Written answers

Wednesday, 8 November 2017

Department of Agriculture, Food and the Marine

Brexit Issues

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
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57. To ask the Minister for Agriculture, Food and the Marine the measures he proposes to limit the impact of Brexit on farmers in County Wexford; and if he will make a statement on the matter. [46937/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I fully recognise the potential difficulties that farmers, including those in County Wexford, are likely to face in the event of a hard Brexit, given the highly integrated nature of agri-trade between Ireland and the UK.

 From the beginning of the Article 50 negotiations Government policy has been to maintain a trading relationship with the UK as close as possible to the current configuration, and in the case of the Island of Ireland, to avoid any kind of border.

The position of Government on this matter could not be clearer. As a response to Ireland's concerns, the special position of Ireland is explicitly recognised in the Article 50 negotiating guidelines, which indicate that flexible and imaginative solutions will be required to avoid a hard border.

This is also the position articulated in Prime Minister May's letter triggering Article 50 on 29th March 2017, and equally is reflected in the position adopted by the European Parliament. The need to protect the Good Friday Agreement and the Common Travel Area is a critical part of this dynamic. All of the institutions of the European Union and the UK Government are ad idem on these principles, and I believe that there is a broad political consensus in this House also. Clearly the best protection for farmers in Co. Wexford and elsewhere, lies in the avoidance of a hard border.

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 agrifood sector, consulting with appropriate stakeholders and engaging with the relevant politicians and institutions.  This work is being done in conjunction with the overall Government response led by the Department of Foreign Affairs.

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, and the implications of border controls and certification requirements.

I and my Department, in cooperation with Government and other Departments and Agencies, are attempting to mitigate the consequences through a range of activities under two distinctive pillars – Competitiveness and Product/Market Diversification.

Under Competitiveness my Department introduced a number of measures in Budget 2017 to help minimise farm gate and business costs, including the introduction of €150m low cost loan scheme for primary producers, new agri-taxation measures and increased funding under the Rural Development and Seafood Development Programmes.  Under Budget 2018, I have provided exchequer funding to support a €300m Brexit loan scheme, at least 40% of which will be available to food businesses, and my Department is working with SBCI to develop a similar scheme for farmers, Fishermen and food business.  

Under Product/Market Diversification I continue to support Bord Bia in its investment in market prioritisation initiatives, which are aimed at identifying potential diversification opportunities.  Since the final quarter of 2016 I have provided Bord Bia with more than €14 million in additional funding for a programme of marketing and promotional activity in international and EU markets , and also in the UK. 

I have also allocated an additional €2m to  Teagasc to allow them to commence work on an €8.8m investment in a new National Food Innovation Hub which will help Irish food businesses to innovate and expand.

I wish to assure the House that I and the Government remain very focused on supporting the agrifood 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 or burdensome customs and administrative procedures. 

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