Andrew Doyle (Wicklow, Fine Gael)
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I thank Deputy Penrose for his good wishes. I am extremely conscious of the importance of the CAP budget to Ireland's agriculture sector. The UK's withdrawal from the EU has been independently estimated to be likely to lead to a reduction of circa €10 billion, which will undoubtedly put pressure on the availability of funding for the future CAP. In the meantime, the amount of CAP funding per member state for Pillar 1 direct payments and Pillar 2 is fixed until 2020 in regulations of the Council and European Parliament. It would require a co-decided amendment of these regulations to change the figures. The only adjustment variable within that overall budget is expenditure on market supports, which is not allocated on a member state basis.

In my view, maintaining a strong CAP budget is one of the key challenges in the context of the multi-annual financial framework post-2020. The CAP budget is likely to come under increasing pressure, given the possibility that the overall EU budget will be reduced after 2020. Furthermore, there has been ongoing pressure from some member states to reduce the proportion of CAP spending within the overall EU budget and to divert this spending to newer priorities such as migration, defence and security. Brexit is also a significant factor and the loss of the UK contribution to the overall EU budget will undoubtedly put further pressure on the availability of funding for the CAP in the future.

Ireland will continue to negotiate for a strong and well financed CAP and seek to build alliances with member states with a common interest in supporting the EU's farm sector and consumers.

Ultimately, the CAP is funded by taxpayers across European member states. It is critically important against that background to reinforce the legitimacy and importance of the CAP and its role in achieving European priorities and objectives in areas such as employment creation and retention; food security; food safety and quality; the protection and enhancement of the environment; the development of the rural economy; and the prevention of land abandonment and rural depopulation. I strongly believe the CAP has evolved considerably and very effectively in recent years in response to changing market, consumer and environmental demands. It also plays a central role in delivering the smart, sustainable and inclusive growth sought under the Europe 2020 strategy.

I can assure Deputy Penrose that Ireland's objectives are clear as we enter into a new discussion on the financial perspectives and the shape of CAP post-2020. I will be working with Government colleagues, other member states and the EU institutions to secure the best possible outcome for the Irish agrifood sector.

Andrew Doyle (Wicklow, Fine Gael)
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I can only agree with everything the Deputy has said. It is a huge challenge. It was going to be a challenge even if the UK had voted to stay because of the competing demands for the EU budget and because the perception of what CAP is about has been misconstrued and misunderstood for many years. It depends on the member state. During the last period of CAP negotiations, former Commissioner Ciološ's support for a more or less intact CAP budget was based on the principles of producing food sustainably, sourcing as much food as possible from within the EU, and protecting rural economies. That is why the likes of greening came in along with other environmental measures.

As I said in my reply, we have moved the CAP considerably from its earlier manifestations. It still needs to evolve and, furthermore, it needs to move towards what consumers and taxpayers across Europe want. We still have a huge challenge which is compounded by the fact that there will be a net loss from Brexit. The figure varies between €10 billion and €14 billion, depending on who one talks to. We took the lower estimate, which is still a frightening amount.

Andrew Doyle (Wicklow, Fine Gael)
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There is no doubt that we need allies. There will be trade-offs. The last CAP was concluded under the Irish Presidency and under the aegis of the former Minister for Agriculture, Food and the Marine, Deputy Simon Coveney. Much of the ground work was done with Commissioner Ciološ. It is important to build alliances and create understanding of what we are about.

One statistic that is a little bit concerning is that the EU 28 are currently about 100% self sufficient in food production. With the UK gone, we will be at 115% or 116%. That void will have to be filled. The British are going to have to buy food but we are going to have to sell it.

Andrew Doyle (Wicklow, Fine Gael)
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On the Deputy's final point, I should point out that as soon as David Cameron announced he was going to hold a referendum the Department put together a contingency team. Once the referendum vote had taken place the Department established a Brexit unit. It is managed by an assistant secretary general but is answerable at all times to the Secretary General. As I said, Brexit is a standing item on the agenda of the high level implementation committee. Of all the Departments, the Department of Agriculture, Food and the Marine was the most concerned about it and the most hopeful that it would not happen, but it was ready and it is working as best it can. As has been said to me several times, Brexit is not an Irish policy, it is a UK policy, but we have not got those in the UK to sit down talk in any meaningful way about it. They are only starting, and we saw the opening salvos yesterday with the Queen's speech.