Dáil debates

Thursday, 16 October 2014

Other Questions

Industrial Development

10:30 am

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

I thank Deputy Stanton for his question. There has been a significant increase in the number of micro-breweries operating in the last couple of years. It has been a successful sector for the country, as the Deputy pointed out. It is estimated that there are between 30 and 40 micro-breweries in Ireland, the majority of which are engaged in own production. These new businesses are located throughout the State and are a platform for regional job creation.

According to the Independent Craft Brewers of Ireland the output of craft beer by micro-breweries amounted to some 49,000 hectolitres in 2013. Based on trends to date, this will rise to 71,000 hectolitres in 2014. It is a sector that we need to support as best we can. That has been recognised in the budget.

In line with Enterprise Ireland’s mandate, the agency has and will continue to support those breweries with export potential. The services of the LEOs are available for those focused mainly on the domestic market. I think the craft brewers would agree that the LEOs work quite well for most people.

There are several supports available from Enterprise Ireland for companies setting up craft breweries with export potential. Initial supports include funding under the competitive feasibility fund and the competitive start fund to scope out the project and progress through the early stages of building the business plan.

Support under the mentoring initiative and the innovation voucher programme is also available to assist a company in accessing business development and technical support respectively. Supports are also available for research and development.

Enterprise Ireland has also invested in craft brewery high potential start-up companies. In these instances, the companies had a strong management team with experience in the brewing and beverage industry, actively building relationships with overseas distributors and doing so in conjunction with Bord Bia. Production capacity was also a key, with brewing taking place in Ireland and equipment having the capacity to fulfil both home sales and export orders.

To further assist the development of this sector, in budget 2015 the Government has increased the annual excise relief production ceiling for micro-breweries from 20,000 to 30,000 hectolitres. That is what the Independent Craft Brewers of Ireland had sought in their budget submission.

Under EU rules, however, supports are not available for the production of hops or cereals generally.

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