I welcome the Tánaiste to the House to address us. It is great to see so many Senators here this morning. I invite the Tánaiste to make his opening address.
International Trade and International Relations: Statements
I thank the Leas-Chathaoirleach and other Members of Seanad Eireann. I welcome the opportunity to address the Seanad on the issues of international trade and international relations. Trade and our trading relations with partners around the world are, of course, at the core of the Irish economic model. It is not just an economic theory. It is at the core of how we see ourselves in the world. As an island people, we have always been traders. We have always looked beyond our shores and sought exchange, dialogue and interconnection.
International trade and international relations are, of course, deeply connected. They are best managed when understood together. That is why when we formed this Government, I took the decision to transfer responsibility for trade policy to the renamed Department of Foreign Affairs and Trade because of that interconnection. Against the turbulence of recent weeks, the uncertain outlook ahead and the announcements made by the US Administration last night, I am more convinced than ever that this was the right decision.
I would like to make use of the time this morning to update the House on work we have been doing to manage the challenging new international trade environment. I will also use this opportunity to update on some of our key foreign policy concerns, including the Middle East and Ukraine, as well as to report on our work over the St. Patrick’s Day period and our ongoing guest membership of the G20 group.
It is really no exaggeration to say the developments of recent weeks, and most particularly the developments of recent hours, are reshaping the international trade landscape. For Ireland and the EU, the announcement yesterday of a 10% baseline tariff on goods entering the US, along with reciprocal tariffs on certain trading partners, set at 20% for the EU, including Ireland, is the most serious escalation in a trade dispute that began last month, first with tariffs on steel and aluminium, and then on the car industry. These tariffs risk reshaping global value chains that have been built up over decades. My view, our view and Ireland's view on tariffs is crystal clear: they are economically damaging for all sides. They disrupt deeply integrated supply chains which benefit businesses and employers on both sides of the Atlantic. They drive inflation and hurt consumers.
We must be upfront and honest. A 20% blanket tariff on goods coming from the EU will have a significant effect on Irish investment and the wider Irish and EU economy. It represents a huge challenge to Irish exporters to the US across all sectors. There is a lot of focus today on big industry, and I understand why, but I want all of us to think this morning about small Irish businesses.
In all of our towns, in all of our villages, in all of our constituencies, people have worked really hard to diversify markets. I think of people in my home town of Greystones who sell candles and diffusers, small businesses on the main street of my home town that are exporting to the United States, and have woken up this morning to great uncertainty. I hope and believe we will all speak with one voice on this. I want them to know that we have their back, we will work together and we will get through this together.
These tariffs will affect businesses up and down the country across all sectors. In a trading environment where we all know that the cost of doing business is a constant concern, that is, quite simply, a deeply unwelcome development.
It is important to be clear in trying to respond this morning to something that only happened late last night. There are many points that we still need to clarify, including the on-island differential effects. We need to assess the full details of the US plan, once it is released and published in the Federal Register. At this moment, it appears that pharmaceutical goods do not attract the reciprocal tariff. We must remember, however, that the Rose Garden event was a press conference and our officials, in the coming days, will have to assess in detail the legal orders that the US will and has presented that underpin that press conference.
I am also aware of previous suggestions by the US President and members of his Administration of potential tariffs on pharmaceuticals. This is something we are working very hard at a European level to try to avoid or mitigate. President von der Leyen said this morning that the European Commission will engage in strategic dialogue with particular sectors, including the pharmaceutical sector, to allow for us to work with like-minded countries on a way forward. That is really important. Ireland has a lot of pharma industry. As I keep saying, these companies do not come here for the weather. They come here because they do well in terms of having access from this small country to a market of more than 450 million people. We are not isolated on this issue. Around a dozen countries in the European Union have a very significant pharma presence. We should push back against the narrative that it is Ireland and Ireland alone when it comes to pharma. The analysis does not bear that out.
The EU - the 27 member states, including Ireland, and the Commission - will now assess yesterday's announcements. It is clear that firm and proportionate action to defend the interests of Irish and European businesses, workers and citizens will need to be considered. The European Commission has made this clear but that does not mean the Commission or Ireland will ever stop seeking to negotiate, seeking dialogue or seeking solutions that work for everyone. We will strongly encourage continued and intensified dialogue between the EU and the US. Together, we have the largest and most important bilateral trading relationship in the entire world. EU-US trade in goods and services reached €1.6 trillion in 2023 and the EU-US goods and services trade is actually broadly balanced. The difference between EU exports to the US and US exports to the EU stood at only €48 billion in a €1.6 trillion relationship, in other words, the equivalent of only 3% of total trade between the EU and the US. For our part, Ireland has a trade surplus in goods with the US and a trade deficit in services. While the trade surplus was €50 billion in 2024, it is estimated that the services deficit was €163 billion, meaning that Ireland has an overall deficit with the US in the order of €113 billion.
President von der Leyen said this morning that the EU is open to removing barriers to transatlantic trade. This message is important and welcome. We are ready to support efforts to make the global trading system more fit for purpose. Tariffs are not the way to do this. Negotiations are the way to make progress. Negotiations on transatlantic trade and an alternative path to reduce barriers, not raise them, are the way forward.
Maintaining open channels of communication and staying in close touch with all sides have been my guiding principles over the last period. Last week, I had a constructive and engaging call with the US Secretary of Commerce, Mr. Howard Lutnick, and we agreed to keep in contact. I remain in very close, often daily, contact with the EU trade Commissioner, Mr. Maroš Šefčovič, and other EU trade ministers. I spoke with the Commissioner again yesterday. I have spoken in recent days with a range of EU counterparts, including those of Germany, Finland, Slovakia, the Netherlands, Denmark, Croatia and Sweden and I have a call with the Spanish trade minister this afternoon.
Next Monday, I will attend a meeting of the Foreign Affairs Council on Trade in Luxembourg. This will be the first opportunity for the EU 27 to come together at a political level. We will discuss how we can take forward our collective response. I will make it clear to colleagues that Ireland is absolutely committed to EU unity and that you have to negotiate from a position of strength but that any response must be proportionate and any response in terms of a list of reciprocal tariffs should be produced with one aim only, namely, to bring about a negotiation and get people to the table to find a negotiated way forward. A full-blown trade war is in no one's interest.
