Brexit support for agriculture
Deputies McConalogue and Kenny pressed for clarity on supports for agriculture in a hard Brexit, especially after the UK’s tariff announcement. Minister Creed said the Department was analysing the proposals and had previously estimated full WTO tariffs could cost exports about €1.7 billion.
Following on from the contribution of the leader of Fianna Fáil, Deputy Micheál Martin, on Leaders' Questions, I ask the Minister for Agriculture, Food and the Marine, Deputy Creed, for clarity regarding the plans he has in place, if any, to properly support the agriculture sector in the event of a hard Brexit. Yesterday, the British Government published the types of tariffs it will put in place in the event of a hard Brexit. With two weeks to go to Brexit, it is time for clarity from the Minister regarding the supports that will be available to the agriculture sector. As the Minister is aware, the sector is currently under significant pressure and in crisis. It is simply unacceptable that it is totally in the dark as to what the response and support from the Government and the European Commission will be if the worst comes to pass in terms of a hard Brexit in two weeks.
Comment on this
This morning, the British Government announced tariffs relating to a range of agricultural produce. Although most Members recognise that much of this is play-acting and that the British Government is not really serious about this, with it being regarded as a temporary tariff situation, if there is a crash-out at some point, as is likely in the coming three or four months if not within the next two weeks, we will have to deal with those tariffs. The only workable option I can see is for the European Union to provide a fund to assist to pay the tariffs. I refer to Irish beef in particular, a significant proportion of which is sent to the UK and which simply cannot be put into intervention or stored. There is no option other than to provide it to the market that wants it and try to cover the tariffs until alternative markets can be found. Is the Minister looking at that option?
Comment on this
I thank the Deputies for their questions. As they will be aware, some time ago my Department quantified that the additional cost to our exports to the UK if it decided to apply the full WTO tariff would be in the region of €1.7 billion. The UK Government this morning proposed a unique and bespoke approach to tariffs, as it is entitled to do in the context of its trade with the European Union. We are carrying out a detailed analysis of those proposals. For example, the equivalent of the full WTO tariff is proposed for some commodities, whereas for other commodities it is half or less than half the full WTO tariff. A broad selection of options has been laid out by the UK. As the Deputies are aware, the Government has been engaged with the Commission. In fact, even today a senior team from my Department is in negotiations with the Commission on all of these issues and the interventions that may be necessary. However, we can only respond when an action is implemented. The British Government has put forward a proposal regarding what would happen in the event of a no-deal Brexit. However, as the Deputies are aware, there will be a vote this evening in the House of Commons which could take a no-deal Brexit off the agenda. I assure the Deputies, farmers and the agrifood industry generally that there is a commitment to intervene at Commission or Exchequer level to provide the supports that may be necessary in the case of a no-deal Brexit.