Bobby Aylward (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

Arguably, Brexit poses one of the biggest risks to farmers, exporters and jobs in the agrifood sector since the foundation of the State. According to a recent report by Bord Bia, the agrifood industry in Ireland has already lost up to €570 million in sterling depreciation. The depreciation alone threw the mushroom industry into turmoil, with the loss of €7 million in exports and 130 jobs. It nearly decimated the industry. It seems that is only a drop in the ocean compared to the threats coming down the tracks facing farmers and the agrifood sector. At the end of the separation period, which will probably be March 2019, the United Kingdom could, for example, impose tariffs, which tend to be high for certain foods such as dairy and beef; decouple itself from EU food standards, adding many new regulatory checks, delays and costs; remove tariffs from low-cost regions like South America, making it extremely difficult for Irish farmers and producers to compete; and impose border controls around Northern Ireland, making it harder, slower and costlier to move product North and South.

The UK leaving the EU also creates a €3 billion shortfall in CAP funding, which is about 6% of the total budget. Irish farmers get more than €1.5 billion annually through basic scheme payments and the rural development programme, with direct payments accounting for two thirds of total farm income across all sectors. If the mushroom industry is to serve as a warning for the agrifood sector as a whole, we are nowhere close to where we need to be in terms of protecting indigenous food producers against the implications of Brexit. We need to explore options to keep the UK as close as possible to the Single Market and customs union and to maintain the current zero tariff situation which is crucial to the agrifood sector. We need to make use of Common Market measures in CAP providing for exceptional financial aid measures against severe market disturbances. We need increased resources for the market access unit in the Department of Agriculture, Food and the Marine to enable new export markets to be opened for Irish food and drink products. We need EU assurances that CAP payments are secure beyond 2020.

Before I conclude, I wish to return to the beef sector. Beef prices have come under pressure in 2017 as approximately 100,000 extra cattle come on-stream over the course of this year. The Minister, Deputy Creed, must consider introducing a €200 annual payment for suckler cows to ensure the sustainability of the national herd to supplement the existing payment structure in the beef genomics scheme and increase payments to €200 for the first 20 cows with the balance at €80 per cow. I raised the matter with the Minister last week during Question Time but I received a very negative response. Such an annual payment is very achievable given the likely underspend in the scheme and I urge the Minister to take another look at it, given that the beef sector will be the most exposed as 50% of all Irish beef exports go to Britain.

My time is up. I would never like to see a Border again between Northern Ireland and ourselves. Common travel and freedom of movement were the hallmarks of the relationship between and Britain and Ireland and I wish to see that maintained. I urge the Minister if at all possible to achieve that in the negotiations and to keep what we have.

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