Minister Creed announces public consultation on possible role of Financial Instruments under the RDP and the EMFF OP
Minister for Agriculture, Food & the Marine, Michael Creed, TD, today announced the opening of a public consultation on the possible introduction of a pilot Financial Instrument under the Rural Development Programme (RDP) and the European Maritime and Fisheries Fund (EMFF) Operational Programme. The consultation is based on a detailed evaluation by Indecon Consultants, who were commissioned by the Department to assess the feasibility of such instruments.
Minister Creed said “access to affordable credit for our agri-food sector is a key priority of mine and I am in regular contact with the Chief Executives of the main banks. I have reminded them of the importance of flexible credit and cashflow for the sector, particularly in light of ongoing challenges presented by Brexit. The take-up of the €150 million agri-cashflow scheme developed by my Department in cooperation with SBCI (Strategic Banking Corporation of Ireland) demonstrates the importance of lower cost and more flexible finance as a response to competitive pressures.
Financial instruments are an option under the RDP and the EMFF Operational Programme, where an identified funding gap exists for operators in those sectors. The assessment by Indecon has found that there may be a case for a Financial Instrument to complement the investment schemes available to farmers under the Operational Programmes.”
The Minister added “However there are implications for progressing with such an instrument, notably that take-up of such a loan would lead to a consequential reduction for the recipient farmer or SME in their RDP or EMFF investment grant. In addition, it would also mean diverting funds from existing RDP and EMFF allocations. Given all of these considerations, I am keen to hear the views of stakeholders before deciding on next steps.”
The consultation paper launched today is particularly aimed at those farmers who may wish to avail of grants under TAMS II, and seafood enterprises who wish to access grants under the EMFF OP for aquaculture and seafood processing. However, everyone with an interest, including representative bodies and financial institutions, is welcome to participate.
Note for Editors:
The consultation paper is available online at: www.agriculture.gov.ie/media/migration/ruralenvironment/ruraldevelopment/ruraldevelopmentprogramme2014-2020/financialinstruments/FinalPublicConsulationPaperFinancialInstruments130917.docx
The closing date for submissions is Friday 13 October, 2017.