Joe O'Reilly (Fine Gael) | Oireachtas source

I join the Chairman in welcoming the director of Teagasc, Professor Gerry Boyle, and his colleague, Dr. Kevin Hanrahan. I congratulate both of them on the degree to which Teagasc has been engaging with this critical issue for Irish agriculture. It is encouraging that Teagasc has a dedicated unit and a working group on Brexit. It is clear from the nature of the paper that has been presented that Teagasc's research in this area is in progress. That is to be welcomed. It is reassuring for us, as representatives of taxpayers, that this important work is being done.

I am very happy that Professor Boyle has focused on the micro-aspects of agriculture in the communities of the Border region. Others have failed to focus on such matters. As the Chairman will be aware, I have attempted to raise a few of them at meetings of this committee in recent weeks. It is very good that Professor Boyle has focused on them today. I will give a practical example of what we are talking about across a range of areas. Lakeland Dairies, which has a major processing plant in the small town I live in and is the key employer in that town, sources much of the milk it processes in that plant and in its Lough Egish plant from North of the Border. Conversely, important pig processing activities take place North of the Border in many instances. Such cross-Border agriculture movements are critical. How hopeful is Professor Boyle that we will be able to maintain today's veterinary standards after Brexit? If imports from non-EU countries, including the Mercosur states of Latin America, are accepted, the application in the UK of a cheap food policy, as it is called and as it is popularly known, will be to the detriment of the maintenance of proper standards.

I would be interested to hear Professor Boyle speak further about the level of potential tariffs. I think he said in the substantive document he presented earlier that the UK could set tariffs with the Republic at a lower level. If I understood him correctly, the UK might be able to set favourable tariff ratings or customs ratings. Maybe he will elaborate on that. Wearing his hat as a distinguished economist, does he see any great prospect that the current free trade arrangement between the UK and the EU will be maintained? If not, to what degree will it be diluted? I know that a graph in the paper that has been presented to us today sets out estimates of potential tariffs, but I would like to know what the actual level of impact on each farmer will be. I am afraid that small farmers will not be viable in this context and we will move towards factory farming. I am scared that if large factory units are needed to achieve the economies of scale necessary to deal with the tariff question, there will be awful implications for rural Ireland, including the breakdown of society as it is known in small towns and communities across this country. I ask Professor Boyle to comment on the degree to which the status quocould be sustained in this eventuality. As an economist, what does he think the Government can do to mitigate the impact of tariffs and customs? How much could the Government potentially invest to this end?

I would like to comment on the figures that have been presented with regard to the cross-Border dimension. It is amazing that Brexit will have effects across such a range of areas. As we have noted, the live trade across the Border for processing is very large. The solutions proposed by Professor Boyle at the end of his presentation are very interesting. He said that other markets will be examined from a "sensory" perspective. He might explain what he means by terms like food "fractionation". We do not want to discuss any company in a very specific fashion as it would be an inappropriate exercise in the absence of the principals of that company. Having said that, does Professor Boyle think companies like Glanbia and Lakeland Dairies, which have a presence in my own area, will be fit to absorb the costs which will be involved in adjusting to market diversification?

It is great the witnesses introduced that cautionary note. There is an assumption that market diversification will come easily. It is a bit like the UK internally claiming it will establish trade with the old Commonwealth to replace trade with the EU. The former Taoiseach, Bertie Ahern, pointed out at this committee several weeks ago that for every 5% of trade the UK would lose with the EU, it would have to achieve 25% new trade with the old Commonwealth countries to redress the balance. Will we be fit to absorb the costs of market diversification and getting ourselves into new markets? What exercises would the Government want to take in this regard?

I am delighted that the focus of today's conversation is impacting on what is real life of the people I represent. The trading relationship between farming communities North and South of the Border is enormous. It is great Teagasc is grappling with that question and how we might deal with it. After hearing the witnesses, I am also concerned we could be arriving at a situation where small farming, as we understand it in County Cavan, could no longer be viable. With the Common Agricultural Policy, CAP, does Teagasc believe there will be a pull to the east? What impact will the UK contribution not going into the CAP budget have? Again, that will be a challenge to small farmers in my area. We do not want to be too much of a Jeremiah on this and still hope for the best. However, it is a concerning scenario.