Since the UK referendum in June 2016, I, in co-operation with Government, have introduced a range of budgetary measures under the two most recent budgets.
In Budget 2017, I introduced measures to help reduce farm gate business costs, including a €150 million low-cost loan scheme, new agri-taxation measures and increased funding under the Rural Development and Seafood Development Programmes.
I also announced a €50m Brexit support package in the 2018 Budget, which will be comprised of a number of initiatives. Firstly, in cooperation with my colleague, the Minister for Business, Enterprise and Innovation, I established a new “Brexit Loan Scheme” aimed at providing affordable, flexible financing to Irish businesses that are either currently impacted by Brexit or who will be in the future. The Scheme aims to make up to €300 million of working capital finance available to SMEs and mid-cap businesses (up to 499 employees), at least 40% of which will be available to food businesses.
Due to State Aid rules, this new Scheme will not be available to farmers and fishermen, so I am also introducing a separate loan scheme in 2018 similar to the 2017 low-cost scheme, based on €25m funding from my Department to the Scheme. These measures are aimed at enhancing competitiveness within the sector.
I have also introduced supports for Bord Bia for investment in their market insight and market prioritisation initiatives which are aimed at identifying and developing potential diversification opportunities. I have already increased funding to Bord Bia by €10 million since the Brexit vote, and a further €4.5 million is allocated in Budget 2018.
To enhance product diversification, I have also allocated funding to support the development of the new National Food Innovation Hub, which will be located in Teagasc Fermoy, Co. Cork.
On the issue of staffing, shortly after the Referendum I established a dedicated Brexit Co-ordination Unit within my Department’s EU & International Trade Division. This Unit now forms part of a new Brexit and International Trade Division. It comprises eight staff working full-time on the co-ordination of Brexit issues, plus a full-time Head of Division, who in turn reports to an Assistant Secretary General deeply engaged in Brexit issues, in addition to discharging other responsibilities.
The Unit co-ordinates the ongoing analysis, consultation and engagement activities being undertaken by a large number of administrative, technical and veterinary staff, through an internal Brexit Response Committee comprised of 16 people drawn from the wide range of Divisions affected by Brexit (including, for example, Meat and Milk Policy, Animal Health and Welfare, Food Industry Development, Economics and Planning, and Seafood Policy and Development). It also feeds into the whole-of-Government co-ordination being undertaken by the Department of Foreign Affairs and Trade.
While The Brexit Unit has its full complement of staff at present, I will continue to monitor the future workforce needs of both my Department, our Agencies and the Brexit Unit, and will be keeping resource requirements under close review as the negotiations proceed.
The funding allocated to Bord Bia allows them to employ additional staff, some of whom will be based abroad, in line with the Taoiseach’s Global Footprint initiative to double the Team Ireland footprint on the international stage by 2025. The number and deployment of these staff is an operational matter for Bord Bia and the Deputy may wish to contact Bord Bia directly at the agreed Oireachtas contact address : info@bordbia.ie
