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Dáil
‹ Questions on Promised Legislation

Farmer loan scheme

Summary

Deputy Healy-Rae said the promised low-interest farm loan scheme was not helping struggling farmers because banks were only lending to those already in good standing. The Taoiseach replied that loans at 2.9% were available and said he understood the scheme to be working reasonably well, while acknowledging wider pressures from currency and market volatility.

In the programme for Government there was a promise that farmers who were struggling to survive would get assistance. A loan scheme was rolled out by the Minister for Agriculture, Food and the Marine in which banks would give loans at low interest rates to farmers who were under financial pressure. This scheme is not working. To avail of the scheme one must be in the black and a good customer of a bank. The people it was supposed to help, who are in trouble and cannot pay off their loans, will not get the loan at the cheap interest rate because they do not meet the requirements of the banks. I ask the Taoiseach and the Minister for Agriculture, Food and the Marine to intervene because many farmers are in serious financial trouble. The loan scheme was supposed to help them but it is not working.

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Enda Kenny The Taoiseach Fine Gael

The Minister made loans available under the scheme at 2.9%, with flexibility to help farmers in different sectors. We are aware of the loss in value of €500 million in six months because of currency fluctuations in the United Kingdom but I understand the scheme is working reasonably well. I do not know the details of the financial circumstances of the farmers to whom Deputy Healy-Rae refers, or whether they have been in difficult circumstances for some time. The weather, volatility in the market and currency fluctuations have impacted on different sectors, be they tillage, manufacturing, beef or dairy. If the Deputy wishes to send to the Minister for Agriculture, Food and the Marine some examples of where farmers were refused on the basis of the conditions of the scheme, I am sure he would be happy to assess them and look at the flexibility of the scheme.

It was not intended as a grant to farmers but as an opportunity to get them through a difficult period. It was a package for that. That is what it was about.

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