This is a subscriber-only article
Support measures for Irish farmers in the case of a no-deal Brexit will only kick in after such a scenario happens, An Tánaiste Simon Coveney has said.
“At different times when there have been shocks to markets, the European Commission has been able to intervene,” An Tánaiste told the Dáil on Thursday, highlighting examples such as aid to private storage and the purchasing of milk powders when prices tanked in previous years.
However, intervention mechanisms would only “kick in after a crisis happens”, he said. Coveney's comments echoed those made by Minister for Agriculture Michael Creed last week in an exclusive interview with the Irish Farmers Journal where he said it was "unreasonable to say that we need to have a package that is ready to roll on 30 March 2019 when they [the UK] leave."
Minister Creed also said that "if there is a very significant hit... [the European Commission] will want to see the evidence of it".
Avoiding a crisis
An Tánaiste also said that it is the Governments job to make sure that we avoid a crisis.
"Even in no-deal [scenario], we will work to continue the trade between Ireland and the UK into the future,” he said, as Ireland looks for a tariff-free and barrier-free relationship.
He said that there is a need “to protect and shelter the agriculture sector in a worst-case scenario, it won’t be easy but we will do it”.
An Tánaiste was responding to questions from Fianna Fáil TD Lisa Chambers, who asked if the Government had sought a financial support package for Ireland.
She said that regardless of whether it was a soft or hard Brexit, Ireland would need support.
She also asked if Ireland had any contingency plans for a hard border on the island of Ireland.
Coveney replied that the Government had no contingency plans for such a scenario.
€2.50/kg no-deal Brexit beef price
Analysis by the Irish Farmers Journal shows that Irish beef prices could fall by €1/kg to a catastrophic €2.50/kg should the UK crash out of the EU.
If WTO tariffs of €780 on a typical 350kg carcase were applied, the cost to the Ireland’s beef sector alone would reach €700m in a year.
SHARING OPTIONS: