Niamh Smyth (Cavan-Monaghan, Fianna Fail) | Oireachtas source

I am delighted that the Minister for Enterprise, Trade and Innovation, Deputy Mary Mitchell O'Connor, and the Minister of State, Deputy Helen McEntee, are in the House because I have had many conversations with the Minister about Brexit and how it might affect Border counties. It is one of the biggest challenges the State has ever faced and numerous reports have indicated that a hard Brexit would have profound negative implications for Ireland. For the Border constituency of Cavan-Monaghan, this raises serious concerns for those living at the coalface about a possible return to customs checkpoints.

The United Kingdom has traditionally been our largest trading partner and the two countries trade approximately €1.2 billion worth of goods and services on a weekly basis.

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While all countries stand to be affected by Brexit, Ireland stands to be proportionately more affected than any other EU member state.

The possibility of a hard border between the North and South of this island would be catastrophic and might lead to end of the common travel area. A hard Brexit would be disastrous in the light of the extent of the cross-Border agrifood trade, with different stages of production taking place on either side of the Border. One of the largest milk processing plants in the country is in the Cavan-Monaghan constituency. Lakeland Dairies processes up to 1 billion litres of farm-produced milk into a wide range of dairy food service products and ingredients for export to over 70 countries across the world. It has annual revenues of over €500 million and employs 700 dedicated people across its operations. It has plants in Bailieborough and Killeshandra in County Cavan and Lough Egish in County Monaghan. It depends on milk sources from across the Border. Lakeland Dairies is a major dairy processing co-operative. It operates within a 15-county catchment area across the north of this island. What does the future hold for agrifood businesses like Lakeland Dairies, which are so vital to our economy?

Sadly, the first wave of Brexit job losses has already started. Producers in the horticulture sector have ceased production and laid off workers as a direct consequence of the fall in the value of sterling. Irish businesses across the entire economy need predictability and stability. Ireland must seek immediate assurances from our European colleagues that CAP payments are secure for the current window up to 2020 and beyond. It is vital as a policy action and as a transitional aid measure that we secure increases to current EU state aid thresholds to protect agrifood enterprises and exporters hit by a hard Brexit. We believe the Brexit vote demands an immediate review of the Food Wise 2025 strategy. The targets in the strategy as it stands were set on the assumption that the UK would remain within the EU. The UK's proposed exit from the EU is a clear and present danger to the Irish agrifood sector. It represents one of the biggest risks to farmers, exporters and jobs since the foundation of the State. The agrifood sector supports 270,000 jobs in rural communities. It is the most exposed sector of our economy, given that 37% of all Irish food exports go to the UK. These exports accounted for €4.1 billion in value in 2016. As the Irish farming and food sector has a higher dependence on the UK market than other sectors in Ireland, it is most exposed to any negative economic impact of the UK Brexit decision. The mushroom industry in counties Cavan and Monaghan has been thrown into turmoil and virtually wiped out since the UK referendum, with some €7 million worth of mushroom exports and 130 jobs lost.

We need increased diplomatic engagement with EU member states, particularly in eastern Europe, to ensure there is a full understanding of the distinct position of the island of Ireland with regard to Brexit. We need increased resources for State agencies, including IDA Ireland, Bord Bia and Enterprise Ireland. We need an exporters fund to help companies to diversify into new markets and to maintain their UK market share. Export credit needs to be made available in order that finance can be offered to companies for international export operations and activities. Online trading supports are needed to help companies to grow their online business and e-commerce sales. The online trading voucher should be expanded to a greater number of Irish retail SMEs to help them to develop and expand their online business. We need regulations to allow credit unions to lend to businesses across the South. As the Minister is aware, IDA Ireland's track record in the Border region is abysmal. It needs to step up to the mark by supporting the regions and providing targeted measures to ensure Brexit does not contribute to greater regional imbalance.

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