Byrne welcome for Brexit assistance funding

Over €1bn coming to Ireland from the EU Brexit Adjustment Reserve

Meath East TD and Minister for European Affairs, Thomas Byrne has welcomed the announcement of over €1bn to Ireland from the Brexit Adjustment Reserve, which was set up to help member states most affected by Britain's departure from the EU.

“I met virtually with Commissioner Johannes Hahn where he informed me of this much anticipated news of an initial allocation of over €1bn to Ireland and a further allocation in 2024. This funding from the Commission is much needed by the sectors and areas most negatively affected by Brexit” said Minister Byrne.

Ireland will initially receive about 25 per cent of the total €5.4billion fund, due to the impact of Brexit on the country. This 25 per cent represents by far the largest amount any member state has received. A portion of the fund will be proposed for trade effects and a smaller portion for fisheries, but Ireland will have flexibility to spend as it wishes on businesses and industries most impacted by the UK's exit from the EU.

“An Taoiseach Micheál Martin negotiated this fund at the European Council in July and Ministers and officials have worked tirelessly to ensure Ireland’s interests were protected. I look forward to the Commission’s proposal receiving support from all member states and the European Parliament” Minister Byrne concluded.

Aontú Leader & Meath West TD Peadar Tóibín has criticised the allocation of funding to Ireland by the EU from the Brexit Buffer Fund as simply not enough and which fails to recognise the unique vulnerability and proximity of Ireland to Brexit.

“When opposition parties were submitting their pre-budget submissions, there was an assumption that of the €5 billion Brexit Adjustment Reserve created by the EU and contributed to by Ireland, that a lot of that funding would go to Ireland," he said.

" Several pre-budget submissions assumed that at least €2 billion if not more would be allocated to Ireland. It has now been announced that we would receive only €1 billion, notwithstanding our particularly vulnerability to Brexit and proximity to Britain.”

Deputy Toibin continued: “The Irish government swore that after the EU budget deal, Ireland would be top of the queue in terms of receiving funding. Despite our vulnerability and proximity building, we only received €250 million more than the Netherlands. Our farmers, fishermen, our businesses are heavily reliant on Britain as a trading partner, and are more vulnerable to the ramifications of Brexit compared to their Dutch counterparts. This is the issue with the Brexit Buffer Fund, it is the division of €5 billion in funding amongst 27 states. It undercuts and underfunds Ireland’s needs to ensure every member state receives an allocation of funding. €1 billion will not recoup the losses of our fishermen or help our farmers or make it easier for border businesses to continue their trade both sides of the border. It is unquestionable that Ireland is the most vulnerable to Brexit by a country mile, the allocation of funding certainly does not reflect that fact.”

However, Irish Farmers Association president, Tim Cullinan, said the announcement that Ireland will receive over €1bn, or 25 per cent, from the EU Brexit fund in 2021 is clear recognition that we are most exposed to the fallout from Brexit.

Tim Cullinan said when it comes to allocating the funding, the impact on the agri-food sector will have to be central to any decisions.

“We will be making a strong case for funding to go directly to farmers who will take the brunt of any fallout from currency fluctuations and trade and logistical issues that will arise once the deal reached before Christmas works its way through the system,” he said.

“We have real concerns about how non-tariff barriers will impact on our ability to keep trade flows moving. Green Lanes have been implemented previously for food exports. These must be prioritised to allow us reach our markets,” he said.

Tim Cullinan also said the longer-term implication for our food exports could be the flooding of the UK market by cheap imports. “Farmers here on the island of Ireland and in the UK are steadfast in their view of standards,” he said.

"We know the UK agenda is to offer access to their food market to Australia, New Zealand Canada, the US and the Mercosur countries of South America in exchange for trade deals with those countries. If that happens, then the value of the UK market for Irish food exports will be cut and Irish farmers will suffer huge income losses, with knock-on effects on EU markets. The level playing field provisions built into this deal by the EU must stop any race to the bottom."

ICSA president Edmond Phelan has welcomed the announcement made by Minister Simon Coveney that Ireland is set to receive €1.05 billion in 2021 under the EU’s Brexit Adjustment Reserve.

He said: “News that the EU Commission has proposed that 25% of this important fund should be allocated to Ireland is testament to the fact that Ireland has been, and continues to be, the country most exposed to the economic fallout from Brexit.”

“ICSA is committed to ensuring that Irish cattle and sheep farmers receive a substantial piece of this fund. Uncertainty around Brexit has severely impacted prices since the referendum was passed in 2016. Those sectors are now in year five of wrangling with the severe economic repercussions of Brexit and must certainly now be a priority when it comes to allocating these supports.”

Mr Phelan said the signing of the Brexit trade deal in December has not eliminated the potential for Brexit to continue to impact prices for the foreseeable future. “The deal has not signalled the end of the Brexit disruption faced by cattle and sheep farmers. The UK has long since been our biggest market and the threat of that market being displaced by cheaper imports from around the world remains.”