Charlie McConalogue (Donegal, Fianna Fail)
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681. To ask the Minister for Agriculture, Food and the Marine if he is considering the proposal from an organisation (details supplied) to support agrifood companies that export product to markets, a tool that other EU member states have deployed; if he or his officials discussed the issue with the Minister for Business, Enterprise and Innovation and her officials; and if so, the agreed next steps. [7836/20]

Michael Creed (Cork North West, Fine Gael)
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As the Deputy will be aware, policy in relation to export credit insurance is the responsibility of my colleague, the Minister of Business Enterprise and Innovation.

Officials in my Department are actively engaging with agri-food sector stakeholders to discuss various challenges arising from the COVID-19 pandemic, including those related to exports. They also participate in cross-Departmental mechanisms to ensure that appropriate and effective supports are available to all businesses.

With regard to the challenges currently faced by agri food businesses, I have engaged with the banks on the specific liquidity and financing needs of farmers, fishers and agri-food businesses and have stressed the need for the banks to support and work with their customers through this challenging period. All the banks have announced that they will offer flexibility to their customers, and that they may be able to provide payment breaks or emergency working capital facilities. The advice is that farmers, fishers and agri-food businesses should engage with their bank at an early stage to discuss emerging cashflow issues. I welcomed the recent announcement by Banking & Payments Federation Ireland that their members, including the five main retail banks, have extended their payment break from three months to six months for those directly impacted by Covid-19.

In terms of supports, agri-food businesses are eligible for the wide range of supports put in place for businesses generally. This includes the National COVID-19 Income Support Scheme, encompassing both the COVID-19 Wage Subsidy Scheme and the COVID-19 Pandemic Unemployment Payment.

The €250 million SBCI COVID-19 Working Capital Scheme, co-financed by my Department, has also been deployed to address liquidity and financing needs of eligible businesses arising from the COVID-19 pandemic.

For smaller businesses of less than 10 employees, Microfinance Ireland are also offering a COVID-19 Business Loan, providing working capital loans up to €50,000.

The Future Growth Loan Scheme (FGLS), also co-financed by my Department, was launched last year and made €300m of investment loans available to eligible Irish businesses. Loans are competitively priced, for terms of 8-10 years, and support strategic long-term investment. As a result of the significant and sudden financial impact of the pandemic on businesses a second tranche, with up to 40% available to the agri-food sector, will be made available through the banks, with details to be announced shortly.

In addition, the Government have announced agreement of a further suite of measures to further support business that are negatively impacted by Covid-19. Work has commenced on a €2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs, including agri-businesses, farmers and fishers, for terms ranging from 3 months to 6 years, which will be below market interest rates. Other measures include a €10,000 restart grant for micro and small businesses based on a rates waiver/rebate from 2019; a three-month commercial rates waiver for impacted businesses; and the ‘warehousing’ of tax liabilities for a period of twelve months after recommencement of trading, during which time there will be no debt enforcement action taken by Revenue and no interest charge accruing in respect of the warehoused debt.

I will continue to work with stakeholders across the sector in relation to the impact of this crisis and the Government will continue to keep the needs of the whole agri-food sector under review as the situation evolves.