Seanad debates

Tuesday, 25 October 2016

Agricultural Prices and Decision by UK to Leave EU: Statements

 

2:30 pm

Photo of Grace O'SullivanGrace O'Sullivan (Green Party) | Oireachtas source

I would like to voice my concerns over the jobs in the agrifood sector in particular. Like many of my colleagues, I will focus on the mushroom industry, which seems to be most impacted on at this stage. The Irish mushroom industry is the fifth largest in the EU. Irish mushroom growers rely on the UK for 80% of exports, representing €120 million in farm-gate income, twice the value of Irish potato exports. The industry employs approximately 3,500 people, mostly in rural areas. Five of Ireland's 60 mushroom farms have been already driven out of business by a 19% drop in the value of sterling relative to the euro in the past few months since the UK voted to leave the EU. That is €7 million in exports and 130 jobs already gone. However, mushroom exports are only a small part of the bigger picture of €1.2 billion in bilateral trade that takes place every week between the UK and Ireland across various agri-industries that employ 400,000 people on both of the Irish Sea. Almost half of our beef exports and 60% of our cheese products are sold to the UK. Therefore, this situation is critical.

The areas threatened with job losses are precisely those that can afford them least. Unemployment in rural Ireland is still over 10% despite its fall below 8% at national level. The Government will need to consider greater emergency financial supports beyond those promised in this year's Finance Bill and even an appeal to the European Commission for short-term supports, through CAP, to allow Irish mushroom growers, in particular, to weather this storm without having to move their operations to the UK. The Government needs to monitor and gather data on the effects of Brexit on Irish industry and agriculture so as to co-ordinate the adaption to the rapidly evolving situation. The Irish Government needs to work to ensure stability by engaging bilaterally with the UK Government to ensure stability of the Border and to reduce uncertainty. The fluctuations in the pound are partially caused by the uncertainty regarding UK access to the Single Market and other aspects of the final Brexit deal with the EU.

Seeking a quick resolution to the nature of the deal between the EU and UK will go some way to decreasing this. If Theresa May's Government is, as it seems at this stage, determined to go for a hard Brexit without regard to the consequences, Ireland will have to reconsider its current strategy of trying to be the UK's best friend in negotiations. Our future lies with the European Union ultimately and while all effort is made to maintain friendly and constructive relationships with our nearest neighbour, especially when it comes to the future of the Border with Northern Ireland, we cannot pursue it at the cost of our position as a full and active member of the EU. As regrettable as it is, the British people have made their decision to leave the EU and over time we must rebalance our trade focus to a broader European market and possibly away from the UK, which has chosen separation over unity at this stage.

Comments

No comments

Log in or join to post a public comment.