Tim Lombard (Fine Gael)
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I thank Professor Matthews for his wonderful contribution. One of the key issues facing the Joint Committee on Agriculture, Food and the Marine is the response to CAP reform and how it will fit in if Brexit materialises, with particular reference to a reduction in the UK budget. The figure touted as being the possible reduction is 18% in the net contribution the United Kingdom makes to the budget. If such a drastic cut to the CAP budget were to materialise, it would have major knock-on effects on the tillage and beef industries, as well as throughout the entire agricultural framework. How does Professor Matthews propose that it be dealt with? Does he believe member states will decide to step in and bridge the gap, given what is happening on the eastern side of Europe? If there was to be a 20% cut in the budget in the next round of the Common Agricultural Policy, what impact would it have on agricultural output in Ireland?

Two issues arise with Brexit, the first of which is the trade impact, while the second is the major issue of the CAP payment for this country. Statistics from Teagasc for beef and grain production suggest farmers survive on the single farm payment. If it was to be cut by one fifth, it would amount to the demise of the two industries across the board. That could be an unfortunate knock-on effect of the unfortunate vote result in the United Kingdom. Will Professor Matthews comment on these two issues?