Northern Ireland

Dáil Éireann Debate, Thursday - 27 January 2022

Thursday, 27 January 2022

Questions (4)

Matt Shanahan

Question:

4. Deputy Matt Shanahan asked the Minister for Foreign Affairs his views on whether the economy in Northern Ireland has been the best performing since the inception of Brexit given its ability to benefit from unhindered access to three markets (details supplied); his further views on whether the economic benefits of the present trade deal to the economy of Northern Ireland have been communicated effectively to persons in Northern Ireland; the specific steps that have been taken by his Department to promote this message to the Northern Irish audience; and if he will make a statement on the matter. [3850/22]

Oral answers (7 contributions)

Deputy Matt Shanahan

The Northern Ireland economy was the best performing in the UK last year because of the benefit of the market there having access to both EU and UK customers. What specific steps are the Minister and his Department taking to promote and communicate this message to the Northern community?

Deputy Simon Coveney

I thank the Deputy for the question. It concerns a topic that should get much more focus than it does. Many questions focus on problems with the implementation of the protocol, and there are some, but of course there is also great benefit for Northern Ireland in getting uninterrupted access into both the rest of the UK internal market and the huge EU Single Market. That is an extraordinary economic advantage for Northern Ireland, the benefits of which we are starting to see.

The protocol on Ireland and Northern Ireland was agreed by the EU and the British Government. The result of more than four years of difficult negotiation with compromises on all sides, it is designed to safeguard the Good Friday Agreement, including avoiding a hard land border, to protect vital all-island supply chains and to ensure the integrity of the Single Market and Ireland’s place in it.

The protocol offers real benefits to Northern Ireland. Goods produced in Northern Ireland have access to both the EU’s Single Market of more than 450 million people, the world’s largest and most powerful trading bloc, as well as the rest of the UK internal market of some 65 million people. Nowhere else in the world can make this offer to local and international business. It is an opportunity that can benefit all communities.

The first year of the protocol’s operation has seen historically high levels of investment interest in Northern Ireland and a series of jobs announcements and investment decisions clearly linked to Northern Ireland’s dual market access. However, stability, certainty, and predictability are needed to fully realise these opportunities. The Government continues to engage closely with the business community, political leaders, and other stakeholders in Northern Ireland. The Government and I, along with European Commission Vice-President Maroš Šefčovič, have consistently highlighted the economic opportunities associated with the protocol as part of this engagement. Recent polling shows a growing recognition throughout Northern Ireland that the protocol presents genuine economic opportunities.

In October 2021, the European Commission presented a comprehensive and generous package of proposals to minimise disruption caused by Brexit for the people of Northern Ireland.

An Leas-Cheann Comhairle

I thank the Minister. He will have another opportunity to conclude his prepared remarks.

Deputy Matt Shanahan

I am in agreement with the Minister and many others in that I think the Northern Ireland protocol agreement is delivering a significant economic benefit to the North, although I am not sure whether that message is getting through in a political sense. Unfortunately, as we know, political and cultural differences exist there, and that is the reason for that. The engagement of Liz Truss and Maroš Šefčovič has certainly helped in the present discussions, leading to the relaxation of some of the agricultural issues at the Border, which has significantly helped Northern Ireland farmers, in stark contrast to what is happening to farming and agriculture in the wider UK. There is much to be said for where things are, but the Department has a pre-eminent position in respect of driving a message. Some in Northern Ireland politics do not wish it to be heard but we need to do a better job of getting that across.

Deputy Simon Coveney

It is important to put on the Dáil record examples of what is happening.

I will give a number of examples. Last year, Invest Northern Ireland reported that it was dealing with 50 firms interested in setting up in Northern Ireland, and Manufacturing Northern Ireland has noted a similar uptake in investment interest. For example, the Almac group, the global pharmaceutical organisation headquartered in Craigavon, announced the creation of 1,000 new jobs in Northern Ireland. Almac has consistently highlighted its unique, unfettered and flexible access to the UK, Europe and beyond under the protocol, referring to this as “the Almac advantage”. Ardagh Metal Packaging announced plans to build a new state-of-the-art €200 million beverage can plant in Belfast to service the growing needs of customers in Ireland, the UK and Europe. Deli Lites, a Warrenpoint-based food producer, has reportedly won a number of accounts previously serviced by Great Britain competitors and, in October, announced 45 new jobs in its Milltown industrial estate factory as part of a Stg£4.3 million investment. There are real things happening, linked to the protocol and because of the opportunities it provides.

Deputy Matt Shanahan

I used to do some work with the enterprise board and INTERREG was a significant programme in terms of trying to develop cross-Border trade. It is interesting, if we look at the Northern economy, that there is a significant number of people up there who are employed by the state and productivity would not reflect the numbers we have down here, although it is improving. The case is that there is great opportunity and potential in the Northern Irish economy under the present trade agreement. That suggests a question as to where Northern Irish politics is going and where those supporting the Brexiteers are going. The issues that Mr. Johnson is having now, I would contend, are probably adding further fears on the possible future triggering of Article 16. I know we are doing everything possible but we need to keep selling the economic message. The shared island message is also very important for people in the North so they know they have a significant future tied to the Republic of Ireland.

Deputy Simon Coveney

Some of the comments by the Prime Minister yesterday were, I think, unhelpful in that regard. The Foreign Secretary, Liz Truss, and Maroš Šefcovic are building a good relationship as the two key negotiators on behalf of the UK and the EU in terms of trying to settle some of the outstanding issues on how we implement, with the maximum flexibility possible, the protocol into the future. We certainly will be working with both sides, and I speak to Maroš Šefcovic on a weekly basis. We want to try to find a way forward that can bring the certainty and stability that is needed in Northern Ireland so this extraordinary advantage that the protocol does actually provide can be fully utilised, instead of the protocol remaining a polarising issue in politics in Northern Ireland in the lead-up to elections. We all have an obligation to try to move forward these issues. I think the EU is playing its part in that in terms of offering real flexibility and I hope the UK will be able to respond positively to that in the weeks ahead.