Michael Healy-Rae (Kerry South, Independent)
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198. To ask the Minister for Finance if he will call on EU bosses to release low interest credit from the European Investment Bank to help farmers meet the costs involved in dealing with the ongoing fodder crisis; and if he will make a statement on the matter. [27641/13]

Michael Noonan (Limerick City, Fine Gael)
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The EIB is the long-term financing institution of the European Union. Its mission is to help implement the EU's policy objectives by financing sound business projects. To finance these projects, the Bank borrows on the capital markets, passing on the benefit of its low borrowing cost due to its high credit rating to Member States. The priority objectives for the EIB’s lending activities set out in the Bank's operational plan are: - Support for small and medium-sized enterprises (SMEs);

- Economic and Social Cohesion and Convergence (i.e. supporting the economically less developed regions of Europe);

- Protecting and improving the environment and promoting sustainable communities;

- Implementation of the knowledge economy;

- Development of Trans-European Networks (TENs); and

- Supporting the establishment of a sustainable, competitive and secure energy supply.

The Board of Directors of the EIB has sole power to take decisions in respect of loans, guarantees and borrowings. As well as seeing that the Bank is properly run, it ensures that the Bank is managed in keeping with the provisions of the Treaty and the Statute and with the general directives laid down by the Governors. The Board of Directors approve loans, guarantees and borrowings etc. at their Board Meetings for projects which come to the Board once they have met certain criteria.

In relation to capital investment projects, individual Ministers are responsible for projects and programmes in their areas, within an overall framework set out by the Department of Public Expenditure and Reform. Decisions on the funding arrangements for those projects are primarily the responsibility of individual Departments, in consultation with the National Development Finance Agency.

I am aware that for many farmers, concerns regarding access to credit and flexibility around loan repayments have been a significant issue. I understand that my colleague, the Minister for Agriculture, Food and the Marine has been in regular contact with the banks, co-ops and feed merchants to urge flexibility and co-operation at this challenging time. Both banks and co-ops have asked farmers to contact them to discuss the terms that are available and have indicated that they will show flexibility on the basis that the longer term outlook for farming is positive and prices are strong across most areas.