Martin Kenny (Sligo-Leitrim, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

553. To ask the Minister for Agriculture, Food and the Marine the number of applications received for the seafood processing capital investment scheme; the number of applications that were not accepted to the scheme in increments (details supplied) in each of the years 2014 to 2016, in tabular form; the amount that was allocated in each of these years [24206/17]

Martin Kenny (Sligo-Leitrim, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

554. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 471 of 28 March 2017, the reason much of the approved funding under the seafood processing capital investment scheme was not drawn down. [24207/17]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 553 and 554 together.

Ireland's €240 million European Maritime and Fisheries Fund (EMFF) Operational Programme 2014-2020 was adopted by the European Commission in December 2015 and officially launched in January 2016.  A Seafood Processing Capital Investment Scheme features in the Programme and was launched in 2016. Prior to 2016, a somewhat similar scheme operated under the EFF Seafood Development Programme 2007-2013.  Both schemes are implemented by Bord Iascaigh Mhara and focus on incentivising private investment in seafood processing facilities to add value to fish raw material through increased processing and production of value added seafood products.  Food Wise 2025 aims to see the amount of fish sold in commodity form drop from 70% to below 50% through increased value added processing.

The table attached sets out the details requested concerning the number of applications in each year 2014 to 2016, total grants awarded and total grants paid out in those years. The second table shows the number of applications not approved in each year.  As you will see, no applications were refused in either 2014 or 2015 and 4 were not approved in 2016.  In general, very few applications tend to be rejected, as BIM assists potential applicants with advice on eligibility.  Where an applicant is deemed not ready to proceed with a project, the applicant is generally steered by BIM to other areas of support, such as business planning, in order to bring them up to the required standard.

Experience has shown that not all funds approved under the Scheme are drawn down by the applicants.  There are a variety of reasons for this.  Some applicants deliver a project at lower cost, and so the grant paid reduces because it is a percentage of actual costs incurred.  Some projects do not proceed at all or are deferred by the applicant as the business environment for the investment has changed.  For example, a number of approved investments in salmon processing facilities in 2016 did not proceed as the market price of salmon increased, reducing the economics of the value-adding investment planned.  Some other projects encounter unforeseen planning difficulties with their building proposals. 

Applications not approved