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

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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I thank the witnesses for the presentations. My estimation is that if all these measures were implemented, they still would not offset the reductions this year. The witnesses estimate the potential losses this year at €10 million. Therefore, even if all these measures were implemented, they still would be looking at a loss of over €2 million this year alone. While this may be temporary, there is no sign of the decline of sterling reversing or levelling off. What is the IFA's long-term view on the exchange rate? What impact will that have in terms of improving the position? Even if all these measures were put in place, there would still be a crisis. Also, it seems from what Mr. Wilson said earlier that the potential for opening up new markets within the European Union does not exist, given the distances they have to travel and the challenges with regard to the Polish mushroom producers.

Any CAP market support measures would have to be introduced on an EU-wide level to ensure it benefited the Polish producers, which would improve their competitiveness in the English market also. That could be of significant benefit in the future, and it could be arranged in such a way that it would benefit Irish producers more than Polish ones.

On the estimate of the reduction in employer PRSI, the witnesses said that €2.5 million a year could be saved. They stated also that labour costs are 40% of the production costs. Given that the farm gate market value seems to be approximately €150 million, that €2.5 million means that all the labour costs are at the lower employer PRSI level. That appears to be a low cost, low wage industry.

The Department of Social Protection was mentioned earlier. It might be worthwhile talking to it about the difficulties workers experience when they are put on short time in that they can no longer access social welfare benefits, which will be a significant measure in terms of the witnesses.

Given that 80% of production is going into the English market, and will do for the foreseeable future, and that Brexit will happen, do the witnesses believe we should consider our future within the European Union if we will be exporting 80% of mushrooms into a market outside the Union?