Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I have already indicated that this deal will have a significant impact on rural Ireland. It has taken 20 years to get the EU-Mercosur deal to this stage and we now have agreement in principle. There may be many a slip between the cup and the lip, as they say. It must be approved by the European Parliament and by a qualified majority of the Council of Ministers. That is a worry. While we can talk about vetoes and so on, our vote may well have little impact on the overall result. We have to see this as an opening shot. We can try to amend and improve this deal.

I have been here for longer than some of those who have spoken. I remember the guts of 20 years ago people were talking about between 70,000 and 75,000 tonnes of beef. That was the idea at that time, as I recall very well. It will be another five to seven years before any of this deal will be implemented so there is lots of time and considerable scope to make changes. There will have to be changes and I look forward to some emerging from the proposed economic assessment.

I will make four short points. It is unfortunate that this whole issue has emerged just before Brexit is finalised. We need to know where we stand with Brexit because, with the way it is heading, there will be significant problems ahead. We know what will become of the British market. The market will be oversubscribed and saturated and there will be less consumption because the British market will not be available. Britain will also bring in goods to replace those supplied by our market. There will also be an impact on the Common Agricultural Policy arising from the loss of Britain's contribution of between €10 billion and €12 billion. These are all serious issues.

The Labour Party has never advocated free trade. We are in favour of fair trade. There is a significant difference. Conversely, many of those involved in industry, particularly the agriculture industry, are firm proponents of free trade. They have taken issue with me many times because we have always advocated market intervention at various points, much to the chagrin of many of those people. Some recent deals have resulted in significant benefits. We have to acknowledge that. If a trade deal is well regulated, it can raise the living standards of workers and consumers not just in Ireland, but across Europe and in the countries with which the deal is made. That has to be taken into consideration.

I am always concerned by the strategy pursued by the United States of America. We now have a man tearing around the world tearing up international agreements. It is time for us in Europe to show that making deals is better for workers and the environment than protectionism. That is what we are seeing and it is the reason I do not believe anything coming from the US.

As the Minister outlined, parts of the economy, including the dairy and pharmaceutical sectors, would benefit from this deal. Not all sectors will benefit, however. In my area, the beef and pig industries will be particularly affected. It is clear that the deal is bad for Irish livestock farmers and the wider meat industry. The Minister for Agriculture, Food and the Marine has admitted that. It is as simple as that. We all know that bringing beef into a saturated market will present a problem.

Spokespersons have been jumping up and down trying to outdo one another in saying how bad the deal will be for farmers. It will be bad but in addition to roaring and shouting we must have solutions. I told the Minister he should oppose the deal, which is grand but, when he opposes it, where will it go? He will have to work with others to deal with the qualified majority vote, about which I am very worried. The agreement will go through regardless of our opposition because it seems President Emmanuel Macron is happy with it, which is something of a change on his part. This deal must be subject to critical review, analysis and assessment in order that we can see where positive changes can be made. We have to look at the rest of the deal. What alternative will deliver higher wages for workers and lower prices for consumers? What alternative will save the rainforest? We need to get into the detail of the agreement and next week's debate will be very important in that regard. We must get down to the minutiae of the deal.

The inclusion of 99,000 tonnes of beef in the deal is a serious problem for Ireland because we export nine out of every ten animals we produce. The Minister has said that imports under the Mercosur deal will have to meet EU food standards so there will be no access to Europe for beef from animals treated with hormones, for example. That is a concern. Deputy Martin Kenny is right. I was in South America and I saw the ranches that produce this beef. How can we ensure these standards are met? The European Food and Veterinary Office is based in County Meath. It will be responsible for ensuring that low-standard food does not enter the European market. Phytosanitary controls and so on are of great concern. Will they be implemented in time?

The cost base for Mercosur farmers is much lower than that for Irish farmers. I saw that in the ranches where production is extensive. This will make it impossible to compete at market level. Will this 99,000 tonnes comprise premium steaks? Will it be frozen or fresh meat? These are all issues. Will the beef be hormone-free? If it was made up of steak, the industry could close down.

That would wipe it out altogether, which be unacceptable. Can we modify that part of the deal? Quite apart from quantity, can we deal with the issue of quality? The bottom line is that either we achieve changes to the trade deal to protect our meat industry, which has to be our first priority, or we will have to have a very serious conversation with our farmers on financial systems to allow the meat sector to diversify and secure alternative markets. Seeking alternative markets is not easy. When one sees 25,000 tonnes going somewhere, one thinks it is great, but four times that amount is coming in here. We might well see changes to beef production in other EU member states to try to create more space for our beef. I would not rule this out because grass-fed Irish beef has a lower environmental impact and is better quality. It is hormone-free, green and fresh and other member states may well, in light of their industrial bases, see benefits of giving ground to Ireland in that regard. We should try to secure that.

Calling for the scrapping of the deal is great. I am calling for it myself. However, we should be clear and we should not be trying to fool anyone. That is just populism and grandstanding, which are things of which I am sick. One has to get in there to see whether one can make effective changes because if one works global rules right, they will bring significant benefits. I hope, therefore, that what emerges is positive action on the part of our Government to achieve significant changes that will benefit Ireland.

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