Brexit & Beyond newsletter

19 June 2024

Welcome to the 19 June 2024 Brexit & Beyond newsletter

In the chamber last week, the Minister of Finance provided the Assembly with an update on the recent meeting of the North/South Ministerial Council (NSMC) in special EU programmes sectoral format. The Minister of Agriculture, Environment and Rural Affairs made a statement on the NSMC agriculture meeting which took place on 29 May. This week, the Assembly debated motions on NI’s dual market access to the EU and UK, and on all-island tourism and the impact of the UK Government electronic travel authorisation (ETA) scheme. The Committee for the Executive Office heard from the Department about its international relations activities, including their work in Brussels. The Health Committee received a briefing from the British Dental Association, where the cost of a potential ban on dental amalgam was discussed. The Windsor Framework Democratic Scrutiny Committee published its report on Regulation (EU) 2024/1252 establishing a framework for ensuring a secure and sustainable supply of critical raw materials.

 

EU Exit matters in the plenary

On 10 June, the Minister of Finance Caoimhe Archibald made a statement on the twenty-second meeting of the North/South Ministerial Council (NSMC) in special EU programmes sectoral format. The NSMC received a report on the implementation of the 2014-2020 Peace IV and INTERREG programmes. The EU and the UK committed to continue the PEACE funding programme for Northern Ireland, a programme to “support peace and reconciliation and to promote economic and social progress in Northern Ireland and the Border Region of Ireland”. INTERREG is a programme aiming to strengthen cooperation between regions and countries within the EU. The Minister was asked about whether the PEACE funding programme will be renewed. Minister Archibald said, “Any successor programme to PEACE PLUS would require a decision at a political level. An assessment of the benefits of the current and previous programmes and the need for further programme work will be undertaken. Discussions will be required with the British and Irish Governments and the EU, and a direction at political level will allow those discussions to commence.” Minister Archibald told the Assembly that the SEUPB opened PEACE PLUS funding calls in June 2023. She stated that so far, £274 million of the programme budget has been committed to 23 projects. These include youth projects, mental health projects, shared education, local community peace action plans, victims and survivors, the Belfast to Dublin Enterprise and geothermal energy.

 Minister of Finance Caoimhe Archibald

Minister of Finance Caoimhe Archibald

Deputy First Minister Emma Little-Pengelly informed members that the British-Irish Council will take place at the end of this week in the Isle of Man. This is the first meeting of the Council since the devolved institutions returned.

On 11 June, the Minister of Agriculture, Environment and Rural Affairs made a statement on the twenty-eighth North/South Ministerial Council (NSMC) agriculture meeting which took place on 29 May. Ministers welcomed the €106.6 million in funding secured by applications to Horizon 2020 from both administrations for projects in the agriculture, forestry, food, marine and bioeconomy sectors. To date, €4.5 million has been secured to date under Horizon Europe, the new EU research and innovation programme.

Asked about veterinary medicines, Minister Muir said this issue was not discussed at the meeting. He met another stakeholder group about that matter last week and is working with officials on correspondence to send to the UK Government. He said this “will be focused on proposed solutions, because solutions are what we need to focus on when it comes to EU exit. It is about being pragmatic and constructive in this place and bringing forward ways in which the UK Government and the EU can bring solutions to aid the resolution of that issue. That is what I intend to set out in the weeks ahead.” Under current arrangements, from 2026 Northern Ireland will have to follow EU rules on veterinary medicines. There is currently a grace period in place until the end of December 2025. As highlighted previously by the Lords Sub-Committee on the Windsor Framework, there are serious concerns about the future supply of veterinary medicines to Northern Ireland. Minister Muir has recently responded to a written question on this issue, noting the policy area is “now under the direction and control of the Secretary of State for the Department for Environment, Food and Rural Affairs (Defra)”. The Minister sets out his engagement with stakeholders and the UK Government on the issue.

