Mr. Cormac Healy:

I wish to add value rather than repeat the points made by Mr. Healy. On the point about Brexit and the possible alternative in a no-deal Brexit with the imposition of tariffs and quotas, Deputy Martin Kenny asked whether people would go down the live route. As Mr. Carroll indicated, we have neither seen nor heard signals of that but it would ultimately be counterproductive. We have often made the point in meetings of this committee that the cuts from any one animal processed in Ireland are exported to a range of markets. By and large, a total of 50% of the beef is exported to the UK, but cuts are exported to a range of markets, many of which are in the EU, as Deputy McConalogue noted. In a no-deal crash-out scenario, if an animal is processed in the UK, some of the product from that carcass will be sold in the UK market. All the other cuts, however, that are required to be sent to other EU member states will suddenly be faced not only with a UK tariff but one which is twice that. If the EU tariff is X, the UK has proposed tariffs on beef at approximately 50% of that level. It just would not work and would be counterproductive, although it is no harm to address it because it has been raised. Furthermore, people have serious investments in plants and facilities throughout the country. Their investment is intended to continue processing here and the desire is not to go in another direction. It simply would not work in a no-deal scenario.

Mr. Carroll has addressed the issue of moving and the criteria of being under 30 months and 70 days as requirements of the marketplace. It is not just a matter of commercial customers in UK retail or some of the continental retailers. Increasingly, with access to new international markets, we are faced with some of these requirements. The rule for supplying China is that the cattle must be below the age of 30 months, as it is for Japan and various other markets.