Pádraig Mac Lochlainn (Sinn Fein) | Oireachtas source

There has to be a degree of honesty in our assessment. The pillar banks that are represented before us are in the business of making a profit for their shareholders. That is what they do; it is the task staff are given by management and shareholders. The difficulty as I see it is the framework and infrastructure provided by the Government for farmers. A range of sectors have been vulnerable to cashflow issues and the fodder crisis again demonstrated the very tight margins within which people were operating. Most farmers rely on the single farm payment for the vast majority of their annual income. We must be honest and acknowledge that the system has been designed to produce cheap food. The objectives of the Common Agricultural Policy, CAP, are centred on the production of cheap food for European consumers and farmers are compensated via environmental and other schemes. Schemes are dreamed up all the time, but, ultimately, farmers are financially compensated for the poor price they get for their produce which feeds the cheap food agenda at European level. By its very nature, the sector is vulnerable and because of the way we have set up the framework.

I do not have any attack to make on the pillar banks represented as they are in the business of making money. Has Government pulled the banks into any dialogue or framework aimed at getting them to offer lower interest rates, similar to those offered to farmers in other European jurisdictions? Has that been mooted? I read the presentations submitted by the delegates and apologise for missing their delivery. In Ms Finnegan's presentation I was struck by the use of the word "dichotomy". These things fluctuate, but it has been a decent year in a number of sectors. However, that may change next year, but this year has been decent. In the presentation made by the Strategic Banking Corporation of Ireland the huge demand for the agri-cashflow support loan scheme is correctly identified. I am struck that there is a demand among farmers for low interest rates, good deals and sustainability because of the nature of their industry. Is the Government taking a hands-on approach? If the pillar banks are left to their own devices, they will try to make as much profit as possible for their shareholders and reduce the exposure to risk. I have no issue with this as it is their job, but is the Government asking them to come up with a fairer deal for farmers based on European norms? That is the main complaint I hear when speaking to farmers and farm organisations.

I apologise again as I have to slip out for about 20 minutes. If I do not hear the responses, I will read them in the blacks later.