Charlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

247. To ask the Minister for Agriculture, Food and the Marine to outline the immediate contingency steps he will take to safeguard the interests of the Irish agrifood sector following the decision by United Kingdom voters to leave the European Union in the recent referendum; and if he will make a statement on the matter. [19041/16]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Last week’s decision by the UK to leave the EU has the potential to give rise to significant challenges for the Irish agri-food sector. I am keenly aware of the concerns of those working in the sector about the UK exit decision, but I am also confident that my Department and our agencies are well prepared to deal with the challenges ahead.

It is important also to bear in mind that the extent of any risk ultimately depends on the trade and other arrangements negotiated between the EU and the UK. These negotiations may take up to two years, and perhaps longer, and over that period existing arrangements will continue to apply.

Nevertheless, my Department has engaged in detailed contingency planning for the possibility of this result, and has published a summary of the key actions we will now take to address the contingencies arising from the UK’s decision.

The most immediate concerns for agri-food exporters centre on exchange rates. In that regard, the Central Bank of Ireland has pre-established contingency plans to deal with market volatility surrounding the referendum result. The Bank will engage with the Department of Finance and individual financial institutions regarding potential risks. Actions by ECB and other global actors will be monitored closely. In addition, I have asked Bord Bia to provide practical guidance to SMEs to assist them in dealing with marketing challenges arising in the short term.

Aside from currency fluctuations, the main areas in which potential impacts are foreseen are in relation to tariffs and trade, the EU budget, regulations and standards, and customs controls and certification, while complex issues also arise for the fisheries sector.

However, we must remember that our trading relationship with the UK is not altered in any way until the negotiation process that will dictate the terms and conditions of the UK’s departure is completed. In the meantime, and as part of our overall contingency planning, I have established a dedicated unit in my Department to work on all of the issues that I have mentioned, and I will convene a consultative committee of stakeholders to ensure a full exchange of information as the negotiations proceed.