Seanad debates

Wednesday, 26 January 2022

Final Report on Impacts of Brexit of Seanad Special Select Committee on the Withdrawal of the United Kingdom from the European Union: Statements

 

10:30 am

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

I thank the chair, Senator Chambers, and the other members of the Seanad Special Select Committee on the Withdrawal of the United Kingdom from the European Union for their excellent final report. I was struck by the wide and diverse range of contributors from government, Northern Ireland, business, academia and civil society that fed into the committee's deliberations. Listening to those varied voices has ensured the committee captured the wide impact of Brexit on our society more generally as well as on the economy and politics.

The committee's report notes that many witnesses referred to the importance of eliminating uncertainty around the implementation of the protocol. This is the same sentiment that underpins the Commission's approach to the current discussions with the UK Government. The Commission's proposals on customs, sanitary and phytosanitary or SPS, medicines and enhanced representation aim to deliver much-needed predictability and stability for Northern Ireland, allowing it the time and space to build prosperity.

I will return to the report's recommendations shortly but as I was in Brussels earlier this week, I thought Senators might appreciate a short update on the current protocol discussions. Since I last spoke to them about Brexit, we have seen the resignation of David Frost and the appointment of Foreign Secretary Liz Truss as the UK's Brexit lead. I have had the opportunity to speak to Liz Truss several times since she became Foreign Secretary. We spoke by phone shortly after she took up her role as the UK's Brexit lead and we met in person in early January to discuss the protocol. I also remain in close contact with Maroš Šefovi. We met in Brussels earlier this week following his most recent meeting with Liz Truss the same day. The constructive atmosphere of the latest EU-UK engagements and Foreign Secretary Truss's stated focus on reaching a deal are both welcome. Likewise, the continuation of intensified technical talks this week and agreement to hold a meeting of the joint committee next month are positive developments.

However, following the generous package of measures put forward by the European Commission, we need to see the UK Government meaningfully demonstrate its willingness to come to a deal on the key issues.In the six years I have been involved in Brexit, I have rarely been one to invoke deadlines or cliff edges. However, I firmly believe that reaching an agreed approach on the protocol ahead of the forthcoming elections in Northern Ireland could help reduce tensions during what will be a challenging and polarising period for communities there.

Furthermore, reaching an agreed approach on the protocol would be an important factor in opening a new chapter in a forward-looking EU-UK partnership. The EU-UK relationship underpinned by trust and shared goals will be key in addressing a range of shared global challenges. The EU has made clear that it is ready to find flexible ways to implement the protocol. However, to do so it needs a partner willing to work within the parameters of the protocol, not one seeking to renegotiate a deal that is only two years old. Renegotiation is not necessary in order to solve legitimate challenges experienced by people and businesses in Northern Ireland. This is a position upon which the EU is fully united.

I will continue to meet with political, business and community leaders from Northern Ireland and listen to their concerns. However, it is clear that Northern Ireland is seeing the benefits of the protocol in jobs and investment announcements. Businesses recognise the opportunities presented by the protocol and the unique position of having free and full access to both the EU Single Market and the rest of the UK internal market.

Turning back to the committee's report, I concur with the view set out in the report's foreword. Given the very close relationship between Ireland and the UK, the impacts of Brexit will continue to "be felt by citizens and businesses for some years and it will take some time to realise the full impact of this change". Given these longer-term impacts, the report's focus is particularly timely as we enter the second year since the end of the transition period phase and the coming into force of the EU-UK trade and co-operation agreement.

The themes and recommendations included in this report make clear the degree to which Brexit has impacted across all Departments and businesses. Changes in areas such as education and healthcare are having a very real and practical impact on citizens' lives on this island. The importance of the committee's work lies in considering practical solutions that will assist those negatively impacted.

I do not have time in my opening remarks to address all the issues raised, so I might just touch on a few. From the outset, we have been clear that our response to Brexit would require a whole-of-government effort. Our work has been guided by the need to mitigate these impacts and to provide support and resources to those services, businesses and individuals who have to deal with Brexit-related changes on a daily basis. Initial difficulties in adjusting to the new trading environment have largely settled as business and the State working together have done a remarkable job in adjusting to new checks and controls on imports from Great Britain.

The State agencies in our ports and airports are actively working together to streamline processes and automate inter-agency communications in order to reduce the burden on traders. This is done while also ensuring that we continue to meet our EU obligations. The agencies continue to listen to the needs of operators. For example, in response to a specific trader request, an interface has been developed that allows a trader's customs system to speak directly to Revenue's ro-ro system, thereby removing some of the manual work involved a lot earlier.

Irish businesses will face another wave of Brexit-related changes in 2022, as we see the introduction of UK customs and sanitary and phytosanitary, SPS, controls and checks. This will particularly impact on the agrifood sector. There is a lot of work under way to try to ensure that it is ready. The Government will continue to provide support and information to help businesses and the transport sector to prepare for these changes. The Government is also investing substantially in the additional State capacity needed to meet the export certification requirements that will apply for food businesses.

The committee has correctly emphasised the importance of continuing to develop our port infrastructure. I am pleased to note the Government announcement in December of a multimillion euro investment in a state-of-the-art border control post in Rosslare Europort.

Another key area considered by the committee was healthcare. The committee's report recognises the importance of the cross-border healthcare directive. The Government moved quickly to address concerns over the directive post-Brexit, with the establishment of a Northern Ireland planned healthcare scheme on an administrative basis. I assure Senators that placing this scheme on a legislative footing remains our priority.

We have also seen positive progress on medicines, following the publication of the Commission's comprehensive legislative package in December. This proposal will ensure that people across the island will continue to have access to the medicines they need. I also hope that this solution on medicines can also act as a catalyst for making further progress on other protocol-related matters in the weeks ahead. It is certainly proof of the Commission's willingness to try to solve problems and show flexibility. In this same spirit, the EU is also proposing an unprecedented role for Northern Ireland's political representatives and stakeholders in the protocol, ensuring that the voices of people in the North are consistently heard.

I again wish to recognise the very important work undertaken by Senator Chambers and the committee in pulling together the many strands of Brexit and their impact on our citizens, businesses and the Government. I am happy to address any specific issues that Senators wish to raise and I look forward to hearing from colleagues as the debate progresses.

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