Pat O'Neill (Fine Gael)
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Deputy Penrose covered all the points that needed to be made to the banks. I thank them for their presentations. I welcome the fact that all three banks said they were in constant contact with their customers. This may be the first year of repayments, because the dairy expansion has only started and it is easy for the banks to be nice to people in the first year as they restructure. How long are the banks prepared to put up with this downturn before the alarm bells start suddenly ringing and the telephone calls are not as friendly? In their long-term view, how long have they envisaged this downturn to last? I predict it will be the end of 2016 before the milk markets improve. As we heard from Ornua, we need an increase in oil prices and a weather event. We need those things to alleviate the problems with the milk market at present.

Both of my colleagues here raised the fact that Commissioner Hogan announced in July 2015 and November 2015 that the European Investment Bank, through the Directorate-General for Agriculture and Rural Development, was to make cheap money available to farmers at a rate of 3%, with term loans up to 15%, but that one of our major banks would have to come on board. Where is this at present? Are the banks in negotiation with the European Investment Bank to bring it down? This is relevant to Deputy Penrose's question about the rates the banks are charging. If the European Investment Bank, through the Directorate-General, is prepared to offer money to farmers at 3%, does it not make a lot more sense to the banks as a sector, if they can get the money cheaper, to pass it on and try to continue to grow the industry? Where are we in respect of the European Investment Bank moneys? It is easy to be nice to people in the first year and for the calls to be friendly, but how long do the banks envisage this downturn will continue?