Cowen splashes €70m on farmers
Kenny condemns 'cynical' bid for rural votes
Taoiseach Brian Cowen is to announce a €70m major grants initiative for beef and sheep farmers aimed at creating 800 new jobs in the industry, the Sunday Independent can reveal.
Mr Cowen, however, last night stood accused by Fine Gael leader Enda Kenny of trying to buy votes in order to avert political disaster for Fianna Fail, with his second major promise for businesses in less than a week.
Mr Kenny described it as a cynical act by a party that has "destroyed rural Ireland".
According to the announcement documents, seen by the Sunday Independent, the launch of the "beef and sheep meat investment fund' represents the largest capital investment in upgrading our meat- processing capacity in 20 years."
The major announcement is to be made in the coming days, just over a week before the local, European and by- elections on June 5.
The grant-aid is expected to contribute to an actual investment in projects in the region of €168m and the investments are expected to increase net sales and exports by €400m and ensure a net expansion in employment, with over 800 additional jobs, the document states.
Under the scheme, proposals from companies and farmers have been considered by Enterprise Ireland, the Department of Agriculture, the Department of Enterprise, and Bord Bia.
Its aim is to retain Ireland's competitive advantage in light of increased liberalisation of world markets, with particular focus on the impact of Brazilian imports into the European market.
It follows the promise that Fianna Fail will freeze rates for three years on the councils it controls, which we revealed last weekend ahead of the party's manifesto launch last Wednesday.
The beef and sheep meat industries have an annual turnover of some €3bn, exports of €2bn and account for over 20 per cent of Irish food/drink exports.
This has involved investment in quality, standards, market development and promotion.
At present, the industry employs 10,000 directly, processing the output of 100,000 beef and sheep farmers.
The announcement is seen as a move to consolidate Fianna Fail's rural vote, which is under significant threat, but both Fine Gael and Labour last night accused Mr Cowen of trying to avoid an election wipe-out with "desperate" moves.
Speaking to the Sunday Independent yesterday, Fine Gael leader Enda Kenny said: "The Government had a chance in two Budgets in October and April to set out their job creation plans and failed to do so. Fianna Fail announcements 12 days out from an election should come with a major health warning for the Irish public.
"The country needs well- thought-out plans to get our country back to work."
- DANIEL McCONNELL CHIEF REPORTER
