Brexit and agriculture supports
Deputy Lowry raised the threat Brexit poses to farmers and beef producers, while praising the Tánaiste’s handling of the issue. The Tánaiste said a no-deal outcome would be very challenging and that contingency supports, including for beef and bloodstock, would be put in place.
Regarding Brexit, the world and its mother are conscious that Westminster and its parliamentary system are chaotic. It is a shambles of epic proportions and it is difficult to comprehend the magnitude of the disastrous management of Brexit by the UK Government and Parliament. That incompetence underlines how crucial it is to have stability of Government here and to have our Oireachtas united in defence of the national interest. It is fair and appropriate to acknowledge the solid contribution of the Tánaiste during a time of pending crisis by striking a correct balance throughout a complex process.
As a former Minister for Agriculture, Food and the Marine, the Tánaiste is aware that the UK and Ireland are each other's largest export market for food and drink. Therefore, it is the sector that is most exposed to any negative economic impact of the UK Brexit decision. Borders and tariffs between the UK and Ireland would have a disastrous effect on our agricultural industry. Therefore, access to the UK market is crucially important in all negotiations. If access is curtailed, a substantial trade agreement must be the main objective in negotiations whereby free trade for agricultural products and food between the UK and Ireland is established.
Proper contingency plans are needed as beef farmers are threatened with income reductions of up to 40%. The UK is a high-value market for beef with prices usually above the EU average. We are also aware that the UK leaving the EU potentially reduces the CAP budget by up to €3 billion annually. Teagasc estimates that farm incomes could fall by 26% putting the livelihoods of some 100,000 farmers involved in livestock and beef production in danger and resulting in thousands of job losses. This level of fallout will have catastrophic consequences throughout rural Ireland.
What plans are in place regarding a contingency trade agreement that will alleviate concerns regarding our access to the UK market and guarantee a free flow of agricultural products moving from here to the UK with the highest standards of quality being maintained?
I also wish to ask the Tánaiste about substantial structural and adjustment funding aids, which will be necessary for our farmers to ensure there is a smooth transition period and that trade either continues or resumes. Is the Tánaiste satisfied with the level of preparation regarding the bloodstock industry and the movement of race horses and bloodstock between here, Northern Ireland and the UK?
Comment on this
The issue raised by the Deputy points to the importance of getting a withdrawal agreement agreed because for farmers in the Republic of Ireland and, in particular, in Northern Ireland, a no-deal Brexit would be hugely challenging. In a no-deal scenario, there will be a very significant support package for farmers in the Republic. We are working with the European Commission to ensure the Commission plays its role in that as well.
We are fortunate to have a Commissioner for Agriculture and Rural Development who understands the Irish agriculture industry very well. However, in the context of a no-deal Brexit and the imposition of tariffs not only between Britain and Ireland, but also, potentially, between Northern Ireland and the Republic of Ireland, with goods coming south, the all-island economy as it functions today, from an agrifood and agricultural perspective, would be significantly disrupted. Therefore, our focus now is on working with the European Commission on how we would respond to that to keep people in business and protect farm incomes.
The beef industry is particularly impacted in this regard. Of the 130,000 farm families in Ireland, 100,000 get some income from beef, and 70,000 get all their farm income from beef. Of all our beef exports, 53%, which is about 85% of all the beef produced, is exported to the UK, which is the highest-paying market in the world. If one imposes significant tariffs on what is a tight-margin business, one does a lot of damage. We are aware of this, which is why this is not an inexpensive problem to which to respond.
The Department of Public Expenditure and Reform has been working with the Department of Agriculture, Food and the Marine and they have been preparing a contingency no-deal plan. Unfortunately, it will not be possible to have a contingency trade agreement in place, either between Ireland and Britain or between the EU and Britain, in the short term. This is why the British Government published its contingency plan regarding tariffs and the approach on the island of Ireland in the context of a no-deal. If a no-deal happens, Ireland and the EU and the UK will act independently of one another to protect markets, but it will be a very difficult period if that happens. As I said, we are in the process of finalising a detailed and significant plan to support farming through a no-deal, should it happen. The supports for farmers have already begun. In the most recent budget there was a package of approximately €78 million for farmers. I think about 830 farmers from Tipperary have applied for the new beef support programme, which is a €20 million plan, but we need to be straight with people here. If a no-deal Brexit happens, the pressures on agriculture and farming in Ireland will need a significant Government and EU response, and they will get that.
Comment on this
I welcome the Government's commitment but I must reiterate that there is a high level of fear and trepidation throughout the agriculture industry. Farmers and beef producers in Tipperary and throughout the country are concerned for their futures. They seek assurances from the Government, the kinds of assurances the Tánaiste is giving us today, that contingency plans will be in place to protect their livelihoods. They need to be confident that the Government will stand by the industry by providing the necessary market conditions and the financial support for survival. If he could, the Tánaiste might refer to the bloodstock industry.
Comment on this
Regarding beef, as I said, we have consulted widely and we will have a plan in place that will be approved and, I suspect, available before a no-deal happens in order that people know what supports will be in place immediately, should that contingency be necessary, which I certainly hope it will not be. I assure other Deputies that our plans are not based on hope; they are based on putting detailed contingency arrangements in place that are funded to deal with all eventualities.
Regarding the bloodstock industry, and I think this is also the case with the movement of animals from South to North in a no-deal scenario, there will be challenges in protecting against the spread of disease, so the appropriate systems will need to be in place to ensure that the integrity of the herd in the Single Market, from a disease management point of view, is protected.
That will pose difficulties because we will not support checks on the Border. This is part of the conversation we are having with the European Commission about how we might be able to do that.