During a debate on the Executive Legislative Programme for 2024, the First Minister stated that the Minister of Agriculture proposes “to introduce an agriculture Bill to provide powers to allow the Department to transition from or end the legacy EU fruit and vegetable aid scheme and EU agri-food information and promotion scheme as they apply locally.”

NI’s dual market access

On 18 June, the Assembly debated and passed a motion on “the huge opportunity afforded to our local economy as a result of the dual market access available to businesses [in Northern Ireland], allowing the seamless movement of goods into both the EU and UK markets”. Leader of the Opposition Matthew O’Toole (SDLP), who proposed the motion, said, “The Protocol's economic opportunities are no panacea, but they are, finally, a unique opportunity to turn the dual nature of this complicated place into meaningful economic potential for our people.”

 Leader of the Opposition Matthew O’Toole (SDLP)

Leader of the Opposition Matthew O’Toole (SDLP)

Pádraig Delargy (Sinn Féin) said NI’s continued access to UK and EU markets offers “unparalleled trade benefits. We have seen recent statistics that showcase the fact that, between the North and the Republic, there has been a marked increase in trade, with exports rising by over 40% in the past year alone. Dual access has therefore allowed our businesses to thrive in a way that is unmatched by other regions.”

Deborah Erskine (DUP) stated, “The continued barriers to trade with GB demonstrate that dual market access to both the UK and EU markets, in the broadest sense depicted by those who tabled the motion, does not exist in the sense outlined…We will continue to make the case that the Trade and Cooperation Agreement review next year presents an opportunity to demonstrate that Northern Ireland should not be bound by EU law, which is not needed when mutual enforcement and recognition would and could work between the UK and EU.”

Eóin Tennyson (Alliance) told the chamber, “There is no doubt that our dual market access creates huge economic opportunities for agriculture, manufacturing and pharmaceutical companies… However, in order to fully maximise that benefit, we owe those businesses political certainty and stability and a commitment to upholding that dual market access and to working across these islands, including with the Irish Government, to market and promote the opportunities on the international stage”.

Steve Aiken (UUP) commented, “There are many advantages to Northern Ireland's dual market access. I note the need to work more closely across this island, these islands and Europe to make that happen… If Northern Ireland is going to properly fulfil its role, it will need the linkages with the rest of our nation to be just as strong as those with the European Union.”

The Minister for the Economy Conor Murphy responded to the debate, saying, “The certainty in trading arrangements delivered by the Windsor Framework provides us with a unique set of trading arrangements and offers unique opportunities for the North, both in inward investment and trade growth…The dual market access means that we are the only location where business can export goods to both British and EU markets free from customs declarations, rules of origin certificates and non-tariff barriers.” He said the Department and its partner agencies are working closely together to understand “how best to maximise the opportunities that dual market access provides, and how best to support businesses to take advantage of them.” Recently the Department for the Economy published analysis and information by the UK Trade Policy Observatory on regulatory indices and research by Queen’s University to help businesses to better understand the post-EU exit regulatory environment. Minister Murphy also outlined the work of the Department and Invest NI to maximise dual market access opportunities.

UK Government electronic travel authorisation (ETA) scheme

The Assembly also debated and passed a motion on all-island tourism which “expresses concern that without appropriate mitigations, including an effective communications plan, the UK Government’s Electronic Travel Authorisation scheme poses a risk to in-bound tourism in Northern Ireland and the Irish Republic.” The Assembly calls on the Minister for the Economy “to work with the UK Government and the Northern Ireland Tourism Alliance to implement a limited and time-bound exemption of between five and seven days from the Electronic Travel Authorisation scheme for tourists and tour operators travelling between Irish Republic and Northern Ireland, and to report to the Assembly on the progress of these issues no later than September 2024”.

