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Dáil
‹ Leaders' Questions

Brexit and agricultural exports

Summary

Deputy Moynihan raised the impact of Brexit on Ireland, especially agrifood and trade. The Minister said the Government had prepared extensively and was seeking new export markets through agencies and embassies.

Yesterday was the day the British Government finally, formally and officially triggered the signing of Brexit some nine months after the referendum in June. By any stretch of the imagination, it was a sad day for Europe and it is very worrying and will have major ramifications for the citizens of this island. It has been described in some of the newspapers this morning as not just a storm for Ireland but an earthquake. While the EU member states will be negotiating the terms of Brexit over the next two years and maybe longer, it is a fact that Ireland will be the country that loses most from this deal.

The British Government seems to be determined to fly the Union Jack more and more while singing "Rule Britannia". At the same time, it is saying it wants the most amicable and lovable divorce in the history of divorces. Citizens across our island, North and South, are genuinely worried about the ramifications of Brexit and how it would seem Ireland has very little influence on the actual outcome. People are worried about the Irish Government not being prepared enough, despite flying around from capital city to capital city, stating our case. However, in the six-page letter yesterday, the importance of not returning to hard borders was mentioned, as was the peace process, which was given priority. The Good Friday Agreement is, after all, an international agreement which has to be upheld. The comments in regard to the common travel area, while welcome, refer to a system in place since the 1920s.

What is really worrying from yesterday is that Chancellor Merkel responded to Prime Minister May by slapping down any parallel talks on trade while the negotiations are ongoing. The UK is traditionally our largest trading partner and we trade €1.2 billion in goods and services every week. Department of Finance officials have already stated that Ireland could face a 30% decline in exports to the UK and a significant rise in unemployment. We all agree the agrifood industry is the most significant industry, employing people right across the country. Exports will be impacted upon, as will trade between North and South. Over 800 million litres of milk are imported from the North annually and we export and import thousands of cattle to the North.

All of these statistics are impacting on consumer confidence as the British are already talking up trade deals between the US, Canada and South American countries. The Minister will come back and say the Government is prepared. How can he say we are prepared, particularly in regard to agrifood industry, when Bord Bia, the agency charged by the State and the Government with selling our industry, has only employed an extra three staff in its Brexit section?

Comment on this
Richard Bruton Minister for Education and Skills Fine Gael

I take the opportunity to express my sympathy on behalf of the Government to the family of the late Captain Mark Duffy, whose funeral is today and in whose memory the flag is flying at half mast. We also hope the other two families who are anxiously waiting will not have to wait long.

I thank Deputy Moynihan for his question. I can assure him the Government has entered into very long preparation for the event that occurred yesterday. This is certainly not of our choosing, I agree with him on that front, but we have done very deep sectoral SWOT analyses and looked at the strengths, weakness, opportunities and threats. The Deputy is right that there are threats to some sectors and opportunities in others. We have revised our trade strategy and job strategy and we have strengthened all of the agencies so they will be in a position to assist companies to diversify, train, adopt lean mechanisms, be more competitive in their markets and trade online. Many changes are being supported by our agencies to ensure companies are in a position to compete.

We have set out our priorities very clearly. Not only that, but we have a very clear track record. The Deputy will recall that, in the last six years, when economic trading conditions in Europe were the most difficult for decades, this Government adopted policies which helped grow employment by 2% per annum. We have 200,000 extra people back at work. That has been an export-led recovery based on stronger competitiveness and more diversification of our markets. We are in a strong position to deal with this decision by the United Kingdom.

We have secured support not just in Theresa May's letter, where very clearly one can see the Government's priorities reflected, but in that Michel Barnier has also indicated frequently his consciousness of Irish concerns. Those concerns have been very clearly set out by Government. We are preparing for the twists and turns of a very difficult negotiation. This is not a straightforward single line of travel. It will be very difficult and there will be issues that we will have to reflect on as they come. However, we have put ourselves in a very strong position, both with regard to our influence with key European partners among the 27, with Michel Barnier and the negotiating team and, indeed, with the British. We are prepared to participate to the full in these discussions and negotiations, which will have a profound impact on our country but which will also offer opportunities as well and we are equally prepared to seize those opportunities.

Comment on this

On behalf of my party, I would like to be associated with the expressions of sympathy to the family of Captain Mark Duffy and to all those involved in that horrendous accident.

I do not think the agrifood industry will take much solace from what the Minister has said. There is a huge industry out there and it is very important to note the talk-up by the British Government in regard to supposed trade deals with the US, Canada and South America. We have seen in recent days that the quality of food being produced in some of those countries leaves a lot to be desired. The Irish agricultural industry has built enormously over the past 25 years and goes back centuries. It has prided itself on following the regulations stringently to produce one of the best and safest food industries in the world. Despite Bord Bia being the agency of the State that is charged with marketing our products, it has only four extra key officials in light of Brexit. The Minister said the Government was strengthening the agencies. If that is strengthening the agencies on behalf of the agrifood industry, heaven help us.

Comment on this

The position is that our agricultural sectors are supported not just by Bord Bia but by Enterprise Ireland and by all of the international agencies. Indeed, all of our embassies are now very closely aligned to the export drive that our companies are achieving. We are determined to open up new pathways and, as the Deputy knows, Enterprise Ireland has developed a pathfinder programme which allows agricultural companies in particular to open up new markets where they have not been trading before. That approach has been very successful.

The Deputy is right that the agricultural sector is one of those sectors most exposed because it has traditionally had a very high dependence on the UK market. We have to support our companies to diversify, which we will do, but we also need to secure in these negotiations the protection of the standards which the Deputy rightly says Europe values. I assure him that not just Ireland, but Europe, will be determined to protect the high standards of food which are vital to quality for consumers and the workings of our markets. As I have been involved in many trade discussions, I know those will be high priorities not just for Ireland but throughout the European Union and for the negotiators.

Comment on this