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 will try to respond to as many questions as I can. I thank the Seanad again for this timely report. The consistent support from across the political spectrum in both the Dáil and the Seanad has been a vital element of efforts to mitigate the challenges of Brexit on the island over a sustained period. Unfortunately, we will be dealing with the impacts of Brexit for some time to come. I remain committed to engaging with Members from all parties - Government and Opposition - in the months ahead.

The Government continues to work with all stakeholders as we manage the outworkings of the EU-UK Trade and Cooperation Agreement, TCA, and the withdrawal agreement. Working closely with industry, we are maintaining momentum in our preparations for the next phase of EU customs controls later this year. Some people may think they have got their heads around the trade consequences of Brexit but we are really only at half time because although goods coming into Ireland from Great Britain have the checks required to enter the EU Single Market applied in ports such as Rosslare, Dublin and elsewhere, goods going from the EU into the UK have yet to have UK single market checks applied. For several reasons, the UK has decided to postpone the imposition of those checks. As such, the disruption impact of Brexit in terms of trade between the UK and the EU is still not fully understood and will not be fully understood until the UK decides to implement permanent measures, whatever they may look like. How the UK manages goods coming into its internal market is a matter for itself, but there are global trade rules that require a certain level of checks in terms of knowledge of what is coming and going, the standards they represent and so on. We saw again at the General Affairs Council this week that Ireland can continue to be assured of strong support across all EU member states for the Commission package and for minimising disruption in Northern Ireland.

I will address some of the specific areas that have been raised by Senators. First, I refer to the medicines package of the Commission. The Commission proposal will ensure the continued long-term supply of medicines from Great Britain into Northern Ireland and will address outstanding supply concerns in the Ireland, Cyprus and Malta markets that have been historically supplied through or by Great Britain. The proposals will change EU rules to ensure the same medicines, including lifesaving and innovative drugs, are available in Northern Ireland at the same time they are available in the rest of the United Kingdom. In short, they provide greater flexibility to pharmaceutical companies in respect of issues of authorisation, processes, location of regulatory functions and where batch testing is carried out. In other words, the concerns that have been repeatedly raised politically that Northern Ireland would not be able to get access to medicines from Great Britain because of the consequences of Brexit are being comprehensively addressed by the European Commission by changing EU law. It is important to state that because the EU has gone a long way to address what is a legitimate concern. Of course, it offered to do so far earlier but, in the end, effectively had to move ahead on its own to solve the problem when it committed to doing so before Christmas.

The next issue is the proposals of the Commission in respect of customs and sanitary and phytosanitary, SPS, controls. The Commission package published in October offers a simplification of processes for a broad range of retail goods that are for sale to end customers in shops in Northern Ireland. The measures could remove up to 80% of the identity and physical SPS checks for such goods. They would also allow for substantial reductions in paperwork. On customs, the Commission proposes expanding the definition of goods not at risk of entering the EU and thereby reducing required customs processes by approximately half.To deliver these benefits, the UK would be required to deliver real-time access to relevant UK IT systems to complete and staff border control points and agree to labelling requirements for these goods.

The EU is being very reasonable in this ask. It is saying the UK has to show the EU, through data sharing and labelling, that these goods are staying in Northern Ireland, to be purchased and consumed in Northern Ireland, and, therefore, the EU will not be required to apply the same physical checks required on goods at risk of travelling into the EU across the Border. In order for that to work, the UK has to share the data and that has not been happening. I hope that is one of the things the technical teams will discuss this week in terms of SPS and customs arrangements. As we move through the next few weeks, this is one of the areas where I hope we could find agreement that would dramatically reduce the requirement for physical checks on many products that are staying in Northern Ireland. Many in the unionist community would strongly welcome that, as would many businesses that want to reduce the bureaucracy and potential checks burden of the protocol.

In terms of the democratic deficit issue raised, the EU is proposing an unprecedented role for Northern Ireland's political representatives and stakeholders. Through structured dialogues and greater openness and engagement with the committee structures under the protocol, direct and regular Northern Ireland engagement can become a central part of the protocol's workings, as far as the Commission is concerned, in order to try to deal with some of the issues raised by Senators, in terms of the perceptions of a democratic deficit in Northern Ireland around how EU regulations develop in the future and impact on Northern Ireland. Enhancing Northern Ireland's engagement is not just for the EU to address. The UK Government also has options open to it, and we would encourage it to come forward with proposals.

In terms of ports and trade, there is some data which people may be interested in. Brexit brought about the biggest single change to import controls since the Single Market was created in 1990. Businesses have done a remarkable job adjusting to the new realities. This reflects the flexibility and adaptability of businesses in Ireland, as well as the very effective collaboration between operators and the State players responsible for implementing these changes.

The value of Irish goods exported to Great Britain between January to November 2021 increased by 20% on the same period in 2020, while the value of imports from Great Britain in this period fell by 21%. January to November 2021 saw a 64% increase in imports from Northern Ireland and a 48% increase in exports to Northern Ireland. That shows how effective the protocol has been in protecting the all-island market. Some in the UK seem to suggest that it is somehow a negative thing that the all-island economy seems to be functioning so well, despite trade across the Irish Sea having been disrupted.

When countries make decisions such as Brexit, that changes market structures. We have been trying to protect an all-island economy in the context of a decision that we did not make. The protocol was agreed by the British Government in that context. That element is working well. Those living in Border counties will know that in terms of the fears that have now been allayed.

