Catherine Murphy (Kildare North, Independent)
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Question 28: To ask the Minister for Agriculture and Food the number of grant approvals in relation to the scheme of investment aid for the development of the commercial horticulture since its inception; the amount per county; if the scheme has resulted in a growth in the number participating in the sector; the average grant paid; the number of growers who received the maximum allowable payment; and if she will make a statement on the matter. [18697/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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821 projects were approved for investment since the scheme commenced in 2001. The number of approvals, the level of grant aid approved and the value of investments approved per county is detailed in the table below.

While the above table gives details relating to approvals many projects did not proceed or were not grant aided for a variety of reasons. In excess of 400 horticultural producers proceeded and over €13m in grant aid was paid to support investments to the value of €38m.

The scheme continues to attract strong interest from producers. In 2006, my Department has approved proposals from 150 producers involving grant aid of €6.3m to support capital investments of €18m. The average grant paid to the end of 2005 was €32,500. The maximum grant payable per applicant over the period of the scheme is €444,500 and so far 3 producers have received up to the maximum limit.

The scheme has been of significant benefit to Horticulture Producers and to the overall development of the sector. While the number of growers has declined to a current estimate of 900, overall output has increased by 25% in the period to €300m in 2005. There has been considerable rationalisation of the sector, particularly in the mushroom industry with the result that the scale of operations of individual growers has increased considerably over the period. The sector now employs some 10,000 people across the production and distribution chain.

The grant aid scheme has been a major catalyst for improving the competitiveness and market orientation of the horticulture sector and preparing it for the challenges and opportunities that lie ahead. It is critical to the ongoing development of the sector at farm level given the capital-intensive nature of projects and large-scale investments required in some sectors.