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Dáil Éireann debate -
Tuesday, 9 Jun 1998

Vol. 492 No. 1

Other Questions. - Farm Enterprise Funding.

Jim Higgins

Question:

11 Mr. Higgins (Mayo) asked the Minister for Agriculture and Food if he will support an application to FEOGA for aid for phase I of a seed potato and daffodil growing enterprise (details supplied) in County Mayo; and if he will make a statement on the matter [13313/98].

I have examined this case and, while I support the project, because all of the FEOGA funds available under the food sub-programme have been allocated I am not in a position to provide grant assistance for it. However, in the event that additional funds should become available, through under utilisation or renunciation of awards made in the relevant sector, I will be happy to reconsider the case along with a number of other similar projects which it has not been possible to grant assist.

(Mayo): Does the Minister of State agree this is a classic case of a project that should be grant aided? The farmers concerned are very constrained in what they can do because of milk, beef and sheep quotas. We are talking about diversification into a traditional area which had ceased to exist, seed potatoes, and a new area, the daffodil industry, which is neither natural nor generic to the area. As small farmers are being enabled to stay on the land under the management of Moyvalley resources, everything possible should be done to encourage this enterprise. Unless it gets the necessary stimulation and encouragement by way of financial assistance, it is unlikely to be able to continue, much less develop.

I met representatives of North Connaught Farmers and the Moyvalley Association in Crossmolina. While we support this programme, we received £51 million worth of applications with only £16 million available. The capacity for potato storage under the food subhead programme was met well in advance of that. The potato sector received far more money than it should have. However, some other source of funding now available to the west might be looked at with a view to taking a share.

I support what Deputy Higgins said. I am glad the Minister met the delegation from the Crossmolina area and from Moyvalley Resources. If ever a project should have received support it was that one. I was amazed that the Department could not grant aid it.

A question please, Deputy.

Why could it not be grant aided? As Deputy Higgins said, Mayo was famous for seed potatoes in the past. This was an opportunity to grant aid a product for export. The Minister should reconsider the matter. He said he might be able to find the money in some other programme. It is worthy of support. Mayo is a black spot and if any area deserves some employment, that county should receive it. I am asking the Minister to reconsider the matter.

Like my own county, we were both out in the first round on this one.

There is no comeback.

I am very sympathetic to this project which, I believe, offers a new chance to farmers in that area. Unfortunately, only £16 million was available and applications totalled £51 million. The potato sector had already received more than its fair share of allocations but other funds may be used to help the project. In particular, there is a new environment agenda being set up for many young farmers who are more experimental and more adventurous in what they are trying to do. We will certainly do everything in our power to deal with the issue.

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