Written answers

Wednesday, 13 July 2016

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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72. To ask the Minister for Agriculture, Food and the Marine the extent to which he expects to be in a position to respond favourably to recent submissions from the Irish Farmers Association and other farming organisations with regard to pressing requirements or interventions in the agrifood sector in order to restore viability to the industry and make provisions for the future in the aftermath of Brexit; the degree to which he has had discussions with the European Union, the United Kingdom and all stakeholders in this context; and if he will make a statement on the matter. [21322/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I have been working very closely with the farming organisations and with all the relevant stakeholders in the agrifood sector in order to ensure that we deal effectively with the challenges facing the sector. The most immediate of these are, of course, the need to deal with the ongoing market difficulties that have affected the dairy and pigmeat markets in particular, and the new challenges posed by the UK decision to leave the EU.

On the former, I outlined earlier the fact that I have been carefully monitoring developments on the market, and that I have called on the Commission to intervene as required in order to support farmers’ incomes.

The Commission will bring forward a further package of measures at the July Council of Ministers, which takes place next week. At recent Council discussions I have emphasised that our focus must remain on providing real, practical and immediate assistance for farmers, particularly given the additional complications created by the UK decision to leave the EU.

In addition to intervention, I have called for the deployment of other measures that will provide real benefit for farmers in the short-term. These include the bringing forward of the delivery date for direct payments. Last year Member States were also able to pay an advance of 70%, and I have asked the Commission to consider raising this percentage further in 2016. I have also called on the Commission to consider the deployment of a further targeted aid package, similar to that provided last September. This gave considerable flexibility to Member States to adopt responses suited to their national circumstances, and I believe such a measure could play a further important role in 2016. I have also repeated my call for the Commission to help reduce the cost of farm inputs by temporarily removing customs tariffs and anti-dumping duties on the importation of fertilisers.

My approach is underpinned by the need to continue to look at all means of assisting farmers, but in doing so to focus on direct and practical measures, and to avoid taking any action that would in any way compromise the ability of farmers to take advantage of the positive long-term prospects on dairy markets.

I have also taken a very inclusive approach to the challenges presented by the UK decision to leave the EU. I have convened a Consultative Committee of stakeholders - including all of the farming organisations - which met for the first time last week, to ensure a full exchange of information as the negotiations proceed. I am also ensuring that the response of the relevant agencies is fully coordinated through a contact group established under the Food Wise 2025 High Level Implementation Committee.

In addition, I have asked Bord Bia and Enterprise Ireland to provide practical guidance to SMEs. Last week Bord Bia announced a number of measures to support food and drink businesses. These measures cover areas such as managing volatility impacts, providing consumer and market insight, deepening customer engagement and extending market reach, with the aim of helping companies maintain their competitiveness. Similar support is also being provided by Enterprise Ireland.

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. This will take some time. In the meantime, my Department will continue to identify the priorities for the Irish agrifood sector with a view to seeking the optimum outcome from the negotiations.

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