Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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541. To ask the Minister for Agriculture, Food and the Marine if he will address the concerns of farmers regarding tariffs following the British Prime Minister, Ms Theresa May's Brexit speech; his plans to meet with Ms Theresa May; the protocols being put in place to address the concerns of farmers, particularly in counties Cavan and Monaghan and the Border counties; and if he will make a statement on the matter. [2897/17]

Michael Creed (Cork North West, Fine Gael)
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The Government is acutely aware of the potential risks and challenges for the Irish economy arising from Brexit, and particularly those that arise in the agri-food sector. While I welcome the fact that Prime Minister May has provided some clarity on the approach the UK Government propose to take in the upcoming negotiations, there is still considerable uncertainty on the future trading relationship between the EU and the UK and therefore in relation to tariffs. I will continue to seek to have these issues at the top of the EU negotiating agenda, given the potential implications for the agri-food sector.

While An Taoiseach has met Prime Minister May on a number of occasions and will meet her again shortly during her proposed visit to Ireland, I have already had meetings with Michelle McIlveen in Belfast and Andrea Leadsom in London before Christmas and I met Secretary of State Leadsom again at the Berlin Green Week over the weekend.

The most immediate impact of the Brexit vote on Irish farming has been the effect of exchange rate volatility.  I am pleased to say that my Department and our agencies have ensured that measures have been put in place to help alleviate the pressures of income volatility, and these include:

- Direct payments, estimated by Teagasc at an average of over €17,000 per farm, provide a valuable source of farm income support and act as a hedge against price volatility.

- The adjustment in Budget 2017 to the income averaging scheme for tax purposes will allow farmers to avail of an opt-out in an exceptional year.

- The ‘Agriculture Cashflow Support Loan Scheme’, developed by my Department in cooperation with the Strategic Bank Corporation of Ireland (SBCI), will make €150 million available to farmers throughout Ireland at low-cost interest rates of 2.95%. This is supported by €25 million being provided by my Department, including €11 million in EU aid. The SBCI is aiming to make these loans available by the end of January and I hope to make an announcement in relation to this shortly.

- Bord Bia has activated a 4-pillar support strategy for Irish food companies to maintain growth in this period of volatility and over the longer term. These activities are captured under the headings of Managing Volatility, Obtaining Consumer and Market Insight, Deepening Customer Engagement and Extending Market Reach.

- Enterprise Ireland’s initial, industry-wide, 5-point plan included provision of information (on improving competitiveness, reducing supply chain costs through the provision of LEAN and R&D/Innovation supports to clients, and accessing funding), market development support and UK market support. Both agencies have also been working with individual companies in order to tailor the response in accordance with the particular difficulties being faced, and have been working together on strategic marketing initiatives.

The situation will continue to be monitored on an ongoing basis and discussed with the sector, including through my Department’s Consultative Committee of Stakeholders on Brexit and the All Island Civic Dialogue.