My Lords, it is a great privilege to follow the noble Lord, Lord Bew, and his very relevant reality check on what we are currently facing. The noble Lord, Lord Jay, presented the committee’s report. I am glad it was done. It is important that people look at these things. Sadly, as was said—I think the noble Lord, Lord Dubs, made the point—in the run-up to the referendum nobody was drilling down into the minutiae of this. That has been demonstrated over the past 14 or 15 months in the consequences we have seen.
I serve on the British-Irish Parliamentary Assembly’s Committee C, which is looking at the agri-food sector. Of course, the agri-food sector has a very effective lobby, but the people in the Republic who are really concerned are those who provide services. There are far more people employed in services nowadays. The way things are going is actually creating a major threat to what we believe to be rural Ireland. Some 40% of all Ireland’s food and drink ends up in the United Kingdom. We are talking about huge sums of money and vast numbers of people employed. Let us be under no illusion: the drop in the currency alone and the fact that a lot of the companies’ insurance has run out are having a profound impact on the economy of the Republic, and it is only scratching the surface at the moment.
He is not in his place but the noble Lord, Lord Hain, made some comments—particularly outside the Chamber but certainly inside it today—advocating
that we in Northern Ireland remain in the customs union and the single market. We cannot contemplate the partition of the United Kingdom, which is what in effect that means. What we need is a deal between the United Kingdom and, if possible, the whole EU but, if not, at least with the Republic, where we would have a customs union between these islands. That is the way ahead.
During the gap in the debate for the Statements, I attended a function downstairs run by transport organisations. They make the point that 90% of the Republic’s hard exports to the European Union travel through the United Kingdom to get there. If anybody is dependent on the full impact of us leaving the EU, it is the Irish Republic. These are staggering figures. I had no idea it was on that scale. The current policy of the European Union negotiators is to separate out these three issues: Ireland, the so-called divorce settlement, and the rights of EU citizens. I do not dispute that these are key issues but you cannot isolate the future trading relationship from them. I take the view that it is far more effective to look at how we meld and keep our two economies together. That is more important than some ideologically or politically driven Brussels-led determination to ensure that we get a beating in these negotiations, which would be a very short-sighted position.