Charlie McConalogue (Donegal, Fianna Fail)
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248. To ask the Minister for Agriculture, Food and the Marine to outline the immediate contingency steps he will take to safeguard Irish beef exports, including the live cattle trade, given the large volume that goes to this market following the decision by voters in the United Kingdom to leave the European Union; and if he will make a statement on the matter. [19042/16]

Michael Creed (Cork North West, Fine Gael)
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The decision of the UK last week to leave the EU is one that creates considerable challenges for the agri-food sector as a whole, including the beef sector. The UK is by far our largest trading partner. Last year we exported almost €5.1 billion worth of agricultural products. This included more than €1.1 billion in beef products and almost €970 million in dairy products. Ireland is also the UK’s largest destination for its food exports - worth €3.8 billion last year.

This bilateral trade takes place on the basis of harmonised EU rules on animal and public health and labelling, without complex certification, quota limits or customs duties and tariffs. And it is underpinned by the vital support of the CAP budget, to which the UK is a significant net contributor.

Given these linkages, and as the UK is a net food importer, both countries have a strong interest in maintaining a close agri-food trading relationship. In addition, the resilience of the Irish agri-food sector, and of the beef sector in particular, is well recognised, and this, together with the strong commercial relationships built up over years of trading, will help us to negotiate our way though the challenges ahead.

It is important also to bear in mind that the precise implications of last week’s decision depend on the trade and other arrangements ultimately 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 beef exporters centre on Euro Sterling exchange rates. It should be noted that the fall in the value of Sterling against the Euro since the UK referendum, while significant, is not unprecedented. Nevertheless a sustained period of currency volatility could be of concern. 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.

The other 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.