Dáil debates

Wednesday, 3 April 2019

Agrifood Market Priorities post Brexit: Statements

 

7:30 pm

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent) | Oireachtas source

The one farmer. I apologise to the Minister of State. I should be blaming the Minister who is invisible when there is a crisis in agriculture, the Minister who cannot be found to tell us what is going on.

We know from Teagasc that the agrifood sector in Ireland in 2016 generated 7% of gross value added, a sum of €13.9 billion, 9.8% of Ireland's merchandise exports, and provided 8.5% of national employment. Those are good figures provided by Teagasc. One must recognise the importance of the agrifood sector demonstrated by those figures and support it. When employment in inputs, processing and marketing is included, the agrifood sector accounts for almost 10% of total employment, which is a significant amount. On the contribution of the agrifood sector to the national economy, Teagasc research indicates that the agrifood sector is one of Ireland's most important indigenous manufacturing sectors, accounting for employment of approximately 167,500 people. That is massive. As a Parliament and a country, we are underselling the importance of the sector. Our schools may also have moved away from a recognition of its importance. We must send the message that farming is vitally important and a significant employer with large spin-off industries. Our agricultural exports and foreign trade are vital. The agrifood sector includes almost 700 food and drink firms throughout the country which export food, including seafood, to more than 160 countries worldwide. I compliment all those involved, such as Bord Bia and the various other enterprise agencies that went abroad and created those markets. We now need to up our game because we are under pressure.

Economic activity in the agrifood sector produces a far greater return than equivalent activity in other trading sectors of the economy. This fact is not stated enough. Agriculture is our primary industry and there is traceability from field to fork, which is important. We do not have such traceability in many other areas. We have it because agrifood companies secure 74% of raw materials and services from Irish suppliers by comparison with 43% for all other manufacturing companies. That is also a significant statistic. These are important figures and we cannot shout them loudly enough. All of this demonstrates the clear necessity of maintaining a firm financial commitment to the sector through all available State bodies, particularly because of the uncertainty associated with Brexit.

I wish to raise a specific issue with the Minister, Deputy Creed, related to the operation of the Brexit loan scheme. In February this year I asked him, through a parliamentary question, for the number of applications received under the scheme and the numbers approved and rejected. I also asked about the number and value of loans provided. These were very straightforward questions, to which I was expecting to receive straightforward answers. The Minister informed me that the €300 million Brexit loan scheme had opened for applications on 28 March 2018, something I knew already, and would remain open until 31 March 2020, something we also knew. The guidelines for the scheme are quite clear in that regard. A separate issue that needs to be examined is the very narrow timeframe, but I am concerned about the fact that the Minister informed me that on 22 February 2019, 462 eligible applications had been received, of which 413 had been approved and ten were ineligible. The total number of loans progressed to sanction at bank level was only 81, with a total value of €17.3 million. Thirteen were related to food businesses, with a value of €4.2 million. What is the delay in processing the loans at bank level? The Minister might answer that question. My problem again relates to the banks. They are crippling the economy, not lending, repossessing and harassing farmers and ordinary householders every day of the week. There is intimidation. If approval has been given and the applications are eligible, what is the reason for the delay in approving at bank level? It just does not add up to me or anybody else. Perhaps the Minister might address this issue.

Many issues arise. As has been said, Brexit is beyond our control and we can talk all we like about what is happening across the pond. When the United Kingdom first voted in favour of Brexit, the talk from the European Union was too strong. There was talk from the Taoiseach; the Minister, Deputy Creed, and others about there being no question of having a hard border. I asked Mr. Michel Barnier about a hard border when he addressed this House. I travel once a year to Bosnia and Herzegovina and when I do, I go through a massive checkpoint on leaving Croatia. When I asked the Taoiseach at a private meeting about six or seven weeks ago what would be different in Ireland, he told me to be careful as the border could be in Rotterdam or Calais. What is going on? There is uncertainty.

The Border community which I know intimately because my wife is from a Border county is very concerned about the possibility of there being a hard border. The statements from the Taoiseach ranged from comments on there being no hard border to soldiers at the border. Depending on what the day of the week it was, he got up and said something different. He should be reined in as he is being reckless. In fairness to the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Coveney, he has done his best and kept the ship steady, but there are many questions. I hope there will be a conclusion on Brexit one way or another very soon, but I do not know what will happen then. It will be like the leaves falling off the trees in the autumn. I do not know what will happen to Fine Gael's erstwhile colleagues in government, Fianna Fáil. They will have nothing to hide behind after Brexit.

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