Dáil debates

Wednesday, 3 April 2019

Agrifood Market Priorities post Brexit: Statements

 

8:05 pm

Photo of Michael CollinsMichael Collins (Cork South West, Independent) | Oireachtas source

We all know at this stage that Brexit will have so many implications for Ireland, some we can predict and some we cannot, but one thing that is for sure is that there will be many challenges ahead and it is vital that we do everything in our power to protect Ireland and its industries and markets from any negative backlash as a result of Brexit. Ireland is very dependant on its agriculture exports sector. The food industry is the most exposed sector of our economy to Brexit, particularly subsectors such as processed foods, beef and dairy.

Ireland exports almost 70% of its agriculture produce to Britain. The UK is Ireland’s largest market for food and drink, with 40% of our food exports destined for the UK. A reduction in access to the UK market would have a very negative impact on the Irish beef sector and potentially on the overall EU beef market. The 270,000 tonnes of Irish beef exports to the UK represent almost 10% of the intra-EU beef trade. The displacement of these exports would have a serious effect on the overall EU market. The Irish farming and food sector has a higher dependence on the UK market when compared with other sectors in Ireland, making it the most exposed sector to any negative economic impact of the UK Brexit decision. Additional tariffs for the Irish agrifood sector as a whole on exports to the UK would add an estimated €1.7 billion in costs. This could reduce or potentially wipe out Irish exports of beef, dairy and pig meat to the UK market.

We already see that Brexit is causing great uncertainty across the board, such as the current chaos in the Irish agriculture industry. The uncertainty is being felt hard by our farmers and beef farmers are experiencing huge reductions in their incomes as a result. I am shocked and appalled at the lack of urgency and concern the Government has shown these beef farmers. Factories are cutting beef prices, which are down 25% to 40% per kg, or about €150 per head. This is a serious concern. Our beef farmers are losing money and many will not be able to stay in business. These price cuts are before Brexit has hit us, and I am scared to think of the outcome when Brexit is here and the full reality is felt. Brexit is a great excuse for the factories to cut the prices of beef, and very few have been able to counteract that so far.

We need to look at our dairy industry. Ireland is the only significant exporter of cheddar cheese to the UK market and the UK market is the only market of significance for Irish cheddar. We export 78,000 tonnes of cheddar cheese, or 82% of all cheddar cheese imported by the UK. It is vital that we will have tariff-free access to the UK market. The Copenhagen Economics report for the Government estimates that the UK’s departure from the European Union will cause the value of output from these key parts of the agrifood sector to fall by between 10% and 20% by 2030. The sector employs 175,000 people and with a great number of people employed directly in the wider rural areas in agrifood production.

Brexit will be felt right across rural Ireland. This could mean 17,000 fewer jobs or more than 30,000 fewer jobs in the case of a hard Brexit. The Government needs to support the agriculture industry by ensuring that a meaningful support package from the EU is put in place. There is no question that the Mercosur trade deal must be suspended. We need to see that live exports will be supported with more lairage and an increase in ferry capacity. The Government needs to acquire further markets for live exports of cattle. Furthermore, it is vital that the suckler cow support be at €200 per cow if farmers are to have any chance of survival. It cannot be the €40 in very difficult times, a level which shocked many farmers after the previous budget. That is not how the Government shows that it wishes to protect the rural family farm.

With these uncertain times ahead, and especially with the chance of a no-deal Brexit on the cards, EU agrifood operators are begging for extra aid as the clock ticks down to the cliff edge of Brexit. There are big fears out there that the existing EU contingency measures will not prevent significant disruption of supply chains in the case of a no-deal. We will need contingency measures for the agrifood sector such as temporary fast-track customs procedures, mutual EU and UK recognition of food safety standards, a grace period on product labelling and a roll-over on haulier licences.

Brexit not only will affect the agrifood suppliers, but everyone in Ireland will pay the price for a no-deal Brexit. The Economic and Social Research Institute looked at 4,500 products imported from the UK and it found that a no-deal scenario could add 30% to the price of bread and cereals. Cheese and egg prices could rise by as much as 46%, while meat, sugar, confectionery, coffee and tea could see hikes of between 20% and 30%.

Not only do we need to protect our agrifood market, we also need to protect our fishermen. Coming from west Cork, I know only too well how much our fishermen have suffered in recent years. Last week, I was appalled by the manner in which the Sea-Fisheries (Amendment) Bill 2017 was rushed through this House. Does the Government realise the seriousness of the Sea-Fisheries (Amendment) Bill 2017? It allows fishing vessels registered in Northern Ireland to fish inside our six mile limit, but a loophole that is in the Bill could allow foreign vessels registered in Northern Ireland access to our most precious fishery waters. Speaking to local fishermen in west Cork, they feel that the industry has had a raw deal and does not trust Governments to deliver. It is vital that we protect our fishermen's livelihoods. I have called for a stand-alone Minister for the marine. This is not my first time calling for this stand-alone Minister, but surely now this House can see the importance of a stand-alone Minister for fisheries and the marine, especially with Brexit looming.

We cannot forget or ignore that our agrifood market is also dependant on our ports. We need to look at our ports and the effect Brexit will have on them and the export market. In my constituency, we have wonderful ports such as Bantry, Castletownbere and Kinsale. Their futures need to be secured. I plead with the Government to support these ports through the uncertain times that lie ahead with Brexit on the horizon.

While we speak a lot about the worry of Brexit, and probably rightly so, we must not take our eye off the ball in this country. One such area where I am afraid that this is happening is oyster farms and mussel farms. These also need to be looked at. There are three planning applications at present in my constituency's area of west Cork for oyster and mussel farms, one off Kinsale Harbour, another between Union Hall and Castlehaven and also in Bantry. I have been approached by constituents living in these areas, the inshore fishermen and people in tourism sector who are all completely up in arms about the planning application for these oyster and mussel farms. We are seeing more of these types of fish-farm planning applications popping up everywhere. Imagine three in the past month in west Cork, covering vast areas of sea. Has the Government even stopped to ask why there is an increase in applications? I will tell the Minister why. Most of these applications are from companies that are not even from this country which are exploiting our poor planning regulations because, by comparison, their own countries, such as France, have put in extremely strict regulation to make sure that oyster farms are not set up here, there and everywhere. We have left ourselves wide open in this country. I draw the Minister's attention to the fact that we need far stricter planning regulations around oyster and mussel farming. We are making ourselves an easy target for these foreign companies to come into our waters and farm our oysters and mussels. I completely agree with the anger of my constituents, the inshore fishermen and the tourism sector who are all opposed to allowing these fish farms in the most beautiful and scenic parts of the world, and mark my words it will cost us jobs in the long run. There is no gain in the local community. Most of the products are exported. They maybe employ one person. It begs the question as to how they are getting away with these planning applications, with three in the past month. I urge the Minister to put in place immediately stricter planning guidelines in order to protect our inshore fishermen, our tourism sector and our environment and the people living in these areas and I beg him not to stand idly by watching another catastrophe unfolding.

Overall, it is clear that the time ahead is uncertain and that Brexit will have huge effects on Ireland. I welcome the recent announcement of €5.75 million State funding to support the expansion of Carbery factory, a cheese producer in my constituency in Ballineen in west Cork. Carbery is a huge employer and is a company that has always shown great leadership in its industry. The staff and management at Carbery are a credit to this company. They have worked tirelessly with Brexit approaching and have looked for ways to not only survive, but to grow in these challenging times. The Government could learn a lot from the attitude of Carbery and its staff.

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