs and have a customs number. This approach underlines why it is so urgent and critical that exposed businesses in particular prepare for no deal. Many have, and we are working with those, mainly smaller, companies to ensure we are ready. To support businesses in this, we recently launched the "Getting Your Business Brexit Ready — Practical Steps" campaign. It focuses on the nine steps every business, large and small, should take now to help prepare for Brexit.

We welcome the publication of the Commission's Brexit preparedness communication last month, including proposals to roll over the timelines for existing contingency measures in certain key areas, including on air connectivity and international road haulage to problems which would have been very disruptive of the Irish economy. The proposal to extend EU-level financial supports in the event of no deal to support member states and affected workers is also welcome.

I would like to restate how much we appreciate the support and advice of Seanad Members of all parties on this issue. We will continue to keep the Seanad informed of developments. I am happy to come here whenever the Seanad deems that helpful. While we respect it, we regret the UK's decision to leave the EU, and believe that both parties will be diminished as a result. However, the fact remains that the UK is due to leave the European Union. The Government will continue to represent and protect the interests of Ireland. It is for the British Parliament to decide on what it intends to do next. Time is very short, but I believe that there is still time enough for agreed solutions and to avoid no deal. This Government will continue to engage in good faith to find a way forward that protects Ireland's interests but also ensures that the commitments made to Ireland and to Irish people North and South will be followed up. This is not a question of personalities or who is in No.10. It is a matter of dealing with the complexity of the issues thrown up by the decision of the UK as a whole to leave the EU. We have solutions to those challenges. The current British Prime Minister is choosing not to use them. We have said that if he has alternatives that work and do the same job we will help him to get agreement. The onus is now on that British Prime Minister to come forward with serious and credible solutions because to date he has not done so.