Brendan Smith: Urgent warning on Brexit readiness for SMEs

The Minister for Foreign Affairs said in his introductory remarks, Britain will be outside the European Union's Single Market and Customs Union from the 1st of January next, which is only two weeks away. So how we trade with Britain will be dramatically different. Even if a free trade agreement is concluded between the European Union and Britain, there will be significant and enduring change. It is vital, as the previous speakers all have said, that all businesses, regardless of their size, small, medium or large, that they need to focus on their Brexit readiness as things would simply not be the same. And Minister Coveney gave out a very sombre message there in regard to government's concerns about the lack of preparedness, particularly with small and medium enterprises. Being prepared is very critical. It's absolutely essential. We know that without preparation, there is the real risk of delays and loss of income, which would be really damaging for any business or enterprise. We cannot emphasise enough how important it is for businesses and enterprises to be ready. There is and has been, for a considerable length of time, substantial government help available, especially the Brexit readiness checker, which shows exactly what businesses need to do. The budget, which was passed in this House some weeks ago for 2021, allocated very substantial resources to confront the twin challenges that we face at this particular time, namely the COVID-19 pandemic and Brexit. And I think the figure Minister Coveney's quota was 340 million to be spent on Brexit-related measures, and that's very welcome. Government has also provided a recovery fund to assist businesses in the aftermath of COVID and Brexit. It is extremely important that we remain committed to protecting and strengthening the British-Irish trading relationship following Brexit. And it is the case that Britain has always, and will continue to be, an important market for Ireland. And of course, what's often left out of the narrative and the commentary is the extremely important market we are for Britain as well. That can't be emphasised enough by government. As a person who has had the privilege of representing two border constituencies over a considerable period of time, I was a public representative for Cavan Monaghan prior to the Good Friday Agreement, and I'm glad to be one since the Good Friday Agreement as well. I'm very conscious of the benefits that all of this island derived from the Good Friday Agreement, particularly my own region and the border region in general. We have seen, thankfully, the development of the all-island economy, the development of the all-Ireland economy. We have seen businesses develop, grow and be established on an all-Ireland basis. We have seen the interdependence of the economies both north and south. And that has been tremendously important in giving job opportunities, particularly for the areas that suffered so much due to the troubles over that prolonged period of time. When the Brexit referendum took place in 2016, I think it was Deputy Howland and Minister Burden referred to the fact that our parliamentary system responded with one voice, one message, to our fellow member states in the European Union. And it was good parliamentary work, regardless of who was in government, we were in opposition for most of that time, and we gave very strong support to the government in their efforts to win over support from other member states. I was chairman of the foreign affairs and trade and defence committee in the last Dáil, and I had the opportunity to invite our counterpart committees from other member states of the European Union to come here to visit the border region and see it firsthand that we didn't have a border. That we moved seamlessly north and south and south and south and south and north. And those parliamentary groups who came here, they met local entrepreneurs, they met local community and civic leaders, and they got a clear message that we didn't want a border reimposed on our island. And they got the clear message that as communities, we appreciate the huge progress that has been made, and that we weren't going back to the era that we suffered so much through during that long period from the late 60s up until 1998. I, both Deputy Howard and Minister Burgan referred to the work, as did Minister Coveney, the work of Michel Barnier, and he's to be credited in every discussion we have on Brexit, in his knowledge and interest in our country. And I know that from working with him and the Council of Ministers in the past as well. Minister Coveney gave a very clear but sombre message about what lies ahead of us. And I have to say that he referred in particular to his concerns of the preparation of small and medium enterprises. Well now we know that small and medium enterprises are more important to the less developed parts of our economy than to the more developed areas economically. And Edgar Morganrath, either for the ESRI or for Dublin City University, did an exceptionally good piece of work, where he did a regional impact of Brexit, projected impact. And it showed very clearly the very adverse impact that Brexit will have on my region and on the border region in general. Because of our dependence on agri-food, construction products and the engineering sector. There was a marked difference between the impact that Brexit would have on Cavanagh and the border region in comparison to South Dublin. So, and again, our economy is more dependent on the small and medium enterprises than the East Coast in general. So, it just shows clearly that the need for assistance for businesses, the small and medium enterprises to support them. Despite