It is equally important to me that we have open, strong, two-way channels of communication with Irish business. This is why we established the Government trade forum to facilitate discussion with business stakeholders, State agencies and Departments.
We are in an uncertain period in global history.
Nobody knows for sure what will happen in the weeks and months ahead. One of the wisest things we can do is listen to one another as we jointly shape our best responses and the best way forward. We have convened a further meeting of that forum for tomorrow.
I will make two points. People talk a lot about what supports should be put in place for business. I think it is agreed across the political divide that we have a proud track record in this country of supporting business, backing business, big and small, and not being found wanting in relation to that, but we should not jump over a very big piece of work now which is mitigation. The most important thing we can do in our national interest right now is work at an EU level to get to a better place. Rather than rushing to a conversation around supports and what supports, we should not accept the inevitability of the current rate being the rate forever. We need to focus in the hours, days and weeks ahead to get to a better negotiated position. I believe that is in our national interest.
The second point I want to make is that we will, of course, continue to work on an all-island basis. I had a call yesterday with the First Minister, the deputy First Minister and the economy Minister of Northern Ireland. We will continue those lines of communication in the days ahead. I will speak again to the economy Minister before I attend the meeting in Luxembourg on Monday, as we work through this.
I want to make a final point on international trade. This is a day of great uncertainty and nervousness for people who have gone out to work wondering what this means for them, the Irish economy, their family and their businesses. We are approaching this from a position of strength. Thankfully, we are living in a country with full employment, with more people in work than ever before, with budget surpluses and with money set aside for the rainy day. We have a proud track record over the generations of being a good place in which to do business. We are proudly embedded within the European Union. We understand the United States and how business works there. You know what? We will get through this together. That is an important point not to lose sight of as well.
I will briefly move to some other key recent developments in international relations that I know the Seanad is interested in. Russia's ongoing war of aggression against Ukraine has obviously had devastating impacts on the people of Ukraine but it has also impacted wider European security and prosperity. It, too, has disrupted trade flows. It has increased energy costs and, of course, it has impacted on global food security. While Ukraine, the US and the EU have shown their commitment to achieving peace, Russia persists with its war of choice through its relentless assault on Ukrainian cities and critical infrastructure. Let it be clear that there is nobody who wants peace more than the people of Ukraine. I have stood in Kyiv. I have been with the people of Ukraine. I have been with the President of Ukraine. They want peace. Putin may talk of peace while continuing to bomb civilian infrastructure, energy and ports. There is no doubt that of the two presidents involved here, one has committed to an unconditional ceasefire to help to bring about peace and the other is continuing to bomb while trying to set preconditions. These are not the actions of a country which has a genuine interest in peace. As the aggressor, it is for Russia to demonstrate the necessary willingness to engage in peace efforts by stopping these attacks and adhering to its commitments as part of a limited ceasefire.
Like every Member of the Oireachtas, I am extremely concerned by the negative trajectory of the situation on the ground in the Middle East, in Israel and in Palestine, particularly in Gaza. My focus and that of the Government is on supporting international efforts to bring about the immediate cessation of hostilities, a return to the ceasefire, a hostage release agreement and its full implementation including the release of hostages and the resumption of humanitarian access at scale. As we meet today, there is Irish aid in trucks in Jordan to help over 6,000 people in Gaza, but it cannot get in. It is a disgrace that food and shelter cannot get in. It is a disgusting situation. We need to see the hostages released absolutely without condition. We also need to see humanitarian aid flow. Ireland will use its voice in every forum - here, in the European Union and internationally - to continue to advocate for a return to the cessation of violence. That is an absolute priority. We will use all tools at our disposal - political, legal, diplomatic and humanitarian - in response to the dreadful conflict. Our engagement is guided by our long-standing and principled position of respect for international law, respect for the equal right to self-determination, peace, security, dignity for Israelis and Palestinians alike, and unwavering support for the two-state solution as the only way to bring about permanent peace, security and stability in the region.
Finally, I would like to highlight to the Seanad that in December the Government was honoured to accept an invitation from South Africa for Ireland to participate as a guest country of South Africa's G20 Presidency, which runs until November. It is the first occasion ever that Ireland has been invited to participate in the G20 and we are keen to maximise this opportunity. Participation provides a unique opportunity to build on the investment made under Global Ireland and to work towards our ambition in the programme for Government to further strengthen Ireland's influence around the world. South Africa's priorities for the G20 Presidency align with Irish values. My colleagues in government and I have been working hard to maximise the opportunities for Ireland which participation in the G20 offers.
With the prevailing international trade situation and the geopolitical developments, there is so much going on in the world, to put it mildly. We are facing a critical juncture. Our response, Ireland's response, to the challenges of the coming period has the potential to shape our economy and society not just for the months or years ahead, but for the next generation. This country is proudly on the side of openness, peace, negotiation and compromise. That is what this Government wants and I believe it is what the Irish people want. I look forward to working with Senators in this House in the time ahead. I congratulate those who are newly elected and newly appointed and I congratulate those who have returned. When I have to step out of this debate, my colleagues in the Department will continue to engage intensively. If I miss any of the questions that may come, I will be back directly in the days ahead. I thank the Seanad for having me here today. Let us work in our national interest at this critical juncture in our history. Go raibh maith agat.
I thank the Tánaiste. I understand Senator Ahearn is sharing time with Senators Joe O'Reilly and Scahill.
Yes, if that is okay.
Is that agreed? Agreed.
I thank the Leas-Chathaoirleach. The Tánaiste is very welcome to the Chamber today. Obviously, it has been a very interesting 24 hours. It is apt to have him in the Chamber to be able to address us on these pressing matters. When we talk about international relations and international trade, it is important first of all to look at our own country and where we are positioned. As the Tánaiste noted in his contribution, we come from a position of strength and we are at full employment. Since Fine Gael came into government in 2011, we have created more than 1 million jobs. We have surpluses in our budget every year. We set up a rainy-day fund in which there is €16 billion in place at the moment. These were difficult decisions to make. It would have been easier to spend that money in previous years but the prudent thing to do was to keep money aside for situations like this. That is important.
