Dáil debates

Thursday, 14 July 2022

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Brexit Supports

9:10 am

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

My Department is currently in discussion with the Department of Public Expenditure and Reform about the potential for further support measures for the agrifood and fisheries sectors to address negative impacts from Brexit. The Brexit Adjustment Reserve has strict criteria that must be met to qualify for funding. In particular any proposed measures must address the direct negative impacts arising from Brexit.

A number of sectors have been adversely affected by Brexit with immediate effect. To date, measures have been funded to support the fisheries and horticulture sectors, including the new measure, the Minister of State, Senator Hackett, announced last month to support the development of the seed potato sector. A capital investment scheme to support the processing sector in diversifying into non-UK markets is also in place.

Overall, however, the value of our main agrifood exports to the UK has been resilient, with increases in many categories in 2021. Nonetheless, we will continue to monitor the impact of increased competition in the UK market for Irish food exports as a result of new UK free-trade agreements with third countries. Non-tariff barriers may also increase costs for Irish businesses exporting products to the UK. Over the coming years, these factors may increase the competitiveness challenge for Irish products on the UK market, which is why I am exploring whether BAR funding can support measures which would future-proof and build resilience in the agrifood sector. This approach is not explicitly provided for in the BAR regulation, so it requires further analysis which my Department is currently undertaking in consultation with the Department of Public Expenditure and Reform.

I emphasise that the eligibility criteria for BAR in respect of any measures proposed must be met, as must other regular EU funding control requirements, including state aid rules.

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