Charlie McConalogue (Donegal, Fianna Fail)
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75. To ask the Minister for Agriculture, Food and the Marine the steps he is taking to safeguard the interests of the Irish agrifood and fishing sectors ahead of the UK’s move to leave the EU; and if he will make a statement on the matter. [23736/18]

Michael Creed (Cork North West, Fine Gael)
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Brexit has the potential to have a very significant impact on the agri-food and fishing sectors throughout Ireland, particularly given their critical importance to the Irish economy. The regional spread of both sectors means they underpin the socio-economic development of rural Ireland.

It is for this reason that my ‘asks’ from the EU/UK negotiations are:

- Continued free access to the UK market, without tariffs and with minimal additional customs and administrative procedures;

- Minimisation of the risk from UK trade agreements with third countries; and

- 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.

The primary means through which the Government is seeking to safeguard the interests of the sectors ahead of Brexit is through the EU/UK negotiation process and our influence in that process.

I and my Department have been actively feeding into the DFAT coordinated whole-of-Government response and we are represented on all of the interdepartmental committees. The negotiations are now at a crucial stage, with the main focus resting on finding solutions for the avoidance of a hard border on the island of Ireland.

The UK commitment in the Joint EU-UK Report of last December to avoid a hard border was extremely important. At the Government insistence this commitment is now being translated into legal form in the draft of the Withdrawal Agreement, and we are currently working closely with our EU counterparts and the European Commission Task Force to achieve progress in the actions necessary to avoid a hard border on the island of Ireland and any disruption to trade in agri-food and fishery products..

In the meantime, we are continuing our work on assessing the impacts of Brexit, consulting with stakeholders and engaging with EU colleagues with a view to mitigating the potential impacts. On contingency planning, my Department is sharpening its focus on preparedness issues, and is currently engaged in a round of detailed discussions with industry stakeholders. These discussions are aimed at getting a fuller understanding of the potential financial, administrative and operational impacts of Brexit along the supply chain, as well as providing logistical data that will help the Department tailor its response in the negotiation process.

Since the Brexit vote, I have introduced a range of measures in the two most recent Budgets. These were aimed principally at helping reduce farm gate and business costs and also assist in reducing costs and improving competitiveness,.

The measures cover the introduction of low-cost loan schemes for farmers and SMEs, as well as new agri-taxation measures and increased funding under the Rural Development and Seafood Development Programmes.

In Budget 2017, I introduced measures to help reduce farm gate business costs, including a €150 million low-cost loan scheme, new agri-taxation measures and increased funding under the Rural Development and Seafood Development Programmes.

In the 2018 Budget I announced a €50m Brexit support package, which will comprise a number of initiatives. Firstly, in cooperation with my colleague, the Minister for Business, Enterprise and Innovation, I recently announced a new Brexit Loan Scheme aimed at providing affordable, flexible financing to Irish businesses that are either currently impacted by Brexit or will be in the future, at least 40% of which will be available to food businesses.

I am also considering the development of a separate loan scheme similar to the 2017 low-cost scheme, based on €25m funding from my Department to the Scheme. These measures are aimed at enhancing competitiveness within the sector.

I have also introduced supports for Bord Bia for investment in market insight and market prioritisation initiatives, which are aimed at identifying and developing potential diversification opportunities. I had already increased funding to Bord Bia by €14.5m since the Brexit vote, and a further €4.5 million was allocated in Budget 2018. I am of the view that a further effective way of mitigating the Brexit impacts is to expand our international trade opportunities, thereby reducing our exposure to the UK market.

To enhance product diversification, I have also allocated funding to support the development of the new National Food Innovation Hub, which will be located in the Teagasc Moorepark complex.

I have just returned from a Trade Mission to China and Hong Kong to develop our relationship further given that the Chinese beef market is now open to beef exports from Ireland. Among other meetings, I had a very good and productive meeting with my counterpart, the Chinese Minister for Agriculture.

This follows on from successful earlier trade missions to Canada and the USA in February 2018, Japan and Korea in November 2017, the USA and Mexico in June 2017, and Saudi Arabia and the United Arab Emirates in February/March 2017. I will, as part of the marketing effort, lead further trade missions in 2018 to promote Irish food and drink in key markets.

I wish to assure the Deputy that the Government remains very focused on supporting the agri-food and fishing sectors through the challenges ahead.