Dáil Éireann Debate, Thursday - 11 October 2018
40. Deputy Bernard J. Durkan asked 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]
View answerAs 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.
