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

The issue raised by the Deputy points to the importance of getting a withdrawal agreement agreed because for farmers in the Republic of Ireland and, in particular, in Northern Ireland, a no-deal Brexit would be hugely challenging. In a no-deal scenario, there will be a very significant support package for farmers in the Republic. We are working with the European Commission to ensure the Commission plays its role in that as well.

We are fortunate to have a Commissioner for Agriculture and Rural Development who understands the Irish agriculture industry very well. However, in the context of a no-deal Brexit and the imposition of tariffs not only between Britain and Ireland, but also, potentially, between Northern Ireland and the Republic of Ireland, with goods coming south, the all-island economy as it functions today, from an agrifood and agricultural perspective, would be significantly disrupted. Therefore, our focus now is on working with the European Commission on how we would respond to that to keep people in business and protect farm incomes.

The beef industry is particularly impacted in this regard. Of the 130,000 farm families in Ireland, 100,000 get some income from beef, and 70,000 get all their farm income from beef. Of all our beef exports, 53%, which is about 85% of all the beef produced, is exported to the UK, which is the highest-paying market in the world. If one imposes significant tariffs on what is a tight-margin business, one does a lot of damage. We are aware of this, which is why this is not an inexpensive problem to which to respond.

The Department of Public Expenditure and Reform has been working with the Department of Agriculture, Food and the Marine and they have been preparing a contingency no-deal plan. Unfortunately, it will not be possible to have a contingency trade agreement in place, either between Ireland and Britain or between the EU and Britain, in the short term. This is why the British Government published its contingency plan regarding tariffs and the approach on the island of Ireland in the context of a no-deal. If a no-deal happens, Ireland and the EU and the UK will act independently of one another to protect markets, but it will be a very difficult period if that happens. As I said, we are in the process of finalising a detailed and significant plan to support farming through a no-deal, should it happen. The supports for farmers have already begun. In the most recent budget there was a package of approximately €78 million for farmers. I think about 830 farmers from Tipperary have applied for the new beef support programme, which is a €20 million plan, but we need to be straight with people here. If a no-deal Brexit happens, the pressures on agriculture and farming in Ireland will need a significant Government and EU response, and they will get that.

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