Michael Moynihan (Cork North West, Fianna Fail)
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121. To ask the Minister for Foreign Affairs and Trade his views on the findings in a recent report by a person (details supplied) on the impact of a no-deal Brexit; and if he has spoken to his British counterpart, Ms Arlene Foster or Ms Michelle O' Neill since it was published. [11933/19]

Simon Coveney (Cork South Central, Fine Gael)
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I have read the recent letter from the Head of the Northern Ireland Civil Service to political parties in Northern Ireland on the grave implications for business and trade in the event of a no deal Brexit.  The letter followed the UK Government’s paper of 26 February which noted that the cumulative impact of a ‘no deal’ scenario would be expected to be more severe in Northern Ireland than in Great Britain, and to last longer. The letter set out the work of Northern Ireland Departments across a range of sectors in advance of the UK leaving the EU and amplifies the UK Government assessment.  It notes that, despite the considerable amount of mitigation work that has been undertaken to date across NI Departments, Northern Ireland will face considerable and unavoidable residual risks, notably on the local economy in ways that cannot be mitigated in the case of a no deal.  

I share the letter’s assessment, including its stark warning about the changes to everyday life, potential border frictions and the potential for profound and long lasting impact on society. In my ongoing contacts with the political parties in Northern Ireland, I have discussed with them the impact of Brexit, and the deeply concerning potential issues around a no deal Brexit. I have also repeatedly discussed my concerns around the impact of Brexit on Northern Ireland with my British counterparts.

I can assure the Deputy that the imperative of avoiding that scenario will continue to inform the Government’s approach. Indeed from the outset, I have highlighted the socio-economic risks which Brexit poses for Northern Ireland as well as for the wider political situation there. I have repeatedly stated that a no deal Brexit is in no one’s interests, least of all for the people of Northern Ireland who, as the report and letter confirm, will be most affected.

We are absolutely determined to avoid physical infrastructure at the border, but in a no deal Brexit there will be implications regarding disruption to the functioning of the all-island economy. The seamless trade we enjoy today would not be possible, and the benefits of the backstop for businesses in Northern Ireland would be lost, at least in the short term. These risks only serve to further highlight the absolute need to agree the Withdrawal Agreement and the Protocol on Ireland and Northern Ireland.

Michael Moynihan (Cork North West, Fianna Fail)
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122. To ask the Minister for Foreign Affairs and Trade if he has discussed the advantages of the UK remaining in the customs union after Brexit. [10597/19]

Simon Coveney (Cork South Central, Fine Gael)
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A key priority for the Government is to minimise the impact of Brexit on Ireland's trade and economy. We have therefore consistently stated our wish to see the closest possible relationship between the EU and UK, including on trade.

The Government has expressed a strong desire for the UK to remain in the Single Market and Customs Union. However, this is ultimately a decision for the UK. The UK Government has made clear its wish to leave the Single Market and Customs Union. The UK being outside the Customs Union and the Single Market will inevitably lead to frictions in trade, and will have negative economic consequences, in particular for the UK.

We are aware that the UK's future trading relationship with the EU is the subject of ongoing discussions between the UK Government and the Labour Party, aimed at ensuring an orderly UK withdrawal from the EU. In these discussions, the Labour Party has proposed that a permament Customs Union is agreed between the EU and the UK. In its conclusions of 10 April 2019, the European Council again made clear that should the UK’s position on the EU-UK future relationship evolve, the EU is prepared to reconsider the Political Declaration on the future relationship.

A permanent EU-UK Customs Union would have significant advantages in terms of facilating trade between Ireland and the UK, a major market for Irish exports. Such a Customs Union would also go some way to avoiding a hard border on the island of island, including by avoiding the need to collect tariffs and to undertake other customs checks. However, regulatory alignment with certain rules of the EU Single Market is also required to avoid checks and controls, for example to ensure product safety or animal health standards.