Oireachtas Joint and Select Committees

Wednesday, 7 June 2017

Seanad Committee on the Withdrawal of the United Kingdom from the European Union

Engagement with All-Island Bodies

10:00 am

Mr. John Enright:

I shall refer to Senator Paul Daly's comment on what we, as a country, can do for exposed sectors, such as agriculture, if we have a bad Brexit. Consider the circumstances of a bad result in March 2019, when Brexit negotiations are supposed to be concluded. At national level, we will have two budgets between now and then. It is important in those budgets that we consider measures to support the exposed sectors. We have proposed previously the farm management deposit scheme. In the past five years, probably, our members have seen milk priced at 20 cent per litre and 40 cent per litre. At 20 cent per litre, they are 8 cent per litre below the cost of production. If, come March 2019, we have WTO tariffs and currency volatility, the processors will simply pass the pain back to the farmer. That is the reality. We have nobody to pass it back to from our perspective. The next two budgets must address the sectors that are exposed under Brexit and bring in measures to try to support them. We feel the farm management deposit scheme is certainly a measure that can help our members such that they will have some support in the even of a very hard Brexit to try to maintain their businesses while, I hope, the issues are resolved.

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