As a country, first and foremost we need to remain calm. I know that is what the Tánaiste, the Taoiseach and the Cabinet will do. Obviously, when we are in negotiations over the next number of weeks with the US, we will need to do it in collaboration with the EU because we come from a position of strength when we stay together. Obviously, each country has its own individual challenges. For us, the pharmaceutical sector is one major area. Although we do not have the full details, it seems welcome that pharmaceuticals might be excluded from the 20% tariff.
We are a bigger bloc than the USA. We have 450 million people in the European Union. If we need to respond, we need to respond with strength to President Trump. As a collective in this House and in the Lower House, we need to come together for the best interests of the Irish people. I hope we will do so in the coming weeks. I hear people talking about how we are over-reliant on American companies and on foreign direct investment, but I have not yet heard anyone say what companies we should not have brought into Ireland.
I come from Clonmel, County Tipperary, which has a proud history of foreign direct investment. Merck Sharp & Dohme, Boston Scientific and Abbott create huge employment in the region. Most foreign direct investment companies now locate outside of Dublin as opposed to in Dublin. As the Tánaiste said - I am acutely aware of this in Clonmel - it has a knock-on effect on employment for smaller businesses in the region. It is hugely important that we support it and that we have that foreign direct investment from America.
We need to open up markets too. There is one suggestion I will make to the Tánaiste in his new position as Minister for Foreign Affairs and Trade, with trade having gone to his Department. The Department of trade and, in particular, the Department of Agriculture have played a key role in opening up new markets across the world. One market we need to prioritise is Taiwan. We used to have a trade office in Taiwan and we need to reopen it. Most of our European counterparts, 17 or 18 of them, have trade offices in Taiwan. We use the European office as a base but it does not really do the work for us. We are potentially losing companies coming into Ireland because we do not have a base there. Over the last number of weeks, we have looked at the impact these trade tariffs can have, particularly on the drinks industry and on Irish whiskey. Taiwan is the third biggest importer of whiskey across the world. This is an opportunity for us to be able to delve into that market. It is something we should do.
On the two wars in Ukraine and Palestine, I think we need to remain strong in our support for Ukraine. We have done that from the start. Last week, we passed a Bill to give hosts an opportunity to continue housing Ukrainians for the next year. It is important to do that. As the Tánaiste said, we need to work with Zelenskyy and support the people of Ukraine.
In terms of Palestine, we have done an awful lot. We have gone above and beyond most countries. Obviously, there are criticisms and different views from different people in this House and others, but we have done a lot. We have recognised the ambassador and joined South Africa in its case. You get an awful lot of pressure and criticism from people from Israel about being too pro-Palestine and pro-Gaza. I have witnessed that but we have a moral obligation to support Palestine. I hope we can continue to do so over the next number of months.
I welcome the Tánaiste and thank him for his clear, focused leadership in this area. When you look at a challenge, you look to the built-in resilience you have to deal with it. We have that built-in resilience, in that we are attractive for investment given that we have industrial peace, an educated workforce, a budget surplus, full employment and a rainy day fund.
We also have a recent history that should encourage us. With Covid, we overcame what was probably the greatest challenge of contemporary times, and indeed the Tánaiste was the Minister for Health during that period. We did so in a way that other sophisticated European countries did not. They had people dying in hospital car parks, etc. We successfully kept our population hospitalised, our emergency services going and our vaccination programmes working. While we had tragedy, we dealt with it very well. We have a history and an in-built resilience. That has to give us courage.
We should consider the fact that President Trump and the people around him are inherently transactional. He prides himself in being transactional. We should look to that transactional dimension and seek to negotiate and support the EU initiative to negotiate. It is good to hear the leadership of the EU talking this morning about negotiation and not engaging in unnecessary sabre-rattling.
There will be internal pressures in the US. Various sectors as well as consumers in the US will be hit. Those internal pressures, the impending mid-term elections and sectional interests in America, combined with our negotiations with a cool head, can achieve a good outcome. Obviously, the EU has been a great and successful project. The United States has been a great and successful project. Both have pivoted on free trade. It is a madness and a reversal in human history that we will be going in a backward direction here but we have to keep our heads and negotiate.
We have to build further resilience. I come from an area where food processing is strong. Food processing, agriculture and the tourism sector need to be focused on at this stage.
The Tánaiste is very welcome. I welcome his comments on the supply chain. Supply chain disruption will have a big impact on Ireland, and I would like to work with the Tánaiste on that. I also welcome the Tánaiste's comments on small business, and the knock-on effect of the tariffs on small business and the multinationals. Last night, I did a little research on some of the multinationals based in rural Ireland. One of the key issues many of them cite as a reason for locating here is quality of life. We should not lose track of that because it is a big selling point, as some of my colleagues mentioned.
To follow on from what Senator Ahearn said about looking at other markets, we need to look at empowering business to expand and thrive in new markets and help business reach new markets. It is essential to minimise the impact of the tariffs in that regard. Access to the markets must be a top priority, and that means supporting businesses to understand the rules and logistics they need to succeed in global trade. We must make the most of the Single Market and our access to the UK market while exploring new international opportunities. Investment will be key to ensuring that businesses get the help they need to enter this and growing those markets. With the right strategy, what may seem like a challenge can actually drive on progress, advance initiatives like the capital markets union, unlock EU funding for people and small businesses, support the shift towards greener, more digital economies and strengthen our overall economic stability. That is the way we are moving forward from this.
I understand that Senator Craughwell is sharing two minutes of his time with Senator Joe Conway.
That is correct.
The Tánaiste is very welcome to the House. I thank him for his congratulations on our return to Seanad Éireann, and congratulate him and his party on their return to government.
