The UK's departure from the EU poses a unique and unprecedented challenge for Ireland. The depth and strength of the ties between our islands, across so many areas, means that our relationship is unique. This relationship has only been enhanced and deepened by both countries' membership of the European Union. The complexity of the UK's departure and the scale of the challenge it presents have become even clearer in the course of the Article 50 negotiations which have been ongoing since last year. Negotiations are led by an EU Commission task force, on behalf of the remaining 27 member states, under Michel Barnier. Ireland's goal has always been for the EU and the UK to have the closest possible relationship post Brexit. At the same time, it is important that we remain a member of the EU and that we maintain the integrity of the Single Market and the four freedoms on which it is based, which is the greatest strength of the EU.
The Government continues to work to ensure that Ireland's issues are properly reflected in the negotiations on the withdrawal agreement, including, as a priority, agreement on the protocol on Ireland and Northern Ireland, which will protect the Good Friday Agreement in all its parts, not least with regard to rights, safeguards and equality of opportunity, and the gains of the peace process. This includes the need to avoid a hard border on the island of Ireland and to therefore agree the backstop as part of the Irish protocol. We are also working hard to ensure that Ireland itself is ready for the changes and challenges that Brexit will bring. Negotiations resumed on 16 August and have been ongoing continuously since then. Substantial work has been done, and on many issues, progress has been made. In his most recent update, Michel Barnier has reported that there is a provisional agreement on up to 90% of the text of the withdrawal agreement. However, key, substantial issues remain to be resolved. These include those related to Northern Ireland and the backstop.
Discussions to agree a political declaration on the framework for the future EU-UK relationship have also begun in earnest since the resumption of negotiations. This has been enabled by the UK's White Paper, or the Chequers proposal as we know it, on the future relationship and is being taken forward on the basis of the European Council guidelines agreed last March. Common ground has been found on the future EU-UK security partnerships including in areas of police and judicial co-operation. However, there are fundamental differences on the UK's suggested model for the future economic partnership, which would risk undermining the Single Market. As we enter this final stage of talks, EU and UK negotiators have committed to bringing new energy to the talks, including on Irish-specific issues and the Government welcomes these commitments.
EU leaders reviewed progress during the informal European Council summit held in Salzburg last week.
As President Tusk made clear in his remarks following the summit, all partners were agreed there will be no withdrawal agreement without a solid, operational and legally-binding Irish backstop. Leaders reaffirmed their full support for Michel Barnier in all of his efforts and as leader of the EU task force. On the joint political declaration on the future relationship, the leaders of the EU 27 agreed that the aim is to agree a text that provides as much clarity as possible on the future relations model. However, leaders agreed that, despite positive elements of the UK’s Chequers proposal, the suggested framework for economic co-operation could not work given the risks to the Single Market.
The European Council meeting on 18 October remains the target to achieve maximum progress and results in the negotiations. At that meeting, Ireland and our EU partners will then decide if conditions are sufficient to call an extraordinary summit in November to finalise and formalise the deal. Real progress on the backstop will be an essential part of that decision. I welcome that in her statement of last Friday in Downing Street, the Prime Minister promised that the UK will bring forward proposals on the backstop. This needs to be done urgently if progress is to be made by the October European Council, as time is running short. As the Taoiseach said in Salzburg, we need to redouble our efforts over the coming weeks to make sure we can successfully complete negotiations and agree a deal. That is what we are all working towards. Ireland, as a country, wants to avoid a no-deal Brexit. It is important that we can reach an agreement, as all sides will suffer in a no-deal scenario - the UK, the EU and Ireland more than any other member state.
Regarding the backstop, the Tánaiste met Michel Barnier last week on 18 September and discussed progress in the negotiations, and in particular the Irish protocol and the Northern Ireland Border. Mr. Barnier confirmed once again his view that without a backstop there can be no withdrawal agreement. He later briefed myself and my EU colleagues at the General Affairs Article 50 Council. He gave his assessment which was and is that both sides need to work to de-dramatise the protocol and focus on agreeing the workable solutions that it offers at its core. He set out a number of technical suggestions aimed at explaining the nature, location and modality of the controls needed in the event of the backstop being implemented. This would maintain the key principle of the backstop, to maintain the Border as it is today - invisible - and facilitating frictionless cross-Border trade - while also minimising the technical controls needed to protect the EU’s Single Market. Ireland fully supports this approach and we have consistently said so.
