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Brexit Issues

Dáil Éireann Debate, Wednesday - 21 February 2018

Wednesday, 21 February 2018

Ceisteanna (1, 2, 3)

Micheál Martin

Ceist:

1. Deputy Micheál Martin asked the Taoiseach if his Department's officials are involved in meetings to discuss sectoral plans or responses to Brexit. [6904/18]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

2. Deputy Mary Lou McDonald asked the Taoiseach if his Department has engaged in meetings regarding sectoral plans in response to Brexit. [8337/18]

Amharc ar fhreagra

Brendan Howlin

Ceist:

3. Deputy Brendan Howlin asked the Taoiseach if he will report on the work of officials in his Department in preparing for Brexit; and the number and roles of those officials dedicated solely to Brexit planning. [8575/18]

Amharc ar fhreagra

Freagraí ó Béal (37 píosaí cainte)

I propose to take Questions Nos. 1 to 3, inclusive, together.

The international, EU and Northern Ireland division of my Department covers work on all international, EU and British-Irish and Northern Ireland affairs within the Department, including issues relating to Brexit. This division is headed by a Second Secretary General, who also acts as the Irish sherpa for EU business, including Brexit. The total staffing resources of the division, which are kept under ongoing review, currently amount to 24.3 whole-time equivalent staff across a full range of policy areas. The division also supports me in respect of Government consideration of Brexit issues, including the negotiation process, both on the issues that are of unique or particular concern to Ireland and, more generally, the work of Cabinet committee C, which deals with EU affairs and Brexit. The division also supports me in my international role and in all of my international engagements, and provides advice and support to me in respect of Northern Ireland affairs, British-Irish relations and Brexit issues in that context. Staff in other divisions of the Department, notably the economic division, also contribute to Brexit-related work as necessary.

The overall co-ordination of the Government’s preparedness for the UK’s exit from the EU is led by the Minister for Foreign Affairs and Trade, who also has special responsibility for Brexit. A wide range of co-ordination structures are in place and officials from my Department participate in many of these, as required. The Government is continuing to plan and refine its analysis, building on the range of reports and analysis already produced by Departments, State agencies and the ERSI on the implications of Brexit at the macro level and also at the sectoral level. This ongoing work reflects extensive stakeholder engagement across all sectors. Of course, the exact impacts of Brexit on specific sectors will depend on the negotiations and the nature and scope of the final agreement on the new relationship that exists between the EU and the UK.

Significant measures were announced in budget 2018 and these build on those introduced in budget 2017. They include: €300 million for a Brexit loan scheme for business; increased funding for Department of Business, Enterprise and Innovation; a €25 million Brexit response loan scheme for the agrifood sector; and additional supports for capital investment in the food industry and Bord Bia marketing and promotion activities, amounting to over €50 million in total. Increased funding has also been allocated to the Department of Foreign Affairs and Trade, including the opening of six new diplomatic missions this year. The budget also allocated an additional capital expenditure of €4.3 billion over four years to allow the State and its agencies to properly plan major infrastructure projects, particularly in transport, while ensuring that communities and businesses can plan ahead. Other measures highlighted in the budget which will help to mitigate Brexit risks include the establishment of a rainy day fund and increased investment in higher education. The public consultation on the rainy day fund is now under way.

Given the scale of the challenge of Brexit, it is of course taken account of in all Government policy areas. For example, Brexit is one of the priority themes in the 2018 Action Plan for Jobs, which will be published shortly and which will include actions to ensure we are Brexit-prepared at both national and enterprise level. Project Ireland 2040, the Government’s national planning framework and national development plan published last Friday, takes full account of the challenges presented by Brexit and will ensure that Ireland is best placed to ensure growth on a sustainable basis into the future.

I thank the Taoiseach for his reply. Last week, he accepted that planning for a position where the United Kingdom is not in the Single Market and customs union is required. Having previously said that there are more than enough impact studies, he also accepted that the most recent impact study, of which we have only seen a summary, shows evidence of serious sectoral impacts which must be planned for. I am sure the Taoiseach will have noticed that the Dutch Government confirmed in recent days that it has identified the number of extra customs officials it will require, depending on different Brexit outcomes, and has begun hiring up to 900 new people on the assumption that the softest outcome will be a free trade agreement with the UK. The Netherlands and other countries appear to have completed very detailed planning and are now moving on to implementation. Even the British Government has got around to some concrete planning, although, so far, it has simply confirmed that it does not currently have the capacity to manage controls outside the customs union in particular and it is unlikely to have this capacity for some years.