The soundings from all sides of the Government is that we are now in a crisis and we stick together. We have done it before. We did it with Brexit and we did it very well. I am delighted that when the Tánaiste came to this House he referred to all Members of the House having an interest in making sure we get through this together. I hope we find the spirit of Brexit coming through as well as the lessons we learnt from Brexit, particularly with the differentiation that exists now between Northern Ireland and the Republic of Ireland with respect to tariffs. I am delighted the Tánaiste has already been in contact with the First Minister, the deputy First Minister and the economy Minister. That is really important.
The soundings from Europe are that "we are in this together". I hate to put in a note of caution. We were in it together when the banking collapse came but Ireland took the brunt of it. Ireland is a very small open economy in Europe and we trade in some very specific products. The whiskey industry is one that comes to mind; agriculture is another. I am not that concerned that pharma will leave Ireland and go back to the United States. Given the lead time to set up a pharma plant, Donald Trump will be long gone by the time the first plant will be built. Given the educational groups we have in places such as Galway and Cork specifically aimed at feeding the pharma industry, I do not see pharma as a huge problem. What would be of concern to me are the footloose industries here, the ones that lease a desk, a building and a computer and are in business and up and running. I am concerned about those.
As regards my greatest concern, Ireland has had phenomenal economic growth. I say that as someone who has lived through most of it. Even in the worst of times, in the past 20 or 30 years, we continued to see economic growth and to see the Government support business. The problem I see now is in the manufacturing sector. A lot of manufacturing now is operating on JIT systems where products or resources have to be delivered on time in order to keep manufacturing going. That may become a problem, and if it does, the Government has to be in a position to support those industries. If workers go on short time, we have to be able to support them. I agree with what the Tánaiste said this morning: let us not jump hoops before they are there. Let us take our time and take one step at a time.
As a former trade union leader, I am concerned that in the event of a collapse or of serious impact on the workforce, the workforce will be expected to carry the can. A great many people in this country have made an awful lot of money out of the huge success this economy has been, so let us make sure that everybody pays their load, if you like, or takes their part of the load as they carry it through. Trade wars will impact our economy insofar as prices will rise and inflationary pressures will come on board, and that will lead to my former colleagues looking for pay rises to meet inflation costs.
I urge the Minister to start negotiating now with trade unions. Let us get the trade unions in and establish a combined approach as we move forward. Let us make sure Ireland's competitiveness remains as it has been for the past 20 or 30 years. No worker wants to see a pay rise at the cost of competitiveness and the industry ultimately closing. Therefore, let us work with the trade unions now. We have all the economic people onside. I listened to them on the radio this morning - IBEC, etc. - all out vying for their own sectors. Let us get the trade union movement in straight away and sit down, talk and put together strategies as the economy takes the hit. After listening to the Tánaiste, the Taoiseach and the Minister, Deputy Donohoe, I know there is genuine concern that we soften the blow as much as possible. We have the rainy day fund, but I would hate to see it squandered on short-term solutions.
I am also anxious that Europe does not retaliate. There is an opportunity to negotiate out of this. As one of my colleagues, Senator Joe O'Reilly, just said, American consumers are going to be hit and the pressure is going to come from American consumers on the tariffs and how they are impacting their economy. Already, the automotive industry in America is not very happy at what is happening. As this series of tariffs kicks in, we are going to find ourselves in a situation where Americans have become a lot less happy than we are and that might impact the way things go.
Regarding short-term solutions, anybody who has ever studied economics will know that tariffs have a short-term boost, often leading to a very long-term series of pain. I hope that when Europe goes to negotiate with the United States, Ireland is front and centre. We are one of the best negotiators in the world. If Trump is a transaction person, we are excellent at negotiation.
I want to turn briefly to the war in Ukraine. I have been a supporter of Europe's attitude and European support for Ukraine, and a critic of Ireland's unwillingness to provide weapons we could provide to help the Ukrainians fight the Russian war. Having said that, I am also a critic of the fact that steps taken by the Irish Government to support Ukraine have never been debated in this House or the Lower House. When we decided to set aside our attitude towards being militarily non-aligned - we were never neutral; I need to put that on the record, as I always do - we should have debated in the Houses of Parliament. That is what the Oireachtas is here for. When we decide to move forward and support Ukraine further, we need to come into the Parliament. The Parliament is well able to debate these things. I do not believe there is any party or any group in the Parliament of this country that would be unwilling to support Ukraine. However, we should do it in an open and transparent way with full debate.
We had a debate here yesterday on a Bill regarding air navigation and transport arms embargo. The Government did not oppose the Bill. I was alone in opposing it. I opposed it because we could not action the Bill if we passed it. We are simply unable to get up to 35,000 feet to find out who is carrying what where. We need to be realistic in what we are doing.
When we talk about the war in the Middle East and about Israel and its brutal, and I mean absolutely brutal, response to Hamas, we need to be aware of the fact that Hamas itself has been brutal. I am going over time so I will leave that and we might discuss it at a later date.
It is very gratifying for us here in the House to welcome the Tánaiste and hear his very calm, sane and reassuring words this morning.
One thing we oftentimes say is we never learn anything from history. The same can be said about tariffs in the fact that the pages of history, if they are not quite littered with examples of the failure of tariffs, then certainly the pages are fairly replete. Approximately 120 years ago, the president of the Board of Trade on our neighbouring island - which was then in the economic equivalent of the dominance of America at the moment - brought in a thing called imperial preference, giving preference to British colony trade.
From 1903 until 1906, it generated an awful lot of restiveness in British industry and inflation. The sequel to it was the landslide victory over the Tories in 1906. We should take heart both from the Government's reassurance and from the pages of history. I do not believe there will be systematic long-term damage from these tariffs. I am very much hopeful that will be the case.
In the short time available to us, perhaps the Tánaiste will give his thoughts on the differential between the tariff rates proposed for the United Kingdom and the EU, respectively, and how that will knock our trade with the UK out of kilter given the better trading measures it has in place with the United States.
The Tánaiste is very welcome to the Seanad. On behalf of the Fianna Fáil Party, I wish him well in his brief, which has suddenly become more challenging.
