Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I welcome the opportunity to discuss the threat posed by Brexit to our agrifood sector. We are having this debate against the backdrop of the continuing chaos at Westminster, where it is still no clearer what might unfold or what the final landing place will be in respect of the UK's decision to leave the European Union. Whether it is a case of a hard Brexit or a soft Brexit, the decision will have as significant an impact on our country as it will on the UK, with regard to the agrifood sector in particular. While the total share of our national exports sent to Britain is 17%, the figure has varied between 36% and 40% for agrifood exports over the last few years. That shows how exposed agrifood is to any disruption to east-west trade and the absolute importance of taking the necessary steps to prepare for and mitigate against any such disruption caused by either a soft Brexit or a hard Brexit, although there is a particular urgency to preparing for a hard Brexit.

As the Minister well knows, some of our sectors are particularly exposed. The beef sector in particular is in the eye of the storm. We saw the impact on the horticulture sector 18 months ago when Brexit was first decided upon. The resulting turmoil in the sterling exchange rate wiped out some of our mushroom sector and put massive pressure on the horticulture sector as a whole. That is nothing compared to the pressure the sector will be under in the case of a hard Brexit. When horticulture was feeling this pressure 18 months ago the Government did not step in to support the sector. Some businesses went to the wall. We cannot, under any circumstances, see a repeat of that in respect of the wider agrifood sector. It was unfortunate and unacceptable that the sector was left to fend for itself at that stage. There were job losses as a result of the lack of sufficient support to get the sector through its time of need which, thankfully, did ease as sterling stabilised.

The response to Brexit of the Government and of the Minister has not been what it needs to be. There is still a lack of clarity about what measures will be in place in the event of a hard Brexit. I have said this to the Minister on a number of occasions in the Dáil. Whenever we have previously sought clarity from the Minister on the Government's Brexit response his big-ticket item in respect of the provision of assistance has been the introduction of a Brexit loan scheme. That scheme was announced in October 2017 and funding was provided for it in budget 2018. Despite the Minister selling it as one of his key Brexit measures throughout that period, that loan scheme did not materialise until it was announced last Wednesday, just a few days ago, as a means to deal with the threat posed by a hard Brexit. It was certainly not the type of product the Minister initially marketed it as, which was a measure to prepare the State for Brexit.

In his recent responses the Minister has been telling us that the additional funding provided for the areas of natural constraint and beef schemes is part of his response to Brexit. Again, I do not accept that. It is part of the normal course of events and a necessary development within the agrifood sector rather than something that is specific to Brexit.

We need more clarity as to what the situation will be in the event of a hard Brexit. Of course enveloping all of this at all stages has to be the national priority of ensuring that a hard Brexit does not happen. If it were to happen - it could happen in as little as a week and a half at this stage in the event of the withdrawal agreement not being agreed and no extension being granted - we still do not have any clarity as to what exactly the Government or the European Commission would do to support our agrifood sector. The stakeholders in the sector have made it clear that what will be needed in that event is support to mitigate any disruption arising from the imposition of tariffs. The traditional tools such as aid to private storage or intervention would not be appropriate because, as the Minister has accepted, they would lead to displacement from British shelves and a loss of market space which would be very difficult to recover. We would have to ensure that we keep our product moving into Britain in the short term. The best way to do that would be emergency initial aid. With less than two weeks to go, there should be a lot more clarity from the Minister and the European Commission with regard to what is on the table.

We also have to accept that Brexit has already been having an impact on the beef sector in particular over recent months. Prices are as low as they have been for many years.

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Beef farmers have been losing their shirts on the prices for finished cattle in recent months. The Minister needs to respond via immediate emergency aid that recognises that the beef market is being undermined by poor prices and the backdrop of Brexit. Support from the Minister needs to be forthcoming immediately. There is capacity for this, given the permitted increase in de minimisstate aid from €15,000 to €25,000. In particular, the Minister should work with the European Commission to ensure immediate support for our beef sector, which is already suffering.

We have not seen the type of recruitment of veterinary and sanitary and phytosanitary, SPS, officials that was mooted by the Government last summer. Unlike the Netherlands, which has recruited more than 1,000 customs and veterinary officials, or Northern Ireland, which I am informed has recruited specific officials, we have not seen the same happening in the Republic. Capacity has not been put in place to meet the challenge. Without it, redeployment will be required, resulting in a drain on other resources.

What arrangements will be in place as regards our all-island animal health status and approach, our standards and our North-South trade? This is linked to the wider issue of a Border plan. Will the Minister work with the EU, Northern Ireland and Britain to ensure that there is either no disruption or as little disruption as possible in the event of a hard Brexit happening soon? Businesses in the agrifood sector are in the dark about what would happen in that eventuality. There is no clarity around the Government's plans and there is a lack of faith in whether the Government has a handle on the steps that need to be taken.

All of our national efforts in the coming days must be aimed towards avoiding a hard Brexit while preparing for the worst. We must work with our European partners on accommodating any extension that is necessary to give the British side space and time and we must avoid doing anything that would assist in them accidentally crashing out as a result of the chaotic politics we are witnessing in Britain day after day. That must be our key objective. Avoiding any type of Brexit, particularly the hardest one, is undoubtedly in our national interest and essential for the future sustainability of our agrifood sector.

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