Charlie McConalogue (Donegal, Fianna Fail)
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I do not want to go over the points already made. It strikes me from what has been said that the structure of the fund is such that the margin to the banks at the end of the day is similar to what they would get in the normal course of lending. The product to the farmer is cheaper, but the margin for the banks is the same. Whether they were to lend through the Strategic Banking Corporation of Ireland, SBCI, fund or to continue to lend through other products they have available is neither here nor there because of how it is structured. Will the witnesses elaborate on the structure? What is the percentage administration fee they receive? How much of the reduction in interest rate is down to the fact that default is guaranteed by the SBCI?

Another issue which has been touched on is the length of loans. There is a €150 million loan fee, and €25 million of this is a combination of Exchequer and European funds. This money, if I am correct, is used for the administration fee payment to the banks as well as the guarantee aspect of it. The calculation at the outset would have allowed for a fund of €150 million. This was supposed to be for up to six years. Was the €25 million of Exchequer and European funding sufficient to cover the cost if all the lending handed out was for a six year term? Was there an agreement between the banks and the SBCI that there would be a certain amount of lending for two, three or four years?

The tillage sector in particular was a hot issue and continues to be so even though the Government has followed through on a commitment to consider a fund for those affected by the weather. With regard to the localised impact on the sector last year in certain parts of the country where people lost crops, did the banks see a take-up in the areas which were most affected? I know it was localised and it was a small proportion. Certainly the Government and the Minister indicated it was their intention this would be something which would support the sector. Did the banks see any evidence of this with regard to how it was drawn down?

AIB indicated it is taking all applications. Am I right to state that Bank of Ireland and Ulster Bank are simply running up the maximum amount available to them within the fund and that others will have to apply for other products? Ulster Bank indicated it is operating a waiting list.