Consultative Committee of Stakeholders on Brexit

1st Meeting – Thursday 7th July, 2016 at 11.00am

Venue: Agriculture House

Minutes

Attendance:

Department of Agriculture, Food & the Marine

Minister Michael Creed (introduction only)

Aidan O’Driscoll, Secretary General (introduction only)

Brid Cannon, Assistant Secretary General (Chair)

Paul Savage, Head of EU/International Trade Division

Josephine Kelly, Head of Sea Fisheries Policy Division

Áine Kilroy, Special Adviser to Minister Creed

Jonathan Hoare, Special Adviser to Minister Creed

Karen Hanlon, EU/International Trade Division

Mary Curley, EU/International Trade Division

Organisations

Tara McCarthy, Bord Iascaigh Mhara

David Kennedy, Bord Bia

Paul Boyd, Clogherhead Fishermen’s Co-op

Donal McCarthy, Commercial Mushroom Producers

Ciaran Fallon, Coillte

Eddie Hughes, Enterprise Ireland

Paul Kelly, Food and Drink Industry Ireland

Michael O’Rourke, Horse Racing Ireland

Damien McDonald, Horse Sport Ireland

Ross MacMathúna, Alcoholic Beverage Federation

John Enright, Irish Creamery Milk Suppliers Association

TJ Flanagan, Irish Co-operative Organisation Society

Eddie Punch, Irish Cattle & Sheep Farmers’ Association

Conor Mulvihill, Irish Dairy Industries Association

Rowena Dwyer, Irish Farmers’ Association

Mark McAuley, Irish Forestry and Forest Products Association

John Kirwan, Irish Fish Producers Organisation

Geraldine Larkin, Irish Greyhound Board

Aoife MacEoin, Irish Egg Producers

Denis O’Flaherty, Irish South & East Fish Producers Organisation

Brendan O’Driscoll, Irish South & West Fish Producers Organisation

Shane O’Dwyer, Irish Thoroughbred Breeders’ Association

Ted Breslin, Killybegs Fishermen’s Organisation

Sean Finan, Macra na Feirme

Philip Carroll, Meat Industry Ireland

Trudy McIntyre, National Inshore Fisheries Forum

Anne Randles, ORNUA

Cathal O’Donoghue, Teagasc

Meeting Agenda

  1. Introduction by Minister Michael Creed
  2. Regulation of Lobbying Act 2015
  3. Department presentations on Brexit
  4. Presentations by Agencies
  5. Discussion

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  1. In his opening remarks, Minister Creed emphasised the value of ongoing engagement with the relevant stakeholders and agencies, and looked forward to their constructive input in assessing the challenges facing the Irish agri-food and fisheries sectors following the UK’s decision to leave the EU. The Minister commented on the need for a calm and measured approach, and noted that the future EU-UK relationship will depend on the outcome of the exit negotiations, which is unlikely to be clear for some time yet. The Minister stressed the importance of achieving the best possible outcome for the Irish agri-food and fisheries sectors once the exit negotiations get underway.
  1. The Committee was made aware of the requirements under the Regulation of Lobbying Act 2015. As the Committee has been appointed by the Minister, it is exempt from registration requirements under the Act but will operate within its Transparency Code. The provisions of the transparency code require that information pertaining to the Committee such as the membership of the committee, reports of meetings, etc. will be published on the Department’s website.
  1. Brid Cannon (Chair) updated the Committee on the Department’s analysis of the potential implications that the UK decision to leave the EU is likely to have for the Irish agri-food sector,and outlined the exit process.

Josephine Kelly, Head of Sea Fisheries Policy Division, outlined the complexities that arise for the fisheries sector.

The specific difficulties created for transnational producer organisations in the fruit and vegetables sector were also noted.

  1. Bord Bia, Enterprise Ireland and Bord Iascaigh Mhara (BIM)provided the Committee with an update on their activities in the wake of the referendum outcome, particularly in relation to addressing the immediate impacts of exchange rate volatility.
  1. In the discussion that followed, there was general consensus that the free movement of goods would be the best possible outcome for Ireland in the exit negotiations and that Ireland should maintain a strong negotiating position. Points raised included:-
  2. Currency volatility – the fall in the value of sterling is causing particular problems for the forestry and mushroom sectors, although is being keenly felt across all sectors, including beef, alcoholic beverages and prepared consumer foods. The threat of cheap imports (including cross stocking and grey market) causing displacement of domestic produce on shelves was also a concern;
  3. Access to credit and high associated costs – suggested that State Aid rules be reviewed in the event that UK decisions have a negative impact on Ireland;
  4. Expansion of access to new markets is important - trade missions should be accelerated further, and it is important to relay the message that Ireland is not part of Brexit and that it is open for business;
  5. Cost competitiveness – the cost of doing business in Ireland is something that needs to be looked at in more detail, i.e. we have higher costs than many of our EU counterparts in areas such as insurance, energy, credit and legal costs;
  6. The implications for EU trade negotiations such as Mercosur and TTIP, which have been conducted to date on the basis of an EU of 28 Member States;
  7. Consumer confidence – potential risk in the UK and its impact on Irish products;
  8. Country of origin labelling, and the UK’s approach to this issue following its exit from the EU;
  9. Environmental targets – water quality issues and cross-border implications;
  10. Implications for EU research funding, particularly for cross-border projects;
  11. Issues associated with the transit of, for example, equipment and feed across a new EU/UK border;
  12. For farmers who farm on both sides of the border, concerns were raised onthe impact a UK exit will have on their entitlements under the Basic Payment Scheme, as well as their ability to implement the 170kg rule under the EU Nitrates Directive.

In conclusion, the Chair acknowledged the points raised by the agencies and undertook to carefully consider the comments and suggestions made. She indicated that future meetings of the Consultative Committee will take place as required.

EU Trade Division

12th July, 2016.