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

As the Tánaiste said in his opening statement, a close and deep future relationship between the European Union and the United Kingdom post Brexit is key to continuing the profound and fruitful relationship we have had with the UK until now. Nowhere is this relationship more evident than in the way in which the agrifood and fisheries sectors interact. From a trading point of view, the United Kingdom is our most important export destination, with the most recent full-year CSO figures showing that some 38%, or €5.2 billion worth, of total exports in 2017 went to the United Kingdom. When we examine the situation at subsectoral level, we see that 48% of our beef exports go to the United Kingdom; 21% of our dairy exports, including 46% of cheddar cheese exports; more than 60% of prepared consumer foods exports; and almost 100% in the case of mushrooms. Ireland was also the UK's largest export destination in 2017 for agrifood, with approximately €4.1 billion, or almost 48%, of our imports across a wide range of product categories coming from the United Kingdom. The close correlation between the export and import figures serves as a reminder of the very tightly integrated nature of the Irish and UK agrifood sectors. It also reminds us of the uniquely supportive trading environment we enjoy courtesy of the European Union's customs union and Single Market, which facilitates tariff and friction-free trade. It is clear, therefore, that the best interests of the agrifood sectors in Ireland and indeed in the United Kingdom lie in trading arrangements post Brexit that are as close as possible to those that prevail currently. This is what Ireland wants from the negotiations and it is also what the European Union wants.

It is also clear, however, that the trading relationship cannot be the same outside of the Single Market and the customs union and that it will inevitably give rise to greater friction and higher costs along the supply chain than is currently the case. We must bear in mind, therefore, that regardless of the kind of future relationship the European Union has with the United Kingdom post Brexit, things are going to change. There will be new customs procedures and regulatory requirements along the agrifood and fisheries supply chains, but the Government will work to keep the impact of these to a minimum. There may also be additional export certification requirements in some areas.

As the Tánaiste mentioned earlier, while the focus remains on achieving an orderly Brexit, we are continuing to intensify our preparations for a disorderly outcome at the end of March. My Department is participating very actively in the whole-of-Government approach to preparedness and contingency planning. We have fed into the overall Government contingency action plan, which was published on 19 December, and have been working very closely with colleagues in other Departments and agencies to address in particular the requirements that will arise in respect of the implementation at ports and airports of import controls on agrifood products coming from the United Kingdom. These requirements are significant and arise from the carrying out of documentary, identity and physical checks on imports of animals, plants and products of animal and plant origin, as set out in European Union legislation. The Department has carried out an extensive analysis exercise based on examination of trade and container movement data, together with close consultation with stakeholder organisations and individual companies, to establish as best we can the likely volumes of controls that will be needed to carry out this exercise. This has been a difficult exercise, given the lack of detailed data as a result of the United Kingdom's participation in the Single Market up to this point, but we have based our assumptions and planning on what we believe are reasonable estimates of the likely volumes. Work in this regard has been focused on three key areas, namely, infrastructure, staffing and information technology, and in three key locations, namely, Dublin Port, Rosslare Europort and Dublin Airport.

On infrastructure, we have been engaging very closely with the Office of Public Works, the Department of Transport, Tourism and Sport and the Department of Health and the Revenue Commissioners on the physical facilities that will be required to carry out import controls at the three locations.

Areas being addressed here include inspection facilities, staff accommodation, parking, and logistics and traffic management. This work had been proceeding in any event in the context of dealing with the central case scenario, and has been adapted in order to meet the requirements in the event of a disorderly Brexit.

On staffing, we have also used the data analysis exercise to guide our planning in relation to putting in place the staff that will be required to carry out the range of controls needed. These controls are carried out by a combination of portal inspectorate staff and, where necessary, the appropriate veterinary and technical supervision. The Department is working very effectively with customs and others to provide the resources needed to apply the necessary controls and I am confident that the State will be in a position to apply controls at the appropriate time.

On information technology, my Department has established a project to co-ordinate the identification and delivery of ICT infrastructure and systems to support the additional requirements of staff engaged in control processes in Dublin Port, Rosslare and Dublin Airport. This team is in the process of sourcing and configuring additional ICT equipment and enhancing existing software systems to support new requirements. My Department is also working closely with the Office of Public Works, OPW, Government Networks and a number of Telecom providers to ensure that there is adequate network connectivity in place. The delivery timelines in the event of a disorderly Brexit are extremely challenging, but officials are working with the greatest urgency to ensure the required ICT services are in place by 29 March. Throughout all of this work, the focus has been on the need to discharge the Department's legal responsibilities while ensuring the minimum possible disruption to trade.

Returning to the potential trade impacts, it has been clear from the beginning that a hard Brexit would be very damaging for the agrifood sector given the potential impact of World Trade Organization, WTO, tariffs on trade. We have been working very hard for quite some time to sensitise other member states and the European Commission to these potential impacts, and to the likelihood of specific supports being required for the sector. The institutions of the European Union are well aware of the likelihood of a significant impact of a disorderly Brexit on Ireland's economy because this has been part of the discussion from the beginning, and indeed this is explicitly recognised in the Commission's own communication on contingency planning.

In the case of agriculture, there is of course a toolbox available to assist with severe market disruption in the Common Market Organisation Regulation put in place during Ireland's Presidency in 2013, and this will be part of the discussion. I am in regular and ongoing contact with Commissioner Hogan on these issues. This is also an issue that will be required to be progressed in a whole-of-Government context.

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