Commuting to the House this morning, I looked at people on their daily commute to their places of study and work, or wherever they were going. I genuinely wondered whether this is a moment in time where there is a before and an after in terms of things changing in all of our lives. I was also buoyed by a sense of confidence that we will get through this. Then I thought of the families trying to go about their daily business in Ukraine and in Gaza but cannot do so. When we compare where we are with their situation, there is no doubt we will be able to find a roadmap that will help us on the way.
Recently I came across an old seanfhocail - "Níl tuile dá mhéad nach dtránn" or "Every tide has its ebb". Essentially, the message is that situations change, there is always transition, and we will have bad times as well as good times but the bad times always go away and we have the opportunity to come back. When we reflect on why so many companies chose to come to Ireland it was not just for tax reasons. It was because of our educated workforce and quality of life. It is also because we are seen as an open market to Europe and we are an English-speaking country. We have all of those advantages and will continue to have them.
There is no doubt that we need to wear the green jersey in both Houses and in this country. We also need to wear the European jersey and work and negotiate together. I have no doubt that under the calm and composed leadership of An Taoiseach and the calm, assured stewardship of the Tánaiste and the Minister of State with responsibility for European Affairs, Deputy Thomas Byrne, we will be able to plan a roadmap going forward. I know the work that the Taoiseach, Tánaiste and Minister of State started in preparation for the announcement last night and the meetings that will continue over the next 48 hours. That has to give us courage. The country has seen very difficult times but our greatest strength is our people. We are a resilient people.
The Tánaiste is right to talk about the agrifood industry and the concerns in that regard. In County Kildare our agricultural output provides almost 2,000 jobs in food and drink processing. That is, therefore, a concern. The Tánaiste also spoke, rightly, about the small businesses we have in this country. We must be concerned for small businesses that export. There are also small businesses that do not export but which rely on the very large companies we have here through foreign direct investment to be able to continue.
This is a time that we absolutely need to focus on all of those businesses. Throughout the past few years, and particularly since the start of the Covid pandemic, our local enterprise offices have really come into their own. I know in my own case, through the head of enterprise in the Kildare LEO, Jacqui McNabb, and through Kildare Chamber of Commerce, that we have been able to help and support a lot of businesses develop and grow. We need to put more resources in, we need to put in more supports for, and we need to show confidence in our own Irish businesses to show how we see them as the way forward, as well as looking at open markets. I started with a seanfhocail that I had recently come across. I will end with one that we are all familiar with, which is, ní neart go cur le chéile. We need to be, and must be, united in this.
: I welcome the Minister of State, Deputy Thomas Byrne.
I welcome Minister of State, Deputy Byrne.
The comments from the Tánaiste this morning are most welcome. His tone and approach are very welcome. It is very important that we are not caught up with what a lot of media have been caught up with since the US presidential election and throughout the whole era of Trumpism, namely, the constant rhetoric about what Trump is doing today and what he might do tomorrow. There is a much wider political landscape in the US. We also cannot forget the friends we do have in the US and how our island is held within the US. I welcome the Tánaiste's tone this morning. Rather than battering the President of the United States, it is important that we now start using the arms of government, the arms of this House and the Lower House, to reach out to all of our friends in the United States and start a lobby.
Senator O'Reilly is right. The mid-term elections in the United States are not too far away. There will be a full election to the House of Representatives and a third of the Senate seats are up for election in November next year. Within that there is an opportunity. As politicians, we know, when one gets within a year of an election, the vision changes, and I have no doubt the vision will change as we move towards the end of this year in the United States, whereby it will be less about Trump and more about where the power will be come November 2026. That is where the opportunity to use our power lies, which is quiet negotiation and using our friendship to reach out to all the friends we have across all of the United States of America. We absolutely should not panic but we do have to take this very seriously. Our strength is in that negotiating power with our colleagues in the US. I am not one to jump to conclusions about how we need to support businesses. We know we are coming from a position of strength, but let us not jump to conclusions too quickly until we assess where we are at and where things are at.
It would be remiss of me if I were not to mention Northern Ireland. While there is so much going on in the world, with the added consequences of these tariffs, it is very important we do not lose focus on the relationships in Northern Ireland and, by extension, the east-west relationships. In particular, we should reflect on how those relationships have been damaged since Brexit was first mentioned and brought into the era post 2016. We still have a job to do rebuilding those relations. Moreover, great opportunity exists in Northern Ireland, particularly in the work of the shared island unit, including the different research that is going on and the collation of that work. Many in Northern Ireland are waiting to see where Ireland goes next with the shared island, how we try to tackle an all-island economy and make it better and, moreover, how we create a future for all people on this island, North and South, to move forward, recognising the North-South relationship but also recognising, for many, the east-west relationship. It is important that we do not lose focus on Northern Ireland, because it would be easy to lose focus given where things are. I am delighted with the opportunity to discuss this issue this morning. I am also delighted with the approach.
It is important that there are calm heads and that we reach out with all arms, not just across the EU, but to the United States. That is using all mechanisms of these Houses. I am glad the shenanigans in the Lower House have stopped this week because committees are now so important when it comes to issues like this. It is important that we get the committees of the Houses operational and, where we can, use them to lobby in our interests and to look after all the interests of our businesspeople across the island.
I will share my time with Senator Chris Andrews. The Tánaiste's presence this morning was welcome and timely given the events overnight. We had the opportunity not only to hear from him directly but also to hear responses from Seanadóirí who are here. I agree with his assessment of tariffs generally and their destructive nature. The United States Government has embarked on an enormous act of self-harm, which is not reciprocal in its approach at all and is very regrettable. I welcome the Tánaiste's remarks about the need for coolness and maturity in the approach to this, and the ability to open negotiations and dialogue to try to resolve these issues. I also in that regard noted the comments of the European Commission President this morning, which seemed to moderate previous language that had been used. That is welcome. It is in no one's interest to end up in a trade war that harms everyone and simply fuels inflation. The effects of that will be felt by ordinary working families and households in all parts of the world.
