Food Drink Ireland Welcomes Future Growth Loan Scheme
Food Drink Ireland, a group that represents the Irish food and drink sector, has welcomed the announcement of a €300 million future growth loan scheme for SMEs and farmers.
Under the terms of the scheme, eligible Irish businesses can avail of a loan with a term of eight to ten years, to support strategic long-term investment in a post Brexit environment.
Commenting on the measure, Paul Kelly, FDI director said: “The lack of long-term investment financing has been a critical issue for food companies and farmers.
"This welcome development will make it more feasible for companies to invest in enabling technology, plant renewal and expansion, refinancing, market development and innovation, particularly in a post Brexit environment."
Kelly warned, however, that in the event of a hard Brexit, additional measures may be required, including a temporary EY state aid framework to "support companies through any adjustment period with funds amounting to 5% of the value of current annual export sales to the UK will be needed annually for three years from domestic and EU sources to help Irish companies innovate, diversify into new markets, train staff and invest for the future in capital towards enabling technology, carbon efficiency, plant renewal and expansion geared to improved competitiveness.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.