Dáil Éireann Debate, Wednesday - 6 March 2019
273. Deputy Lisa Chambers asked the Minister for Transport, Tourism and Sport his plans in the event of a no-deal Brexit, particularly in the context of the implications for the landbridge; and if he will make a statement on the matter. [11156/19]
View answerThe European Commission’s legislative proposal aimed at ensuring basic road connectivity with the UK in a no deal Brexit will allow UK hauliers to access the EU market for a temporary 9 month period, subject to reciprocal measures being put in place by the UK to grant similar access to EU hauliers. This measure, if adopted, will significantly mitigate the risk to our hauliers of accessing the UK market and using the landbridge.
I am very concerned at the potential for serious disruption at UK ports, in particular Dover, and also in Calais. This may make the use of the landbridge at least in the short term commercially unviable for some operators.
I updated cabinet on 15 January 2019 on the capacity on direct shipping routes to EU continental ports as a potential alternative to the landbridge. Based on consultations by my Department with the main shipping companies, I am advised that the market is sufficiently responsive to respond to the demands of Brexit. I have asked the Irish Maritime Development Office and my officials to continue to keep this matter under review.
The Irish Maritime Development Office (the “IMDO”) carried out a study for the Department concerning the implications of Brexit on the use of the UK landbridge. The study, published last year, found that 3 million tonnes of merchandise trade with the EU moves between Ireland and the EU continent via the UK landbridge. The IMDO estimates that this equates to approximately 150,000 Heavy Goods Vehicles each year and the total value of our trade using the landbridge was estimated to be €21 billion. This route is a strategically important route to market for many Irish importers and exporters and certain sectors of the economy may be adversely affected, mainly those that trade in time sensitive goods, e.g. Agrifood and seafood.
The Landbridge Project Group, chaired by the Department of Foreign Affairs and Trade and including officials from my own Department, the Revenue Commissioners, the Department of Agriculture, Food and the Marine, and others has been working closely with the European Commission and other affected Member States (France, Germany, the Netherlands, Belgium, Denmark and Sweden) with a view to preparing EU ports to facilitate the transit of EU products through the UK once it becomes a third country through the use of EU rules on internal transit as set out under the Union’s Custom Code. The EU has agreed that the UK may join the Common Transit Convention upon its departure from the EU on 29 March 2019, and a number of formal steps were taken to allow this to happen on 4 December 2018 which will enable the use of the EU’s internal transit procedure. The Landbridge Project Group has also visited France and the Netherlands, and will visit Calais on 6 March.
I have also met my UK counterpart, Secretary of State for Transport Chris Grayling and have set out the importance of continued transport connectivity between Ireland and the UK, highlighting the importance of the UK landbridge for Ireland as a route to European markets, and the need for Irish trade to move efficiently through ports. I also met France’s Transport Minister Borne on Brexit matters including the landbridge, in November, and France’s Minister of Europe and Foreign Affairs, Jean Yves Le Drian on 19 February.
Businesses must however prepare for Brexit and examine their supply chains. The Minister for Business, Enterprise and Innovation, Heather Humphreys TD, on 4 March urged businesses to make sure that they are ready to avail of the customs transit procedure for moving goods through the UK landbridge post-Brexit. The transit procedure allows goods to pass across customs borders with all duties and other charges suspended until arrival at their destination. In order to avail of the Transit procedure, businesses will need to have a Revenue-approved comprehensive financial guarantee in place. This comprehensive guarantee is required as financial security to cover all potential and actual customs debts such as customs and taxes.
