Dáil Éireann Debate, Wednesday - 27 September 2023
119. Deputy Holly Cairns asked the Minister for Agriculture, Food and the Marine if his attention has been drawn to difficulties experienced by new producer organisations (details supplied) under the current financing arrangements; whether he would consider the introduction of partial upfront funding, such as is in operation in Denmark; and if he will make a statement on the matter. [41799/23]
View answerI have been made aware of difficulties experienced by this Producer Organisation and have received correspondence in relation to it.
All Producer Organisations (POs) are funded under a scheme as part of the European Maritime and Fisheries Fund (EMFF) Programme 2014-2020. Part A of the scheme provides supports of up to €55,000 to groups of fisheries or aquaculture producers working to achieve recognition as a PO. Part B of the scheme supports POs that have been recognised by this Department, up to a maximum of almost €100,000, for eligible expenditures specified in the scheme.
Part B of the scheme provides funding for eligible expenditures retrospectively and on submission and approval of a POs Production and Marketing Plan (PMP) and Annual Report. These payments are based on Simplified Cost Options, which are essentially fixed grants based on the past grant history of the beneficiary, or where a PO has no track record, actual expenditure in the previous year. There is no provision in the scheme to make advance payments. The current scheme as it stands will be closed in 2023.
Article 66 of the EMFF Regulation (508/2014) allows the Managing Authority for the EMFF Programme in any EU member state, to avail of a partial derogation, in that a 50% advance may be paid after approval of the Producer Organisations PMP. However, this derogation was not included in the terms of the Producer Organisation scheme, adopted at the outset of the Programme by the EMFF Monitoring Committee, of which the POs are members.
The Article 66 derogation was not availed of as advance payments require the sanction of the Minister for Public Expenditure, NDP Delivery and Reform, and in the absence of official data in the form of grant history, the derogation was not considered to be workable in practice as there is no data on which to base a 50% advance.
I cannot comment on how other EU member states implement the Article 66 derogation as it currently stands, as it is a decision for their EMFF Managing Authorities to consider.
There are seven Producer Organisations which have been or are currently eligible to apply for support under the scheme. None of these have been refused support for eligible expenditures which fall within the parameters of approved scheme.
Representations have been made by this Producer Organisation in particular to make advance payments, which cannot be accommodated under the current scheme as outlined above.
It will be a matter for discussion between my Department and DPENDR if consideration is to be given to allow advance payments under a potential new scheme under the new EMFAF programme 2021-2027.
