Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the representatives from AIB, Bank of Ireland and the SBCI for taking the time to come in, present to us today and discuss fodder supports. The witnesses were in the Public Gallery for our earlier discussion with the Minister and they are well aware of the challenges facing the farming sector with regard to the weather and the shortage of fodder as we head into winter. A key point we put to the Minister was on the need for affordable and flexible credit to assist farmers as they meet that challenge over the coming months. A key aspect that came through the presentations of all three banks was the need to ensure applicants are viable, risk is low and affordability is manageable for those entering discussions with banks. From the banks' point of view, this is understandable. How will the banks deal with customers who look like risks when it comes to the depths of winter and towards spring? Are there other measures which could be put in place to support them? What is the experience of the witnesses in this regard? Things are straightforward in cases where somebody is able to repay but how will the banks deal with customers who may be in a financially precarious situation? What are the options facing them and how will the banks deal with them?

Bank of Ireland outlined that its fodder fund interest rate is likely to be at 3.8% or 4%. What rates are in place in the other two banks for those coming to them? I would like further detail on the differences between the regions of the country? Are particular counties, which the banks' agricultural advisers have indicated, having problems?

The Minister indicated he felt the previous cashflow loan scheme administered by the banks on behalf of the SBCI had contributed to lowering interest rates and that it was one of its objectives. What are the views of the witnesses on this? Do they feel the scheme contributed to lower interest rates? Did it increase competition? If so, why did it take such a scheme to accelerate any reduction in interest rates that followed?

The Brexit loan was announced in the budget almost a year ago. I would like to hear from the SBCI about the nature of the discussions that have taken place in this regard and in particular why we have not seen this loan put in place. Why has this not happened? What can the SBCI tell us about the types of lending that the loan will be able to cover?