Written answers

Tuesday, 28 June 2016

Department of Agriculture, Food and the Marine

Credit Availability

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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486. To ask the Minister for Agriculture, Food and the Marine the status of farmers' requirements for low-cost credit (details supplied); and if he will make a statement on the matter. [18375/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I am fully aware of the pressures on farmers right now and I have committed to working with all the stakeholders, both at national and EU level, to address these issues and ensure that we continue to have a sustainable and resilient sector. One of my priorities is to support the provision of lower-cost, more flexible finance for the sector.

Access to finance was discussed at the Dairy Forum on 21 June, with an exchange of views with the main banks now a part of the agenda at each meeting. Before the meeting I formally launched the Dairy Forum’s ’Financial Management Initiative’, a programme of cash flow and financial management training and advice for dairy farmers. I believe that equipping farmers with better financial planning skills is essential and I am encouraging all farmers to engage with this initiative.

Access to finance was also discussed at the meeting of the Food Wise 2025 High Level Implementation Committee earlier this month and we heard from representatives of the Strategic Banking Corporation of Ireland (SBCI) and the Irish Strategic Investment Fund (ISIF). Both are now active in the market and my Department, in cooperation with all the other State bodies, will continue to explore additional funding mechanisms for farmers, the agrifood sector and for SMEs generally.

I also recently met with the CEOs of the main banks and stressed the need for them to be flexible in the context of increased income volatility. The banks told me that they recognise and are responding to the challenges facing farmers in this regard.

In addition, my Department is about to publish a request for tender to procure an ex-ante assessment to assess any current failures in the access to finance market in Ireland. This is a first step towards the potential introduction of Financial Instruments under the Rural Development Programme.

With specific reference to the more flexible State aid provisions announced by the EU Commission, I am working with all the financial institutions, particularly SBCI, to identify potential solutions to working capital finance for farmers experiencing liquidity gaps. I should point out that these flexibilities do not involve the provision of EU funding.

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