Written answers

Monday, 11 September 2017

Department of Agriculture, Food and the Marine

Brexit Issues

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1397. To ask the Minister for Agriculture, Food and the Marine the status of the development of sectorial response plans to Brexit; the publication date for these plans; and if he will make a statement on the matter. [38686/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1398. To ask the Minister for Agriculture, Food and the Marine the issues identified for consideration in the context of Brexit including opportunities and their prioritisation; and if he will make a statement on the matter. [38702/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1399. To ask the Minister for Agriculture, Food and the Marine the details of issues identified for consideration in the context of Brexit including threats and their prioritisation; and if he will make a statement on the matter. [38718/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1400. To ask the Minister for Agriculture, Food and the Marine the scenario planning that has been conducted by his Department for Brexit; and if he will make a statement on the matter. [38734/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1401. To ask the Minister for Agriculture, Food and the Marine the methodology employed in the prioritisation of responses to Brexit; and if he will make a statement on the matter. [38750/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1402. To ask the Minister for Agriculture, Food and the Marine the funds that have been requested in response to threats resulting from Brexit; and if he will make a statement on the matter. [38766/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1403. To ask the Minister for Agriculture, Food and the Marine the funds that have been allocated in response to threats resulting from Brexit; and if he will make a statement on the matter. [38798/17]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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1405. To ask the Minister for Agriculture, Food and the Marine his Department’s priorities for risk mitigation in response to Brexit; and if he will make a statement on the matter. [38830/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 1397 to 1403 inclusive and 1405 together.

The comprehensive document “Ireland and the negotiations on the UK’s withdrawal from the European Union: The Government’ Approach”, published on 2 May, outlined in detail the structures put in place by the Government to ensure a strategic and whole-of-Government response to Brexit that ensures a coordinated approach to the identification of key priority issues for the EU-UK negotiations and the wider domestic response.

Since the publication of the comprehensive document, the Government has sought to further increase its strategic oversight of Brexit through the addition of a dedicated responsibility for Brexit matters to the role of the Minister for Foreign Affairs & Trade. The Cabinet Committee structures have also been reformed and a new Cabinet Committee has been established to deal with EU Affairs including Brexit.   

The Government’s National Risk Assessment 2017, which provides a systematic overview of strategic risks facing the country, was published on 29 August following a public consultation process. The National Risk Assessment acknowledges the significance of risk arising from Brexit, and that Brexit represents an overarching theme that could have far-reaching impacts on nearly all aspects of national life. It identifies areas where Brexit poses a specific risk, particularly in relation to the economy.

As set out in the comprehensive document of 2 May, the Government’s continuing work to ensure that Ireland’s interests are reflected in the EU’s approach to the ongoing EU-UK negotiations is a central dimension of Ireland’s strategic response to Brexit.

Work is also continuing across Government on Ireland’s wider response to the challenges and opportunities posed by Brexit, building on ongoing cross-Government research, analysis and consultations with stakeholders and encompassing the following themes:

- sustainable fiscal policies to ensure capacity to absorb and respond to economic shocks, not least from Brexit;

- policies to make Irish enterprise more diverse and resilient, to diversify trade and investment patterns, and to strengthen competitiveness;

- prioritising policy measures and dedicating resources to protect jobs and businesses in the sectors and regions most affected by Brexit;

- realising economic opportunities arising from Brexit, and helping businesses adjust to any new logistical or trade barriers arising;

- making a strong case at EU level that Ireland will require support that recognises where Brexit represents a serious disturbance to the Irish economy.

Policy decisions in support of these objectives also arise across a wide range of areas, including the annual budgetary process; the forthcoming National Planning Framework 2040; the new 10-year National Capital Plan; the Review of Enterprise 2025 Policy, and sectorial policies and investment decisions in areas such as agriculture, enterprise, transport, communications and energy.

Within my own Department, we have been engaged for some time, in close consultation with stakeholders, in a process of assessing the potential threats and possible scenarios that will arise for the agri food sector post-Brexit, and discussing potential appropriate responses. Market diversification is one of those responses, and I have today announced the provision of an additional €6.745 million for Bord Bia to assist in these efforts.

Obviously the most immediate challenge being experienced by the sector, by virtue of its unique exposure to the UK market, is the significant drop in the value of sterling against the euro. The longer-term challenges include those related to tariffs and trade, divergence in regulations and standards, Northern Ireland and border issues, and certification (including veterinary and health certification). Difficult challenges in relation to potentially restricted access to fishing grounds and resources also arise. That is why, in terms of risk mitigation, I have said that our three key asks from these negotiations will be:

(i) continued free access to the UK market, without tariffs and with minimal additional customs and administrative procedures,

(ii) minimisation of the risk from UK trade agreements with third countries, and

(iii) maintenance of current access to fishing grounds in the UK zone in the Irish Sea, Celtic Sea and north of Donegal, and protection of Ireland's quota share for joint fish stocks.  

In terms of the ongoing exchange rate difficulties, I fully understand and appreciate the significant impact that these are having on farmers and the industry in those sectors highly exposed to the UK market. For that reason I and my Department, with the support of the Government, have been actively engaged in developing responses that will help to ameliorate this impact, for example through the €150 million loan fund introduced as part of a package of measures announced in last year's Budget. Other Budgetary measures included the introduction of new agri-taxation measures, increased funding under the Rural Development Programme and Seafood Development Programme, and the allocation of additional resources to Bord Bia to provide Brexit-related supports to affected companies.

However, the scale of the difficulties being created by the current period of volatility requires that other approaches be considered. Accordingly, I have been considering the need for specific EU support, and have been engaging with Commissioner Hogan and other Member States in this regard, most recently at last week's Informal Council in Estonia.

I intend to pursue the matter further by raising it at next month's AgriFish Council and by asking my colleagues to consider a range of measures that will help the Irish agri-food sector to deal with these difficulties.

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