Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

The script I have been given relates mainly to the final issue raised by the Senator, but I will get to the other points she raised.

While the Minister for Finance and Public Expenditure and Reform has responsibility for taxation matters generally, the Minister for Agriculture, Food and the Marine liaises closely with him on agri-taxation policy. A public consultation process on agri-taxation was launched recently by the Departments and we consult regularly in that regard with the farm bodies. The Senator might consider making a submission as part of the consultation process on the earlier issues raised by her.

Operationally, the Revenue Commissioners have responsibility for taxation matters. They have assured me that they understand temporary cash flow difficulties can arise for taxpayers, including farmers, from time to time. When cash flow related challenges arise or are expected to arise, Revenue encourages early engagement with it as a means to agreeing a way forward in achieving tax compliance. I am also informed by Revenue that, in its experience, where such early engagement occurs, it is generally possible to arrive at an accommodation that gets the taxpayer successfully beyond the payment pressure point. The Government has committed to assisting all viable small and medium enterprises operating in Ireland to support economic growth and employment in the economy.

Primary responsibility for banking policy lies with the Department of Finance which liaises with the Central Bank and the Financial Services and Pensions Ombudsman on consumer protection in the area of personal banking, the purchase of financial products and financial issues generally. I am informed by the Department that the sale of a loan does not change the terms and conditions attached to it before it is sold. Borrowers have the same protections and rights and obligations as they have before the sale. They include the consumer protection code, the code of conduct on mortgage arrears and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015, as amended. Notwithstanding the fact that borrowers are protected under the existing framework, the Government is supporting the Consumer Protection (Regulation of Credit Servicing Firms) (Amendment) Bill 2018 that was introduced by Deputy Michael McGrath last February. The Bill which was passed on Second Stage in the Dáil in March will require credit owners to be regulated. With the approval of the Government, officials from the Department of Finance are engaging with the Office of the Attorney General, the Central Bank and Fianna Fáil to resolve technical issues with the Bill and draft amendments.

I urge people who are having difficulty in making repayments to financial institutions to seek professional assistance in finding ways to resolve the issue. I am aware of the work being done by some of the representative organisations in helping farmers. I am conscious that the prolonged winter will have put some individual farmers under pressure in respect of cash flow. In recognition of this, the Minister for Agriculture, Food and the Marine recently met the chief executive officers of the main banks and discussed the current cash flow and liquidity position of the primary sector. The Minister emphasised to them that they should recognise the temporary and exceptional nature of the current position and that they should be flexible and put in place measures to support their customers. They indicated that there were no signs of a liquidity issue in the sector as a whole, while acknowledging that there might be pressures in individual cases. They assured us that they would provide supports such as extended overdraft facilities and term loans for their customers and asked that those in difficulty contact them as soon as possible. The Minister asked them about their approach to non-performing loans and stressed that any sale of farm assets impacted negatively on the ability to meet ongoing commitments. The banks that have sold or are selling such loans have informed us that the proportion of farms affected is relatively low and that sales occur mostly in cases in which there has been no meaningful engagement with the banks.