Written answers

Wednesday, 29 March 2017

Department of Agriculture, Food and the Marine

Brexit Issues

Photo of Noel RockNoel Rock (Dublin North West, Fine Gael)
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165. To ask the Minister for Agriculture, Food and the Marine his plans to counteract the negative effects of Brexit on agricultural communities; if a county projection of impact on associated tax has been successful; if not, if this will be considered (details supplied); and if he will make a statement on the matter. [15608/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Ever since the UK Referendum on Brexit, I and my Department have been actively engaged in assessing the impact of the vote on the Irish agri food sector, and particularly on those in rural agricultural communities.  I fully recognise the potential difficulties that the sector could face in the event of a hard Brexit, a sector which is of critical importance to our economy.  Its regional spread means it underpins the socio-economic development of rural areas in particular.

The more immediate impacts of Brexit relate to the significant drop in the value of sterling against the euro and the effects that this is having on industries with significant trading activity in the UK.

The medium- to longer-term impacts will revolve around the potential application of tariffs, the implications of divergence in regulations and standards, border controls with Great Britain and Northern Ireland, and certification, including the related areas of veterinary and animal health certification.  There will also be difficult challenges in relation to potential restricted access to fishing grounds and resources.

In response to the challenges posed, I have undertaken a number of important steps within my own Department, which include the establishment of a Brexit Response Committee and a dedicated Brexit Unit. As already mentioned, I have also created a Stakeholder Consultative Committee, which is complemented by frequent contact with representative organisations and companies on an ongoing basis. 

Last October, as part of Budget 2017, I announced measures aimed at alleviating the pressures of exchange rate volatility associated with Brexit.  These measures included the introduction of the ‘Agri Cashflow Support Loan’ fund of €150 million; enhanced taxation measures and an additional allocation of €1.6m in 2016 and €2m in 2017 to Bord Bia to ensure that they are in a position to provide Brexit-related supports to affected companies.  I also provided for increased funding under the Rural Development Programme and Seafood Development Programme.

I recently awarded over €1.8 million in grants to 19 seafood enterprises under the European Maritime and Fisheries Fund Operational Programme for the seafood sector.  The aim of these grants is to incentivise seafood innovation and new product development as a means of meeting the Brexit challenge.

I am also involved in a series of bilateral meetings with my EU counterparts which is aimed at building alliances to ensure that agri-food and fisheries issues are at the top of the EU negotiation agenda.  I want to discuss and get a sense of the importance of Brexit for them and of the degree to which they could support Ireland’s efforts to have these issues specifically and adequately taken account of in the negotiations.

I have just returned from a series of such bilaterals in Germany, Netherlands and Denmark, and most recently in Estonia and Poland.  I have plans to meet other EU Ministers next month.

I am also in regular communication with Commissioner Hogan, and my officials have taken part in meetings with the Commission and the Barnier Task Force.

In all of these engagements I am making clear our demand for continued unfettered access to the UK market, without tariffs and with minimal additional customs and administrative procedures, as well as keeping the UK market viable for Irish producers by minimising the risk from UK trade agreements with third countries. In relation to fisheries, Ireland wants to maintain current access to fishing grounds in the UK zone in the Irish Sea, Celtic Sea and north of Donegal and protect our quota share for joint fish stocks. 

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.

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