There are now 65 weekly sailings between Ireland and EU continental ports. One third of all roll-on roll-off traffic now operates on direct routes to ports in the EU, up from 16% in 2019. Rosslare Europort now accounts for 31% of all Republic of Ireland-EU roll-on roll-off traffic, which is more than double its previous share. In 2021, 86% of goods movements were green-routed and permitted to leave ports without any further interaction with customs or other regulatory authorities.

In 2021, the Department of Agriculture, Food and the Marine carried out 90,000 controls on consignments, compared to 4,500 per year in the years leading up to 2021. I suspect that number will continue to increase over time, but we will do things more efficiently as time goes by, businesses get used to those systems and our customs and the Department of Agriculture, Food and the Marine constantly streamline and improve how they operate.

There are space and layout limitations in terms of what can be done in respect of the co-location of authorities at ports. In addition, certain checks, such as animal health or food safety checks, require dedicated infrastructure in their own right. The agencies in the ports are committed to streamlining processes and minimising the movement between facilities for compliant businesses as much as we can, while meeting our obligations under EU law. Further developments in the space can be expected.

At EU level, Ireland is a supporter of the single window programme and plans to be one of the first member states to implement the SPS single window programme. I mentioned the introduction of new UK import controls in 2022, for which we need to prepare. We will understand a lot more as the months go by, but we need to expect the worst in terms of controls and compliance. State agencies have been working hard with businesses to try to make sure that everybody understands what is coming down the tracks.

The recognition of professional qualifications has become an important issue. While the automatic mutual recognition of professional qualifications no longer applies, significant work has been undertaken to ensure that processes are in place for the recognition of the vast majority of UK professional qualifications under national law in Ireland, which allows people to travel and work in both jurisdictions under the common travel area agreements we have put in place. I understand these arrangements are generally working well, although in some cases they may be administratively more complex than the previous EU system.

Although the Northern Ireland planned healthcare scheme had initially been introduced on an administrative basis, I wish to assure Senators that placing the scheme on a statutory basis remains a priority. An extensive examination of options to inform the drafting of a general scheme is currently being finalised. In the meantime, the administrative scheme will remain until such time as the statutory scheme is in place. I understand that almost 4,000 reimbursements have been made so far for persons who accessed healthcare in Northern Ireland 2021. Overall, this equates to a reimbursement cost of about €7 million.

I am aware of the Defence Forces issue and the PMAS programme, and the need for us to work with the Defence Forces. I am committed to talking to representative bodies regarding that. I thank Senator Wall for raising this issue. It is not the first time he has done so.

The European Commission adopted new adequacy decisions in June 2021 to facilitate the continued sharing of data between the EU and UK. The data adequacy decisions provides confidence and ensures the appropriate protection and safeguards are in place to facilitate the ongoing exchange of sensitive personal data with the UK. As I was not asked about seed potatoes and other things, I will comment on one or two final things raised by Senators.

Deputy Currie raised the issue of cross-Border workers. It is an issue that impacts on people, and it has been raised with me. I will happily work with the Senator and the Minister, Deputy Donohoe, on this. We have spoken about it before. This is a tricky issue and it is not easy to solve. We cannot solve it on our own. It will have to involve something the Irish and UK authorities consider together. In terms of where people are resident and working, both or either of those things can potentially determine where they pay their taxes. In the case of people who are employed by someone who pays their taxes in Northern Ireland, while living south of the Border and working North of the Border, their taxes are still being claimed where based on where they are working.That is what makes it complicated. However, we will examine the matter and see if there is anything we can do.

Understandably, issues were raised about new UK legislation that will require what is called an electronic travel authorisation for entry to the UK, including Northern Ireland. This could be very disruptive on the island of Ireland. My understanding is that the proposal is that anyone entering the UK would be required to register online before doing so and get permission to enter. Someone could enter for up to six months and get a multiple-entry certification. My understanding as of now is that this would apply to non-British and non-Irish nationals who could be travelling from Ireland into Northern Ireland. Therefore, a French, Dutch or German person working in Ireland and going on holidays to the North or whatever would be required to register before doing so. That would be disruptive to the free flow of travel. We have been making that case to the British Government. The Minister for Justice, Deputy McEntee, was in London this week meeting the key ministers in this space and raising the issue. I have also raised the issue. The Government will continue to do so because the legislation has not been finalised and implemented yet. To me, it would seem extraordinary that people travelling across the Border from South to North would be required to have a registration or certification to do so. It is a bad idea for all sorts of reasons. We will continue to make that case. Of course, it is a matter for the British Government to make decisions on this matter but I hope that we will be able to impress upon it the issues that make sense for both jurisdictions on this island.

I will not comment on what the British Prime Minister said today about the protocol and its implementation apart from stating that it was unhelpful and that the language used was unhelpful. We are working hard to try to build a better relationship and more trust between the European Commission and the British Government. The foreign secretary, Ms Liz Truss, has been working hard to do that and to build a relationship with Commission Vice-President Šefcovic that is based on a trusting relationship that I hope can allow compromises to emerge over time in terms of finding a way to settle on an implementation plan for the protocol on which both sides can agree.

We have been consistent in this space - the protocol is not up for renegotiation. However, the EU has shown extraordinary flexibility in how it is willing to implement that in partnership with the British Government, if the EU has a partner in doing so, which I believe it does. I hope that we will be able to find a way of getting agreement in some or all of the areas sooner rather than later so that this issue does not remain such a polarising influence on politics in Northern Ireland as we head towards elections to the assembly in a few months' time.

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