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Brexit Issues

Dáil Éireann Debate, Tuesday - 6 October 2020

Tuesday, 6 October 2020

Questions (403)

Bernard Durkan

Question:

403. Deputy Bernard J. Durkan asked the Minister for Foreign Affairs the extent to which progress is being made between the European Union and the UK in the context of Brexit; the extent to which alternative preparations are being made to facilitate industry here in the event of a no-deal Brexit; and if he will make a statement on the matter. [28820/20]

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Written answers

The ninth round of negotiations in the EU-UK Future Relationship concluded on 3 October. While some progress was made, there is still some distance to go on key issues including fisheries, a level playing field for open and fair competition and governance. Unlocking these issues is key to moving towards a more intensified phase of the talks. President von der Leyen spoke to PM Johnson on 3 October to take stock of the negotiations. Contacts between the EU and UK will continue in the period ahead with a view to making further progress.

Given the limited progress we have seen in the EU-UK negotiations to date, the Government decided on 29 May that we should plan our readiness work on the basis of two scenarios: (i) a limited trade deal (including fisheries), or, (ii) a hard Brexit with the UK and the EU trading on WTO terms from 1 January 2021.

While Ireland continues to support the closest possible future relationship between the EU and the UK, prudence dictates that we now plan on this basis.

The Government’s Brexit Readiness Action Plan was published on 9 September which sets out in detail preparations and mitigation measures across a wide range of sectors. A key focus of the Action Plan is to assist business in preparing for the significant changes that will arise on 1 January 2021.

The July Jobs Stimulus includes a €20 million “Ready for Customs” package which allows business to claim grants of up to €9,000 per employee hired or redeployed to a dedicated customs role. Further support for new customs requirements is available from Clear Customs Online 2020 - Skillnet’s free customs training programme, which was also launched on 9 September. Both these customs-focussed programmes were put in place in response to a need highlighted by the business sector.

The Brexit Readiness Action Plan sets out the range of measures business will need to take to prepare for the new trading arrangements with Great Britain from 1 January 2021, regardless of the outcome of the future relationship negotiations. Subsequently, the Revenue Commissioners have written to over 90,000 businesses that have traded with the UK since 2019, enclosing a Brexit Readiness Checklist. These letters provide a checklist of issues that need to be addressed including customs procedures, supply chains, import duties, cashflow, logistics, accreditations and certifications and, where relevant, information from the Department of Agriculture, Food and the Marine on exporting animals, plants and products of animal and plant origin. Since then, Revenue has contacted 2,500 businesses by phone and will continue its direct phone contact with up to 14,000 businesses over the coming weeks. Agencies such as Enterprise Ireland, Bord Bia and the Local Enterprise Offices continue to provide upskilling and advisory supports, while Departments and agencies are organising a range of briefings on an ongoing basis for specific sectors, including agriculture and food, construction, retail, transport and logistics.

Regardless of the outcome of the ongoing negotiations, the end of the transition period will mean substantial and lasting change. The UK will be outside the EU’s Single Market and Customs Union from 1 January 2021. This means that any business that moves goods to, from or through Great Britain will be subject to a range of customs formalities, SPS checks and other regulatory requirements that do not apply today.

I would encourages business and citizens to to take steps now to prepare for the end of the transition period.

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