David Cullinane (Waterford, Sinn Fein)
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515. To ask the Minister for Agriculture, Food and the Marine the impact of Brexit on the food industry in Waterford city, county and the south east; and if he will make a statement on the matter. [29504/16]

Michael Creed (Cork North West, Fine Gael)
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The UK’s decision to leave the EU undoubtedly presents enormous challenges for the food industry in Waterford City, County and the southeast, as it does for the entire Irish agri-food sector. The UK is by far Ireland's largest trading partner. Last year we exported almost €5.1 billion worth of agricultural products, much of which was produced and processed in the southeast.

My Department, together with its agencies and stakeholders, has been carefully considering the potential impacts of a UK exit, looking at the areas in which the greatest risks may arise and on which we will need to focus when negotiations begin.

The main areas in which impacts are foreseen are in relation to currency fluctuations, tariffs and trade, the EU budget, regulations and standards, and customs controls and certification. The UK exit vote also raises complex issues for the fisheries sector.

It is important to remember that our trading relationship with the UK is not altered in any way until the negotiations that will dictate the terms and conditions of the UK’s departure are completed.

In the meantime, my Department has engaged in detailed contingency planning, and has published a summary of the key actions we are taking by way of immediate response to the UK’s decision. It is also continuing to deepen its analysis of the likely impacts, and to feed into the central Contingency Framework being co-ordinated by the Department of the Taoiseach.

I have taken a number of steps to ensure that a sensible and coherent approach is adopted, including:

- Establishing a dedicated unit in my Department to work on all of the issues I have mentioned;

- Convening a Consultative Committee of stakeholders that will ensure a full exchange of information as the negotiations proceed. This Committee held its first meeting in July and will meet again on 20 October;

- Establishing a contact group under the auspices of the Food Wise 2025 High Level Implementation Committee in order to ensure that the response of the relevant agencies is fully co-ordinated.

Of course the most immediate impact for our agri-food exporters arises from changes to Euro-Sterling exchange rates. While this was not unexpected in light of the uncertainty caused by the referendum result, a sustained period of currency volatility would be of concern. I have asked Bord Bia and Enterprise Ireland to provide practical guidance to SMEs. Bord Bia recently announced a number of measures, covering 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.

Contacts between the Irish and UK governments, and with our counterparts in Northern Ireland, are also ongoing at both political and official levels. I will also continue to work closely with Ireland’s EU partners with the aim of ensuring a well-managed withdrawal and a strong EU-UK relationship post-exit.