Dáil Éireann Debate, Tuesday - 16 April 2019
50. Deputy Lisa Chambers asked the Tánaiste and Minister for Foreign Affairs and Trade the status of Brexit in view of the granting of a flextension to 31 October 2019; and if he will make a statement on the matter. [17782/19]
Amharc ar fhreagraI understand permission has been given to Deputy Niall Collins to introduce this question.
I would like to ask for an update on Brexit in light of the recent granting of a "flextension" until 31 October. Given the damage that a no-deal Brexit could potentially inflict on the country, Fianna Fáil welcomes the extension until October.
As we all know, the European Council agreed on 10 April last to extend the date of the UK's departure from the EU until 31 October. If the UK ratifies the withdrawal agreement before then, it will leave the EU on the first day of the following month. One of the conditions of the extension is that the UK must now hold European Parliament elections. If it does not, the UK will leave the EU on 1 June. I am glad the necessary preparations to hold European Parliament elections in the UK are under way. Although many people do not want those elections to take place, preparations for them are necessary for the reasons I have outlined. The Government welcomes the European Council's decision, which gives the UK more time to ensure there is an orderly withdrawal. Of course, the UK retains the right to revoke its Article 50 notification at any time if it chooses to do so. The European Council has reiterated that the withdrawal agreement, including the backstop and the Irish protocol, cannot be renegotiated and that any unilateral commitments made by the UK Government should be compatible with the letter and the spirit of the withdrawal agreement. We welcome these important assertions.
The European Council has made it clear that the additional time which has been made available cannot be used to begin the negotiations on the future relationship, which will begin when the UK's withdrawal from the EU has taken place. If the UK's position evolves, the EU will be prepared to reconsider the political declaration on the future relationship. The UK will remain a full member of the EU throughout the duration of the extension. We welcome the UK's commitment to act in a responsible and constructive way during the extension. While we had no expectation that the UK would act in any other way, this commitment is important because we must safeguard the effective functioning of the EU. Therefore, the EU 27 can discuss matters relating to long-term decisions without the UK. Responsibility for avoiding a no-deal Brexit now lies firmly with the UK. We hope the ongoing process between the UK Government and the main opposition party in that country, the British Labour Party, will lead to a positive outcome and an orderly withdrawal, which is what we are all looking for.
I am sure the Tánaiste will agree that we are not out of the woods. While the prospect of a no-deal Brexit may have diminished, there can be no room for complacency or assumptions in light of the political chaos and instability in London that we are witnessing. We know that the UK will ultimately leave the EU, but the type of Brexit is still uncertain. It is fair to say that people are growing weary of Brexit. The ongoing uncertainty and the shifting deadlines are having an impact on the environment in which small and medium-sized enterprises and other businesses operate. According to a recent report in The Irish Times, Ms Verona Murphy of the Irish Road Haulage Association believes "State agencies were trying to deflect blame by saying that businesses had not made sufficient preparations" and considers "the State would struggle to process the millions of additional customs declaration forms if it is going to be a hard Brexit". She continued:
They are unable to answer basic questions for us. If Brexit happens on Friday, it is just going to be utter chaos. The least of their worries will be who has signed up for an EORI.
The point I want to reinforce is that preparations seem to be rather patchy. Against this backdrop, and in the hope of trying to allay people's fears and concerns, has the Tánaiste any insight into how the talks between the Labour Party and the Conservatives are progressing, particularly in regard to a customs union, which has such an impact on business?
I assure the Deputy that our contingency planning for no deal will continue. We would have been able to manage no deal but there is no question but that it would have put a lot of pressure on the system. There are certain areas of the economy that would have been, and still are, very vulnerable to a no-deal Brexit.
I do not believe anybody is trying to blame anybody else. Ireland is trying to act collectively here. There are businesses working with State agencies, policymakers and politicians from all political parties to try to raise awareness of what we all need to do to prepare for the consequences of a no-deal Brexit. Part of that includes the discussion to try to ensure the 82,000 or so companies in Ireland that trade with or across the United Kingdom regularly are registered for customs in a way that will allow them to continue to trade in a no-deal Brexit scenario. I and many others have been raising the profile of this issue to ensure that people take the time to get the number they need in order to register online with the Revenue Commissioners.
We have done a really good job so far in preventing sectors of the economy or political parties from blaming one another regarding preparations for Brexit. Unlike in the United Kingdom, we have worked together and we are much stronger for it.
I agree. On an obviously related matter, has the Tánaiste had any recent conversations with the Democratic Unionist Party, DUP, regarding its continued opposition to the withdrawal agreement? Could he enlighten us on any contact or discussions he has had?
The most recent conversation I had was with Mr. Jeffrey Donaldson at the Fine Gael national conference. I have not had any detailed discussions. I suspect there may have been some back-channel conversations between the Government and the DUP but certainly nothing of any real substance. I do not get the impression that the DUP is proposing to change its position so we are now focusing on the talks between the Conservative Party and the Labour Party. It will be no news to this House that I am in regular contact with David Lidington in particular but we also reach out to the Labour Party to understand its approach to the discussions between the two parties. I do not believe we should comment on the progress or otherwise of the talks because they are at a sensitive point. They are continuing this week, as one would expect. Of course, the hope is that the Labour Party and Conservative Party will be able to agree a middle-ground position that may involve a change of approach to customs issues and alignment with the Single Market. Obviously, it will involve a discussion in regard to a confirmatory people's vote as well but that is a political matter for the two parties concerned.
