In Davos, an extraordinary week showed how the world is changing, with significant implications for small countries like Ireland. But at home, the politics of “gotcha” and point-scoring goes on, without any heed to the fundamental shifts internationally.
Nowhere was this clearer then in the row about the chairman of Bord Bia, Larry Murrin, who is chief executive of Dawn Farms. It emerged that his company had imported a small amount of Brazilian beef. Shock, horror. Sinn Féin and the farm lobby called for his removal as chair of the State food-promotion body. Only this, said Irish Farmers Association (IFA) chairman Francie Gorman, could restore confidence in Bord Bia. An “emergency” board meeting was called at which the IFA and the ICMSA called for his removal.
While the board and Minister for Agriculture Martin Heydon backed Mullin, calls for his removal should not have been entertained. Sinn Féin should have been ignored and the farming groups told to get off the stage. Some 1 per cent of Dawn Farms’ beef comes from Brazil, the company said. The vast bulk comes from Ireland – as well as some from the EU and UK.
The importation of Brazilian beef is perfectly normal and quotas and tariffs exist to control it. World trade involves a country buying from people as well as selling to them. What on earth was this all about?
Well, of course the wider context is the drive by the farm lobby to scupper the Mercusor trade deal. Despite tight controls on beef import volumes from South America under the deal and no evidence of any significant risk to Irish beef farmers, the entire Mercosur debate here was driven by their interests. Even dairy farmers, who may get new markets, rowed in. So did the Government, which completely failed to make the case for the deal. The business lobby – with the exception of Chambers Ireland – kept its head down. So did the Minister responsible for jobs and enterprise, Peter Burke. And most of Ireland’s MEPs voted to delay the deal by referring it to the European courts.
Now let’s sit back for a minute and consider the wider context. Ireland’s biggest single trade partner, the US, is now led by a chaotic, threatening and unreliable president. The State has dodged a few bullets already, not least during the week when we were on the brink of a full-scale transatlantic trade and economic war which would have hit us hard. Meanwhile, Europe itself is in upheaval as Russia’s war with Ukraine rumbles on and Moscow undertakes a proxy war with implications for Ireland’s security and defence.
Resilience for Ireland, in all its aspects, is vital. Part of this involves building new markets and economic alliances, and reducing our one-way bet on the US. The Mercosur deal is not going to change the world for Irish business but it does provide new markets of value to sectors such as dairy, pharma and engineering, all with a significant existing reliance on the US market.
Can Ireland not cope with the give and take of doing such deals, even when the “give” is minor and the balance positive for a small, exporting country? Is the Government happy that it is burning political capital here in Europe at a time when there will be little support for Ireland if trouble hits due to our strong budget position and huge export growth? Are we going to find some reason to try to “nix” the massive deal now in discussion between the EU and India as well?
Irish politics seems incapable of processing these issues or moving beyond the parish pump. Our economic platform may not be burning. But parts of it are smouldering. As well as our over-reliance on the US, it is clear, for example, that we have a strategic exposure as an importer of a large amount of our energy, particularly gas, through a couple of pipelines from the UK. This was recognised in a 2023 official report on energy security which recommended a national emergency gas storage facility as a vital measure.
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The Government has proceeded with this, as a State-run facility run by Gas Networks Ireland. This week, Minister for Energy Darragh O’Brien was blocked in an attempt to leapfrog early scrutiny of a proposed new law that would give him direct power over planning approval and permits for the State’s €900 million liquefied natural gas LNG reserve. He needs this because if this “emergency” facility has to go through the normal process, sources fear it could take years to deliver – five to seven years on some estimates.
All this is needed because the State would not throw in its lot with Shannon LNG, the company that has planning permission, after a long legal battle, for a power plant and an LNG storage facility in Shannon. It would not do so because the hot-button issues of “private sector” and “fracked gas” ruled it out. But this is either an emergency or it isn’t. And if it is one, then the State needed to find the quickest way to deliver.
The Government has, of course, promised to address the whole issue of speeding delivery of major infrastructure. But the acid test of Ireland’s ability to adapt to the new world will be whether this can be delivered. In a turbulent world, the priority is to have your own house in order. To have a reliable energy and water infrastructure, adequate public transport and proper housing and social services.
Yet there will be push back. The legal lobby – one of the few groups to see-off the Troika’s recommendations – is already mustering to resist a hit to its income. Sorry, to ensure proper access to justice is maintained. There will be a host of other barriers to action, not least within the public service itself. And questions about whether a Government where relationships at the highest level seem strained has the drive to get this done.
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The shape of the “new” world is not clear. But whatever it is, in order to prosper Ireland has to be strategic and resilient – and getting there involves a lot of investment and work. For now, at least, Ireland is in the almost unique position in Europe of having the resources to invest in achieving this. But can a political system addicted to a supply of surging tax revenues and no priorities on how to spend them actually deliver?