From the outset of these negotiations, the Government has been clear and consistent in our position that a Border between Ireland and Northern Ireland must be avoided under any circumstances. While our preference would be to see these issues resolved through the future relationship, the backstop must be legally operable and, in the event that it is triggered, it must be in place unless and until another solution is found. It cannot be temporary. The UK has provided guarantees on avoiding a hard border and it was repeated again by Prime Minister May last Friday. The UK is committed to a backstop. Prime Minister May’s indication that the UK will now bring forward proposals is welcome. A legally operable backstop which avoids a hard border and protects the integrity of the Single Market is essential for agreeing the withdrawal agreement so as to provide the certainty that no matter what the outcome of the negotiations on the future relationship, there will be no hard border on the island of Ireland. This is of critical importance. The invisible border is the most tangible symbol of the peace process. It has allowed relationships and communities to be rebuilt following years of conflict. I do not have to tell my colleagues here that it has allowed social, political and commercial relationships to thrive across Ireland, and this cannot be put at risk
It is important that we give communities in Northern Ireland and here in the South certainty that we will resolve this issue as part of the backstop agreement. This cannot be pushed into the negotiations on the future relationship, negotiations that will not begin in detail until after the UK leaves next March and which will not be concluded for at least another two years or more. The draft protocol on Ireland and Northern Ireland also importantly addresses the commitment to protecting the Good Friday Agreement in all of its parts, on North-South co-operation and the rights provisions of the Agreement. North-South economic and social co-operation has benefitted people across the island and supported the development of an all-island economy. That is something that has benefitted all parts of the community. Protecting these gains is not just about ensuring frictionless trade but also is about facilitating peoples’ lives and livelihoods. Similarly the rights and citizenship provisions of the agreement are at the core of the peace process and must be protected. Fundamentally, the draft protocol works to support and protect the peace, reconciliation and prosperity that have been achieved through the Good Friday Agreement. Mr. Barnier is well aware of this and of our position and has been strongly supportive of it throughout these negotiations and we believe he will continue to support us in this manner.
The existence of the common travel area, CTA, between Ireland and Britain also plays an important role in underpinning the Good Friday Agreement in respect of both North-South and east-west co-operation. It also of course facilitates respect for the citizenship provisions in the agreement. Recognition of the continuance of the CTA has been agreed as part of the Article 50 negotiations and it is addressed in the draft protocol. It is a longstanding reciprocal arrangement which predates our membership of the EU. It is valued on both islands and its continuation is a stated objective of both the Irish and UK Governments The latter has publicly reaffirmed this as recently as 13 September in a technical note. We will continue to move and reside freely in either jurisdiction. Detailed work is ongoing, both at home and bilaterally between Ireland and the UK to ensure that, irrespective of the outcome, all necessary provisions are made in order that there is no reason to expect that a no-deal Brexit - we are working to prevent that - would affect our common travel area at all.
On contingency planning, Brexit will bring real changes for Ireland. We stand to be one of the most affected member states. A total of 15% of Irish exports go to the UK and 11% of our imports come from the UK. Any change to our trading relationship will have an impact on our economy and our businesses. The nature of this will depend on the outcome of the negotiations. We know, however, that any kind of an outcome will entail change and so we are planning accordingly. We believe we have been responsible and measured in this approach. Our contingency and preparedness planning for Brexit has intensified in recent months and is well advanced at this stage. It provides a baseline scenario for the impact of Brexit across all sectors. This includes contingency planning for a no-deal or a worst-case scenario to make sure Ireland is ready. Co-ordination of the whole-of-Government response has been taken forward through the cross-departmental co-ordination structures chaired by the Department of Foreign Affairs and Trade, as well as work at home, to help us engage actively with the European Commission's Article 50, or Brexit, task force and its Brexit preparedness unit on areas where the lead policy role lies within the EU.
In respect of contingency planning for a no-deal outcome, last July the Government approved a number of Brexit preparedness measures. This built on the extensive work that has been under way for some time. Last week, the Cabinet approved the latest phase of this preparedness planning regarding staffing. This included sanction for the first phase of recruitment for up to 1,000 customs and veterinary officers for our ports and airports to deal with the east-west implications. Ministers and their Departments have identified as an early priority work in their respective Departments and this is well advanced. We have focused on the immediate economic, regulatory and operational challenges which could result from such an outcome. It assumes that trading relationships would be based on default World Trade Organization, WTO, rules but we also examine the possible effects on many other areas of concern. Relevant Departments are now working on the roll-out of detailed action plans. This is with a view to advancing, as appropriate, the mitigating measures which they have identified in the areas of their responsibility from the planning to the implementation phase. All of this work is in addition to measures which have already been put in place to get Ireland ready for Brexit.
I will finish up quickly. In dedicated measures we have a €300 million Brexit loan scheme and a €25 million Brexit response loan scheme. I refer also to our capital expenditure of €116 billion under the Project Ireland 2040 plan and we are also providing funding for new diplomatic missions to expand Ireland’s global footprint, in line with our trade strategy. We have State agencies working with companies to help them get ready for Brexit. This is now being intensifying with the “Getting Ireland Brexit Ready” campaign which was launched last week by the Tánaiste, the Minister, Deputy Humphreys, and the Minister, Deputy Creed. This is a whole-of-Government communications effort, using online resources and outreach activities to build public awareness of the implications in areas such as goods and services, travel and so on, as well as the practical steps that can be taken to prepare in each case. All of this is to try to build further awareness and to help the various sectoral audiences on the steps that are being taken by the Government, but also to assist them in being prepared.
We did not ask for Brexit. While we respect the democratic will of the British people, we regret the UK’s decision to leave. Our priorities remain to ensure that the terms of the departure respect the legacy of the hard-earned peace in Northern Ireland and in taking measures to minimise the impact of Brexit on citizens at home. The challenges I have described today are considerable but we are fully committed to meeting them. We are thankful for the support and advice received from all sides of the House on this issue. We will continue to keep them updated and fully informed of these developments. These issues are far-reaching and have implications for all of us.
