Micheál Martin: Proposed tariffs 'would wipe out the beef industry'

The proposed introduction of tariffs by Britain on Irish exports would lead to 'Armageddon' in Irish farming, the Dáil heard.

Fianna Fail leader Micheál Martin said the announcement of a tariff regime by the British Government “would wipe out the beef industry”.

Many primary producers, including beef and suckler farmers, would go to the wall, he said.

“I refer to producers of cheddar cheese, poultry, lamb and pork. Such an outcome would devastate the rural Irish economy and sectors of our agricultural industry," he claimed during Leaders Questions. "The cost to the beef sector alone would be more than €800 million if these tariffs were ultimately to apply.”

Mr Martin said: “It is time for everyone to stand back and reflect.

I don’t think Ireland is as prepared as the Government likes to think.

He said it was important to have some shape “fleshed out” for an aid package for farmers and food producers fearful of market disruption because of tariffs.

The meat and farming industries have known a threat (from tariffs and a no deal Brexit) was possible for some time, he said.

A no deal would be devastating for rural Ireland, in particular, the border areas, he warned.

“This is nonsense, this carry-on.”

Mr Martin, on RTÉ Radio, said he would not get into “a petty party political row". If a no deal Brexit happens then tariffs will apply.

“The Government knows this is the elephant in the room.”

He added that it was understandable that if negotiations are underway “people are not going to show their hand”.

However, he called on the Government to face up to the challenges ahead and to be transparent.

Tánaiste Simon Coveney, in response, said the tariffs will be “very damaging” to trade and businesses, farmers and consumers in Ireland and the UK.

We will study the impact of these proposals carefully, together with our EU partners,” he said.

“The imperative is to work together, and with our EU partners, to ensure we deliver on the shared goal of avoiding a hard border, deal or no deal,” he added.

Mr Coveney added that in the event of a no-deal Brexit, the Government will seek further relaxation of state aid rules and EU support for businesses and agribusiness. In its contingency action plan, the EU Commission noted the specific challenges faced by Irish businesses and committed to helping Ireland find specific solutions, he said.

The Government, he said, is in close contact with the EU Commission on the matter of state aid supports.

In February, the EU Commission announced a relaxation of state aid rules regarding supports for farmers. Aid limits per farm were increased from €15,000 to €25,000, he said.

Mr Coveney said that should a no-deal Brexit occur, the Government will need to borrow money in that instance.

“We may well have to dip into a rainy day fund and we will have to work in partnership with the European Commission to protect vulnerable sectors that are exposed in the context of a no-deal Brexit and the type of tariff regime that could be imposed, as we saw this morning,” he said.

“It will cost money and it may well result in Ireland going back into deficit rather than staying in surplus should that be necessary but it would be wrong at this stage to raise expectations in terms of the amount of money we are speaking about,” he added.