Written answers

Thursday, 11 October 2018

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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39. To ask the Minister for Agriculture, Food and the Marine the supports provided to Bord Bia to assist Irish agrifood businesses to find new markets for their produce in the context of a potentially changed trading environment post-Brexit; and if he will make a statement on the matter. [41296/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I am firmly committed to increasing market access and opportunities for all Irish agri-food exports around the world. Total agri-food exports amounted to €13.6 billion in 2017, according to the Central Statistics Office trade statistics, an increase of 74% since 2009. My Department officials continue to work towards opening and enhancing access to as many markets as possible. This is a key part of our response to the challenges and uncertainty posed by Brexit, and is in line with the market development theme of the Food Wise 2025 strategy. Opening new markets involves a wide range of detailed work taking place across a range of levels including political, diplomatic, technical and official levels. This year already, I have led trade missions to the US, Canada and China. I will be leading a delegation to Indonesia and Malaysia very shortly and my colleague, Minister Doyle will be visiting China.

Bord Bia’s work is critical to the successful growth of our food and drinks exports.

The development of the Origin Green programme, providing proof of the sector’s sustainability credentials, has played an important part. Bord Bia also works closely with my Department to prioritise and develop new markets, building on its significant investment in consumer and retail insights.

As an agency, Bord Bia has played a key role in our Brexit response to date, facilitating conversations at the highest levels with UK retail CEOs, and ensuring that our ongoing commitment to the UK market is fully understood. We have no intention of stepping back from the UK market. On the contrary, we will redouble our efforts to build on our consumer reputation and strong relationships to maximise growth and supply high quality and innovative products to our neighbouring island.

Bord Bia’s Brexit Barometer has been used to identify evolving client priorities and concerns and to further inform Bord Bia’s Brexit programmes and supports. As a result of the many findings from that exercise, Bord Bia has launched a series of Brexit support programmes focussed on supply chains, customs requirements regarding trade, and currency risk for the industry.

Significant additional funding has been provided to Bord Bia in various tranches since the Brexit referendum, as a key part of our Brexit response for the food industry. Bord Bia received approval in 2018 to recruit 32 additional staff as part of the wider Brexit response. A recruitment campaign commenced in April 2018 and so far 22 positions have been filled. Recruitment is ongoing for the balance and it is hoped that these additional staff will be in place by end of the year. 13 of these positions are to be based abroad in line with the Government policy of doubling our Global footprint.

I am pleased that in this week's Budget I secured the allocation of a further €5.35 million to Bord Bia for 2019, bringing its total grant in aid to €46.6 million for 2019. This compares to a grant in aid of €28.9 million in 2014, an increase of over 60% over five years.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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40. To ask the Minister for Agriculture, Food and the Marine if he is satisfied regarding the action taken to date or likely to be taken to offset the impact of Brexit on the agrifood sector, with particular reference to the possibility of a no-deal Brexit; if he is further satisfied that all has to be done in relation to same; and if he will make a statement on the matter. [41480/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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As the Deputy will be aware, the agri-food sector is of critical importance to the Irish economy, and its regional spread means it underpins the socio-economic development of rural Ireland in particular.

The Government is seeking to minimise the impact of Brexit in the first instance through a negotiated outcome which avoids a hard border on the island of Ireland and which delivers trading arrangements in the future which are as close as possible to those that prevail at present. I am hopeful that progress can be made in the short-term on both the Ireland-Northern Ireland back-stop and on the framework for the discussions on the future EU-UK relationship, so that they can be incorporated into a Withdrawal Agreement that will provide for a transition period and a more orderly Brexit in the period up to 2021.

In the meantime, the Government has introduced a range of measures to deal with the short-term impacts of Brexit. In terms of dealing with Competitiveness issues, my Department introduced a €150 million low-cost loan scheme, new agri-taxation measures and increased funding under the Rural Development and Seafood Development Programmes in the 2017 Budget. In Budget 2018 I, along with my colleague, the Minister for Business, Enterprise and Innovation, introduced a new €300m “Brexit Loan Scheme” to provide affordable, flexible financing to Irish businesses that are either currently impacted by Brexit or who will be in the future - at least 40% of which will be available to food businesses.

I have followed up these measures with further initiatives announced this week as part of Budget 2019, which contains a €78 million Brexit package for farmers, fishermen, food SMEs and to cover additional costs in my Department. This includes €44 million in direct aid to farmers through increased spending on areas of natural constraint, the introduction of a Beef Environmental Efficiency Pilot Scheme and additional funding for the horticulture sector. Support for the food industry to the tune of €27 million includes measures aimed at improving competitiveness and innovation, additional funding for Bord Bia and additional funding to progress the National Food Innovation Hub in Teagasc Moorepark. And €7 million has been provided to support Brexit preparedness work within my Department, namely, to meet the staffing and IT costs associated with the additional import control and export certification requirements arising from Brexit.

Under Market Diversification, my Department is supporting Bord Bia in its investment in market insight (through its ‘Thinking House’) and in market prioritisation initiatives which are aimed at identifying and developing potential diversification opportunities. Indeed, I have increased funding to Bord Bia by €14.5m since the UK referendum.

As regards Product Diversification, I am supporting Teagasc in the development of a new National Food Innovation Hub in Fermoy (€8.8 million funding announced by An Taoiseach and myself last October).

In line with the Department of Foreign Affairs and Trade-coordinated ‘whole of Government’ approach to Brexit, my Department is planning for an orderly Brexit which involves, inter alia, a transition period to the end of December 2020. Key Government decisions in this regard have been made in July and September in relation to staffing and IT resources, and engagement with the relevant ports and airports is ongoing in relation to the infrastructure needed to carry out import controls and customs checks.

Work is also ongoing in relation to contingency planning for a disorderly Brexit at the end of March 2019. In this regard my Department’s focus is on the arrangements that will be necessary in order to fulfil its legal obligations as efficiently as possible while also ensuring the minimum possible disruption to trading arrangements. Similar to the work already undertaken in relation to the central case scenario, my Department will be working closely with other Departments in progressing these arrangements over the coming period.

I wish to assure the Deputy that the Government remains very focused on supporting the agri-food industry through the challenges ahead. The Government will be firm in arguing that any agreement reached between the EU and the UK must take account of the very serious challenges presented by Brexit for the sector, particularly given the unique circumstances on the island of Ireland and the importance of our economic relationship with the UK.

And, of course, ultimately Ireland's objective in the negotiations is to have a trading relationship with the entire UK which is as close as possible to the current arrangement.

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