Oireachtas Joint and Select Committees

Tuesday, 8 December 2015

Joint Oireachtas Committee on Agriculture, Food and the Marine

Report on EU Developments: Department of Agriculture, Food and the Marine

4:00 pm

Mr. Aidan O'Driscoll:

If GLAS is fully subscribed to by everybody in the hen harrier area, we will spend €23 million on this area alone, an extraordinary multiple of what we were previously spending on the hen harrier area. I appreciate the point that it may extend into other areas where specific issues arise in regard to cereals. I am willing to have a look in detail at whatever information members can give me on that.

I was asked if GLAS would be opened in 2016. We expect that there will be at least 35,000 and up to 40,000 in GLAS by the end of the current tranche and, as members know, we intend to get up to 50,000. Therefore, there will be further tranches of GLAS. If a person has a problem with his BPS, it will be difficult to get into GLAS, but if there is a problem in a specific case, the Senator might let us know as it would be interesting to know about the experience, particularly if the problem was with the adviser.

We probably do not have time to go into TTIP because, as the Deputy said, it deserves a good airing. TTIP is a more complex issue for our sector than for others. We see very significant benefits for the agrifood sector in TTIP and there is a growing recognition of this throughout the sector. It is most obviously the case in dairy and there are benefits from a deal in TTIP in a range of dairy products, both by lowering tariffs and removing non-tariff barriers that restrict or hinder our dairy exports into the US, which have very significant potential. There is also potential in other areas such as consumer foods.

On the beef side, the issue with TTIP has become more balanced and nuanced. Two or three years ago or more people would have exclusively seen the negatives on it but now they see that there are both positives and negatives and one has to weigh these up. We hope to get access to the US market for manufacturing beef, which is a significant prize because the Americans eat a lot of manufactured beef and grind an enormous amount - some 80% - of their beef. Their prices for manufacturing beef tend to be higher than European prices so there could be a very valuable market for manufacturing beef in the US. There could also, paradoxically, be a market at the top end - the so-called white tablecloth restaurants - for Irish grass-fed steaks along the east coast of the US, which carries a big premium. On the other hand, we would face competition from imports of general steak cuts into this country from the US. The detail will be crucial, such as how high the quotas would be, assuming a tariff rate quota would apply. How big a quota would the Americans get and what would be the structure of that quota? How big a quota would we get in the US? This is a very important point which people have not sufficiently understood. When we have access to the US market, we are caught inside a 55,000 tonne quota that extends to a whole heap of countries and is mainly filled by Latin Americans. We could very easily bump up against the quota limits there. I assume we would get an exclusive EU quota under a TTIP arrangement. It is a bit more complicated on the beef side than it was in the past and there are pluses and minuses. Overall, we see significant benefits for the agrifood sector from TTIP.

How long does the Chairman want me to speak for?

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