asked the Minister for Fisheries if, in view of the recent reduction in lending rates by the banks, he will instruct BIM to reduce the interest rates for fishermen seeking loan facilities.

Interest on loans for fishing boats is at present subsidised by An Bord Iascaigh Mhara down to a rate of eight per cent, subject to an interest subsidy not exceeding 5¼ per cent. I do not propose to reduce the subsidised rate below 8 per cent.

In view of the lean period being experienced by the fishermen at the moment and in view of the fact that banks and other parties have decided to reduce loans, would the Minister consider making this concession to fishermen?

I have considered it and the situation is that there is a very heavy subsidy on interest rates for fishing boats and at this stage I am not prepared to propose a reduction.

Would the Minister accept that the position at the moment in relation to the purchase of new boats is not satisfactory and that the doubling of interest rates imposed by the Government is a deterrent? Taking that into consideration, would the Minister consider having something done about reducing the interest rates?

The position in relation to the purchase of new boats is not unsatisfactory. At this point I do not propose to reduce the subsidised rate below 8 per cent.

Is the Minister aware that many fishermen are having great difficulty in meeting their repayments because they are obliged to pay substantially increased amounts by way of interest arising from increased loan facilities which they were forced to obtain because the EEC grants are based on estimates applied by the Government and not on the actual invoiced price of the boat?

I am aware that it is possible that the estimate of the cost of a boat may differ from the actual cost but so far as possible BIM and the Department, in submitting figures to the EEC, endeavour to keep the estimated cost as near as possible to, if not the same as, the actual cost.

Is the Minister aware that BIM grants are based on the invoiced cost of a boat and that the difference in the EEC system may mean as much as £50,000 or £60,000 extra to the person buying the boat and will he agree that this situation acts as a disincentive to fishermen?

It is the estimated cost that is transmitted to the EEC. The difficulty arises in regard to arriving at an actual figure but I would not accept that the difference usually is of the order referred to by the Deputy.