The immediate focus the Tánaiste outlined, on ensuring that potential damage is averted and that we protect jobs and the economy, is correct. For our part in Ireland, we need to ensure across the island that businesses are supported, primarily with information initially. The Government trade forum could play a useful role in that. We also have InterTradeIreland, which operates between both Administrations, North and South, to ensure that, in the first instance, our business sectors, which will be concerned about developments, have all the information necessary and then whatever other supports might be needed in the time ahead.
I welcome the remarks the Tánaiste made, which were not in the script provided, about the all-island economy and his engagement with my former ministerial colleagues in the Executive. I spent some time yesterday engaging with the economy minister north of the Border, Caoimhe Archibald. The increased complexities of these developments in our post-Brexit arrangements need to be understood. The likelihood of increasing designation of goods at risk and the complex and uncertain reimbursement procedures that might involve are a significant concern to the North and businesses in the North, particularly at a time when the economy has been outperforming Britain recently, with higher growth rates and higher export performance. The all-island economy has been thriving. I know from my experience in previous times as finance minister and also as an economy minister, dealing with Brexit matters and the approach of the British Government, which could have disastrous consequences for business on this island, that the close working relationship between Executive ministers, Government Ministers here and the European Union was critical in at least mitigating some of the worst circumstances.
The ongoing challenge for us is that last night's approach by the US Government is just the latest in a series of economic shocks that we have seen with the pandemic and the conflicts in Ukraine and the Middle East. These will not end any time soon. It is a time to look at the vulnerabilities and the particular exposure that the Irish economic model has in that regard, and to start taking steps to address those vulnerabilities; namely, the concentration of corporation tax receipts among a small number of multinational corporations; the lack of diversification among the FDI base in terms of sector, geography and region; and infrastructural deficits in areas like housing, energy, ports and airports. We need to take the necessary steps to support our indigenous businesses, to increase exports, to grow talent across the island, and to trade across the island and internationally. We will undoubtedly face challenges in these uncertain economic circumstances but at least the conversation will not be about reshoring; it will be about how we develop and support our own businesses.
There are longer term lessons to be taken from this experience. The economic uncertainties will continue regardless of what emerges from the United States approach. Ireland needs to examine the economic model which leaves us particularly exposed to some of the uncertainties in a growingly uncertain world in the time ahead. I thank the Tánaiste for his remarks and I look forward to hearing the response from his colleague.
I extend my condolences to Mick O'Dwyer's family on his passing this morning. He was an icon of Irish sport and football. His loss is a huge loss.
On the issue of genocide in Gaza, I would like to know why this Government has accepted the normalisation of genocide. Israel continues with a colonial settlement project and there are absolutely no sanctions for it. Those colonial settlements continue today without sanction. There are no sanctions for the starving of Gazans. There is no sanction for cutting off electricity. There is no sanction for the killing of over 18,000 children in the Gaza Strip. There is no sanction for the destruction of human rights and international law. I heard the Tánaiste say that he was concerned and that what is happening in the Gaza Strip is a disgrace. However, it is hard to figure out how that works in practice because there are no consequences. There is loads of condemnation of Israel but there are no consequences.
Francesca Albanese recently said that the first victims of Hamas are Palestinians and she is correct. I spent time working in the Gaza Strip and I know the Palestinian people there. I have lost friends who worked and lived in the Gaza Strip. They want peace and justice. If we have justice, we will have peace. As extreme and all as Hamas is, what Israel and the USA with support from EU weapons manufacturers have unleashed on the defenceless population of Gaza and the West Bank is unacceptable, disgusting and completely disproportionate. Israel is clearly out of control; there is no other way to describe Israel. The genocide of Palestine is important not just for Palestinians, but for all of us, particularly for those in small countries because Gaza and Palestine have been dismantled and are being used as a template to dismantle European international law and order and human rights. The genocide in Palestine should be important to all of us because it is being used again and again to dismantle human rights.
It is concerning that the Government is clamping down on those who are critical of Israel and critical of genocide. What happened with the Mothers Against Genocide protest on Monday is a concerning development in the harassment of those who are critical of Israel and genocide. It is also concerning that the media are increasingly hostile towards those critical of Israel and genocide. The hostile articles towards critics of apartheid Israel are having a chilling effect on those holding Israel to account.
In relation to neutrality, the only time the establishment is concerned about working people is when it needs them for the front line in a war. Without working people, there would be no front line. The Irish people do not support Ireland losing its neutrality. The Government can dress it up any it wants but the reality is that getting rid of the triple lock is the first step on the road to ending neutrality and joining a military alliance. In 2023, Germany approved arms exports to Israel worth €326 million including military equipment and war weapons, a tenfold increase on 2022. The establishment and those running these companies are the winners in this war. It is in their interests. European countries benefit from the arms industry. We have to ensure we stand up and the voices giving away our neutrality are challenged because our neutrality is something we have defended for years and we must continue to defend.
I thank the Minister of State for joining us today. As the Tánaiste said, we meet at a time of great global instability, not least because of the tariffs announced yesterday, because of ongoing conflicts and, as Senator Andrews highlighted, because of the genocide we are seeing unfold before our eyes. It is within this context that I reaffirm the importance of Ireland's commitment to peacekeeping and, within that, the integrity of the triple lock and working within the UN system. As the US, one of the largest global powers, seeks to undermine international co-operation, we must stand firm. We must invest at national and EU level in people and in the services which address poverty and the economic instability we face, rather than in huge defence spending which will take away spending from addressing the needs of working people. It is in this context that I want to talk about the need at national and EU levels to keep our commitment to UN multilateralism. That is why I and my colleagues in the Social Democrats are steadfast in our belief and arguments around maintaining the triple lock. Yet, we continue to hear claims, including from the Minister of State, that the triple lock obstructs peacekeeping missions. Let us be honest - the facts say otherwise. Between 1993 and 2024 Russia has never used its veto to block a mission. Even if a Security Council deadlock were to occur, the Minister of State knows the UN General Assembly has the power to act. The Uniting for Peace resolution, which was adopted in 1950, allows the UN General Assembly to override a Security Council veto, as it did in the 1956 Suez crisis. Our own 2006 defence Act recognises this mechanism, meaning the triple lock can be satisfied by a General Assembly resolution. If the Government believes the Security Council veto is a problem, why does it not seek to end the veto? The permanent representative from New Zealand said in 2023 that "the casting of a veto is not a display of power, but rather an act of weakness which shows the caster of the veto has failed to convince others of their position". In 2022, the UN strengthened this principle with Resolution 76/262 requiring a General Assembly debate whenever a Security Council veto is used. Since then, this process has been activated twice. We in the international community are not powerless in the face of veto nor should we abandon our long-standing principles based on hypothetical concerns. Through the 2006 defence Act, the triple lock allows for a deadlock in the Security Council to be addressed which means the General Assembly endorsement of Irish military deployment is sufficient to satisfy the triple lock.
