Written answers

Thursday, 18 April 2019

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

230. To ask the Minister for Agriculture, Food and the Marine the outcome of the most recent discussions he has had at EU level on the need to relax state aid rules and have adequate measures in place to assist the agrifood sector in the event of severe market disturbance arising from Brexit; and if he will make a statement on the matter. [18327/19]

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

I have recently held bilateral discussions with Commissioner Hogan on the economic impact of Brexit, including on the margins of the Council of Agriculture Ministers in Brussels on 18 March. I have stressed the need to be ready to deploy a range of measures to mitigate the impact on the sector, including through traditional EU market supports and exceptional aid provisions under the CAP's Single Common Market Organisation regulation, as well as through increased flexibility under State Aid regulations.  Commissioner Hogan has confirmed that the EU is ready to respond positively, and my officials remain in regular contact with Commission officials in this regard.

The Council of Agriculture Ministers meeting on 18 March was an important opportunity to highlight to the Council, the Commission and to my fellow Ministers, the impacts of a no-deal Brexit on the agrifood sector in Ireland and the potential knock-on effects across the EU market as a whole.  During the discussion on the meat market, I outlined the exposure of the Irish beef sector in particular and called for the full suite of measures available under the Common Market Organisation, including targeted support for farmers, to be deployed rapidly in the event of a no-deal Brexit.  I also referred to the need to protect the EU beef sector in trade discussions with Mercosur, against the background of the significant uncertainty arising from Brexit.  In addition, I highlighted the exposure of the Irish fisheries sector, and the need for careful joint EU management of fisheries resources, as well as financial supports for fishermen and their communities.

Earlier this week, at the Council of Agriculture Ministers in Luxembourg, I followed up these efforts with a further call for acknowledgment of the impact of Brexit on the beef sector through the making available of exceptional aid for the sector, despite the avoidance of a hard Brexit on 12 April.

With regard to State Aid, I welcome the recent announcement by the European Commission, with effect from 14 March 2019, that the maximum threshold limits under the agriculture de minimis regulation will increase.  Under the revised rules, aid of up to €20,000 can be paid to a beneficiary on a rolling three year basis i.e. the current fiscal year and the two previous fiscal years.  Once a beneficiary has reached this limit they may not receive any further aid in excess of this limit under de minimis rules within the rolling time period.

In order to avoid any potential distortion of competition, each EU Member State has a maximum national limit, which they cannot exceed.  Under the revised rules, Member States' national ceiling is increased to 1.25% of their annual agricultural output over the same three-year period.  This represents a 25% increase in the national ceiling.

The revised rules permit a Member State to increase the individual de minimis aid limit up to €25,000, once the Member State does not spend more than 50% of its total national aid envelope on one particular agricultural sector.  In these circumstances, the national limit is increased to 1.5% of the annual output.  This represents a 66% increase in the ceiling per farmer and a 50% increase in the national ceiling.

This increase in threshold of de minimis aid 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 agrifood sector and farmers to deal with the impact of Brexit.  The increase in the agriculture de minimis limits is a very important first step in this regard.

In addition, my Department, working in close co-operation with the Department of Business, Enterprise and Innovation and Enterprise Ireland, has received approval from the EU Commission for an Irish state aid application, allowing an Irish company to receive state aid funding for the diversification of its activities. The potential for this approval to act as a template for assistance for agrifood enterprises and exporters within state aid rules and regulations is currently being examined.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

231. To ask the Minister for Agriculture, Food and the Marine if there are ongoing discussions with the authorities in Northern Ireland on the need to protect the agrifood sector and deal with issues that may arise from Brexit; and if he will make a statement on the matter. [18328/19]

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

The best way to protect the agrifood sector is for the UK to ratify the Withdrawal Agreement.  I welcome the decision of the European Council last week which prevented a no-deal outcome on 12 April and provides the UK with more time to ensure an orderly withdrawal and fully protect the Good Friday Agreement.

Indeed, among the priorities set by the Irish Government at the outset in relation to the Brexit negotiations was the protection of the Good Friday Agreement.

As part of the operation of that Agreement, and as is the case with all Departments, officials of my Department engage on a regular and ongoing basis with counterparts in Northern Ireland on matters relating to North South Co-operation.

Comments

No comments

Log in or join to post a public comment.