Dáil Éireann Debate, Wednesday - 2 November 2016
384. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine his plans to utilise existing state aid rules and the temporary concessions allowed to provide lower cost financial support to assist farmers through the income crisis of 2016 and beyond; and if he will make a statement on the matter. [32665/16]
Amharc ar fhreagra386. Deputy Jackie Cahill asked the Minister for Agriculture, Food and the Marine if Ireland’s €11.1million share of the July 2016 EU aid package for dairy and other livestock farmers will be matched with national funding, as the EU allows; the way he plans to utilise the potential €22.2million to support farmers’ cash flow, under pressure from low produce prices and accumulating merchant credit, utility, superlevy and tax bills; and if he will make a statement on the matter. [32663/16]
Amharc ar fhreagraI propose to take Questions Nos. 384 and 386 together.
In view of the sustained period of lower commodity prices and the cash flow difficulties this has caused for farmers in several sectors, I have committed to working with all the stakeholders at National and EU level to address the issues involved and to ensure that we continue to have a sustainable and resilient sector. One of my priorities is to support the provision of lower-cost flexible finance . Therefore I was pleased to announce on Budget Day, plans for a €150 million fund for 'Agri Cash Flow Support'.
The provision of €11.1 million in EU funding for milk and other livestock farmers under the exceptional adjustment aid package will be supplemented by €14 million in National funding from my Department. The €25 million total will enable the SBCI to leverage a fund of €150 million, thereby maximising the support for farmers from the available public funding; and will provide for loans to be made available to non-livestock sectors, including tillage and horticulture, under de minimis State Aid provisions.
This fund will support highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95%, which will represent a significant saving to farmers when compared with other forms of finance currently available. The loan fund is part of a “three pillar strategy” in response to income volatility that I announced in the recent Budget, along with additional tax measures and farm payments.
Further details of the loan fund will be provided shortly but it is expected that it will be operational as soon as possible in 2017. The Strategic Banking Corporation of Ireland (SBCI) will make an open call for lending institutions to participate and I have spoken to the main banks to encourage them to make this facility available to their customers. Normal lending assessment criteria will apply although the loans will be ‘unsecured’ in nature, thereby facilitating a more straightforward application process.
