Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

I have a number of questions arising from the Minister's opening statement.

The Minister spoke about the significant uptake for low cost loans. In my opinion the reason for the huge uptake in loans is that farmers' incomes in all sectors are under pressure. They saw the loan scheme as a safety valve to try to reduce their exposure to high cost loans. I am not ridiculing the scheme. It was a worthwhile scheme while it lasted. I remember tabling a question to the Minister at the end of January asking when the scheme would be up and running. The money only lasted three to four weeks. Many dairy farmers have contacted me to say that it came at a time when they had not time to focus on visits to the bank, and by the time they got around to make the call to the bank, the money had run out. Is it possible to run another scheme with similar funds because I am sure the demand is there for it? Second, loans under the scheme were to be for a six year term, however, the banks have shown a reluctance to give a term of that length to their customers. They have been trying to force their customer to take shorter term loans from this scheme. That is running counter to what was envisaged under the scheme. The scheme was to help farmers with their cashflow, to get rid of their merchant credit and to allow them put their affairs back in order during the six year period. The hope is that the product price would improve to help the balance of payments. There has been a reluctance by the banks to give people the low cost loans for that six year term. The Minister stated in his opening statement that he will meet with the chief executives of the banks. I would like him to drive home the points I have made because what they are doing is against the spirit of the scheme which was to allow farmers to make repayments over a longer period and do it at a low cost and keep their overdraft in place. I know of cases where banks have told individual farmers that the loan is for merchant credit and they will only give it to the farmer for a two year period. That defeats the spirit of the scheme. Additional money is needed for another scheme like that one. It is absolutely essential. The demand for this low cost loan scheme shows the pressure that farmers are under. The banks were trying to tailor the scheme to suit themselves rather than their customers.

I can leave my comments on Bord Bia until later.