Oireachtas Joint and Select Committees

Wednesday, 23 October 2019

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

Implications for Ireland of the Withdrawal of the UK from the EU in regard to the Agriculture and Food Sectors: Discussion

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael) | Oireachtas source

I welcome our guests. This discussion is of extraordinary significance in that the agricultural sector - and the ancillary jobs in food processing and other areas - is the most threatened sector in the context of either a soft or a hard Brexit. The sector we are discussing is the most vulnerable and exposed, and that makes our discussion very important. The transition agreement will be of extraordinary significance. It is hoped that some of the issues our guests raised will be satisfactorily resolved within the transition agreement over the next couple of years.

There is a huge problem in the beef sector. I could not be more aware of that because I have attended the various beef protests - not officially organised by the our guests - and met those involved. Leaving aside the rights or wrongs of the protests or matters relating the tactics, there is a major issue in terms of income. People sector are in very difficult circumstances in terms of their families. They are at risk when it comes to keeping their homes and their livelihoods. The state of affairs in the beef sector is shocking.

Mr. Healy indicated that he is concerned about the displacement of Irish products by those from Third World or Mercosur states that may come into the UK after the Brexit agreement goes through in a few weeks, as appears will now happen. How realistic is that? Is he exaggerating the position to some degree? Will there not be an attraction for good-quality Irish food in the UK? Ultimately, will that attraction not be sufficient to keep what we have in that market? There is the possibility within the transition agreement of arranging the alignment of standards, etc. How realistic is that?

How much of the beef sector's problems lie outside the Brexit agenda? Out guests stated that they associate all the problems with Brexit. How many of them are outside Brexit in terms of lifestyle issues, pricing and other matters that are not necessarily Brexit-related? Could our guests isolate which problems relate to Brexit? For example, is it the fluctuations in the value of sterling? There is a possibility that those fluctuations might work in our guests' favour in the future.

I am interested in the position of small farmers who have off-farm incomes from other work. In the past, it was considered that they did not need support because they had jobs but they are subventing their beef farms and are almost broke in many cases. How do we deal with them? What practical steps would our guests recommend taking in order to support those people? What interventions can we realistically make in that regard? Will it all be checking the post stuff and, if so, how much and in what form? How do we cushion the beef sector?

I understand the principles of CAP in that we have to have quality food available at a price at which consumers can buy it. That is the principle on which CAP functions. Where do our guests see the supports going in and how will that happen? How do we deal with the crisis in the beef sector? How much of it is being caused by Brexit?

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