Dáil Éireann Debate, Thursday - 15 March 2012
117 Deputy Willie Penrose asked the Minister for Agriculture, Food and the Marine if he will consider the introduction of a partial loan guarantee for pig farmers in order to enable them to restructure existing debt, which would be important in the context of ensuring their viability; and if he will make a statement on the matter. [14731/12]
View answerThe pig sector remains the third largest component of the agri-food sector, with production, prices and exports all growing significantly during 2011. The industry faces a number of challenges in the short and medium term and my Department will continue to assist the sector to resolve these issues.
One of the main issues affecting the industry at present is the availability of credit. This is an issue which predates recent banking difficulties and has long been a feature of the pig sector. My Department is in regular contact with banking representatives and has encouraged them to discuss requirements with sectoral agri-food interests. It is of course important that those seeking credit present a suitable business case with detailed cash flow projections. In this context the Department also facilitated contacts between Teagasc and the banking sector to provide seminars and training in relation to credit application. Any farming enterprises that feel they have not been treated fairly in relation to access to credit can contact the Credit Review Office, who will review their case.
The Department of Jobs, Enterprise and Innovation is currently working on the establishment of a Temporary Partial Credit Guarantee Scheme for small business. Primary production in agriculture, horticulture and fisheries are excluded from the scope of the scheme in the light of particular restrictions under the de minimis State Aid rules.
I can assure you that my Department and its agencies will continue to work closely with the industry to ensure that it can continue to develop and grow in accordance with the targets set out in Food Harvest 2020.
