(Limerick West), Mr. H. Byrne and Mr. Kitt asked the Minister for Agriculture the plans he has, if any, to introduce a development loan scheme at fixed interest rates for agriculture.

As the Deputies are aware, the farm modernisation scheme, through which most development aid to agriculture is channelled, is currently under review. One of the matters to be examined is whether aid should be provided through capital grants, interest subsidies or some mixture of the two. It is my intention to introduce a revised scheme at the earliest date, probably in the late autumn.

(Limerick West): The Minister has not answered the question. The question is whether the scheme sill be funded at fixed interest rates in respect of agriculture. Is the Minister aware that because long-term planning is necessary for agricultural development, long-term finance must be available at fixed interest rates? Can the Minister tell the House that this will be available?

As the Deputy is aware, the European Investment Bank made a loan available through the ACC at fixed interest rates. This has been fully committed by the ACC. In answer to the first part of the question, it is important that farmers should have access to loans at the lowest possible interest rates.

(Limerick West): I asked about fixed interest rates.

At a fixed interest rate. I accept that in the sense that, given the Exchequer problems, this will be looked at and one would hope that in the future some such scheme could be organised.

When the Minister is deciding on capital grants or interest subsidy grants, or both, will he take into consideration the fact that small buildings rather than large buildings should get preference if at all possible. We are all aware of the huge debts farmers incurred in putting up huge buildings. Many of our farmers today could do with a smaller type of building, or shelter belt, or whatever you like to call it.

I will take note of the Deputy's comments.

Would the Minister consider supporting the banks and the ACC in getting foreign currency loans similar to those which were obtained in 1980 under the productive investment scheme. This was a good type of loan for the development of agriculture.

As I said——

Answer the question.

——the loan which came through the European Investment Bank is fully committed by the ACC.

I want an answer to my question.

It is an on-going process to keep this monitored and to know the future financial needs of the farmers vis-á-vis this type of loan.

Farmers are being evicted because of high interest rates.

Ceist 23.

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