Dáil debates

Thursday, 21 February 2019

Ceisteanna ó Cheannairí - Leaders' Questions

 

12:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

First, I thank the Deputy for raising this hugely serious issue. As a former Minister for Agriculture, Food and the Marine, I assure the Deputy that I and Deputy Creed and the Cabinet as a whole are more than aware of the potential threats to the agrifood industry and the beef sector in particular.

There are about 130,000 farm families in Ireland and about 100,000 of these get income from beef. Some 60,000 to 70,000 get all of their farm income from beef. When it comes to Irish agriculture in terms of numbers, beef is the most important issue and we are aware of that. That is why the Department of Agriculture, Food and Marine has done a detailed assessment of what the impact a no-deal scenario could be in a worst-case scenario. That is not a report that shies away from outlining the stress and pressure that this sector could be put under if it is not supported and managed by the Government and by the EU in that worst-case scenario. As result, we have been speaking to the European Commission very directly and to the European Commissioner, Phil Hogan. We have made it clear, and the Commission has made it clear that it will support us, that we can, if it comes to it, support and protect a sector to ensure it survives through a Brexit transition period.

We are, of course, all working to ensure that no-deal Brexit does not happen. We have heard various rumours at different stages coming out of the UK. At one point, I was being informed that the UK Government was going to look at having no tariffs at all. Then we saw Michael Gove making announcements that he intends applying WTO tariffs on agrifood products. On top of that, we are being told that within certain sectors like beef, they may look at tariff-free quotas for certain volumes of beef. If they were to do that under WTO rules, they would not be able to apply a different tariff system or quota system to Ireland or to the EU, as they would to other parts of the world. The only thing that would then differentiate Irish beef from beef from other parts of the world would be quality restrictions, which of course are a factor. In of themselves, however, this will not be reassuring to Irish farmers, as we indeed see in the editorial of the Irish Farmers' Journal today.

The one thing I want to say on behalf of the Government, the Taoiseach and the Minister for Agriculture, Food and the Marine, Deputy Creed, is that we have been aware for many months of the vulnerability of agriculture. That is why in the last budget, the beef sector was targeted in a positive way for more supports. If it comes to it, the Government will not be found wanting to support and work with this sector through a very difficult period, should a no-deal Brexit materialise. That will involve a significant amount of money and a relaxation of the state aid rules that would allow us to be able to support the vulnerable sectors through the consequences of a no-deal Brexit.

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