Dáil debates

Wednesday, 25 February 2009

Financial Emergency Measures in the Public Interest Bill 2009: Committee Stage (Resumed) and Remaining Stages

 

10:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)

Over recent days, I have met a number of groups of farmers throughout the country who are under severe pressure as a result of the decision we are trying to amend. They want 40% of the payment to be paid now or, at the very least, the interest to be covered. Their cash flow is drying up. They are worried about their credit rating. They are under ferocious pressure from banks to pay back the money. They borrowed in good faith, on the understanding that the grants would be made available in a timely manner, as it always was in the past. There was some talk about letters of comfort. Has the Minister asked the banks to ease off? Some farmers told me that they have taken out loans of €120,000, while some have bridging loans with high interest, and they are facing ruin. They are extremely worried.

Is this particular part of the Bill constitutional? Legislation in the past on nursing homes tried to change something retrospectively. The President referred it to the Supreme Court and it was found to be unconstitutional. The Government made a promise to citizens who entered into an agreement on good faith, yet the Minister has tried to make something legal that is obviously unjust and is causing great hardship. The idea should be scrapped and the grants should be paid in full straight away. Failing that, the 40% should be paid immediately.

There was also an issue with the computer system in the Department, and the whole thing was delayed due to the change in the payment method. This is extremely serious for many farming families around the country, and I implore the Government to look at this again.

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