ICSA: Waste management payments would help boost ailing banks
Malcolm Thompson, ICSA president, said most of the 17,000 farmers who are owed money arising from works completed under the scheme have had to borrow substantially to fund the work. “In most cases, as soon as the farmer gets the grant, the money will be given directly to the bank,” he said
Mr Thompson said there is a potential €500 million in grants outstanding. Farmers borrowed this money to complete building projects.
Mr Thompson said there is no logic in the Government proceeding with a €7bn bank recapitalisation programme if at the same time it causes a liquidity problem for the banks by delaying the farm waste grants.
“Moreover, in the current economic climate, the Government must be aware that failure to immediately pay farm grants could cause bankruptcy in many of these farms and will clearly undermine competitiveness in all of them,” he said.
Mr Thompson said it would be astonishingly negligent of the Government to undermine the productive capacity of farms which have invested in facilities.
“These farms have taken on the challenge of efficient and environmentally sustainable production of livestock, primarily destined for the export market.
“At a time when jobs are being lost and exports are struggling, we need to keep these farmers solvent at all costs. At the same time, paying the grants to these farmers will help the banks — a win-win situation for all,” he said.
Macra na Feirme president Catherine Buckley has meanwhile welcomed “the eventual decision” by the Government to commence addressing the poor state of the public finances.
Stressing that cuts on their own won’t provide necessary stimulus to restore economic growth, she said Macra has outlined a number of measures to support farmers.
These include measures to support new entrants
Access to capital for development and growth of farm businesses is also a major issue for young farmers, she said.
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