Jackie Cahill (Tipperary, Fianna Fail)
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47. To ask the Minister for Agriculture, Food and the Marine the financial supports or emergency funds that are available to the nursery sector to alleviate the financial loss and the threat to jobs in the sector due to the recent Storm Ophelia; and if he will make a statement on the matter. [46943/17]

Jackie Cahill (Tipperary, Fianna Fail)
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In the past month or six weeks, extraordinary weather events have done damage to the horticultural sector. What plans does the Minister have for financial aid or emergency support for the sector?

Michael Creed (Cork North West, Fine Gael)
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I thank Deputy Cahill for his question.

I am aware of the damaging effects of Storm Ophelia on many sectors, including agriculture and horticulture. This is most regrettable as the horticulture sector is experiencing strong market demand after a number of challenging years. I am confident that as our economy continues to grow the nursery sector will likewise prosper.

In 2016, Ireland's horticulture sector contributed over €430 million to the value of output at farm-gate level. The horticulture sector is estimated to be directly responsible for over 6,600 jobs with many more employed indirectly, both upstream and downstream. Within the total horticulture farm-gate output value of €430 million, the hardy nursery stock sector and the protected amenity plant sector combined to contribute almost €51 million in 2016 to the value of output at farm-gate level. This value was up from an estimated €44 million in 2015.

While market prospects for amenity plant growers are certainly very positive I am conscious of the challenges, not least from the recent storms, currently facing the industry and my Department, along with the various State agencies, Bord Bia, Teagasc and Enterprise Ireland, are working closely to support the industry through a number of measures.

The scheme of investment aid for the development of the commercial horticulture sector is the main support offered by my Department to the amenity or nursery sector. This scheme facilitates capital investments in a broad range of specialised horticultural equipment and buildings by providing grant aid on approved costs at a rate of 40%. In the case of young applicants under 35 years of age the rate of grant aid increases to 50%.

This scheme is highly regarded by the industry and is an excellent vehicle for investment in all sectors of the horticulture industry. I sought an increase in the budget allocation for the scheme in 2017 and this increase has been maintained through the allocation of €5 million for the scheme in 2018. In light of the sectoral demand, I am working to advance the launch of the 2018 commercial horticulture scheme. A timely launch of the 2018 scheme is recognition of the most recent challenge to the sector but is also a clear signal of my continued support for, and commitment to, its ongoing development.

Under the scheme, €6.4 million in grant aid has been paid to applicants from the nursery stock and related amenity plant sectors over the period 2008-2016. This has supported investment of almost €16 million by the sector. In the current year a further €1.1 million in grant aid has been allocated under the scheme to 29 applicants from the nursery stock and related amenity plant sectors.

Additional information not given on the floor of the House

This year, approvals under the scheme were issued to an overall total of 156 applicants across the horticulture industry. Many of the 2017 scheme applicants have already been inspected and paid. The processing of more recent claims is ongoing and every effort is being made to deliver payments as quickly as possible to assist growers that may be facing cash flow issues. For 2017 the commercial horticulture grants scheme was allocated a budget of €5 million and my staff advise me that they expect the full budget available for the scheme this year will be utilised.

Maintaining the increased allocation of €5 million in funding for the 2018 scheme of investment aid for commercial horticulture reflects this Government's commitment to ongoing support for Ireland's horticulture sector. The competitive nature of the commercial horticulture grants scheme combined with the scheme's flexibility and ability to react to evolving situations are two key strengths in supporting this highly dynamic sector.

Growers, including amenity plant nurseries that wish to apply for the scheme are encouraged to prepare and submit their applications as soon as possible.

In terms of other supports for the sector I would also like to add that the "SBCI loan scheme" launched in last year's budget was a great success and a number of horticultural businesses have benefitted from these low interest loans. As part of the recent budget, €25 million has been secured to facilitate the development of a new Brexit response loan scheme for farmers, fisherman and food businesses in 2018 and further details about that scheme will be announced in due course.

Jackie Cahill (Tipperary, Fianna Fail)
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With respect, the Minister outlined the importance of the sector and no one will question that. The question we asked was, with the extraordinary circumstances they found themselves in, what financial help or emergency funding is there?

We saw the mushroom sector virtually abandoned when Brexit hit and a number of growers went out of business. The nursery sector, in particular, is a significant employer. They have long-term contracts. I visited a major nursery in my constituency employing 20 and it had contracts. They had plants sown they will sell in three or four years' time. Unfortunately, many of those plants are now badly damaged. Not only have they the loss of those plants but, if they are to keep their customers going forward, they will have to source plants somewhere else to fulfil the contracts to which they are committed. There are significant financial pressure on this sector. I merely picked out the nursery sector as it is labour and capital intensive. If they do not get emergency financial assistance, there will be significant closures in this sector. While the Minister outlined the importance of the sector, he is not focusing on the immediate problems that they have.

