Thursday, February 09, 2012
Frontloading even €2m of the funds available under the Dairy Equipment Scheme would give rural communities a lift, ICMSA deputy president Pat McCormack has argued.
The ICMSA estimates an early rollout of DES funds could generate business worth more than €50m to the wider rural economy.
Many of the 800 applicants were excluded from the €4.425m available in the first quarterly tranche of funding, which closed on January 31.
With €35.4m available between 2012 and 2013, an early rollout of money would provide invaluable income for the installation, upgrading and maintenance of refrigeration and other dairy equipment.
"The EU has stipulated the money has to be delivered in tranches, but there is nothing stopping Ireland bringing forward even 50% of the last two tranches from the end of 2012 and paying out at the end of spring," Pat McCormack said.
"Tranche One was significantly oversubscribed. Bringing the payments forward would ensure a spin-off for the rural economy now, when it needs a lift, rather than waiting until the second half of 2012 or even 2013."
The ICMSA deputy president noted that in a situation where only €4.425m was available in the first tranche, it is highly likely that selection criteria will be applied, meaning some farmers will be moved to the second tranche and possibly further down the line, thus delaying — or even prevent entirely — the carrying out of the dairy investment.
Mr McCormack noted this grant aid not only benefits the dairy farmers in question but also the wider rural economy and most particularly the suppliers of milk refrigeration and milking machines — many of whom are based in rural areas.
In addition, the long-term benefits of improved dairy facilities will benefit the development of the Irish dairy sector and the exports derived from that.
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