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British-Irish Co-operation

Dáil Éireann Debate, Wednesday - 5 October 2016

Wednesday, 5 October 2016

Questions (2, 3, 4)

Gerry Adams

Question:

2. Deputy Gerry Adams asked the Taoiseach if he will report on his meeting with the British Secretary of State, James Brokenshire, in Oxford. [28355/16]

View answer

Eamon Ryan

Question:

3. Deputy Eamon Ryan asked the Taoiseach his plans for the North-South summit on Brexit. [28712/16]

View answer

Mick Barry

Question:

4. Deputy Mick Barry asked the Taoiseach if he will report on the last British-Irish Council. [28715/16]

View answer

Oral answers (12 contributions)

I propose to take Questions Nos. 2 to 4, inclusive, together.

I spoke to the Secretary of State, Mr. Brokenshire, MP, at the British-Irish Association conference in Oxford, where we discussed the future of Britain and Ireland against the backdrop of the UK vote to leave the EU and the particular concerns of Northern Ireland in that context. In addition, we discussed legacy matters and our ongoing commitment to the establishment of a legacy framework as envisaged in the Stormont House Agreement.

The Government believes there is a need for the widest possible conversation on the implications of the referendum result for Ireland, North and South and for North-South relations. To facilitate this conversation, the Government has agreed there will be an all-island civic dialogue on Brexit with the first meeting to be hosted by myself and the Minister for Foreign Affairs and Trade on 2 November in Dublin. This is to allow for the widest possible conversation on the implications of the UK referendum result for Ireland, North and South, and for North-South relations.

This event will provide an opportunity to hear the voices of the people affected by the vote, both directly and through their representative groups. It will also provide an opportunity to map the challenges presented by Brexit and how they might impact on different elements of society and the economy on an all-island basis. Invitations will be extended to a broad range of civic society groups, trade unions, business groups and non-governmental organisations, as well as representatives of the main political parties on the island. The main output will be a report and recommendations which will be used to help inform the Government's position on issues related to the UK’s exit negotiations.

I attended an extraordinary meeting of the British-Irish Council, BIC, in Cardiff on 22 July, hosted by the First Minister of Wales, Carwyn Jones. Arising from the UK vote to leave the EU on 24 June, this summit was convened to discuss the implications of Brexit for the council and its members, including those who are not EU member states but whose relationship with the EU is dependent on UK membership. This Cardiff meeting was the 27th to be held since the inaugural meeting of the council in 1999. The meeting was also attended by the Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, the new Secretary of State for Northern Ireland, James Brokenshire, First Minister, Arlene Foster, Deputy First Minister, Martin McGuinness, the First Minister of Scotland, Nicola Sturgeon, and representatives from all other member Administrations.

The council noted there are several priority areas where implications arise, in particular the economy and trade, the common travel area, relations with the EU and the status of all citizens affected by the change. They further noted the process for implementing the referendum outcome would become clearer in the coming months. During discussions, Ministers collectively reaffirmed the importance of the council as a key institution of the 1998 Agreement and an important and unique forum to share views, enhance co-operation and strengthen relationships among all member Administrations at this time.

I understand that during the meeting of the British-Irish Association in Oxford, the Taoiseach acknowledged a key priority for him in the midst of Brexit negotiations would be the role of the EU in supporting the peace process, including through the special EU programmes body and EU funding. The Brexit referendum will obviously have implications for those programmes that are 85% funded by the European Union. As one can imagine, this has created significant uncertainty for all of those communities and sectors dependent on funding for and the implementation of these programmes.

Will the Taoiseach provide us with an update on the work in which officials have been involved between the Northern Ireland Executive, the special EU programmes body and the European Commission? Did the Taoiseach discuss with Mr. Brokenshire the implications of the British Chancellor's autumn statement in November? The British Government has only given assurances in the case of funding for Structural Funds for those projects approved before the autumn statement. How confident is the Taoiseach that the British will deliver on these assurances? Is he confident that outstanding letters of offer from the Government will be published before the Chancellor's statement?

Did he have an opportunity to discuss the legacy issue with the new Secretary of State for Northern Ireland? His meeting predated the row between Mr. Brokenshire and the Ballymurphy families? The British Government's approach to legacy matters has been unhelpful, to say the least, and hurtful. Did the Taoiseach discuss with Mr. Brokenshire the failure of his predecessor, Ms Theresa Villiers, and of the Cameron Government to co-operate with the legacy process agreed at Stormont House two years ago? There are some 97 deaths awaiting inquests. There is a suggestion that the North's Attorney General might be preparing to refer even more murders for new inquests. The North's Lord Chief Justice has called for urgent action on the issue. He has proposed a £10 million, five-year plan to clear the backlog in legacy inquests. Did the Taoiseach discuss with the British Secretary of State the refusal by his Government and the DUP to fund legacy inquests?

Will the Deputy conclude as I want to accommodate other Members?

These issues are relevant to the meeting in question.

I know they may be but I want to accommodate other Members.

It is a bit berserk having such a limited time. Can I have answers to those specific questions?

The Deputy is not going to get answers to them all just now. She read out a substantial list of questions there. I did not have time to discuss all those matters with the Secretary of State, James Brokenshire. I did discuss with him what he might do under the legacy issue. I pointed out to him that, while it was never assumed it could happen here, this State under my direction submitted to the coroner's inquest in Belfast whatever information was on files here in respect of the Garda Síochána arising from the Kingsmill massacre. I spoke to him specifically about Ballymurphy. I met the Ballymurphy families in Government Buildings some time ago and it was a very fine meeting. I also visited those good people myself in Ballymurphy to see at first hand the locations where their loved ones were murdered.

