Mr. Pat McCormack:

I will not read out my statement verbatim because we have submitted our views. While it may be coming towards Mr. Healy's last time, it is my first time in the Seanad. I have appeared regularly before the Joint Committee on Agriculture, Food and the Marine. My predecessor appeared here in May 2017. As Mr. Healy said, all eyes were on 29 March 2019 at that point. There was a degree of complacency because it was a long time away but that day came and went. There was a lot of uncertainty in the build-up to it and there is still a lot of uncertainty. We can see from what Mr. Chestnutt said that uncertainty affects agriculture on the entire island. They can point the finger at the sector from a climate point of view at times but from a sectoral point of view, we are extremely vulnerable to Brexit - North and South.

Some of the figures were mentioned. Mr. Healy said that 37% of food and drinks exports went to the UK in 2018. A total of 50% of our cheese was exported there in 2018, including 83% of our cheddar. We see the likes of Carbery Group having to respond to that at a significant cost to its shareholder producers with a new plant involving the production of mozzarella and other cheeses built at a cost of €70 million or €80 million to diversify its product portfolio. A total of 30% of our dairy exports go to the UK. I listened fully to what Mr. Chestnutt said about integration and how industries depend on each other from a processing and feeds perspective. The flow has been both ways and both sides of the Border are equally vulnerable. How would the likes of Lakeland Dairies market itself in the event of a hard Brexit or a hard border given that it has plants North and South of the Border? A total of 52% of our beef goes to the UK. The beef sector has been in severe turmoil over the summer, much of it associated with the unknown of Brexit. Farmers are fearful about their future. As Mr. Chestnutt said, we need clarity on these issues because the uncertainty is paralysing our industry.

We are not the only ones exporting to the UK. The Netherlands, France, Germany, Spain and Italy all export to it but it is our closest, longest-established and most rewarding market from a number of perspectives given that North-South and east-west trade are equally important. What are the consequences of a hard Brexit?

There will be a lack of confidence in our community, with GDP estimated to drop by 10%. Purchasing power will be absent and that will have an effect on what consumers do and how they react.

Mr. Healy mentioned BEAM. That was to compensate some farmers in beef production until 12 May. It was over-regulated and, consequently, undersubscribed. It was over-regulated because its principal objective was to be a compensation package for the financial losses that farmers incurred in beef production. It was regrettable that not all farmers in beef production were part of that scheme. The ICMSA made no apology in highlighting the issue that dairy farmers were excluded. Ultimately, dairy farmers with 41 or 42 cows found themselves excluded. It brought in environmental constraints that made it unattractive for farmers to apply for a scheme that should initially have been to compensate for losses incurred in beef production. Since 12 May, there have been significant and ongoing losses. While we welcome the €85 million in the budget last week, the shackles need to be taken off that. It cannot be a no-deal compensation package. It should be retrospective package covering 12 May to budget day. Farmers have ongoing losses. We have seen frustration among farmers and fear among farm families. All farmers in beef production need to be compensated in the future.

I touched on the finalisation of the agreement. We need to remove the uncertainty as soon as possible. The transition period needs to allow for negotiations and stabilisation to take place. Volatility is the greatest challenge for farm families. That has been exacerbated as a result of a potential Brexit. Unfortunately, in this most recent budget, the Government failed to grasp the nettle with a farm management deposit scheme, which would allow farmers to build a tax-efficient buffer to deal with poor years and unexpected and unwarranted income volatility. We are exposed to the turbulence caused by politicians around the globe, as we have seen with President Trump and the USA's tariffs on the Kerrygold brand.

With regard to the farm management deposit scheme, an enterprise stabilisation fund is needed. I mentioned the Carbery Group but other parts of industry will have to cope with whatever Brexit brings to us. While we may be six or eight months away from the original date, there is still have much unknown ground ahead.

Critical issues in the future include being tariff free. The introduction of the proposed tariffs would mean an increase of approximately 3 cent per litre of milk. As it is, the unknown future is probably costing 3 cent per litre of milk as a result of currency fluctuations and uncertainty. It was alluded to earlier that the CAP budget would be significantly hit. It is imperative that the CAP budget be maintained. It is up to the 27 other member states to secure that for the future.

Input costs are always a significant issue. We have many members along the Border who are concerned that mutual recognition of approval and accreditation needs to be brought in, whether it is for feed or for various other farm inputs. It would be anti-competitive in any other scenario, especially along the Border. The costs of competitiveness need to be addressed. That is an ongoing issue, including as we face Brexit. Energy, credit, legal and other costs such as insurance need to be addressed in advance of Brexit. Mr. Healy alluded to trade deals. We will have the EU and UK trade deal, with the potential of other deals between others and the UK. With this in mind, our Government needs to be more proactive in securing the rejection of the Mercosur deal. The implementation of this deal and its impact will more than likely be felt at the same time as the impact of Brexit following the transition period. It is imperative that the 99,000 tonnes of beef potentially coming into Europe, along with the beef potentially entering the UK, are readjusted.

Consumer confidence is a critical issue and we need to maintain that, considering our island status.

There are day-to-day on-farm challenges for farmers along the Border with land fragmentation, including issues with the basic payment scheme and nitrates.

We have succeeded with regard to health on an all-island basis. We have eradicated brucellosis from the island of Ireland and it is imperative that, whatever happens with Brexit, the relationships that have been built and enhanced over recent decades are built on to eradicate diseases such as bovine viral diarrhea, Johne's disease, and ultimately tuberculosis too. That level of co-operation must be continued and intensified for the good of all of us.

The potential of a hard border with the Six Counties seems to have reduced but we must be conscious that there is no deal until there is a full deal. Some 32,000 milk lorries transit the Border each year. Any Border checks would have a significant cost associated with them, without even mentioning tariffs. We need to continue to maintain alliances at a European level to support the Irish position. We are extremely exposed, both North and South. A transition agreement needs to cover as long a time as possible to get the best outcome. As a nation, we need to recognise that farm families need tools to get through this and the volatility that we have seen recently. I mentioned the farm management deposit scheme and the enterprise stability fund. We cannot afford to have a hard border. It is essential that the existing trading arrangements continue for the benefit of both sides of the Border and further afield.