While a lot of documents are being issued by the Government, there is nearly no new information about sectoral actions. Will the Taoiseach tell us when he will publish the Government's action plan based on different scenarios? Is it the Government's position that it accepts the estimates by the Copenhagen group and how regularly will this analysis be updated? Now that we have even greater clarity about the huge impact on the agrifood sector, when will we see credible proposals for helping farmers and the food industry to adjust? I would also point out that this is, of course, linked to the multi-annual funding framework which will be discussed at the summit on Friday. The Times, Ireland edition, contains a report to the effect that the bullet-proof backstop will not now be in the actual withdrawal agreement but that it may be in an attached protocol. The Taoiseach might clarify the position in this regard.

For some reason, we do not have statements on the summit that is to be held this week. I hope the Taoiseach will respect the role of the Oireachtas before making commitments on behalf of Ireland regarding matters such as the European Parliament and the choosing of the Commission President. It is a very bad precedent that the Taoiseach is willing to address the European Parliament on these matters but not his own Parliament. It would have been useful to have statements on the forthcoming informal summit.

Yesterday, the British Brexit Secretary, David Davis, said that Brexit would not result in a Mad Max-style world borrowed from dystopian fiction emerging in Britain. I am not sure where or when it was suggested that it would, although I am sure some people will be relieved by this clarification. There are, however, some hardline Brexiteers who seem to be living on a very different planet from the rest of us. Kate Hoey, MP said yesterday that the Good Friday Agreement was unsustainable. Last week, Owen Paterson, who Deputy Adams once described accurately as "a complete tube", said the Good Friday Agreement had outlived its use. This comes from a former Secretary of State for Northern Ireland. It is completely bonkers stuff. These remarks do little to allay the real fears and concerns of people across this island, and in the North in particular, about the Tory Brexit agenda. Not alone are we facing the negative impacts on our economy, our rights and on every aspect of society but now some of them also want to cast aside the Good Friday Agreement.

The Taoiseach will be aware that Deputy McDonald and Michelle O'Neill are in London today, where they will make clear to the Prime Minister, Theresa May, that the attitudes being bandied about are ridiculous and unacceptable. We know that the Good Friday Agreement and its institutions are what is best for all our people, our economy, public services and building reconciliation. Given the collapse of last week's talks, our view is that the best way forward is to embrace the Good Friday Agreement and re-establish the Executive on the basis of equality and respect, as intended. Sinn Féin has tried to do this over the last year. We reached an agreement with the DUP last week but, unfortunately, the DUP walked away and ended the process. The Good Friday Agreement provides for the British-Irish Intergovernmental Conference to reflect the co-equal and co-guarantor status of the two Governments. The two Governments must initiate this, as a matter of urgency, and move to implement outstanding commitments. That includes the Irish language Act, the release of funds for legacy inquests and the progression of legacy mechanisms. It also includes the safeguarding of rights for all citizens, including the right to marriage equality.

Will the Taoiseach initiate the intergovernmental conference to allow for these issues to be progressed in that forum?

Will the Taoiseach tell Members whether the legal text to codify the agreement he made in December, which he described as bullet-proof, is being prepared at present? Can he indicate what observations or requests for changes Ireland has made to the text and to the EU position documents on the proposed transition agreement and future trading relationship?

The backstop option was the Taoiseach's third option for arrangements regarding the Border in his December statement. Today's Irish edition of The Times reports that a source in the Department of Foreign Affairs and Trade has confirmed that rather than being in the main document, that is, the treaty or agreement that finally emerges, the backstop option will be contained in a protocol agreement to run alongside the main withdrawal deal under draft plans being considered by EU negotiators. It says that it will have the same legal backing as the main agreement but it is likely to be considered a victory for the UK where the Government has tried to explain, badly, how it might deal with the Border. The Border interests are likely to be contained in a protocol, annexe or addendum to the deal. I would regard this as being unsatisfactory in terms of constitutional arrangements in Ireland with respect to the Good Friday Agreement. It is important that the Taoiseach should clarify whether this is likely to be the case.

