I thank the committee for its extremely well-informed and detailed questions. I thank members for their compliments on the work by ourselves and particular Government Ministers. I add the work of the committee to that, as I do the work of the Opposition, which is also important in this process, although the Fine Gael group is influential with the presidencies it holds. I met Deputy Haughey and others at a meeting with the Alliance of Liberals and Democrats for Europe, ALDE, group, which is one of a number of groupings that also have influence. We can all do ongoing work because it is a space in which we do not have disagreement about what we want to achieve for our island.
Senator Craughwell raised a specific issue about the difficulties facing the 100,000 UK citizens living in Northern Ireland who have dual citizenship. Issues pertaining to UK citizens are matters for the United Kingdom Government but they will be addressed in the round one discussions on acquired rights and citizens' entitlements. My hope is that, as discussions evolve, there will be reciprocity and European Union citizens will be treated in the United Kingdom in a similar fashion to how United Kingdom citizens are treated in the European Union, which will cover the 100,000 citizens referred to by the Senator.
The second and third key areas to be discussed in round one will be costs and financial commitments, which have been the subject of statements by some UK politicians though not, of late, by Government Ministers. We have to restate that this is not a fine, levied on the good people of the UK for leaving, but relates to pre-existing commitments that have been signed up to. I hope work will continue on the methodology of how we define how the commitments were entered into and, after it has been agreed, a figure will be arrived at. This will be a fair and transparent way of dealing with the issue.
Senator Craughwell talked about youth. It is true that the younger one is, the less one is aware of the many crises there have been all over the Continent, including on this island. The peace dividend on the Continent is less evident to young people and we must continue to demonstrate to them that Europe is a force for good in areas of security and prosperity. In the UK referendum, however, younger people were more pro-EU than their older neighbours and family members. The Senator also made a point, which was followed up on by Deputy Durkan, Senator Leyden and others, about blaming Europe for the rules. Nobody should believe the European Union is perfect as it is far from perfect but one of the most distressing parts of the UK referendum was the constant reference to it in the third person, as "them", "technocrats" or "those Europeans". Every decision that affects us, including the European semester which we have today and the so-called rules, was agreed by Irish Ministers, British Ministers, German Ministers, etc. They can cause difficulty, burden and disagreement subsequently but they are our rules. If we do not like them, we should try to change them and we should use a collective term when we talk about the European Union. It is "our" union and they are "our" policies.
Drugs, health and pharmaceutical spending is looked at in the context of a semester and a new framework agreement between the State and the Irish Pharmaceutical Healthcare Association, IPHA, was agreed last July which will deliver savings of some €600 million over the next four years. There is also scope to extend the agreement. The Senator also asked about police co-operation, which is developing and strengthening through the justice and home affairs arrangements. Europol is undertaking extensive work, such as with the European arrest warrant which is now very successful. In the face of terrorist attacks, further and deeper co-operation among police forces is absolutely vital and we are in the process of signing up to the Schengen information system.
Deputy Durkan asked about foreign direct investment into Ireland, which is of crucial importance. It is vital that we work together as a country, given the challenges that our neighbours have set us and which we did not want. We must continue to maximise foreign direct investment into our country, not to be punitive or exploit any difficulties anyone else has but because it is clearly in our national interest.
The Deputy also mentioned tax. While there is an ongoing court case involving an historic issue there are no proposals to change the rules surrounding how taxes are determined. This is a national competence and we are not changing our tax policy. Tax is only a part of the suite of measures with which Ireland presents itself as a good country in which to invest.
We have had the same policy with respect to taxation for 40 to 50 years. It is the quality of our workforce, the certainty of our membership of the European Union, our membership of the currency, the fact that we speak English and are a hard working, competitive economy that attracts inward investment. We must work to ensure that continues. In regard to our geographic status, isolation and access to European markets, as stated yesterday by the Minister, Deputy Ross, during the Brexit debate we will have to review how we access European Union markets as the negotiations continue.
On the issue of climate change with respect to the future of Europe, the climate change issue goes far beyond the future of Europe from a political perspective. It is also a key point with respect to the future of our planet. On the guidelines and the reference to Spain, it is important to clarify that there is a specific section in the guidelines that deals with Ireland and the common travel area. The guidelines also reference the Good Friday Agreement. The only reference in the guidelines to the word "unique" is in reference to the issues pertaining to Ireland. This was extremely important to us. There are many other parts of the Continent where there are issues around territory, nationality and so on, but we wanted the issues around Ireland to be separate, distinct and unique, and they are. We very much welcome this.
With respect to the talks and how decisions will be taken, it is important to clarify the issue of a Spanish veto. When it comes to the new arrangement, which will discussed in the second round, every member state will have the potential to block it but the decision will have to be a unanimous one. It is within the confines and the context of the new relationship that the issue of Spain and Gibraltar will pertain. One could make the case it already will have a veto in any event. These issues will not be discussed in round one, which is where the qualified majority voting element will come into play. The issues about Spain and Gibraltar are different from the issues surrounding the island of Ireland, the common travel area and the peace process. We already have an agreement with Britain in the form of the Good Friday Agreement. That agreement addresses some of the crucial elements, including, for example, if the people of Northern Ireland through a referendum vote for a united Ireland, how that process will take place. In the context of the negotiations, we are adamant that nothing can happen to remove that. If in the future the people of Ireland vote for a united Ireland, Northern Ireland will then return to the European Union, as was the case with respect to east Germany joining Germany. Not only are these separate issues involving different parts of the European Union, they are issues that are at different stages of discussion. We have agreed the process with the British. People on both sides of the island have voted on it and the process is clear.
When it comes to the common travel area and Ireland's relationship with the UK, we do not want change. We have a legally binding agreement that cannot be changed even by a vote in Dáil Éireann. For example, we cannot request that the status of Northern Ireland's place within the United Kingdom, or within the European Union independently, be changed. As I said, these issues are separate and it is vital that they remain so. In terms of the statements from the United Kingdom Government, the Commission and the Parliament and everything that has been said around this table, in the Dáil and in the Seanad, we agree on the principles around the Good Friday Agreement and the common travel area. Unfortunately, in other parts of the European Union they do not agree. We want this to be incubated within the talks. We want to maintain the status quo. For this reason, the language in terms of what different countries have looked for within the guidelines is different.
On the question of whether we are looking for changes in the guidelines, we are not. The text in the guidelines is text proposed by Ireland. The negotiating position on the section pertaining to Ireland, which is now European Union policy, started as Irish policy. That is why we welcome it. I accept that in terms of how we maintain the common travel area, give effect to maintenance of the peace process and ensure we have the softest possible Border in the context of Brexit, the devil will be in the detail. We will have to work through all of that, including with this committee.
On Deputy Haughey's question regarding the future of Europe, the position of other member states and how many positions there might be, I get the sense that in many member states there are different levels of ambition politically. This was evidenced in some of the high level commentary we have heard from Chancellor Merkel and President Hollande. We must accept in the context of the European Union that member states will move forward at different paces and at different times. This is already the case. The Irish public has expressed strong pro-European sentiment in opinion polls, yet we are party to certain measures and not to others. For example, we are not in Schengen but we are in the currency. My own view is that we should move forward in co-operation at a pace that is suitable to our country and allows others to do the same within the overall strong framework of the 27 member states supported by other close groupings, including the European Economic Area and, in the future, our close neighbour, the United Kingdom.
I hope I have responded to all of the questions raised.
