Oireachtas Joint and Select Committees

Tuesday, 27 September 2016

Joint Oireachtas Committee on Agriculture, Food and the Marine

Brexit: Discussion with Mushroom Industry

5:00 pm

Mr. Micheál McGovern:

The issue of PRSI was raised. As Mr. Reilly stated in his submission, it was a precedent taken by the former Government to support the minimum wage adjustment. We feel this measure could go some way towards getting funding fast into the industry. As Mr. Reilly said, we need measures quickly and now or else we will see further haemorrhaging in the mushroom growing industry.

In costs, it comes to €2.2 million, which represents 10% of the total losses we have suffered from most of the contracts put in place when the sterling exchange rate was 70 pence or so as opposed to where it is now at 87 pence. It is one measure. It would be helpful if it could be incorporated in the higher rate of PRSI. We felt as this measure had been taken before that it would be easier to implement. For one second, however, we do not believe that this is a fix-all for the problem because it represents only 10% of the total losses. If we can get the 10.5% aspect included and ring-fenced for those exporting 85% of our produce to the UK, this would be something further on top of the 10%.