I told the Secretary of State that this State providing information to the coroner's inquest on the Kingsmill issue was an example of what should and could happen under his stewardship. While he was very new in his job at the time, I spoke to him briefly in respect of the Border and said that I agreed with the British Prime Minister that there would be no return to a hard Border, a fact which she publicly announced in Downing Street, and I emphasised the importance of that.

On the EU-funded PEACE and INTERREG programmes, on 24 June, the day of the Brexit referendum, officials from the Department of Public Expenditure and Reform were in touch with their Northern Ireland counterparts and the European Commission, as well as with the special EU programme body, to underscore the Government's commitment to the programme and discuss how they would continue to benefit from European funding.

The matter was discussed at the plenary meeting of the North-South Ministerial Council that took place in Dublin Castle on 4 July 2016 and at a sectoral meeting of the special EU programmes body that took place in Iveagh House on 7 July 2016. I know that the Minister for Public Expenditure and Reform and the Northern Ireland Minister of Finance, Máirtín Ó Muilleoir, agreed to write jointly to the European Commissioner for Regional Policy, Corina Creu. That work is continuing and I am aware that officials of the Department of Public Expenditure and Reform are continuing to engage with the Minister of Finance's officials, the special EU programmes body and the European Commission to establish the basis on which programmes will be allowed to continue to be implemented. Both the Minister for Public Expenditure and Reform and the Minister of Finance have also been in touch.

While there are complex financial, technical and legal issues that need to be worked through, I assure Deputy McDonald that, in this regard, the Government's commitment to the successful implementation of the programmes is total. They are an essential and critical part of what we need to discuss in changing circumstances arising from the peace process and the support from Europe for these very important programmes, not just here but indeed in Scotland.

I very much welcome the initiative to establish the summit and to look at the trade issue first. Will the Taoiseach consider using that sectoral approach and having one on the free movement of people, one on security issues and one on the environment? It is a potential way that could evolve given it is so difficult because there are so many issues at play here.

What we are facing is probably the most protracted and difficult negotiations with the British Government. The only example I can think of is the Home Rule negotiations at the end of the 19th century and the start of the 20th century. It is at that level of complexity. Added to that is the fact that, like them, we have deep divisions in Northern Ireland where it looks like it will be very difficult to get political agreement on whatever approach we want to take as an island.

In those circumstances and given that the British Government has been following a deluded and deeply flawed path to try to become an unregulated state, a pirate state that will try to get the best of both worlds, is it not time for us as a friend, because one can only say this as a friend, to tell it the approach it is taking will be deeply damaging to all sides? Is it not time for us to say to the British Prime Minister that the British Government's disregard for the island of Ireland question in the way she presented her intention to trigger Article 50 is a very bad sign and that she must stop and take a different approach if we are going to get some sort of outcome out of this process that will not be deeply damaging to the people of Great Britain and Ireland, North and South?

My question relates to corporation tax rates. After the Brexit referendum, the former British Chancellor of the Exchequer, George Osborne, announced plans to slash the UK corporation tax rate from 20% to below 15%. On BBC Radio Ulster on 5 July 2016, the Minister of Finance, Máirtín Ó Muilleoir, referred to this in light of the plans by the Northern Ireland Executive to reduce the corporation tax rate in Northern Ireland to 12.5% by 2018. The Minister said, "I think he has put a horse and carriage through our policy." He then referred to the need to consider a different strategy involving reducing the corporation tax rate even further.

In this House, we often speak about the race to the bottom and Sinn Féin Deputies often raise their voices against it, but here we have a Sinn Féin finance minister positively embracing the race to the bottom, slavishly copying British Tory Party policy and promoting the notion of a bidding war whereby tax for multinational corporations would be slashed at a time when profits are sky high and public services are crying out for investment. Was this issue raised at the recent British-Irish Council and, if so, what was discussed? Will the Taoiseach give a commitment to the House that he will not enter into a bidding war of this type?

Quite a number of issues were raised at the British-Irish Council. I cannot recall this issue being raised but I will check the minutes of the meeting for Deputy Barry. I can confirm that it has been very clear for a very long time and enshrined in European treaties that tax matters are matters for the individual competence of each country. We set out our corporation tax rate at 12.5% many years ago and we are not changing that. It is not going up and it is not going down.

However, in recognition of the right of any country to move its tax rate, we did support a situation whereby the much higher British tax rate might be lowered in Northern Ireland to make the island of Ireland a more attractive economic entity in its overall context for foreign direct investment. The former British Prime Minister devolved that authority to the Northern Ireland Executive if it wished to implement it and that is what it decided to do. In the run up to the referendum, the former Chancellor of the Exchequer, George Osborne, said that the British Government might reduce the corporation rate in Great Britain to boost the economy. We are not entering any bidding war. Our rate is 12.5% and will remain so.

I asked the Taoiseach whether he would consider further strands. They could vary.

I already made the point that this was not a result that we wanted but it is one we must accept because it is a democratic decision of the electorate of England, Northern Ireland Scotland and Wales. We will have differences of opinion with the British Government regarding matters that will probably arise in respect of Brexit, but we are committed to the common travel area and no return to a hard Border and we want to maintain the trading links we have with Great Britain. A total of 200,000 jobs here are dependent on exports to Britain and similarly from Great Britain. We will remain a member of the EU. I discussed this with Deputy Ryan yesterday evening. Clearly, we have a lot of negotiating to do to protect our vital national interests and we intend to meet that challenge head on.

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