Dáil Éireann díospóireacht -
Wednesday, 9 Oct 2002

Vol. 554 No. 5

Written Answers. - Capital Investment Scheme.

Seán Ryan

Ceist:

363 Mr. S. Ryan asked the Minister for Agriculture and Food, in respect of the capital investment scheme for the marketing and processing of certain agricultural products, potatoes, 2001, the way in which the grant was allocated to a company (details supplied) when its application for grant aid towards the provision of potato and vegetable peeling line and expansion of processing and handling facilities with emphasis on providing freshly prepared potato chips for the catering sector, is clearly outside the sectoral priorities of the potato scheme, especially in view of the fact that individual growers, officials of Teagasc and the IFA were informed by officials in his Department that added value, processing, would not be considered under this scheme; and if he will make a statement on the matter. [16941/02]

Seán Ryan

Ceist:

364 Mr. S. Ryan asked the Minister for Agriculture and Food in respect of the capital investment scheme for the marketing and processing of certain agriculture products, potatoes, 2001, the way in which a grant was allocated to a company (details supplied) when its application for grant aid towards the provision of new washing, peeling, chipping and packaging equipment, is clearly outside the sectoral priorities of the potato scheme, especially in view of the fact that individ ual growers, officials of Teagasc and the Irish Farming Association were informed by officials in his Department that added value, processing, would not be considered under this scheme; and if he will make a statement on the matter. [16942/02]

Minister for Agriculture and Food (Mr. Walsh):

I propose to take Questions Nos. 363 and 364 together.

Under the capital investment scheme operated by my Department for the marketing and processing of certain agricultural products grant assistance is provided towards capital projects in the eggs, livestock, horticulture, grain and potato sectors which do not fall within the remit of the development agencies or are not covered by my Department's on-farm schemes. The guidelines for the scheme, including sectoral priorities and eligibility criteria, are set out in the scheme document which was provided to applicants at application stage.

The scheme document sets out the following broad sectoral priorities for the potato sector. The objective of the scheme is to speed up improvements in the marketing infrastructure of the potato sector by providing grant assistance towards the capital cost of facilities for the storage, handling and marketing of seed and ware potatoes. Grant aid is geared towards: construction of new storage and handling buildings; upgrading of existing storage and handling buildings, including provision of ventilation and insulation; acquisition-installation of storage-related equipment; and acquisition-installation of marketing equipment, for example, for grading, brushing, washing, packing, weighing, labelling, handling.

The marketing equipment listed was given as an example of the type of equipment which could attract grant aid and is not an exhaustive list. As the aim of the scheme is to encourage marketing and processing, it is open to my Department to fund items of equipment other than those given as examples if they contribute to the development of the sector.

My Department received 24 eligible applications in the potato sector seeking grant aid in the region of €10 million. As all of the applications met the broad sectoral priorities set out, and in order to allocate the limited available funding, it was necessary to assess, evaluate and prioritise the applications received. The applications were evaluated by reference to viability, target markets, their sectoral and regional impacts, particularly at primary producer level, and the extent to which they would improve the saleability of the primary product. Following the assessment process, six projects were approved for the award of grant aid.

On the information given by officials of my Department to individual growers and other organisations regarding projects involving processing, it was pointed out that projects involving a significant degree of processing fall within the remit of the development agencies rather than within the remit of my Department. However, as my Department's capital investment scheme is specifically designed for the marketing and processing of agricultural products it is logical that a basic level of primary processing should be allowable.

I am satisfied all of the successful applicants meet the sectoral priorities set out for the potato sector.