Tim Lombard (Fine Gael) | Oireachtas source

I apologise for my absence earlier; I got caught in votes in the Seanad.

It is great to have representatives of the banks here to discuss this very important issue. How is this scheme expected to play out in the future? Will it be the model that will be used for banking and financing of agricultural products in future or will it be a once-off? The Government has already put money into TAMS and other products. Is this the appropriate way for the Government to put finance into the agricultural sector, which would be a major change in policy? Is this the appropriate model for the future? Should there be a scheme like this every year. Given that some banks had this scheme filled in 19 or 20 days, the appetite for this scheme was absolutely amazing.

A key aspect of the scheme is the six-year term. Many farmers were under the illusion that they would have the ability to draw money down over six years and have the first two years interest free. They were deeply disappointed when they went through the process. Some 30% of the farmers got the money over a one-year term, which was not what they were looking for. They were hoping to spread the money over a longer term, but did not have that opportunity. With 30% of farmers having it paid back in one year, it is a major issue. We need to look at the criteria. Those figures were produced last week by the banks themselves.

I believe 19% of the farmers got the money over six years, which was the big thing for the farmers. They looked at the scheme as one where the first two years were interest free with the principal paid off over the following four years, but only 19% of farmers availed of those full terms and conditions.

Should the terms and conditions be broadened so that the majority of farmers could have the opportunity to use it over six years? Many in the farming community look to hedge their bets and put term loans into a period of five, six or seven years. Very few have the capacity to pay it off in one year.

I ask about the terms of conditions the banks then applied on this loan. Was the policy that farmers who got this loan were required to clear existing stocking loans? Were they required to produce letters of security from solicitors regarding payment of these loans? Did the banks look for security, which would be in contravention of the scheme itself? I seek clarification because of rumours that exist.

I again apologise for my late arrival.