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

The Government has been working hard to ensure that Ireland is ready for Brexit. In particular, we continue to seek to mitigate as far as possible the potential adverse impacts of a disorderly Brexit. With the impending approach of the 29 March deadline, we are accelerating our no-deal preparations. The Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill is a key part of that work. It covers the primary legislative issues that need to be addressed immediately in the event of a no-deal Brexit, ensuring that key measures and protections are in place.

Members will note that there is no Part of the Bill dealing with the remit of my Department. This is because my Department largely implements EU policies such as the Common Agricultural Policy, CAP, and the Common Fisheries Policy, CFP, and any legislative changes required will be made at EU level. This does not mean that my Department is not heavily involved in Brexit issues. Indeed I will be laying at least one statutory instrument before the Houses to reduce the time period for notification of imports subject to sanitary and phytosanitary, SPS, checks to 24 hours for imports using roll-on roll-off ferries.

Legislation is just one element of our preparations. I also have been sensitising other member states and the European Commission to the potentially very severe impacts of Brexit on the Irish agrifood and fisheries sectors and the likelihood of specific supports being required to deal with these impacts. As part of Brexit planning, my Department has carried out a detailed analysis of the implications for Irish agrifood exports in a worst-case scenario whereby the UK applies the EU's existing tariff schedule on imports. This analysis found that the estimated cost of potential tariffs for the sector as a whole is €1.7 billion based on Irish agrifood exports to the United Kingdom of €4.8 billion in 2016. The decision as to how and when the UK might impose tariffs on imports from the EU in the event of a no-deal Brexit is a matter for the UK Government. The institutions of the EU are very well aware of the likelihood of a significant impact of a no-deal 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.

Recently, I had bilateral meetings with Commissioners Hogan and Vella to discuss the potential impact of a no-deal Brexit on the Irish agrifood and fisheries sectors. We discussed the unique exposure of these sectors to the threat and the challenges that it could present. I stressed the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and processors, including through traditional market supports and exceptional aid under the CAP's single Common Market organisation regulation, increased flexibility under state aid regulations and a common approach to managing fisheries and additional funding under the European Maritime and Fisheries Fund, EMFF.

I am aware that a number of Deputies have queried why reference to a support package for farmers and the agrifood industry has not been included in the Bill. Any support package is dependent on a number of variables and, in any event, would not require a change to primary legislation. It is not possible to introduce a support package until we know what type of Brexit we are dealing with, with or without a deal, and the implications of such a Brexit on the agrifood and fishing sectors. My officials are in ongoing contact with the Commission and other member states on these issues and we will not be found wanting when it comes to supporting the sector. We will continue to prepare for all eventualities.

To date, I have provided significant supports to the agrifood and fisheries sectors. In budget 2017, I introduced farm gate business costs reduction measures to enhance competitiveness, including a €150 million low-cost loan scheme. In budget 2018, I introduced a €50 million dedicated Brexit package that included supports to Bord Bia and Teagasc as well as a contribution to a €300 million joint Department of Agriculture, Food and the Marine and Department of Business, Enterprise and Innovation Brexit loan scheme, at least 40% of which is available to food businesses. In budget 2019, I introduced a €78 million Brexit package for farmers, fishermen and food SMEs and the following measures to cover additional costs related to Brexit.

I provided €44 million in direct aid to farmers through increased spending on areas of natural constraint, the introduction of a beef environmental efficiency pilot scheme, additional funding for the horticulture sector, and €27 million for capital funding for the food industry. This €27 million comprised €13 million in supports for food industry competitiveness and innovation, €3 million both for artisan and microfood and beverage programmes through the LEADER programme and for LEAN manufacturing initiatives designed to improve competitiveness, an additional €5 million for Bord Bia, which brought its total grant-in-aid to €46.6 million and represented a 60% increase in funding for marketing and promotion of our food offering since 2014, and €6 million in funding to progress an €8 million food innovation hub in Teagasc Moorepark, of which €2 million was provided in 2018.

In addition, I have provided €7 million for the recruitment of additional staff and the provision of ICT hardware and software to carry out the greatly increased volumes of import controls and export certification arising from Brexit. As well as this, the Minister for Finance announced the future growth loan scheme, which will be rolled out in 2019 and for which I provided €25 million in 2018. The scheme will provide long-term, unsecured investment finance for farmers and small-scale companies in the food and seafood sectors.

Our preparations also include intensive work, in conjunction with other Departments, to ensure that trade continues to flow through our ports and airports in the event of a no-deal Brexit. Work in this regard has been focused on three key areas, namely, infrastructure, staffing and information technology in three key locations, these being 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, the Department of Health and the Revenue Commissioners regarding 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. On staffing, we are in the process of recruiting and redeploying staff required to carry out the range of controls needed. These controls are carried out by a combination of portal inspectorate staff with 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 Europort and Dublin Airport. The delivery timelines in the event of a disorderly Brexit are very challenging but officials are working with the greatest urgency to ensure the necessary requirements are in place by 29 March.

We must bear in mind that, regardless of the kind of future relationship the EU has with the UK post Brexit, things are going to change. There will be new customs procedures and regulatory requirements along agrifood and fisheries supply chains, but the Government will be working to keep the impact of these to a minimum. There will also be additional export certification requirements in certain areas. Through 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. My Department will continue to participate actively in the whole-of-Government approach to dealing with Brexit, and this Bill is an important element of the whole-of-Government response. I commend the Bill to the House.

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