Bord Bia’s small business open day attracts companies from across the country. However, numbers of attendants were on the rise this year, on the back of the fact that there has been a serious surge in the amount of small businesses now staying in business.

It was revealed at the conference, which took place last week in Enfield, that there has been a 42% increase in the number of small businesses working with Bord Bia in the last four years, rising from 400 to over 700. Consumer support for buying local is thought to be instrumental in this successful increase.

tackling challenges

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Minister of State for Food, Forestry and Horticulture Andrew Doyle said the rise in numbers is affirmation of the resilience of the small-business sector in tackling challenges and in converting ideas and concepts to commercial business.

“These producers’ survival and growth not only brings investment returns for individual businesses, it also underpins the wider local community and the image of Ireland as a provider of high-quality, innovative and sustainable food excellence.”

This increase in numbers is backed up by consumers’ attitudes to local food, according to a Bord Bia study that states two thirds of Irish consumers believe it is important to purchase local food, while one in three say they are purchasing more today than they did 12 months ago.

This could be because many deem local food to be better quality than mass-produced items, with two thirds of consumers perceiving it to be of high quality and natural.

There is still a bit of work to be done, though, as there is some consumer confusion about what is local and what’s not – with discrepancy concerning the different meanings and associations with local food.

Some three in four consumers understand it to be food made, produced and sourced within their local area, compared to a similar study in 2010, where there was more focus on the producer behind the product. CL

Inaugural National Consumer Awards

When it comes to spending your money – whether it’s choosing a current account or selecting your health insurance – it’s not just about the price. Quality, customer service, transparency and the package you are buying are all important considerations in your purchase.

From March, consumers will have even better guidance as bonkers.ie – the price comparison and switching service – has launched the inaugural National Consumer Awards, with the aim of continuing to drive excellence in customer value to Ireland’s 2m households who, combined, spent €93.6 billion in 2016.

From finding the best-value current account to mortgages, mortgage protection insurance and health insurance, it will all be covered. Household expenses – such as broadband, TV and energy companies – will also be in the mix.

The judging panel will be led by consumer champion and broadcaster Bobby Kerr, but you can also have your say. There will be a consumer vote for best customer service. To have your say, email hello@bonkersawards.ie. You’ll also be in with a chance of winning a VIP package to attend the awards, with accommodation included. For more information, log onto www.bonkersawards.ie.

Could the credit union be your key to buying a new home?

Credit unions have been the financial heart and soul in rural communities for generations – and they have now announced that they will be entering the mortgage market with up to €400m available to buyers.

The Solution Centre, an innovation hub owned by credit unions, has built an end-to-end mortgage support framework – and it is thought there will be significant take-up among members.

Kevin Johnson, CEO of the credit union representative body CUDA, which manages the Solution Centre, talks about how it could work: “Unlike banks, credit unions aren’t required to deliver profits for shareholders, so anything we offer is priced to meet the needs and demands of members. Credit unions are ideally placed to fill the gap in the market left by building societies.”

While each credit union will make the final underwriting decision on a case-by-case basis, the scheme will also have ongoing access to specialist mortgage and legal expertise to support their internal resources.

In fact, all members could benefit, as increased long-term lending should improve the income levels and financial stability of participating credit unions. This means they’ll be offering stronger dividend rates in the future.

So why haven’t credit unions been offering mortgages until now? “The current credit union limits were put in place many years ago and are arbitrarily capped, whereby they only allow credit unions to lend 10% of their loans on terms of 10 years or more. This measure was introduced many years ago and is now out of date,” he explains.

CUDA is currently engaged in a campaign to have the outdated, long-term lending limits reviewed and modernised to more accurately reflect consumer demands and the current financial environment.

Participating credit unions are expected to lend for a number of specific purposes:

1. Tenant Purchase Schemes and Affordable Housing

Kevin explains: “There are a number of affordable housing schemes aimed to help lower-income households buy their own homes, and/or buy an existing previously rented council house. Others offer eligible first-time buyers the chance to buy newly constructed homes and apartments at prices significantly less than their market value. Credit unions are happy to support these purchases, particularly as the loan-to-value ratios are typically relatively low and the existing tenants invariably have a proven payment record.”

2. Trading-up

The Solutions Centre say that families looking to move for more space or for a variety of other reasons will also be catered for.

3. First-time buyer

According to Kevin: “The recent changes to the Central Bank’s mortgage rules and the Government’s help-to-buy scheme will boost the number of first-time buyers looking to purchase, and should encourage the developers to build more new homes. Credit unions are ready to play their part in helping people to own their own homes.”