Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

177. To ask the Minister for Agriculture, Food and the Marine the amount of financial state aid-support that will be available to producers in the event of a no-deal hard Brexit; the level of support committed to by the EU Commission; the persons he has met with in relation to same to date in 2019; and if he will make a statement on the matter. [9990/19]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 areas in particular. As such, Brexit has the potential to have a very significant impact on farmers and on the agri-food sector throughout Ireland.

I and my officials have been working very hard for quite some time to sensitise other Member States and the European Commission to the potentially very severe impacts of Brexit on the Irish agri-food and fisheries sectors, and to the likelihood of specific supports being required in order to deal with these impacts. The institutions of the European Union are very well aware of the likelihood of a significant impact of a disorderly Brexit on Ireland’s economy.  This has been part of the discussion from the beginning, and indeed this is explicitly recognised in the Commission’s own communication on contingency planning.

Most recently, I held a bilateral meeting with Commissioner Hogan at the end of January to discuss the potential impact of a disorderly Brexit on the Irish agri-food and fisheries sectors. We discussed the unique exposure of these sectors to the threat of a disorderly Brexit, and the challenges that it could present. I stressed the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and processors, including through traditional market supports and exceptional aid under the CAP's Single Common Market Organisation regulation, as well as increased flexibility under State Aid regulations, which has already been the subject of discussions with the Commission. Commissioner Hogan reiterated the EU’s readiness to respond and support Ireland, and we will remain in contact on these issues as the situation evolves. 

As regards state aid limits, my Department operates the State aid rules and regulations governing the agriculture sector, where the state aid limits under the agriculture de minimis regulation are currently set at €15,000 per undertaking over a rolling three year period. 

I very much welcome the announcement by the European Commission, that the maximum threshold limits under the agriculture de minimis regulation will increase from €15,000 up to €25,000, with effect from 14 March 2019.  This will allow for greater flexibility and efficiency, notably in times of crisis and situations demanding a swift response by the public authorities.

I have said that the State will not be found wanting when it comes to supporting the Irish agri-food sector and farmers when it comes to Brexit.  The increase in the agriculture de minimis limits is a very important first step.

With regard to increases or exemptions to state aid limits applicable to other sectors, this is a matter for the Department of Business, Enterprise & Innovation, who are the competent authority for the implementation of the general State aid rules and regulations in Ireland.