Michael Creed (Cork North West, Fine Gael)
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I do understand. It is like a whole host of other sectors. Deputy Cahill, with his background in the dairy sector, will be aware that dairy farmers suffered losses during Storm Ophelia, as did a host of other businesses.

I am saying there is a scheme of grant aid available from my Department and the 2018 scheme launch is imminent. I would ask Deputy Cahill - I appreciate the specific point which the Deputy raises regarding the enterprise in his constituency and I know of those in my own county and, indeed, in my constituency - to look at this scheme because post Storm Ophelia there is a range of investment, reinvestment and repair required. I am convinced that there is sufficient latitude to cover some of those issues which need to be addressed within that scheme.

Pat Gallagher (Donegal, Fianna Fail)
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We are on the last question now. The next supplementary question is from Deputy Jackie Cahill, to be followed by Deputies Aindrias Moynihan and Kevin O'Keeffe, with the Minister to conclude thereafter.

Jackie Cahill (Tipperary, Fianna Fail)
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I accept what the Minister is saying in terms of grant aid being available going forward but they have a cashflow crisis at the moment. In order for them to survive and to be in a position to benefit from the scheme that the Minister is planning to introduce in 2018, they need immediate help. At a meeting of the Joint Oireachtas Committee on Agriculture, Food and the Marine a number of weeks ago we discussed the situation of potato growers in Donegal following flash flooding there. Again, the number of growers involved is not huge but if they do not get some help now, they will not be around to avail of any grant aid in the future.

The Minister has great plans for the sector and it is a sector with huge potential. However, if we do not step in to help them with their immediate cashflow and income problems, they will not be able to avail of any schemes going forward. They are very significant employers in rural areas where employment opportunities are very scarce. While the plans for the future of the sector are fine, unless we put emergency funding in place, they will not be around to avail of any grant aid.

Pat Gallagher (Donegal, Fianna Fail)
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The next supplementary question is from Deputy Moynihan, who tabled a similar question, Question No. 61.

Aindrias Moynihan (Cork North West, Fianna Fail)
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As was outlined, the sector has taken a fairly heavy hit from the storm, with some companies facing losses of between €50,000 and €100,000. I understand that the Minister is talking about introducing a scheme and I would ask him to outline the details of same. I fear that it is a capital scheme whereas the biggest losses these companies have suffered is in terms of product losses and labour costs incurred in making repairs and so forth. Trees worth between €500 and €3,000 were lost but these will not be covered in any capital scheme. Support is needed in this area because if these businesses go to the wall, gardeners, landscapers and local authorities will end up importing trees from other parts of Europe. That will leave us exposed in the context of bio-security. Has the Department examined the bio-security implications of this against the background of Dutch elm disease, ash die back and so forth? This must be considered in the context of us losing our tree growing sector.

Kevin O'Keeffe (Cork East, Fianna Fail)
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I thank Deputy Jackie Cahill for submitting this question. I acknowledge that the Minister of State, Deputy Andrew Doyle, is working on this issue but speed is of the essence here. As the Minister knows, this is the busiest time of the year for nurseries in terms of fulfilling orders. They are busy taking orders from customers while at the same time, they are trying to salvage their nurseries. The Minister spoke about grants being made available but what will qualify for such grants? One of the biggest outlays will be the provision of bamboo substitutes, which will have to be imported. It is fine to talk about capital grants but would items like bamboo qualify for grant aid? An immediate answer is needed on that because that is one of the major costs that will be incurred by the nurseries.

Michael Creed (Cork North West, Fine Gael)
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I thank the Deputies for their supplementary questions on this matter. I acknowledge that there is a concentration of these enterprises in Cork and Tipperary and it is understandable that the Deputies here would be raising this matter. Storm Ophelia delivered losses to a whole range of producers, not just producers in the nursery sector. There has not been a scheme of compensation for any sector, whether one is talking about farmers who lost crops, dairy farmers who lost milk or the nursery sector.

There is a grant scheme and I would encourage the sector to engage with my Department's officials on this. It is a good scheme and one that has been availed of previously. It will not deal with crop loss, in terms of stock, but there is sufficient latitude within the scheme to cover some of the associated costs of the storm, in respect of ancillary supports, production facilities and so on which may be covered. I would advise each of those enterprises to explore, through contact with departmental officials, how they may be in a position to benefit from the scheme.