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

There is no doubt that Brexit poses enormous challenges for the agrifood sector by virtue of its reliance on the UK market.  The most immediate challenge has been the impact caused by the significant drop in the value of sterling against the euro, and I fully understand and appreciate the impact this is having on the agrifood sector.

The sector is of critical importance to our economy given its regional spread and the fact that it underpins the socio-economic development of rural areas in particular.  I am determined to safeguard its interests .

Ever since the UK voted to exit the EU I have been very focused in assessing the impact such an exit would have on the sector.  I did this, inter alia, by consulting with all of the relevant stakeholders.

I held the first meeting of my Department’s Brexit stakeholders consultative group on 7 July 2016, some two weeks after the vote. The work of this group was, and still is, complemented by frequent contact with representative organisations and companies on an ongoing basis, and it operates in parallel with the separate consultation structures under the all-island civic dialogue.

I have also held a series of bilateral meetings with my EU counterparts which are aimed at building alliances to ensure that agrifood and fisheries issues are at the top of the EU negotiation agenda.  Building common ground with other member states is critically important in the context of the negotiations. In all these engagements I am making clear our demand for continued unfettered access to the UK market, without tariffs and with minimal additional customs and administrative procedures, as well as keeping the UK market viable for Irish producers by minimising the risk from UK trade agreements with third countries.

In the last budget my Department led the introduction of a €150 million low-cost loan scheme, new agri-taxation measures were introduced, and increased funding was provided under the rural and seafood development programmes. I am considering what further measures might be required to assist the sector. In the meantime I sought and received sanction from the European Commission to pay a higher percentage advance in respect of the basic payment and rural development programmes - 70% and 85%, respectively - to assist farmers with cashflow issues.

It is critical at this time to work towards reducing our dependence on UK markets for our agri-products, while at the same time retaining our market share in the UK. To give effect to this ambition I have supported Bord Bia’s marketing strategy by initially allocating €3.6 million in the last budget for market work in 2016 and 2017 and more recently by allocating a further €6.7 million to support a market prioritisation exercise and a range of strategic marketing and promotion activities.

I have also had engagement with our main retail partners in the United Kingdom and led a number of trade delegations to seek new market opportunities, which I believe is bearing fruit. It is a complex range of initiatives. The ambition is to ensure that the agrifood sector is not disadvantaged by the UK decision on Brexit.

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