Dáil debates

Thursday, 27 October 2016

Ceisteanna - Questions - Priority Questions

Agrifood Sector

2:30 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael) | Oireachtas source

On the latter point, Food Wise 2025 is an industry-document that my Department facilitated in terms of development. We have previously had challenging issues in this sector, including BSE, foot and mouth disease and the pork dioxin crisis, all of which, at the time, were enormous challenges to this sector. Brexit is not sufficient to derail the ambition, which is a long-term ambition for this sector. While we must react and take account of the challenges we face this is not a time to wilt in the context of the ambition for the industry over the longer term. Most of the industry commentators would accept that.

On the specific issues which the Deputy raised in regard to the agrifood sector and the need for Government to do more to bail out the sector in the context of Brexit, there are limitations on what the State can do under EU state aid rules. It is for this reason the access to low interest loan finance is a tailored initiative. An Bord Bia, Enterprise Ireland and BIM have all been in contact with their individual client companies and are bringing them through in so far as they can without breaching state aid rules. They are assisting them in terms of new market development and deeper engagement with their client base in the UK given the current difficulties they are experiencing in that regard. They are also helping them to navigate the waters in terms of renegotiating contracts. It is inevitable that there will be food inflation in the UK arising from Brexit and a weaker sterling. Over a period of time this will deliver some comfort to the Irish food industries exporting into that market. What we need is assistance in the interim to help them to navigate the current difficulties. That is what my Department is focused on. It is also what the whole of Government approach is focused on.

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