I would like to remind the House that I and my Department have been actively engaged in assessing the impact of the Brexit vote on the Irish agri food 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 being co-ordinated by the Department of the Taoiseach.
I fully recognise the potential difficulties that the agri food sector could face in the event of a hard Brexit. The sector is of critical importance to our economy and its regional spread means it underpins the socio-economic development of rural areas in particular. The sector employed approximately 173k people (i.e. 8.6% of total employment) in 2016, and the total value of agri-food exports was more than €11 billion.
The highly integrated nature of agri food trade between Ireland and the UK is shown in the trade figures. Some €4.8bn (39%) of these exports went to the UK last year, while €3.7bn (46%) of agri food products was imported from the UK.
A further significant issue in relation to cross border trade is the de facto all-island milk market that currently exists. Significant volumes of manufacturing milk processed in Ireland come from Northern suppliers and any re-establishment of a hard border would pose significant difficulties for both processors and suppliers. In addition, a significant component of the sheep and lambs slaughtered in Irish processing facilities is of Northern Irish origin.
The implications for North-South trade, and for the movement of raw materials, including milk, meat and live animals, are potentially severe. The implications for animal and plant health procedures on both sides of the border are also potentially very serious. Put quite simply, this substantial trade would be massively affected by the constraints of tariffs, customs controls, veterinary/phyto-sanitary certification and any deviation by the UK from EU common regulatory provisions and standards.
In preparation for the upcoming negotiations I have had a number of meetings with key officials in the Commission, the UK and in other Members States, and this process will continue in the coming months. At EU level, I have had regular contact with counterparts at AgriFish Council meetings, including meetings with my Spanish and Maltese colleagues on the margins of last Monday’s Council of Ministers meeting. Arrangements are currently being made for further formal bilateral meetings over the coming weeks involving Germany, the Netherlands and Denmark over St Patrick’s weekend and Poland, Austria and Estonia at the end of the month.
I am also in regular communication with Commissioner Hogan and my officials have taken part in meetings with the Commission and the Barnier Task Force.
In all of these engagements I am making clear our demand for continued unfettered access to the UK market, without tariffs and with minimal additional customs and administrative procedures, as well as keeping the UK market viable for Irish producers by minimising the risk from UK trade agreements with third countries.
In relation to fisheries, we want to maintain current access to fishing grounds in the UK zone in the Irish Sea, Celtic Sea and north of Donegal and protect Ireland’s quota share for joint fish stocks.
Referring now specifically to meetings with my Northern Ireland and UK counterparts, I have met the outgoing Minister for Agriculture, Environment and Rural Affairs Michelle McIlveen on at least six occasions since last September and I have had bilateral meetings with Secretary of State Leadsom on two occasions – initially on December 1 in London and then at the Berlin Food Show last January.
While we exchanged views on what we view as the immediate and longer-term impacts of the UK vote on Irish agri food sector, I fully observed the line agreed at EU level whereby no negotiations could take place with the UK until Article 50 has been triggered. As you know, Ireland will be part of the EU27 team and will work with our fellow Member States in delivering the best possible result for Ireland and for the EU.
I wish to assure the House that the Government remains very focused on supporting the agri-food industry through the challenges ahead. I will continue to consult with the industry as the negotiations develop, and I will continue to press Ireland's case for continued free access to the UK market, without tariffs and with minimal additional customs and administrative procedures.
