Aindrias Moynihan (Cork North West, Fianna Fail)
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61. To ask the Minister for Agriculture, Food and the Marine his plans to support wholesale tree nurseries that experienced damage from Storm Ophelia; and if he will make a statement on the matter. [46394/17]

Michael Creed (Cork North West, Fine Gael)
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I am very 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 €430m 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 €430m the hardy nursery stock sector and the protected amenity plant sector combined to contribute almost €51m in 2016 to the value of output at farm-gate level. This value was up from an estimated €44m in 2015.

While market prospects for amenity plant growers are certainly very positive, I am very 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 €5m 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.

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 on-going 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 €5m 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 €5m 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, fishermen, and food businesses in 2018 and further details about that scheme will be announced in due course.