Dáil debates

Wednesday, 3 April 2019

Agrifood Market Priorities post Brexit: Statements

 

7:30 pm

Photo of Thomas PringleThomas Pringle (Donegal, Independent) | Oireachtas source

As is the case with everything when it come to Brexit, the issue of agriculture is up in the air and nobody knows where it will land. As other Members stated, Brexit leaves the Government in a difficult position because it does not know in what way it should prepare for change. It could go down the road of preparing for a no-deal Brexit only to find that a deal is struck and all its preparations would be thrown out the window and wasted. There is no doubt that preparing for Brexit is very difficult. It is difficult to wade one's way through it. It amazes me that we have no control over it and no real say in what happens, but we do some amount of talking about it. It is amazing how much discussion Brexit has generated in the House and throughout the country. We may not be sufficiently discussing or focusing on things with which we could deal and tackle, although that may be a discussion for another day.

Beef exports to the UK make up approximately 51% of production while dairy exports to the UK account for approximately 21% of current production. A no-deal Brexit would have a very significant impact on our exports to the UK. North-South trade would also be severely impacted. That would have a significant impact across the board and all the way down to individual farmers. It is very difficult to see how it could be offset. Teagasc estimated that the tariff on meat from Ireland into the UK would be approximately 60%. Although there would still be a market there, under the 60% tariff, beef would be 60% more expensive. It would be very difficult for us to offset that and to consider how trade with that market would continue.

On building up other markets outside Ireland, it took four years of negotiations, from November 2014 to November 2018, to get the Chinese market opened for Ireland. Similar will happen in trying to open markets in other countries. What must also be considered is the distance the beef must travel to the market and how that cost would be met. That cost may be equivalent or close to the tariffs that will be put on the trade in the UK. That will have to be dealt with over time and through discussions. There is a lot of work to be done by the Department, and I acknowledge it is being done, to see exactly how we can offset some of the losses that will occur over the coming years, particularly in the case of a no-deal Brexit.

Several Members have referred to the impact that Brexit will have on the EU budget. What will have the biggest impact on the EU budget, however, is the militarisation of the EU which is under way. It will have a far bigger impact on the farming and agriculture budget than Brexit will ever have. That must be remembered as we run headlong into the militarisation of the EU because Brexit will be unfairly blamed for the diminished EU budget. That is very important to note.

A significant amount of work remains to be done in building relationships with third countries. I agree with Deputy Wallace regarding the need to open up trade with Iran. Dealing with Iran is no worse than dealing with Saudi Arabia. Ireland was quite happy to go to Saudi Arabia and open up trade with it. We should be looking at those markets and developing them and ensuring they are there for the benefit of us all. The next couple of years will bring turmoil, as the Minister is aware. We do not know how Brexit will work out or what will happen. We will have to wait and see.

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