Wednesday, 6 February 2019

Questions (17)

Niamh Smyth


17. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine the steps he is taking to improve beef prices and protect the sector from Brexit; the area to target; and if he will make a statement on the matter. [5445/19]

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Written answers (Question to Agriculture)

My efforts to improve the position of beef farmers and to protect the sector from Brexit have been focused on improving the sector's competitiveness and its ability to diversify markets in order to reduce exposure to the UK market.

The measures I have introduced include a €150m low-cost loan scheme in 2017 to help reduce farm-gate business costs, and a dedicated €50m Brexit package in Budget 2018 which included further additional funding to Bord Bia and Teagasc as well as a contribution to a €300m (joint DAFM/DBEI) “Brexit Loan Scheme”, at least 40% of which is available to food businesses. In Budget 2019 I announced a €78m Brexit package for farmers, fishermen, food SMEs and to cover additional costs related to Brexit. My colleague, Minister for Finance Paschal Donohoe, also announced the Future Growth Loan Scheme, which will be rolled out in 2019 and for which I had made provision of €25m in 2018. The scheme will provide long term, unsecured investment finance for farmers and small scale companies in the food and seafood sectors.

On market and product diversification, the additional funding that I have provided to Bord Bia has been used, inter alia, to provide targeted advice to individual companies as well as to conduct a market prioritisation exercise which is now informing our approach to market diversification activities, including the choice of destinations for Trade Missions.

Trade Missions play an important role in this regard, and I have been very active on this front in recent years as we strive to gain, and then develop, a presence in as many global markets as possible. I have led very successful missions to the Gulf Region, the US, Mexico, Japan and Korea in 2017, and to the US, Canada, China, Indonesia and Malaysia 2018. These missions included participants from across the agrifood sector and featured extensive trade contacts as well as high-level political discussions. These and the other missions that my Department has under consideration for 2019 will serve to enhance and improve our existing levels of market access in these destinations. Indeed, since the UK referendum I have increased Bord Bia’s funding by a total of €19.5 million, including a further €5 million allocated in Budget 2019.

Product diversification has also been supported through additional funding of €8.8 million to Teagasc to develop its National Food Innovation Hub, and funding to support investment in the prepared consumer foods sector.

I and my officials have also 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 beef and other 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 because 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 last week to discuss the potential impact of a disorderly Brexit. We discussed the unique exposure of sectors such as the beef sector 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, and increased flexibility under State Aid regulations. 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.

I have also met with the chief executives of all of the major British retailers to impress upon them the commitment of Irish suppliers in continuing to supply the UK market post-Brexit.

I wish to assure the Deputy that the Government remains very focused on supporting the agrifood industry, including the beef industry, through the challenges ahead.