I should point out that the Department of Business, Enterprise and Innovation is the lead Department in relation to the development of Ireland's response to supporting enterprises impacted by Brexit in line with State Aid rules. As regards proposals to temporarily adapt the threshold ceilings under EU Regulation 1407/2013, the general de minimis regulation, this falls within the remit of the Department of Business, Enterprise and Innovation.
I and my officials have 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 agri-food and fisheries 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 at the end of January to discuss the potential impact of a disorderly Brexit on the Irish agri-food and fisheries sectors. We discussed the unique exposure of these sectors 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, as well as increased flexibility under State Aid regulations, which has already been the subject of discussions with the Commission. 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.
As regards state aid limits, my Department operates the State aid rules and regulations governing the agriculture sector, where the state aid limits under the agriculture de minimis regulation are currently set at €15,000 per undertaking over a rolling three year period.
I welcome the announcement by the European Commission, with effect from 14 of March 2019, that the maximum threshold limits under the agriculture de minimis regulation will increase from €15,000 up to €25,000. This will allow for greater flexibility and efficiency, notably in times of crisis and situations demanding a swift response by the public authorities.
I have said that the State will not be found wanting when it comes to supporting the Irish agri-food sector and farmers to deal with the impact of Brexit. The increase in the agriculture de minimis limits is a very important first step in this regard.
Also, my Department, working in close co-operation with the Department of Business, Enterprise and Innovation and Enterprise Ireland, has received approval from the EU Commission for an Irish state aid application, allowing an Irish company to receive state aid funding for the diversification of its activities. The potential for this approval to act as a template for assistance for agri-food enterprises and exporter within state aid rules and regulations is currently being examined.
