I am seeking clarification and detail on the Brexit fund for small and medium-sized enterprises, SMEs, announced in Tuesday's Budget Statement. Connected to that is the issue of the European Union-Mercosur trade deal.

Agriculture is Ireland's largest indigenous sector with over 300,000 people employed directly or indirectly in the agrifood sector. County Tipperary has a proud tradition of excellence in the agrifood sector with many famous brands produced in the county. The Tipperary Food Producers organisation is a community of SMEs working in the agrifood sector in the county, showcasing the best of Tipperary food, with over 30 members producing quality artisan products such as Cashel Blue Cheese, Crossogue Preserves, Lough Derg Chocolates, Crowe's Farm bacon and many others. Their main concern is Brexit. Tipperary is also home to many dairy co-ops which process milk into a wide range of dairy products such as cheese, butter, milk powders and baby powder for the home and export markets.

Agriculture in Tipperary is an important employer supporting thousands of jobs in our rural economy. Ireland exports 90% of its agricultural produce which is worth €1.1 billion per year to the economy. The sector has already been hit by a dramatic fall in the value of sterling against the euro from 76 pence, just before the UK Brexit referendum in June 2016, to 89 pence currently.

It is against this background that I welcome the announcement in Tuesday's budget that a new €300 million Brexit loan fund is to be established for SMEs facing unknown Brexit challenges. Several representative groups have asked me about the detail of this particular scheme. To whom will it apply? What are its terms and conditions? They have also expressed concern that the loan applications would not be taken until next March.

What is the Government's position on the current Mercosur trading bloc deal, taking into account that the IFA stated it could reduce Irish beef prices by at least 30% which would inflict losses of €500 million per annum on the industry? Will the Tánaiste give me some detail on both these matters?

The new €300 million Brexit loan scheme will ensure there is affordable financing available to businesses which are either currently impacted by Brexit or could be in the future. For example, it could apply to the type of firms and businesses referred to by the Deputy which have a high dependence on the UK market and whose supply chain could be disrupted by Brexit.

The scheme is to ensure accessible finance is available to viable businesses at a lower rate of 4%. The scheme will be delivered through SCBI, Strategic Banking Corporation of Ireland, and will be provided through commercial lenders. A tender process will occur over the next several weeks and SCBI will have a website up by the end of this month with the details.

Although details have to be worked out in association with SCBI and the providers, there is agreement with and strong support for this scheme at EIB, European Investment Bank, level. We are confident about the introduction of this scheme. It will provide loans ranging from €25,000 to €1 million, and perhaps slightly beyond. The details are not finalised yet but they will become available in the next period. Firms will be in a position to apply and register their interest towards the end of September. The scheme will get under way in the new year.

I expect finance will then very quickly become available to appropriate firms that meet the criteria to be developed by the Strategic Banking Corporation of Ireland, SBCI, in association with the providers in the next period.

As regards the European Union-Mercosur trade deal, the Minister for Agriculture, Food and the Marine is working closely with other countries that have difficulties with the terms that are emerging, in particular regarding the beef sector. We are working with those like-minded countries. The Taoiseach raised the issue with the President of the European Commission, Jean-Claude Juncker, a little over a week ago in Tallinn. We are concerned by the deal because we are aware of the high dependency of the country on beef exports, in particular to the UK, and that any change or diversification of that market will take time. The prices are right in terms of exports to the UK and this issue is very challenging. We support trade agreements and, as an open economy, want to ensure the new trade agreements on which the EU is working are put in place but we also want to protect our vital sectors such as the beef industry as much as possible.

I appreciate the Tánaiste's clarification on the fund that is available. The reaction of people to the measure since it was announced leads me to believe €300 million will not be sufficient but it is a genuine effort to help small companies that have trading difficulties with the UK. There are many such companies and they are a huge source of employment, in particular in rural areas. I hope there will be flexibility and that additional funds will be made available to support them if required.

It is very important that the Government is aware of the impact on Irish beef farmers of the trade deal currently being negotiated and the difficulties that will arise in terms of the number of cattle that will be required to fulfil the deal. That will have an impact on beef prices and the Government needs to be very strong on this issue, in particular when one considers the traceability, labelling and quality standards of Irish beef compared with that which comes from South American producers. The products are not comparable and it is unfair and unjust for that type and quality of beef to be allowed into the European market. In particular, consumers should be aware that the deal is under negotiation. I believe they would object to inferior beef of that type being brought into the marketplace.

I assure the Deputy that the Minister for Agriculture, Food and the Marine, the Taoiseach and all other Ministers are very conscious of the situation he has outlined, the potential threat that exists and the possible impact it could have on the beef industry at a very difficult time. We will be working very hard, in particular with like-minded countries, to ensure we get the best deal possible.

As regards the demand for financial support, my Department has filed for a rescue and restructuring package of about €10 million with the Commission to ensure that is available should it be needed by companies that may be impacted by Brexit. The current €300 million scheme will be in place for two to three years: loans will be for periods of up to three years and the fund will run for two years. A longer-term fund is also being considered that would support businesses and provide funding over a six to seven-year period. We are conscious of the need to ensure finance is available to companies that may be impacted by Brexit in both the short and medium term.