I want to be clear; I am not saying the UN is a perfect system. It needs reform. However, abandoning that system and walking away from it, which the Government will do by removing the triple lock, will further contribute to the splitting of member states into regional blocs. That will create a significantly more dangerous international landscape across the world, particularly in light of the tariffs we are seeing. The UN mandate and the process of getting that mandate serve a key role in ensuring appropriate international support has been garnered for peacekeeping missions. The UN system ensures sufficient checks and balances are in place to monitor missions and, critically, to ensure our missions are human rights-compliant and to uphold international law. Without the UN safeguards in place, we risk engaging in missions that are not compliant with international law. No one in this room or in this country wants to see that. The triple lock and the UN mandate are the foundations of our proactive peacebuilding role in the world. In a world dominated by global powers and rivalries with the US, the independence provided to us by the triple lock allows us to act as an honest broker. That means we are trusted by countries in the global north and in the global south.
With my very limited time, I also wish to highlight the crisis we see in primary healthcare facilities with the USAID cuts and the need for Ireland and the EU to plug those gaps, particularly as regards infectious diseases, including HIV, which is spreading drastically and will cause a global health crisis in Europe, including Ireland.
I thank the Minister of State for being here and thank the Tánaiste for his remarks. It is fair to say we are in a period of a lot of change in the world. The world order has changed. I do not believe Trump is the leader of the free world, and democracy is being eroded across the US and across the world. It is worrying that he has abolished the national Department of Education in the US, is weakening the media and is denying climate change. Alongside his comments on women and his xenophobic comments, all of this is deeply worrying and we need to stand up to it from Ireland and from the EU.
In terms of tariffs, what Trump is doing is one big distraction and one big spectacle. He is trying to turn back the clocks to an age that benefited only a few people. This is a blow to Ireland, and we need to ensure we have strong supports for businesses and workers and that we retain our workforce in this country. However, we absolutely need to approach this in a collaborative manner and not in panic. We must negotiate first and use our leverage within the EU to achieve this. We need an all-island, collaborative approach to this matter.
One of the biggest threats to our economy at the moment is the domestic housing crisis. We need to invest more in infrastructure and housing now. It was worrying to hear recent comments from the Minister for further and higher education that there may be an increase in the student contribution. That would be a regressive step. We need to invest in education and close the deficit when it comes to our higher education institutions so we can keep workers here. We have the highest levels of outward migration at the moment since 2015. We are losing teachers, gardaí and healthcare workers. We need to keep them in the country to keep our economy going.
As regards Palestine, our humanity in Ireland is not for sale. It cannot be bought or sold. I reject any premise that our economic security here depends on some idea that Palestinians must die. It is not a competition between human rights and business. We need to absolutely protect that and pass the occupied territories Bill.
I welcome the Tánaiste's remarks about Ukraine and his commitment to its self-determination and peace. The Labour Party's perspective on the triple lock is that we should safeguard it and that we need further cross-party discussion on it to protect our neutrality. We also need to invest in our Defence Forces, however, and we need to review their pay and conditions and implement the working time directive there.
One of the biggest opportunities is the shared island approach. We saw this with Brexit and with the pandemic. The shared island initiative is welcome but we need to do more than that, and there is a strong business case for preparing for a border poll. We should not let that fall off the agenda; we need to lean into it.
I thank the Tánaiste and the Minister of State for joining us this morning.
The Minister of State is very welcome. I thank the Tánaiste for coming in as well because I know he is probably flat out today with various things.
Everyone here has said we are in a worrying state of affairs now. I welcome the Tánaiste's remarks about working collaboratively. I am also encouraged by the fact there will be major capital infrastructure projects and that we can open our economy up to supporting indigenous companies, including in terms of regional development within our own country. It will be really important that we look at adopting the EU directive on collective bargaining. Now more than ever, I believe trade unions will play a really important role in ensuring jobs and workers are protected and that workers will have a legal entitlement to collectively bargain. It is very important the Government listens, implements this and works with trade unions.
As regards international relations, I had a number of meetings this week with Irish Healthcare Workers for Palestine. It is very concerning that not only medicines but also doctors are being blocked from entering Gaza. I met a number of doctors and human rights lawyers working with people with disabilities. In any conflict or warzone, the most vulnerable groups are young people, children and adults with disabilities. It is very worrying that Israel is saying that assisted devices such as crutches, hearing aids and glasses are being redesignated as dual-use items. That is something we can intervene in as a country.
We need to work within the EU. In particular, Fine Gael can work within the European People's Party. There is a bit of concern. Some other members within that grouping talk about looking at redirecting. There is kind of a change in narrative about humanitarian aid. It is really important that we support countries such as Egypt as they continue to support Palestinians in their healthcare systems, which were bad in the first place.
When I meet healthcare workers, they say that we cannot normalise attacking hospitals. We have seen that 15 healthcare workers were shot in the back, with their arms tied, and put into a mass grave. That is horrendous and we cannot normalise it. If there is anything we can do as a country, it is to ensure we do not normalise attacking hospitals. We must keep this human.
