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Dáil
‹ Leaders' Questions

Brexit and EU negotiations

Summary

Micheál Martin warns that the British Prime Minister’s statement points to a hard Brexit, with tariffs, legal uncertainty and major risks for Irish trade and services. The Taoiseach says the announcement adds clarity and that the EU must decide its own position as negotiations begin.

No doubt the Taoiseach is aware of the British Prime Minister's speech this morning on the United Kingdom leaving the European Union. By any yardstick or assessment it constitutes an agenda for a very hard Brexit and very difficult negotiations ahead. Essentially Britain will be out of the Single Market and out of the customs union as we know it. No matter what gloss one puts on this, it can mean tariffs on goods and services between Britain and Ireland and between Britain and the European Union. The Prime Minister was very clear also it will be British courts that will adjudicate on all issues of British law and the European Court of Justice will have no remit. This clearly has implications for any successful trade agreement the Prime Minister is anxious to have and the ongoing relationship between the UK and the EU.

This changes the nature of our response to Brexit because it will have to change. Despite the reference to the common travel area between Ireland and Great Britain there was not much in the speech on the Irish perspective or the future of Ireland's relationship with the United Kingdom. From this perspective it is somewhat disappointing. There was no mention of any special status for Northern Ireland, for example. It went in the opposite direction. There was huge emphasis on strengthening the British union, notwithstanding the fact the largest majority of EU citizens residing in any state outside of the European Union will be in Northern Ireland. This is a key issue which must be a core part of the negotiations on the British exit from the European Union.

We know from Bord Bia's report that €600 million has already been lost by Irish agribusiness because of the fall in sterling. Enterprise Ireland has figures that in the context of a hard Brexit up to 25,000 jobs could be at risk. We know from the analysis by the Department of Finance with the ESRI that a significant drop in national income over a sustained period, loss of employment and loss of wages could follow a hard Brexit from the EU. I note the response from the Taoiseach's Department to the extent it identified the key issues but one issue was missing. Has the Taoiseach put on the table with his European colleagues the need for Ireland to make it very clear we want to retain some capacity for state aid for Irish-owned industry and the indigenous sector, particularly in the agribusiness and agrifood area?

There is no question but that the agribusiness food area will be at risk. We will need transitional state aid capacity to enable companies to survive the threat of Brexit by diversifying and so that they withstand the undoubted dislocation that exiting the Single Market and the customs union will have on trade between indigenous Irish companies and Britain. Have we put that on the table? Are we arguing cogently for it?

Comment on this
Enda Kenny The Taoiseach Fine Gael

The referendum took place on 23 June. The Prime Minister was subsequently elected and she made it clear that it was her intention to move Article 50 by the end of March. In between those two points there was a lot of comment and discussion and there was lots of confusion because everybody wanted clarity on the British Government's intentions. I welcome the statement today in that it brings that clarity into a number of areas. The Prime Minister said that Britain intends to leave the Single Market and she made references to the customs union. I have spoken to the Prime Minister on two occasions in the recent past and I did so again yesterday evening when I mentioned the issues that were of priority to us in Ireland - our citizens, our economy, our trade with both Northern Ireland and Britain, the Border, the common travel area and our future within the European Union.

This is the start of the process and Europe will have to respond to the statement by the Prime Minister today. In her comments she included the issues of importance which we discussed last night, in particular the common travel area, and stated her willingness to look at the most effective practical outcome of the Border situation. Once Article 50 is triggered there is a two-year period and this may not be concluded in that time. If it is not concluded there will have to be a process of transition. I discussed the election process that is in place in Northern Ireland and we do not have an idea of what the outcome of that will be. We will have statements on that subject later in the day.

The Deputy asked about applications for assistance from Europe. A number of countries, including Ireland, mentioned these in the discussions we had at the European Councils but we could not make a definitive claim, application or proposition in this regard until the clarity that is now emerging was given by the British Prime Minister. Ireland will contribute strongly to these negotiations on the basis of being a member of the European Union and we will give the matter serious consideration because of the difficulties that will apply and the many economic reports that have indicated that Ireland will be one of the countries most adversely affected by a hard Brexit.

Comment on this

One of the most critical issues is that of the trade links between Britain and Ireland and the impact on Irish-owned businesses, particularly in agrifood and services across the regions, which will be impacted negatively as a result of Britain's decision to leave the Single Market and the customs union, its decision not to accept the remit of the European Court of Justice any longer and the fact that it is bringing in a controlled migration regime. All of those things have very clear implications and while it is one thing to welcome clarity, we should not be welcoming a negative clarity but that is in the essence of today's speech by the Prime Minister. We needed more than clarity and were hoping for real signs of sensible, logical engagement with Europe, rather than saying, "We want our cake and we want to eat it as well." It is very clear that the needs of Britain are her number one priority. She will speak softly to the Taoiseach, and Britain is speaking softly, but they will behave and act differently. It will act in its own interests, first and foremost, and I do not get the sense that we are up there as high as some people might diplomatically like to articulate.

I get a real sense that we are heading down a very difficult road, hence the need for Ireland to start arguing robustly to protect our interests, jobs and companies and give them the capacity to move beyond a post-Brexit scenario.

Is the Taoiseach satisfied that we have the resources in place to negotiate effectively on this issue? I am not satisfied that we have.

Comment on this

The Deputy's time is up.

Comment on this

I do not think we have strengthened our team sufficiently across all areas to take this issue on with the capacity we should.

Comment on this
Enda Kenny The Taoiseach Fine Gael

We are at the start of this process. From a European perspective everybody, including myself, has constantly repeated that it would be important for Britain to set out what kind of relationship it wanted with the future European Union. We now have further clarification as to what that means from a British point of view. The British Government was never going to look for anything other than the best deal it could get. The European Union with 27 countries and a population of almost 500 million, has got to look to its own future and decide what decisions it wants to make for the future of the Union for next ten, 15 or 20 years, including where our future lies.

In her statement today, the British Prime Minister refers specifically to the friendship and ties over many generations between Ireland and Britain. She refers specifically to the retention of the common travel area and Border issues. These are things that I have mentioned specifically to her and her officials. The Minister for Foreign Affairs and Trade, Deputy Flanagan, has also mentioned them in our discussions with Britain at a European level. We have demanded clarity from Britain and have now got a clearer idea of the kind of relationship they want. Europe must now focus on the commencement of the negotiations once Article 50 is triggered.

Britain remains a member of the European Union until it leaves. It must and will accept its responsibility in all phases of that process. This is the start of the process. Currency fluctuations have clearly hit An Bord Bia as well as other food agencies and exporters to Britain. These are sources of concern to us and to other European countries. They are also sources of concern to the British.

The negotiations will start inside a relatively short time and that is where the serious issues of the outcomes of the Prime Minister's statement today will be dealt with in minute detail. We will argue vociferously for our country.

Comment on this