To whom the grant for vodka production was made and details of grants that have been made under the Rural Initiative Scheme since 2006

1240/5(5592)

WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY THE DEPUTY OF ST. JOHN

ANSWER TO BE TABLED ON MONDAY 13th SEPTEMBER 2010

Question

Would the Minister advise to whom the grant for vodka production has been made and under what terms? Would he state how many grants have been made under the Rural Initiative Scheme since 2006 and advise–

1. for whatpurpose the grants were made?
2. what were the recipients names?
3. what was the valueofeach grant?
4. whether recipients had benefited from othergrantschemesadministered by the Departmentorformer Agriculture and Fisheries Department and, if so, howmany,forwhat purpose and to whatvaluesince 2000?
5. whether fundsmustbematchedpoundfor pound by recipients and,ifso,how is this monitoredand would the draw off of spendbeexpected to be equal?
6. have any ofthe recipients had funding from the former Agriculture and FisheriesDepartment for research into areascurrentlybeing granted aid undertheRural Initiative Scheme, and, if so, which?
7. whether  the  Minister  read the  2004 reports  financed by the  former Agriculture  and Fisheries Departmentand Jersey PotatoMarketing Board investigating the potential for vodka production in the Islandand, if so, given the negative conclusions ofthosereports,why did heapprove this grant?

Question

1. Would the Minister advisetowhom the grant for vodka production has been madeandunderwhat terms? Answer

Not at this stage, as this is commercial in confidence until the work is actually carried out. The grant is not for vodka production, but for research into the feasibility of artisanal production, in accordance with the specified terms and conditions applicable under the Rural Initiative Scheme ref:

http://www.gov.je/BENEFITS/GRANTS/INDUSTRYGRANTS/Pages/RuralInitiativeScheme.aspx

Question

2. Would he state howmanygrantshavebeenmadeunder the Rural Initiative Schemesince2006andadvise–

1. for whatpurposethegrantsweremade?
2. whatwerethe recipients names?
3. whatwas the value ofeachgrant?

Answer

Please see the following table in response to a, b & c.

2009 Jon Emmanual New mobile hen houses E £42,467.60

Electronically guided organic

2009 Master Farms weeder E £18,621.00 2009 Jersey Fisherman's Ass Scallop dredging trials R £1,058.28 2009 Southern Rock Fisheries Scallop Processing E £32,351.99

Research into quality soups

2009 Recovery Management Services from 2nd grade vegetables R £8,000.00

Slurry additive to boost R +

2009 Lodge Farm Ltd nutrient availability in slurry EF £350.08

Pie & Pasty press for local

2009 Brooklands Farm pork business E £3,185.14

Jersey Honeybee

2009 Andre Militis Development R £3,753.49

Relocation of an organic plant

2009 Brian Adair raising facility E £5,751.10

Cold store, oven and

2009 Brooklands Farm preparation equipment E £7,153.62 Total £228,820.48

2010 J Le Maistre Tree Surgery Ltd Mobile tracked wood chipper E £23,499.93 2010 Individual New mobile hen house E £23,162.50 Total £46,662.43

I = Research, E = Enterprise & I = Industry – wide

Question

4. whether  recipients  had  benefited  from  other grant schemes administered by the  Department or former Agriculture andFisheriesDepartment and, ifso,howmany, for what purpose and towhat value since2000?

Answer

Of the above, the following have also benefited from previous grant schemes

Marketing Support Scheme 2003

Name Amount of Product Project

Grant

Jersey Milk £30,000 Jersey ice cream Market research, product launch

and general marketing

Jersey Milk £15,000 Dairying Market research, re-branding of

Jersey Milk

Woodside  Produce £4,300 Jersey Royals Joint  promotions  with  UK Ltd supermarket

Woodside  Produce £6,270 Daffodils Market  research  into  new Ltd markets

Jersey  Island £5,000 Jersey cattle, Promoting  Jersey  Island  cattle Genetics semen and genetics

embryos

Jersey Farmers Union £7,000 Locally  grown Bulk buying scheme re branded

produce packaging

Classic Herd Ltd £4,950 Dairying Feasibility  study - production/sale of soft cheeses

Farm Fresh Organics £1,745 Organic  locally POS  materials,  labelling  and grown produce equipment

Diversification Support Scheme 2005/2006

875.00 Marketing of Jersey Produce to UK Fauvic Nurseries Farm Shops

Fauvic Nurseries 985.88 National Cordyline Collection Fauvic Nurseries 1,611.68 Website to publicise Farm Shop Fauvic Nurseries 448.30 Seaweed Processing

Classic Herd Ltd 7,954.90 Meat Butchery

Classic Herd Ltd 20,000.00 Soft Cheese - Fresh and Ripened Brooklands Farm 377.69 1,622.31 Studying Curing and Brining Pork Brooklands Farm 13,087.50 Brooklands Butchery Room

La Mare Vineyards 7,122.66 Black Butter and Fudge

La Mare Vineyards 16,849.50 Jersey Cream Liqueur

Jersey Fisherman's

Association Ltd 350.00 Line Caught Jersey Wild Fish /

Modular Organic plant raising to Grass Roots Organic 1,010.57 service local growers

Question

5. whether fundsmust be matched pound for pound by recipients and, if so,how is this monitored and would the draw off of spendbeexpected to be equal?

Answer

The following table from the current RIS application form shows the maximum level of funding available. Funds will not normally be allocated if the proposed project has received funding from other government schemes.

Applicants must provide a minimum of 20% of the overall investment from their own resources, for example: cash reserves, sale of assets, or investment from members/shareholders.

The total public sector contribution is limited to 50%, except in exceptional circumstances when an Industry- Wide application is made; if other public funds are obtained to support the costs of a project these will be taken into account when considered the RIS application and may be off-set against any award made.

RIS grant awards are based on agreed business plans, which indicate the level of expected profitability over a 3 year period after receiving grant monies. Grants can only be drawn-down once the expenditure has been incurred, therefore the spend profile should be in equal proportions between the States and the business.

The projects are monitored by officers to observe the business in operation and the outcomes of the award. Question

6. have any of the recipients hadfunding from the former Agriculture and FisheriesDepartment for research into areas currently being granted aid under the Rural Initiative Scheme, and, ifso,which?

Answer

Not to our knowledge. Question

7. whether the Minister read the 2004 reports financedby the former Agriculture and Fisheries Departmentand Jersey Potato Marketing Board investigating the potential forvodkaproductionin the Island and, if so, given the negative conclusions ofthosereports,why did heapprove this grant?

Answer

The conclusions of the Jersey Potato Marketing Board were not negative and contrary to the above appear to be positive e.g.

Executive summary, The Stage 1 feasibility study for the production of alcohol from the Jersey Royal Potato, August 2003 states;

Page 7, "There is therefore no reason why this should not become an important new industry within Jersey over the next few years"

Executive summary, Vodka Project Final Report, August 2004;

Page 4 "It is anticipated that the business will turn cash positive within 3-4 years of launch and will later be seeking to expand aggressively into other geographic markets".

Page 5 "..it is apparent that the range of branded super premium products that are enshrined within the plan, are likely to find favour in many areas of the target market place."

Page 8 "All of these opportunities seem to be viable, due to the good levels of profitability that are predicted to be in place over that timescale".

The current vodka project is on an entirely different scale to the earlier proposal and involves the offer of a £11,225 for trials and market research for the production of artisanal vodka under the Rural Initiative Scheme. Following a successful trial, production of premium vodka would start in April and continue until July each year.