Oireachtas Joint and Select Committees

Tuesday, 2 February 2021

Joint Oireachtas Committee on Agriculture, Food and the Marine

The Impact of Brexit on the Agriculture Industry: Minister for Agriculture, Food and the Marine

Photo of Martin BrowneMartin Browne (Tipperary, Sinn Fein) | Oireachtas source

I thank the Minister and his officials for coming before the committee. I have engaged in consultations with the dairy industry, hauliers and Meat Industry Ireland and I will make some observations and ask a few questions on foot of those.

In the context of mixed milk, it is estimated 4 billion l of milk from the North and the South go into various dairy products. That is a massive amount. Has the Department an idea what percentage of the market will be effected by the loss of access and competitiveness now that this milk cannot be sent to Japan, Canada and Korea, for example?

Hauliers have raised issues such as the duty on produce coming into the UK and then to Ireland. Companies need clarity because many are being faced with charges that they did not expect. Then there are duty-paid terms. It is stated that UK multiples have pushed back on Irish food producers and are making them more responsible for the payment of the import tariffs. That will add extra costs for consumers. Can this matter be tackled in any way? Do we know the percentage of the trucks that were forced to turn around from UK ports due to incorrect paperwork? What aspects of the paperwork process are proving particularly problematic?

On Meat Industry Ireland, businesses are now faced with burdensome additional paperwork and export processes. The new customs SPS checks, delays and disruption in logistics mean that the direct route to continental Europe is adding a cost of €500 to €800 per truck. Some hauliers are being forced to travel back from Great Britain with their trucks empty and this is giving rise to an increase of €600 in the cost per journey. It depends on the routes, but we understand that the costs are increasing by anywhere from 25% to 40%. The consequences of this point to the need for new trade, but what can be done to cut these huge extra costs?

Further capacity is needed in the direct sailings from the Republic of Ireland to continental Europe because the new capacity, while welcome, is well below the volume of traffic that had been using the UK land bridge. Meat Industry Ireland states that the reopening of the Chinese market for Irish beef is a major priority for the beef sector here. The possibility of new markets must be explored and action must be taken to deal with competition from cheap imports. Has the Department done any work in opening up new markets? Can we get an update on talks that have taken place in this regard?

On Article 16, what is the extent of the disruption that took place at the weekend? Will it have an impact down the supply chain or at other ports? Is the Minister concerned that threats such as those witnessed in the ports at Belfast and Larne could be seen at other ports in the UK? As the checks and certification requirements become more rigorous on 1 April and 1 July, is he worried that any difficulties could further inflame tensions? Does he believe that the actions of the EU at the weekend have served to confirm in the minds of those who do not trust the EU or the intent behind the Northern Ireland protocol that their concerns have been realised? Is he concerned about the future of the supply line arrangements?

Comments

No comments

Log in or join to post a public comment.