Michael Collins
Question:4. Deputy Michael Collins asked the Minister for Agriculture, Food and the Marine if a scheme similar to a loan scheme (details supplied) will be put in place for fishermen. [18462/18]
View answerThursday, 26 April 2018
Questions (4)
Oral answers (6 contributions)
Credit unions across Munster have, as they always do, come to the rescue, which I greatly welcome, for farmers by providing unsecured loans of up to €50,000. Can a similar low-rate loans - unsecured loans - be offered to inshore fishermen who lost much of their fishing gear during Storm Ophelia?
Food Wise 2025, the ten-year vision for the Irish agrifood industry, identifies competitiveness as a key theme and recommends that stakeholders work to improve access to finance for agriculture, forestry, seafood producers and agrifood companies. One of my priorities as Minister is to improve access to finance for the agrifood sector. I announced in budget 2018 that my Department is considering the development of potential Brexit response loan schemes for the primary sector, to include farmers and fishermen. The schemes are developed and delivered in co-operation with the Strategic Banking Corporation of Ireland, SBCI, and take time to develop and operationalise. Consideration and discussions are ongoing in that regard and I will announce further details on this as they become available. While continuing to explore additional funding mechanisms, I also liaise with the main banks on issues relating to the agrifood sector, all of whom have specialised products available and have expressed a commitment to servicing the future financing needs of the sector.
I understand that the specific ACRE and Cultivate loan packages recently launched by a number of credit unions in Munster are entirely commercial activities by the credit unions concerned and the Government has no role in the matter.
My Department's €240 million European Maritime and Fisheries Fund, EMFF, Operational Programme for the seafood sector is providing a range of support measures to the inshore fisheries sector. A dedicated fund of €6 million is available to inshore fishermen to invest in adding value to their catch, for stock conservation measures such as v-notching, to support the work of the inshore fisheries forums and a range of other measures set out in the inshore fisheries conservation scheme, administered by BIM. Grants of up to 80% are available for those purposes. Separately, grants of up to 70% are available to inshore fishermen under the sustainable fisheries scheme for investment on board in selective gear, in quality, hygiene, energy efficiency and value adding equipment. Grants of 30% are available under that scheme for engine replacement. Under the new fishermen scheme, grants of 25% are available to young inshore fishermen to purchase their first fishing boat. BIM also makes available to fishermen a broad range of advisory services on matters such as business planning and environmental management. I believe that this wide range of supports under the EMFF programme clearly demonstrates my commitment to assisting the inshore sector to develop and prosper.
Inshore fishermen have been hit hard in the past 11 years since the salmon drift net ban and that has led to huge job losses in the industry. Inshore fishermen have had one of the longest and worst winters in living memory. I have spoken to quite a few fishermen in west Cork and that is the feedback I have got. They are facing substantial losses as the lobster and crab season is very slow to take off due to the low water temperature. Fishermen lost tens of thousands of euro worth of pots and materials and now face the prospect of having to take out personal loans. They need help at this time. Could the Minister work with the banks to help those hard-working people?
I welcome the fact the credit union movement has developed a product. It is a signal that there is a degree of competition emerging to the main pillar banks. That is very welcome. Many credit unions are active in sub-branch networks in coastal areas and that is very important.
The scheme I am developing, to which I referred in response to Deputy Cahill, is one that will be available to the fisheries sector as well. Through that, the competition that is emerging in financial services in terms of the credit union movement, which I welcome, and the funding that is available in the EMFF programme by means of grant aid assistance means there is a range of financial products and supports available to the inshore sector. I meet regularly with the National Inshore Fisheries Forum where we have an opportunity to discuss the issues.
I appreciate that the Minister is developing a scheme, which is very much needed at this time. I spoke to one fisherman who is trying to take out a personal loan of €10,000 to do up his punt and to replace the pots he has lost. The loan puts himself and his family under incredible pressure. I would appreciate if the Minister would speed up the development of the scheme to which he refers because it is hugely important to inshore fishermen. They are hard-working people. The Minister knows as well as I do the number of hours they put in and the dangers associated with their job. They have to ensure their punts are top quality to cope with the rough water they face and the long hours they spend at sea. There was a terrible storm in October which cost many of them tens of thousands of euro and they are now trying to replace what they have lost. The fishermen cannot go back out on the water because the water temperature is very low so their catch is at an all-time low. They are in severe difficulty at this time and I would appreciate if the Minister would work very quickly to provide a scheme to try to help them.
It is our intention to develop the scheme as quickly as possible. It is not an easy scheme to design. The issue that must be worked out is whether it is for working capital or for capital investment. I am engaged with all the actors, including the pillar banks, arising from their experience of the previous loan fund, which I accept was not targeted at the fisheries sector. This one will be, and we can benefit from their experience and where they see the market shortfall. I am talking to the SBCI about the interest rate relative to the size of the fund. Such issues require a lot of consideration before we bring a product to market but we will do so as quickly as possible.