Micheál Martin (Cork South Central, Fianna Fail)
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1647. To ask the Minister for Agriculture, Food and the Marine if he will report on the Government's publication, Ireland and the negotiations on the UK's withdrawal from the European Union, and in particular the implications for trade and customs on businesses, particularly in the agrifood sector here, in view of the fact that the UK is its largest export market; the actions that are being taken by him and his Department to consult with the business sector here; and the ramifications of changes on customs, in particular on the business sector. [22096/17]

Michael Creed (Cork North West, Fine Gael)
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On 2 May, the Government published a comprehensive document on Ireland and the negotiations on the UK’s withdrawal from the European Union under Article 50 of the Treaty on European Union. This document sets out the approach of the Government to the forthcoming negotiations, following the successful campaign to have key Irish issues recognised in the EU negotiation position.

Following on from this publication, work is underway to prepare a further paper on economic implications of the Brexit challenge.  This will draw on the work to date across Departments, which will be developed to mitigate emerging sectorial challenges. These plans will build on ongoing cross-Government research, analysis and consultations with stakeholders, and will reflect the core economic themes of the Taoiseach's speech to the IIEA on 15 February last.  

Ireland’s economic interests lie firmly in a strong and well-functioning EU with continued and unfettered access to the single market. There is a lot of negotiation to be done around trading arrangements.  Our contingency work is examining all scenarios and we cannot pre-empt the outcome at this stage. We are not under any illusions about the complexity of these negotiations and are engaged in detailed planning to prepare for these.

My Department and its agencies have conducted various analyses of the likely impact of Brexit on the agrifood sector. These analyses range from initial and ongoing internal departmental assessments, to published work by Teagasc and Bord Bia. This is an ongoing process, which will continue to take place as the negotiations unfold.

An important input to this analysis comes from businesses and stakeholders through the extensive consultation processes that I and my Department have put in place. Our Stakeholder Consultative Committee is comprised of representatives from across the sector and has met on a number of occasions since the UK referendum, most recently on 11 April. It is complemented by the agrifood and fisheries sectorial dialogues that I have hosted under the All-Island Civic Dialogue process, which have given businesses and representatives north and south of the border the opportunity to have their concerns discussed in some detail, including in relation to customs-related issues. Five of these dialogues have taken place for the agrifood and fisheries sectors, most recently with the drinks sector on 3 May and with the equine and greyhound sectors on 9 June.

While the main impact to date of the Brexit vote has been the effect of sterling volatility on those businesses that have a significant trading relationship with the UK, the medium to long term threats include the possible introduction of tariffs on trade between the EU and UK, potential divergences in regulations and standards between the EU and UK post-Brexit, and the implications of border controls and certification requirements. Difficult challenges also arise in relation to potentially 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 Co-ordination Division.

Last October, as part of Budget 2017, I announced measures aimed at alleviating the exchange rate volatility pressures, which include the introduction of the ‘Agri Cashflow Support' loan fund of €150 million; enhanced taxation measures and an additional allocation of €2 million to Bord Bia (on top of previous additional funding in 2016 of €1.6 million) to ensure that it is in a position to provide Brexit-related supports to affected businesses, including through its new Brexit Barometer.  I also provided for increased funding under the Rural Development Programme and Seafood Development Programme.

I am very aware of the potential threats created by Brexit for the agri food sector, and I remain fully focused on supporting the industry through the challenges ahead. I will continue to consult with the industry as the negotiations develop, and to press Ireland's case for continued free access to the UK market, without tariffs and with minimal additional customs and administrative procedures, together with a minimisation of the risk from UK trade agreements with third countries.