The Minister for the Economy responded to the debate. He told MLAs he is “extremely concerned” about the introduction of the ETA scheme, which he sees as “a real risk to the huge growth potential for tourism here.” He said that in 2019, international visitors, who would require an ETA if it were to be introduced, “contributed £220 million to the local economy, and that could be impacted on by the introduction of the ETA scheme. The bureaucracy and cost involved may deter many visitors who arrive in the South from travelling North. Given the fact that 70% of overseas holidaymakers come from the South, that poses a very serious threat”. Minister Murphy wrote to the UK Minister of State for Legal Migration and the Border in April to seek an urgent meeting but has had no response. Minister Murphy said his preference is for an agreed Executive position to be communicated to the UK Home Office and he intends to bring a paper to the Executive on the matter.

 

Committee for the Executive Office – international relations

Last week, the Committee for the Executive Office heard from officials in The Executive Office (TEO) on international relations. Aodhán Connolly, Head of the Office of the Northern Ireland Executive in Brussels (ONIEB) explained that the main piece of work for the office at the moment is “how will we be able to engage in a way that suits all the needs of Northern Ireland when the new Parliament and new Commission come into force”.

Connolly was asked how the ONIEB’s relationships have changed following the UK’s withdrawal from the EU. He said, “we're no longer sitting on those working parties [technical meetings of officials from member states which prepare the work of ministers], we're no longer getting that information” which that means that they have to work “smarter rather than just harder.” ONIEB’s five policy officers ‘mirror’ the work of the Commission and the legislative process as well as the nine Executive departments at home. He said they work with a wide range of the member states but it's usually on “issues-based items.”

 Officials from The Executive Office giving evidence to the Committee

Officials from The Executive Office giving evidence to the Committee

He told the Committee that the Office works closely with the UK Mission to the EU, the Permanent Representation of Ireland to the EU, the European Commission and the European Parliament. He said over the past couple of years they have built “really strong relations” with the European Commission and Parliament, and policy relationships with member states. He said, “We are restricted in some of the things that we can do, especially where there are excepted matters that do not fall within our remit. But I'm very proud of what our office has been able to achieve as far as the flow of information, as far as platforming our colleagues within the home departments in Northern Ireland, and also making sure that concerns or information requests are heard by the right people in the Commission and in the member states.”

The Committee asked how the success of the Brussels Office is measured. Members were told that during the negotiations on the post-Brexit settlement, a key priority for the Brussel’s Office was to enhance the both UK and EU understanding of issues raised at local level. Pádraig Delargy stressed the need for statistical data to measure the impact of the ONIEB’s activities, particularly since 2016, and asked officials to send this information to the Committee. 

Along with staff in the Executive’s Beijing Office, NI-based officials are working with the Director General at the China Consulate on messaging around NI’s dual market access and the opportunities presented by the Windsor Framework. Kerry Curran, Director of the NI Bureau in China, added that the Windsor Framework and dual market access “won't be the deciding factor” in bringing business to NI. She said, “The Windsor Framework is part of the sell…but there's so many other aspects of the Northern Ireland package.”

 

Windsor Framework Democratic Scrutiny Committee

On 13 June, the Windsor Framework Democratic Scrutiny Committee published its report on Regulation (EU) 2024/1252 establishing a framework for ensuring a secure and sustainable supply of critical raw materials. Most of the Regulation does not fall within the scope of the Windsor Framework, however, some articles make technical amendments to a number of EU Regulations that apply under the Windsor Framework. In reaching its conclusions, the Committee focused on the two conditions to be satisfied for the Stormont Brake to be used:

  • the content or scope of the replacement EU act “significantly differs”, in whole or in part, from that which it replaces
  • the application in Northern Ireland of the replacement EU act, or of the relevant part, “would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist”

These terms are set out in Article 13(3a) of the Windsor Framework. The Windsor Framework (Democratic Scrutiny) Regulations 2024 state that the Democratic Scrutiny Committee must have regard to this when deciding whether to conduct conducting an inquiry.

The Committee concluded that the replacement EU act “does not significantly differ, in whole or in part, from the content or scope of the Regulations which it amends.” The Committee concluded that the replacement EU act “would not have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist”. Read more about EU law and Northern Ireland, the Stormont Brake and the work of the Committee on our website.

 

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