many challenges that our businesses and enterprises faced over the years, many of them thankfully have grown from one and two person businesses to be small, medium enterprises. And some of them from my own counties of Cavanagh and Monon have become international corporations today that grew from one and two person operations. And they deserve great credit, so they do. So, many of the companies that are providing such valuable employment in areas like Cavanagh and Monon, they're totally dependent on the road network, because we don't have a rail network to export their products, their finished product to the ports and airports or to bring in raw material for their enterprises as well. Minister, we're talking about Brexit preparedness and Brexit readiness. One other narrative that we need to get on to next is to support enterprises post Brexit. And I would argue that the areas that will be most adversely impacted, the infrastructure needs of that region or regions, they have to be prioritised for investment, because we're all very aware that if there's poor infrastructure, businesses face additional costs, and if we are to try to assist businesses remain competitive following Brexit, then we have to try to ensure that infrastructure is brought up to a very good standard to try to assist those enterprises. And I'm talking about the road network, I'm talking about broadband, and I'm also talking about investment in human capital as well. There is great scope and potential there for more investment in education and training on a cross-border basis and an all Ireland basis. That was provided for in the Good Friday Agreement, that we would have more, we would go towards all Ireland structures in the whole area of education, health, trade and enterprise. But I think Brexit should give an impetus that we drive on that agenda, and that we support those businesses that are literally at the coal face of Brexit. I instance in this house on many occasions, some of the enterprises in my own immediate area, they're sited both sides of the border. There may be part manufacturing or part assembly in Fermanagh, other part assembly or part manufacturing in Cavan and in Fermanagh. Those activities, those manufacturing assembly plants, they're all interdependent, they're all interdependent, they're depending on one another. And we know the difficulties that will arise should there be customs procedures or additional customs costs imposed on those particular enterprises. So we have to try to ensure that every possible assistance is given to help those enterprises remain competitive. I welcome the fact that the shared island initiative that has been announced by the Taoiseach and is included in the programme for government, that that will assist in developing cross-border all Ireland projects. And I welcome that, and I think there's great scope there. It's very important, again, that we improve the infrastructure in the broader region. And I'm thinking of roads in particular. We need that investment. And alongside the investment in improving the infrastructure, government needs to give business and enterprises, enterprises that face particular challenges now, and that are providing worthwhile employment, we need to give them a clear message that they will be supported through these very, very challenging times. One other thing that I mentioned here in the debate yesterday on the post-European Council statements, was the need to ensure that we have the EU cross-border healthcare directive still applicable for patients from our state seeking to access health services in Northern Ireland and or in Britain. One other area that hasn't got much attention to my knowledge in this whole debate is the whole area of criminality. And the problems that different trade zones, different taxation regimes and that, that lend to smuggling and criminality. And some people have spoken to me who have a particular knowledge and understanding, and who are concerned about the criminal world. We've had enough criminality associated with the border over the regions, over the years. We have to try to ensure that the homegrown criminals, smugglers, thugs, that they don't get a fresh lease of life. And we know now that many of those dangerous gangs are linked up with similar dangerous gangs in Europe. And we don't want to become a trafficking place for those people to, to abuse and use people. So it's important that the unique policing demands of the border region, that our, on guard the Shia Qanar and our other security forces and Minister, you have responsibility for defence, that they are adequately resourced to deal with any outfall from, from the new position that we will find ourselves in. Minister, I have to say in conclusion that as I can call it, I think the first meeting of an Oireachtas committee post the Brexit referendum in 2016 was the Foreign Affairs Committee. And I mentioned at that particular committee that that referendum result and that vote, it really knocked the stuffing out of communities in the border area. Because we had gone from living in the troubled times to the much better era post Good Friday Agreement. And of course we all thought of borders arising again. Thankfully that won't happen. This is the last opportunity we'll have in the Oireachtas to speak before Brexit actually happens. Minister, I compliment you and all your colleagues in government and particularly the officials in our government departments and other statutory agencies, who have been exemplary in getting a very clear message across to their counterparts throughout the European Union about the need to protect the interests of our island. Thank you Deputy. Thank you. Thank you book. Thank you to your viewers and from. Thank you everybody.