The agriculture minister is defending his decision to cut two support schemes for the farming and fishing industries.

Phil Gawne's announcement yesterday that the schemes would be closed to reduce costs in the department of Agriculture, Fisheries and Forestry, came as a shock to farmers and skippers in the Island.

The grants helped farmers and fishermen to invest in their businesses, with the latter using the money to buy new vessels and equipment.

Mr Gawne says budget cuts are needed across all government departments and he has to ensure tax payers' money is spent where it produces the best results (play audio file)

The Farm Improvement and Fishing Vessel Financial Assistance schemes are the ones affected by the cuts.