Charlie McConalogue (Donegal, Fianna Fail)
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34. To ask the Minister for Agriculture, Food and the Marine if the Government formally submitted an application to the European Commission for EU state aid to help the agricultural sector and farmers following Brexit related currency changes or applied for CAP market disturbance funding following the UK referendum to leave the EU. [41892/17]

Charlie McConalogue (Donegal, Fianna Fail)
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As the Minister will know, the countries most affected by Brexit currency exchanges have been recently invited by the European Commissioner, Mr. Phil Hogan, to apply for EU state aid to help the agricultural sector. Has the Government formally submitted an application to the European Commission for EU state aid to help the agricultural sector and farmers following Brexit related currency changes or applied for CAP market disturbance funding following the UK referendum decision to leave the EU?

Michael Creed (Cork North West, Fine Gael)
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It is important to clarify from the outset that state aid is aid funded by member states and not by the European Commission. Such aid is subject to common EU rules designed to avoid distortion of competition within the European Union.

It is already possible to provide aid for farmers subject to a cumulative maximum limit of €15,000 per farmer over three years. Such aid is called de minimis aid and is designed to permit member states to provide assistance to primary producers at a level which does not distort competition across the union. Ireland already provides such aid to farmers under a number of headings in addition to the aid it provides under its rural development programme, which is subject to a separate legal basis to that of state aid. Some of the things which receive de minimis state aid from us include protein crops, tillage compensation scheme, dairy compensation package etc.

In addition, the common market organisation regulation of the CAP provides for a number of market support mechanisms, for example, intervention when beef falls to threshold levels which are well below current market prices or for butter and skimmed milk powder between the months of March and September. More flexible measures against market disturbance can be made available when the conditions warrant it. These are not measures that will be deployed regularly and in practice their deployment is very exceptional and requires the support of member states.

Regarding CAP market disturbance funding, emergency measures were introduced by the Commission in accordance with articles 219 and 220 of Regulation No. 1308/2013 in recent years in direct response to the market difficulties being experienced by farmers and producers during this time.

Such measures included exceptional adjustment aid to milk producers and farmers in other livestock sectors, with €350 million in emergency funding allocated to member states. Ireland's allocation of €11.1 million from this fund, topped up by national funding, was used to leverage a greater fund of €150 million to provide low-cost loans to the livestock and tillage sectors.

Currently in Ireland, dairy prices are strong, year to date average pigmeat and sheepmeat prices are close to the European Union average and whereas beef prices dropped back significantly since they peaked in June, they appear to have stabilised and are currently running at 97% of EU 15 average prices. Nonetheless Brexit poses a very significant risk and its impact is already being felt in some sectors through the prism of currency fluctuations. Sterling values dropped considerably in recent weeks, but have rallied somewhat since reaching a trough of 92p per euro.

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I am concerned about the potential impact of sterling volatility and Brexit more generally on the Irish agrifood sectors. It is clearly a significant risk and I have been in regular contact with the Commission and with counterparts in other member states to sensitise them to the threat posed by Brexit, including the more immediate risk associated with currency volatility, and to indicate that there may be a need for a community response at the appropriate time. I intend to raise these matters again at the Council of Ministers this month.

Charlie McConalogue (Donegal, Fianna Fail)
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As the Minister knows, Bord Bia has published estimates for the impact of the underlying weakness of sterling on exports for 2016, which demonstrates a fall in the value of trade as result totalling €570 million, with exports to the UK dropping by 8%. IBEC estimates this equates to up to 5,000 jobs. The Irish Farmers Association, IFA, has been very clear as well in outlining how the current weakness of sterling is leading to Irish farmers losing out to the tune of €2 million per week or 15 cent per kilo as a result of the fact that sterling is lower.

I asked specifically if the Government has applied to the EU for aid relating to the impact of Brexit or market disturbance. Commissioner Hogan in the past few weeks has issued an invitation to states most affected by sterling disturbances to make applications for aid and assistance. Has the Government applied for that or will it do so? Will the Minister give a clear answer on that?

Michael Creed (Cork North West, Fine Gael)
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As I tried to convey in my opening response, the two elements of the Deputy's question deal with CAP market disturbance funding and the state aid de minimisprocess. We have delivered to the agrifood sector under both headings. For example, the €150 million loan fund was partially under the de minimisprocess at sectors that were not covered under the CAP market disturbance funding. Sectors such as the mushroom and tillage sector were included in that de minimisaid process. Dairy and other livestock sectors were included in the CAP market disturbance funding. We have benefitted under both.

I appreciate from where the Deputy is coming in respect of trying to get the best possible deal in the Brexit context. We are particularly anxious to avoid a position where Irish agrifood or even the Irish economy in general with regard to concerns over Brexit are dealt with in a cheque book fashion. In other words, this is what could be lasting structural difficulties for us as a trading economy, North-South as well as east-west with the UK, being seen as open to resolution through the writing of a cheque of compensation. We are anxious to secure a solution that is long term, viable and allows us to maintain our current trading relationship with the UK as it exits the European Union.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the Minister.

Michael Creed (Cork North West, Fine Gael)
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We have availed of the latitude that exists under the de minimisand CAP market disturbance funding processes. We continue to engage with the Commission. We do not want to send a signal that our problems can be resolved simply by pulling out the cheque book.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I thank the Minister.

Michael Creed (Cork North West, Fine Gael)
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We want a structural outcome from negotiations that would resolve Brexit matters in a lasting way rather than a compensatory manner.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I point out to the Minister and Deputies that there is an allotted time for Priority Questions. The way we are going now, at least one or two Members will lose out. I ask everybody to abide by the rules. There are 30 seconds for introducing a question, the Minister has two minutes for a reply, and then there are alternating periods of one minute for asking a question and replying. Unless I am very strong in enforcing these rules, people will lose out and we do not want that.

Charlie McConalogue (Donegal, Fianna Fail)
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I was well aware of the schemes funded under the de minimisrules. The Minister pointed that out in his first and second replies. I have specifically asked about Commissioner Hogan's comments and invitation to countries most affected by Brexit-related currency changes. Has the Minister made an application in this respect or will he do so? I still have not received an answer on that. An answer would be appropriate. Perhaps the answer is "No" and the Minister might just say it.

The Minister knows as much as I and everybody else here of the danger posed by Brexit. It is not very far away and it will happen in early 2019. There is a structural element and getting a good deal is our utmost objective. We also must prepare for it and this may require EU state aid flexibility in advance of Brexit. Assistance from the EU may be required in the mean time to prepare, whether this relates to supply chain, new markets or price disturbance as a result of sterling changes. Will the Minister make an application or reply to Commissioner Hogan's invitation?

Michael Creed (Cork North West, Fine Gael)
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The Deputy's question is specific and I have answered it specifically. We have benefitted under both state aid and market disturbance funding. We have already benefitted that way and it clearly answers the question.

Charlie McConalogue (Donegal, Fianna Fail)
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That was in 2016.

Michael Creed (Cork North West, Fine Gael)
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We continue to engage with the Commission and at next Monday's Council meeting I will raise these matters again. We have already benefitted under both headings.