Tim Lombard (Fine Gael) | Oireachtas source

I apologise for being late. I was detained at another meeting. I welcome the witnesses to this space. It is a very important initiative and it has been very positive. I wish to ask about the duration of the loans. It is becoming an issue with the farming public. In the documentation, 19% of farmers are looking for loans over six years. Was that predetermined by the banks which put together the applications or did the farmers look for the loans to come in at six years? What I am finding is that the farmers who looked at the scheme and were very welcoming of it thought that the first two years should be interest free and the next four years would pay off the principal. When they went to the banks, they got a very cold response and that is why we only have 19% of them qualifying for the six years. What information does Mr. Ashmore have about those issues? Was he just given a fait accompliwith the application form or did he have interaction with farmers on the ground? I do not know too many farmers who would be looking to pay off a complete loan in under one year. Most try to spread their liabilities over a period of time and the six year term was money that they thought they would never get so cheaply.

They looked for it but they did not get it.

Is Mr. Ashmore confident that the entire sum will be drawn down? It might be allocated but will it be drawn down by the institutions? I have heard stories of farmers being given approval for these loans but then being told they have to clear their stocking loans, which they have had for many years. They say they will not go near this scheme because they want to retain their stocking loans going forward. Has he information regarding the terms and conditions the banks are applying to these loans in order that farmers can qualify for the loans? The worry is that if some aspects of the terms and conditions are unattainable, the loans cannot be drawn down where the farmers are approved for them, which is a serious issue for the community. Has an audit of the terms and conditions been conducted by the SBCI to ascertain if they are outside the criteria?

Mr. Ashmore referred to security in his presentation. Have the banks looked for security in these cases? Will the SBCI seek an audit to ensure that no security was sought?

Mr. Ashmore hopes the draw down of funds will be completed by August. If not, the money will be returned to the Department or go back into a black hole. Does he expect the money to be fully drawn down? If not, how much does he expect the shortfall to be? Will it be 10% or 5% of the overall amount? It is amazing to be able to access money at an interest rate of 2.95%.

I am not critical in case Mr. Ashmore thinks that. This is one of the most unique schemes that has been introduced for the agricultural community. Given the interest in it, the scheme was closed to applications in under 20 days by the three major banks. That shows how unique it is. This needs to be examined, however, because there is an appetite for money that is made available like this. As policymakers, it is one of the key drivers we need to examine. However, farmers feel short changed by the six-year limit.