The Government has published several action plans, all of which take Brexit into consideration. I referred to the 2018 Action Plan for Jobs in my initial response, which specifically includes actions to prepare businesses and enterprise for Brexit. It was approved by Cabinet on Tuesday and will be published by the Minister, Deputy Humphreys, in the coming weeks. Ireland 2040, which was published on Friday following a Cabinet meeting in Sligo, includes €116 billion of investment in infrastructure over the next ten years, including projects which will be important in the context of Brexit. This includes ongoing investments in ports in Dublin, Cork and Foynes, in airports, including the new runway in Dublin and a €100 million investment under way in Shannon, as well as the Government's commitment to assisting Ireland West Airport at Knock with its development plans and major road projects such as the one connecting Foynes port to road and railway and to better connect Rosslare to the roads network. Brexit runs through that document and it is strongly Brexit-proofed. Had I more time I would give many more examples, but I have given an adequate number to give people a flavour. There is also investment-----

What about a company with 60% penetration into the UK market?

Companies that are dependent on the UK market will face difficulties.

Stop telling them about 2040.

There is no point in denying that they will face difficulties. No matter who sits in this office or from which side of the House one looks at it, if there is a significant change in the trading relationship between Britain and Ireland, companies that depend on the UK market for exports will face difficulties. We need to help them to prepare, which involves diversifying markets and increasing domestic markets and elsewhere. We have seen some real success in the agrifood sector, for example, even though exports continue to rise to the UK, the percentage of exports is falling. It has decreased from about 45% to 35% in a very short period. That is a good example of how Government is working with industry, particularly agrifood, in successfully diversifying markets. When we have a better idea of what Brexit will really mean and what it will look like in terms of the next trading relationship, we will be able to provide loans and perhaps even State aid to companies to allow them to change what they do in order that they can appeal to new markets.

The Government accepts the Copenhagen Economics report. I will offer one caveat, in that the ESRI produced a similar analysis some months ago that makes slightly different assumptions but, broadly speaking, both analyses project similar outcomes. I do not want to say that one is better than the other, but they use different assumptions, and taking them together I would give them equal weight. There has been some sensationalist reporting of the Copenhagen Economics report, which would lead one to think the report projects that Ireland will go into a recession, that there will be a contraction of the economy, a rise in unemployment and that wages will be cut.

It does not say that.

Of course, the report says none of those things. If one reads it, it says that even in a worst-case scenario, the Irish economy will continue to grow but at a slower rate than it would otherwise.

That is what the reports have said, in fairness.

That is not how it is being reported in the reports that I have seen in the media.

Yes, it has. The Taoiseach cannot control all the media.

I do not control any media. Any reasonable person who looked at the headlines about the Copenhagen Economics report would be forgiven for thinking that the report projected that Ireland would go into recession, that people's pay would be cut and jobs lost.

The coverage did not say that.

Please, Deputies.

I am sorry Ceann Comhairle, it is getting a bit silly because they all know what I am saying.

Will we move on to Question No. 4?

We would appreciate answers.

If the Deputies would all stop interrupting, perhaps we would not have this difficulty. Time is up for that group of questions.

I am happy to continue but the Ceann Comhairle is correct that the constant interruptions do make it difficult to answer.

There was very little interruption.

Maybe we could move to Questions Nos. 4 and 5.

To be honest to Members, it is great to ask questions but in so doing, they need to give the Taoiseach time to respond.

With respect, I asked a question. I did not interrupt-----

-----and because other Members did, I do not get an answer to my question, which is crucial in respect of the peace process.

The Deputy's questions were not covered by Questions Nos. 1 to 3, inclusive.

I asked a question and I have a right to an answer.

Please, let us not have an argument, we will go to Question No. 4.

It may not be of interest to Deputy Martin but it is important.

Why is the Deputy so angry all the time?

Deputies, please.

Deputy Doherty is so angry. I apologise.

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