Written answers

Thursday, 31 May 2018

Department of Agriculture, Food and the Marine

Brexit Issues

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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161. To ask the Minister for Agriculture, Food and the Marine the status of the Brexit loan scheme for the agrifood sector outlined in budget 2018; the amount of the €25 million allocated to the scheme that has been drawn down; the number of businesses that have been assisted; and if he will make a statement on the matter. [24208/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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One of my priorities is to improve access to finance for the agri-food sector. Food Wise 2025 identifies competiveness as a key theme and includes a recommendation that stakeholders work to “improve access to finance for agriculture, forestry and seafood producers and agri-food companies”.

Recently I launched the new “Brexit Loan Scheme” in cooperation with the Minister for Business, Enterprise and Innovation and the Minister for Finance, which will provide up to €300 million of affordable, flexible working capital finance to Irish businesses that are either currently impacted by Brexit or who will be in the future. The Strategic Banking Corporation of Ireland (SBCI) are administering the Scheme and use €23million in public funding, along with the EIB Group’s InnovFin SME Guarantee Facility, to leverage the loan fund. Given its significant exposure to the UK market, my Department has contributed €9million, ensuring at least 40% of the fund will be available to food businesses. This is the only sector that has ring-fenced funding.

The Scheme was opened on the 31st March 2018 and will remain open until 31st March 2020, or until it is fully subscribed.  The SBCI receives and analyses loan data from the participating banks on a quarterly basis and have informed my Department that the first official data relating to the Scheme will be available on completion of its first quarter, i.e. to 30th June 2018.

This Scheme was modelled on the Agriculture Cash Flow Loan Support Scheme, through which I made €145 million of working capital finance available to farmers at low-cost interest rates of 2.95%. That Scheme was developed by my Department in co-operation with the SBCI in order to mitigate the effects of lower commodity prices in some agriculture sectors in 2016 and 2017 and the impact of the change in the sterling exchange rate arising from Brexit.

I announced in Budget 2018 that my Department is considering the development of potential Brexit response loan schemes for farmers, fishermen and for longer-term capital financing for food businesses and that €25 million is available for this purpose. These schemes are developed and delivered in cooperation with the SBCI and take time to develop and operationalise. Consideration and discussions are ongoing in this regard and I will announce further details on this as they become available.

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