I welcome the Minister of State, Deputy Byrne. I was very glad to have the Tánaiste come to the House today. I am hoping he will be able to return, maybe to discuss this at more length, because we have had requests for debates over many periods of time. The nature of the week that is in it means the focus is going to be on tariffs, but there are a large number of issues which the Seanad needs to discuss in detail with the Tánaiste. I am looking forward to seeing him return quite soon.
It is important that we have a calm and thoughtful response to last night's announcement of various tariffs. It is also important that alongside our immediate and short-term response, we already have the medium-term response starting in the background. The next two weeks will be crucial for Ireland as we take part in the EU discussions around what reciprocal tariffs may look like. A point that is often made by the Opposition and is sometimes dismissed - it is as if we are against FDI when we talk about it - is about the importance of indigenous industry and the importance of new industry and innovation with our European partners. That is very crucial. In the area of pharmaceuticals, for example, we have a stay in terms of the tariffs. While pharmaceuticals are not included in yesterday's tariffs, we know there is insecurity in that area. It is a slow-moving industry that takes eight or nine years to move. However, Ireland has the education and the infrastructure. We need to look not just to the companies that exist now, but also to the next companies, which may be Irish and may be European.
This goes to a crucial point: Ireland and Europe should not respond to the tariff announcements with short-term things that will make our situation worse regarding policy. Such things include the idea that we would start importing liquefied natural gas and fracked gas. We should not make ourselves more vulnerable and more exposed to the United States by importing fracked gas or by trying to curry favour through the purchase of arms, including F-35s. It has now been suggested that such arms may even contain a kill switch so that they are not usable unless it is at the agreement of the United States Presidency.
It would be a poor decision to participate in a race to buy things that will make the European, national and global situation worse by accelerating climate change, accelerating militarisation and damaging human rights for the sake of a soundbite or trying to get a line or two or a smile or two. We need to be very clear. We need to talk about the industries we have that matter, are substantial and have a future. That needs to be our focus.
It would be a very poor mistake, one I fear the European Union is beginning to make already, if we were to engage in a race to the bottom on standards, whether they be environmental standards, employment standards or regulatory standards. We have seen the new bonfire of regulations Bill brought forward by the Commission. We are seeing a stop on the corporate due diligence directive that has been put in place.
I am very passionate about Europe. I was one of the four Irish representative parliamentarians at the Conference on the Future of Europe process. Europe needs to listen to the European public, something it failed to do during the previous crisis and during the period of austerity. The European public taking part in that future of Europe process were clear that their vision of Europe was not solely about the economy and it certainly was not about military might being their identity. It was around being proud of a Europe that had standards and being proud of a Europe where we collectively raised those. Not only is that crucial for the public, it is also crucial for actual innovation. Competitiveness is not simply about cutting. Competitiveness is about having the grounds for innovation whereby we make it, we make products, we create services and we develop initiatives that operate in a way that will actually serve us as humanity.
Again, this is an area where I feel very concerned for the people of America. I lived there for a long time and I am very concerned because I believe they will be hit worse by these tariffs. They are also being hit in parallel by an attack on science, an attack on public health research, which is the kind of thing that will undermine any future for pharma, and by attacks on physical realities such as the reality that women exist, the reality that populations are diverse, and the reality that we are in a climate crisis with a limited environmental space for survival. If Ireland and Europe lean in to producing the products, creating the services and leading in innovation that recognises those realities rather than chasing the deregulatory space, then this is where we are in the next wave of innovation. Currently, four of the big tech companies are European. I do not see why the next big companies in many of these areas should not be coming out of Europe and indeed out of Ireland.
When we talk about making sure we do not lose what matters I make a particular point that the idea of cutting social cohesion funding at this time would be disastrous. It is opening ourselves to those who would sow division during a time of economic recession. While Europe needs to examine the reshaping of global value chains, as the Tánaiste said, we are also looking at an attempt to reshape global values. This is where Ireland can give leadership within the European Union. This is where Ireland can support our friends in the European Union by making sure we remind them and hold them to the principles of global values. That means looking to the aid cuts that are happening right across. Some of the largest tariffs last night were to some of the poorest countries in the world who are also seeing aid cuts not just from the United States but also from Europe.
We also need to look to the issues of our neutrality and our peace. This gives us credibility internationally. Europe benefits from Ireland's unique voice, its unique credibility when it comes to the histories of colonisation, and its unique credibility on international law due to its neutrality and on peace building. Right now, Europe has neglected its other relationships across the world. We talk about reaching out to other markets. Those other markets are in countries. Europe needs to work on its wider diplomacy. We look to the G20 that will be so important, as the Tánaiste has highlighted. Ireland was invited to participate in the G20, the 20 largest economies, not by one of our European partners but by South Africa. South Africa is also one of the countries in the Hague Group, which is a group of countries that are saying we must continue to stand for international law.
Ireland being invited by South Africa to the G20 was also a recognition of our values and the fact that Ireland is standing by international law and international values. These are the issues we cannot throw away right now. Europe needs them because the world has seen Europe's hypocrisy when it rightly condemns the illegal invasion of Ukraine by Russia and takes action after action on it while we are still talking about what I was concerned to hear the Minister of State in his speech refer to as "conflict" and "hostilities". Let us be clear about what Israel is saying, what Katz said yesterday: they are in a crush and cleanse phase. They want to capture large areas that will be added to the security zone of Israel. That is straightforward ethnic cleansing and colonialism. Ireland can be a friend to Europe by pointing out that if Europe does not take a stand against this form of colonialism, it damages its relationship with those many other economies across the world and those many others we need to engage with.
Aid should not be a matter of interest, it should be a matter of principle. Peace is a matter of principle. International law is a matter of principle. Taking a stand and being credible on those things also serves in Ireland's interests and it benefits Europe at a time when there are a lot of moving pieces right now in the world economy and when Europe needs to build its relationships, which, sadly, have been damaged in recent times by the failure of Europe to take actions on Israel. Ireland's credibility would be massively damaged if we were to erode the triple lock and thereby send a signal that we are trampling on the United Nations. Let it be clear: that would be a push against the United Nations General Assembly, one of the largest groups we are a part of and one where we have a strong and leading voice. Let us not throw that away at this crucial time.