Mr. Shane O'Loughlin:

Speaking personally, my bank is working well. I am also the chairman of our local discussion group. Banks have copped on and are lending money when they know they will get it back. They are providing money more sensibly. In 90% of cases previously, farmers tended to borrow sensibly. The banks know that the farmers' businesses have made steady returns.

A number of problems have arisen. For example, some of the legal charges have gone bananas. Legal charges are unrelated to the amount of money loaned or borrowed. Often, banks, and borrowers, solicitors' fees are paid at both ends.

Fees are an issue. The banks are really sucking hard on them. They are reluctant to offer money based solely on a business plan - the capacity to make a return on the borrowed money - and are more concerned with getting deeds into their vaults. This is disappointing. Traditionally in the agricultural sector, borrowed money was repaid without bother. In light of the bad weather this spring, however, my bank of AIB has been conscious of farmers' needs. It has been proactive in our area by approaching farmers before their situations worsened. If feed or an overdraft was required, the bank moved. If a farmer's situation was fine, the bank did not move. Credit should be given where it is due.