Dáil Éireann Debate, Tuesday - 20 March 2018
744. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine his plans to offset the impact of Brexit on farmers in counties Cavan and Monaghan; and if he will make a statement on the matter. [12655/18]
Amharc ar fhreagraBrexit has the potential to have a very significant impact on the agrifood sector throughout Ireland, including in counties Cavan and Monaghan.
As the Deputy will be aware, the agrifood sector is of critical importance to the Irish economy, and its regional spread means it underpins the socio-economic development of rural Ireland, and of the border region in particular.
The primary means through which the Government is seeking to minimise the impact of Brexit is through the negotiated outcome. In a border context, and in terms of mitigating the impact in counties Monaghan and Cavan, the UK commitment in the Joint EU-UK Report of last December to avoid a hard border on the island of Ireland is extremely important. The Government has insisted that this commitment be translated into legal form in the Withdrawal Agreement, and we are currently working closely with our EU counterparts and the European Commission Task Force to ensure that the necessary legal provisions are incorporated.
We will also continue to work with them on the inclusion of transitional arrangements, and on agreeing guidelines that will underpin the forthcoming discussions on the framework for the future EU-UK relationship. On Thursday last I met with my UK counterpart, Secretary of State Michael Gove , and stressed the importance of facilitating bilateral trade post Brexit, without undermining the Single Market.
In the meantime, the Government has continued to introduce 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 Budget 2018 I also announced a €50m Brexit support package, which will comprise 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.
I am also 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 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. As part of this effort I will lead a number of trade missions to promote Irish food and drink in key markets.
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 the Teagasc Moorepark complex.
I wish to assure the Deputy that the Government remains very focused on supporting farmers and the agri-food industry through the challenges ahead, whether they are based in Cavan, Monaghan or any other part of the country.
