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Brexit Issues

Dáil Éireann Debate, Wednesday - 27 February 2019

Wednesday, 27 February 2019

Questions (3)

Lisa Chambers

Question:

3. Deputy Lisa Chambers asked the Tánaiste and Minister for Foreign Affairs and Trade the status of Brexit developments at national and EU level, including preparations for same; and if he will make a statement on the matter. [9757/19]

View answer

Oral answers (7 contributions)

I know that the Deputy will observe the time.

I am conscious that we have 30 days to go until Brexit. It is a fluid situation that is moving and changing almost by the hour, but will the Tánaiste update the House on the agrifood sector, including the beef industry, the landbridge, the backstop and the potential for a codicil to the withdrawal agreement? Will he also update us on his conversations with the Commission regarding the financial aid package that will be available to Ireland across all sectors in the event of a no-deal Brexit?

As the Deputy knows, it will be difficult for me to respond to all of those questions in two minutes. We have just come from the Brexit stakeholder forum, where we had a detailed discussion on the current state of Brexit negotiations. There will be votes today in Westminster that will essentially put in place a new timetable for the potential ratification of the withdrawal agreement. It now looks as if the next meaningful vote in Westminster will be on 12 March. It will be on whether the British Parliament decides to ratify the agreement that the Prime Minister and British Government have put in place with the EU. If the British Parliament fails to ratify it, there will be a vote, in all likelihood the following day, on whether the British Parliament wants to accept or reject a no-deal, crash-out Brexit. If that is rejected as an option, the British Parliament will vote on the following day, 14 March, on whether to seek an extension to Article 50 and create more time and space to resolve the outstanding issues. Therefore, we at least have some clarity on those dates. At that point, though, we will be two weeks away from the planned departure of the UK from the European Union on 29 March.

We continue to prepare for all eventualities. That is why we will debate the omnibus legislation for no-deal Brexit planning on Second Stage this week. The Deputy will have heard this morning about how the work that Bord Bia, Enterprise Ireland and other State agencies and Departments are doing with their clients, companies and vulnerable sectors is intensifying across a range of areas and preparing for the worst even though we hope and expect that we will get better outcomes through successful negotiations than the consequences of a no-deal Brexit.

The EU and Irish position in those negotiations remains clear - the withdrawal agreement is not up for renegotiation and will not be reopened to change its legal text. Instead, we are looking for ways to provide clarification and reassurance to the British Parliament regarding its concerns. That will be worked on for the next two weeks.

I thank the Tánaiste. We are tight for time this morning and I appreciate that we had a good discussion at the stakeholder meeting, where many of these questions were addressed.

As the Tánaiste stated, it is likely that we will initially see a short extension up to the end of June, but that would not be without consequence. Further delays and uncertainty are already impacting on business and the farming community. Regarding the Government's preference for an extension, if we see a lengthy extension following that initial period, will there then be informal discussions and negotiations on what the future trading arrangement might look like in order to assist the withdrawal treaty getting over the line in, perhaps, two years' time?

Regarding the backstop, I understand the intention is to try to secure alternative or updated advice from the UK's attorney general, Mr. Geoffrey Cox, MP. As I have already told the Tánaiste, it is unlikely that his advice will change significantly in the absence of a legally binding change to the backstop, which we do not want to see and will not support. We appreciate that the Government will not support it either.

Will the Tánaiste touch upon the Commission and the conversations happening around an aid package for Ireland? Should the worst happen on 29 March, we need to know what money will be available to Ireland on 30 March.

I will take the last question first. The response for vulnerable sectors in terms of support, aid and flexibility for Ireland in how we use state aid is already under way. Consider the package that has been put in place between Enterprise Ireland and the Carbery Group. A significant financial package that supports the Carbery Group in diversifying away from an over-reliance on the UK market has already been signed off on and put in place. One could call it a Brexit contingency measure for that company.

Regarding the broader vulnerability of, for example, the beef industry and the agrifood sector in general, there is ongoing discussion between the European Commission, in particular Commissioner Hogan, and the Government on examining the most appropriate ways to support and sustain those through a transition, even a semi-chaotic one resulting from a no-deal Brexit. I do not believe that the European Commission or the Government will be found wanting in that scenario.

I welcome the state aid concessions and the additional supports and flexibility being afforded Enterprise Ireland through the omnibus Bill. In terms of actual financial aid from the EU, though, what conversations has the Government had with the Commission and what might be available to Ireland?

The Tánaiste touched upon the beef industry. We discussed it this morning but, for the record of the House, reports in a newspaper last week - I believe it was the Irish Independent - spoke of pressure coming from the UK because it was aware of our vulnerabilities and exposure in the beef sector, given that the UK market is of particular importance to our agrifood sector, and of some MPs attempting to suggest that same might be used to twist our arm and seek concessions on the backstop. Will the Tánaiste confirm for the House what engagements he has had with the UK Government on this issue?

Regarding the landbridge, there still seems to be no solution to the real issues that we will face at the Port of Dover in terms of our supply chains.

On the Port of Dover, while we discuss these issues with the UK and the EU, we do not control all of the levers. That is the truth. Similarly, the British Government does not control what we do at Dublin Port or Rosslare. We continue to advocate to try to ensure that the landbridge remains a viable option for bringing goods to and from our market.

There were some unfortunate headlines in the Irish media last week around trade wars on beef and using that sector as a way of putting pressure on the Irish. In response to those headlines, I got a call from my counterpart, the Minister for the Cabinet Office, Mr. David Lidington, MP, who was concerned about them and made it clear to me that they were not coming from the British Government. I believe him. My relationship with him is good and we talk to each other in a very blunt and honest manner about all of these things.

However, that is not to say that there are not elements within the Westminster system that are frustrated that they cannot get over this issue of the backstop and want to see some pressure being applied to Ireland. Similarly, comments have been made here about putting pressure on the system in Westminster to get a deal done. That is the nature of politics when there is an impasse, but trying to put Ireland under pressure in terms of beef is not a tactic or official position being adopted by the British Government. It is a big issue, but one that we want to resolve together.

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