Bernard Durkan (Kildare North, Fine Gael)
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309. To ask the Minister for Agriculture, Food and the Marine the degree to which he continues to promote and support the mushroom industry here, with particular reference to the likely difficulty in the UK market arising from Brexit; and if he will make a statement on the matter. [12730/17]

Michael Creed (Cork North West, Fine Gael)
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I am only too well aware of the challenges that the mushroom sector is experiencing in the aftermath of the UK Referendum decision last June to exit the EU, particularly in light of recent fluctuations in currency. I am focused on working with the industry to meet these difficulties in the months and years ahead.

Budget 2017 underpins my Department’s efforts through strategic investment in key areas, such as in its agencies and in the agrifood sector. As part of Budget 2017 I secured an additional €700,000 in funding for capital investments in the Commercial Horticulture Sector.  This means that this year’s budget for the scheme will amount to  €5 million. In addition, the Horticulture Sector will have access to the €150 million low interest cash flow support loan fund announced in Budget 2017, providing access to highly flexible loans for amounts up to €150,000, at an interest rate of 2.95%, for up to six years.

The impact that the devaluation of sterling is having on mushroom producers and grower margins is a problem that has happened over a very short space of time. Grower production of this highly perishable product must be well aligned with demand and the mushroom sector, like many other exporting sectors, is particularly at risk because of the high dependency on the UK market. I can assure you that my Department is closely monitoring the situation regarding sterling volatility to consider the direct impact of Brexit on our industry. Although it is still a serious situation, the sterling exchange rate has stabilised and is now holding at around 85p to the euro.

My Department, along with the various State agencies, in particular Bord Bia, Teagasc and Enterprise Ireland, are working closely with the industry to provide the necessary support and assistance.  Bord Bia is actively supporting the sector in the areas of Market Intelligence, UK consumer research and Quality Assurance. Towards the end of 2016 they held a currency and negotiation workshop specifically targeted at the sector, which I understand was very well received by the mushroom industry. 

Bord Bia is also running a Marketing Intensification Programmewhich aims toprovide targeted marketing supports to companies with high dependency on UK markets. Grant supports will be prioritised to assist companies in strengthening their position in that market and in their efforts to identify new markets.

My Department is also providing funding for a pilot programme on LEAN processes, with the assistance of Bord Bia and Enterprise Ireland. It has started with 6 mushroom growers, to assess efficiency across all aspects of the business, including supply chain, innovation, marketing and logistics. It is hoped that a template can be developed through this programme that will enable growers to optimise their production costs further.

I would also draw attention to support being provided to the industry through the National Development Plan (NDP) 2007 – 2013, mainly through the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector.  To ensure ongoing support for the sector, my Department extended, under EU sanction, the Scheme to run until 31 December 2019. To date some €6m has been paid out in grants under the Scheme to support about €15m in investment.

Applications for 2017 under the Scheme are currently being assessed.

I wish to assure the House that the Government remains very focused on supporting the agri-food industry through the challenges ahead. I will continue to consult with the industry as the negotiations develop, and press Ireland's case for continued free access to the UK market, without tariffs and with minimal additional customs and administrative procedures.