Charlie McConalogue (Donegal, Fianna Fail)
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770. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 246 of 16 June 2016, that in order to include a financial instrument as a measure in the rural development plan, an ex ante evaluation is necessary which can take between three months to a year to complete, the progress to date on this task; the approximate timeframe for the completion of this assessment; and if he will make a statement on the matter. [26453/16]

Michael Creed (Cork North West, Fine Gael)
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I am considering the introduction of Financial Instruments (FIs) in Ireland's Rural Development Programme as they can offer an alternative  or complementary form of support to traditional grant based funding. They can take the form of equity or quasi-equity investments, loans or guarantees, and may, where appropriate, be combined with grants.

As required by EU Regulation, and in order to identify market need, the contract for an Ex-ante Assessment for the use of Financial Instruments (FIs) within Ireland’s European Agricultural Fund for Rural Development (EAFRD) as well as within the European Maritime and Fisheries Fund (EMFF) Operational Programmes was awarded to Indecon on 31 August, 2016, following a competitive tendering process. An Ex-ante Assessment Report will be completed by end December, 2016.

Once the Report is received it will be carefully considered and  a decision can then be made on whether or not to implement a FI. If a decision is made to proceed with FIs then an agreement must be reached between the Department and any other potential stakeholders/financial institutions on a clear investment strategy that is developed from the gaps, if any, identified in the ex-ante assessment.  Funding for such FIs is expected to come from the existing EAFRD and EMFF allocations.  Following the development of an investment strategy, an appropriate amendment would have to be made to the Operational Programme(s).