Tommy Broughan (Dublin Bay North, Independent)
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647. To ask the Minister for Agriculture, Food and the Marine the measures he is taking to protect Irish timber exports to the UK during and after the EU-UK Brexit negotiations; and if he will make a statement on the matter. [17523/17]

Michael Creed (Cork North West, Fine Gael)
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The Irish timber industry faces particularly difficult challenges arising from the UK decision to leave the EU. Over 70% of all timber products manufactured here in Ireland are exported to the UK. Brexit will most likely result in increased costs for exporters through border delays, tariffs and exchange rate fluctuations, as well as increased competition from third country imports and reduced demand from the UK market.

However, the wood processing sector in Ireland has some important advantages that will stand to it as it prepares to meet the challenges that lie ahead. The main players in the industry are relatively small in number and are agile, as was shown during the economic crash when they were able to change their focus to export markets. The sector has also invested heavily in sawmilling technology.

As well as expanding their export markets and cutting costs, saw mills can prepare for BREXIT through continued investment in the supply chain and manufacturing technologies, and through moving up the value chain. A Renewable Heat Incentive scheme is scheduled for launch later this year, which will create additional domestic markets for forest-based biomass for energy purposes. This will have the impact of bringing forward additional supplies of sawlog material in subsequent thinnings, particularly from privately owned forests.

My Department is undertaking a review of both our forest policy document entitled “Forest, Products and People” and the Forestry Programme 2014 -2020 so that forest policy and implementing measures properly reflect the needs of the sector as we face into BREXIT negotiations and beyond. The sector took an active part in the All-island Sectoral Dialogue in which the issues around BREXIT for the sector were teased out. My Department will continue to work constructively with the industry on this matter so that potential risks can be mitigated and any opportunities can be identified and pursued.