Orientation grants and processing projects
Leonard argued that income rules limited access to orientation grants and criticised processing allocations. The Minister said the scheme needed to be more relevant and processing projects must meet cost-benefit criteria.
The Minister referred to the orientation of production. Last week there was considerable hassle in the House with regard to supplementary questions but it transpired from that that 30 applications were approved for 12 counties of which Monaghan had nine. Will the Minister not agree that that scheme was strangled by the Department not because of the method of production in the western counties but because of the qualification regarding the income of £3,500? The result was that practically nobody qualified to build the necessary sheds. The allocation in respect of processing is a farce. In the past five years under FEOGA aid we have been allocated a sum of more than £40 million for food processing but we have only taken up £13 million. During that time many people in the business were refused grant aid.
Comment on this
Part of the trouble with regard to the western package started the day the scheme was negotiated. We have to accept that certain mistakes were made then. I would have to agree with the Deputy that it is important to make the scheme more relevant and I am looking at this matter. With regard to the processing industry, if grants were available through a western package there would have to be a cost-benefit analysis on the project concerned. It would have to be a properly constituted project before we could get money from any source. One of the reasons some of the projects in the north-west were not grant-aided under the scheme was that they did not fit the criteria for normal development.