Michael Creed (Cork North West, Fine Gael) | Oireachtas source

One of my priorities is to improve access to finance for the agrifood sector. Food Wise 2025 identifies competitiveness as a key theme and includes a recommendation that stakeholders work to "Improve access to finance for agriculture, forestry and seafood producers and Agri-food companies".

I launched a new Brexit loan scheme on 28 March in co-operation with the Ministers for Business, Enterprise and Innovation and Finance, which will provide up to €300 million of affordable, flexible working capital to businesses that are currently affected by Brexit or that will be in the future. The scheme will be available to SMEs and mid-cap businesses. My Department’s funding model ensures that at least 40% of the fund will be available to food businesses, particularly in light of their unique exposure to the UK market. The finance will be easier to access, more competitively priced, at a proposed interest rate of 4% and at more favourable terms than current offerings. This will give Brexit-affected businesses time and space to adapt and grow into the future. The scheme will remain open until 31 March 2020.

I announced in budget 2018 that my Department is considering the development of potential Brexit response loan schemes for farmers and fishermen and for longer-term capital financing for food businesses. These schemes are developed and delivered in co-operation with the Strategic Banking Corporation of Ireland, SBCI, and take time to develop and operationalise. Consideration and discussions are ongoing in this regard and I will announce further details as they become available.

While continuing to explore additional funding mechanisms, I also liaise with the main banks on issues relating to the agrifood sector, all of which have specialised products available and have expressed a commitment to servicing the future financing needs of the sector.

The Deputy asked about a €25 million low-cost loan scheme. The €25 million is the cost to the Exchequer of the scheme. This money will come from my Department's Estimate. I anticipate that the loan fund will be multiples of that, as was the case in the initial venture we had here and the €150 million low-cost loan scheme. It is my intention that the criteria relating to the scheme will be published in 2018.

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