Oireachtas Joint and Select Committees

Tuesday, 27 September 2016

Joint Oireachtas Committee on Agriculture, Food and the Marine

Brexit: Discussion with Mushroom Industry

5:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I am glad to see a fellow Westmeath man presenting the case for the mushroom farmers. He is aware that a significant number of mushroom producers in the Westmeath area have disappeared, so to speak, in the past 12 or 18 months. They were all under pressure prior to this. It is a perfect storm because it is a very perishable product in a volatile market. There was forward contracting when the sterling rate was at a particular level and now it has collapsed so the industry is caught in a bind. The attrition rate will significantly accelerate unless there is intervention. There has to be recognition of that at national and EU level. Apart from all the other measures, the PRSI job initiative introduced by the Government over recent years worked so it can be readily dusted down and brought into play fairly quickly. That will only get the industry so far. There were worrying reports that diesel prices will become equivalent to petrol prices. If that happens, the industry will be gone altogether. I agree there cannot be any increase in excise rates on agricultural diesel over the next 12 to 18 months while people get back on their feet.

If we make a submission to Government on behalf of the industry, we have to know that it is all right to do so on a broad basis and in a generic way. What are the costs involved in each specific measure we are seeking to establish to help address issues in the short term? Is there any reason, with only three months left in 2016, producers have not received their money for 2015? Is it a failure on the producers' behalf to submit the relevant forms? The Department of Agriculture, Food and the Marine makes great play of paying out on time so I am surprised to see the producers are that far behind. There is not a big number of producers; there are only 53. There is no reason for that.

Let us look at the worst case scenario. The industry has lost three or four mushroom companies in recent weeks. If there is no intervention, what does Mr. Reilly see as the future of the mushroom industry in Ireland? How many people are employed in the industry and what impact will there be on employment? There would be a substantial cost to the Exchequer at that level so it would be prudent to include it in the valuation scales and ensure the appropriate aid is given to secure the future of the industry on a short-term basis until this matter is resolved. I do not want to be pessimistic but what concerns me is that the currency could continue on its downward spiral.

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