Seanad debates
Wednesday, 7 February 2024
Nithe i dtosach suíonna - Commencement Matters
Northern Ireland
1:00 pm
Emer Currie (Fine Gael)
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I thank the Minister of State for being here. I very much welcome the re-establishment of Stormont at the weekend. I congratulate the First Minister, the deputy First Minister, the other new Ministers and the MLAs as they take up their positions. They certainly have a long to-do list. However, it is our to-do list I will talk about today.
Careful examination of the language as well as the impact of the UK Government's command paper, Safeguarding the Union, is required. Newton's third law says that for every action, there is an equal and opposite reaction. In this instance, that is not what I would recommend because it would further entrench and reinforce binary mindsets. I understand the paper was meant to reassure unionists of the integrity of Northern Ireland and their place in the union. However, some of the language in it is both unfortunate and unnecessary. I fear that if the narrative laid out in the command paper is allowed to stick, it could do damage to North-South trade and our shared economy. This is a time for us to stand for the totality of relationships across these islands, the benefits envisaged by the Good Friday Agreement and the opportunities that now await the North if they are grasped.
The Government should take a proactive role in engaging with Stormont and Westminster to protect and promote the benefits of North-South and east-west co-operation, especially North-South trade. The figures speak for themselves. North-South trade, even though it has thrived over the past couple of years because of Brexit and new trade lines, is not a competitor to the UK internal market. The Irish market accounts for 28.6% of all Northern Ireland exports, which is approximately 60% of the importance of the Great Britain market. The UK internal market is by far the most important market for Northern Ireland.However, when the Irish value within the EU 27 market for Northern Ireland is included, it is a similar size to the UK market and is a very important market for the North. It is really important that we understand the importance of convergence for Northern Ireland and the ability to support trade lines across the island. If the Stormont break is used to excess, it will diminish its potential to access the EU market. It will diminish its unique competitive advantage and would be an act of economic self-harm.
I believe the Irish Government should support and encourage that competitive advantage because we recognise that preserving it is the only competition that matters on this island. Let us replace any idea that we have markets that are competing with each other on the island with collaboration.
Mary Butler (Waterford, Fianna Fail)
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I thank Senator Currie for raising this important matter and for her sustained engagement on issues of North-South co-operation. I am taking this question on behalf of the Tánaiste and Minister for Foreign Affairs, who is away on Government business at the moment.
Like others I welcome the restoration of the power-sharing institutions in Northern Ireland. Saturday was a great day, a hopeful and positive day. It was down to work immediately as we saw on Monday morning. The Government looks forward to working closely with the new Executive, including on the many areas where North-South co-operation makes a positive difference to the lives of the people on this island.
Underpinning the restoration of the institutions are a comprehensive set of trade arrangements agreed between the EU and the UK. These arrangements reaffirm Northern Ireland's place in the UK internal market while also securing Northern Ireland's access to the EU Single Market for goods. Ultimately these arrangements have the practical effect of protecting North-South trade while supporting business and jobs across the island. They provide a unique opportunity for Northern business. The smooth functioning to date of the arrangements is a positive reflection of the commitment of business stakeholders to adapting their operations and making the new trade arrangements work.
The protection and promotion of North-South trade on the island of Ireland is a core priority for the Government. North-South trade is a core element of the all-island economy, which is one of the key achievements of the peace process. In 2022, total cross-Border trade in goods and services was worth an estimated €11.6 billion, an almost threefold increase since 1998. The benefits of North-South trade permeate all sectors of the business community. Research conducted by InterTradeIreland shows that North-South trade is particularly important for small businesses, enabling them to take their first steps into cross-Border markets before moving on to explore markets further afield. This illustrates how an all-island economy can serve as an incubator for innovation, taking homegrown SMEs and helping them develop into world-class exporters.
All-island supply chains are particularly strong in the agrifood sector with the meat and dairy industries especially involved in cross-Border processing and supply chains. For example, milk products with an export value of €6.5 billion move between the North and the South several times during processing. The meat industry is similarly integrated. In the drinks industry, Irish whiskey is a protected geographical indication worth over €1 billion to the all-island economy. This level of integration and co-operation explains why protecting the frictionless flow of trade on this island was so important during the negotiations of recent years. It is of real value to people and communities on both sides of the Border. The Government is committed to protecting and bolstering these trade links and to building on the economic dividends of the peace process to the benefit of all parts of our shared island.
Emer Currie (Fine Gael)
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The Minister of State is absolutely right in saying we need to protect our trade links. The reality is that the extent of those trade links and the all-island economy has been vastly overstated. The potential of our shared economy is what is important and should be promoted. For instance, we talk about the importance of the all-island economy when it comes to tourism. That is under threat at present because of the introduction by the UK of the electronic travel authorisation.I worry about moves to remove any references to the all-island economy, and that when the UK Government describes the all-island economy as a divisive and misguided political notion, it will impact what we can do to preserve our all-island tourism. Other issues have been raised, including in energy and infrastructure, that will benefit both economies and our shared economy. We definitely need to be able to protect and also promote the potential that is there.
Mary Butler (Waterford, Fianna Fail)
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I thank the Senator for her response. I have taken note of her remarks on this important issue. She is right about the potential. It is absolutely massive. She has spoken about tourism, energy and infrastructure. The Government is fully committed to supporting economic growth across the island of Ireland. We will continue to promote the benefits of this island for trade, tourism and investment. This is the consistent expectation of business and community stakeholders. We particularly look forward to the resumption of activity of the North South Ministerial Council, enabling the Government to engage with the executive in Northern Ireland to protect and further promote North-South trade.
The island of Ireland enjoys a highly integrated cross-Border economy, with supply and value chains criss-crossing the Border and encompassing a range of sectors. The Government understands the value of North-South trade and the benefits of frictionless trade on the island of Ireland. This is reinforced by the fact that many investors view the island as a natural ecosystem. As I have said already, I think everybody was struck by the hopefulness and the positivity that emanated last Saturday. The Senator spoke about potential. The potential is absolutely huge. Now is the time for everyone to get down to work and to drive it on.
Martin Conway (Fine Gael)
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I thank the Minister of State and thank Senator Currie for all the great work she does in this area. It is very much appreciated. Senator Ahearn is next.