Dáil Éireann Debate, Tuesday - 24 July 2018
1955. 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. [34053/18]
Amharc ar fhreagraBrexit has the potential to have a very significant impact on farmers and on the agri-food sector throughout Ireland, including farmers in the counties of Cavan and Monaghan.
As 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 the first instance, the Government is seeking to minimise the impact of Brexit through a negotiated outcome which permits trade along the border regions to continue without impediment. In this regard, the UK commitment, in the Joint EU-UK Report of last December, to avoid a hard border on the island of Ireland, was extremely important.
Ensuring that the UK gives effect to this commitment is now a significant focus of the Irish Government, and we have the full support of our EU partners and of the European Commission Task Force in this regard.
Additionally, the Government has introduced a range of budgetary measures to help the 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 comprises of a number of initiatives. Firstly, in cooperation with my colleague, the Minister for Business, Enterprise and Innovation, we have established a new Brexit Loan Scheme which is 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 is making 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, similar to the 2017 low-cost scheme, later this year based on the €25m funding from my Department to the Scheme. These measures are aimed at enhancing competitiveness within the sector.
Among other measures, I have 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 €14.5 million since the Brexit vote, including the further €4.5 million 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 the border region 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.
