James Browne
Ceist:63. Deputy James Browne asked the Minister for Agriculture, Food and the Marine his plans to offset the impact of Brexit on farmers in County Wexford; and if he will make a statement on the matter. [6855/18]
Amharc ar fhreagraTuesday, 13 February 2018
Ceisteanna (63)
Freagraí scríofa
Brexit has the potential to have a significant impact on the agri food sector in Ireland, including in Co. Wexford.
The agri-food sector is of critical importance to the Irish economy. Its regional spread means it underpins the socio-economic development of rural Ireland in particular. Farming is an essential part of the social, cultural and economic fabric of the country and it is also part of a wider EU dispensation that values a Common Agriculture Policy built on family farming, food security, high standards of food safety and environmental sustainability. These are values that we hold dear, and so it is critically important when we consider the impact of Brexit that the positive contribution of agriculture to the rural and national economy, and to society in Ireland, and indeed elsewhere in the European Union, is to the forefront in our deliberations.
Since the UK referendum in June 2016, the Government has introduced a range of measures to help the agri-food sector navigate the short-term impacts of Brexit. 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.
In the 2018 Budget I also announced a €50m Brexit support package, which will be comprised of a number of initiatives. Firstly, in cooperation with my colleague, the Minister for Business, Enterprise and Innovation, I am establishing 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 considering the development of 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.
I wish to assure the Deputy that Government remains very focused on supporting farmers and the agri-food industry through the challenges ahead, whether they are based in Wexford or in any other part of the country. 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 UK which is as close as possible to the current arrangement.