Michael Fitzmaurice (Roscommon-Galway, Independent)
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1204. To ask the Minister for Agriculture, Food and the Marine his plans to implement a scheme to help persons in danger of losing their farms who cannot access credit; and if he will make a statement on the matter. [1143/18]

Michael Creed (Cork North West, Fine Gael)
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One of my priorities is to support the provision of lower-cost, more flexible finance for farmers. The Agriculture Cashflow Support Loan Scheme was developed by my Department in co-operation with the Strategic Banking Corporation of Ireland (SBCI) to address the impact of the change in the sterling exchange rate arising from Brexit and lower commodity prices in some agriculture sectors during 2016. It made €150 million of flexible working capital funding available at low-cost interest rate of 2.95%. I launched the Scheme on 31 January 2017 and by the beginning of March, all of the participating banks had reported that their funds were committed.  

I was pleased at the very positive reaction by farmers to the Scheme, which has proved that significant demand exists for low-cost flexible finance. I have met with the Chief Executives of the participating banks to discuss this and other access to finance issues relating to the agri-food sector. I have asked the banks to respond positively to the demand that has been demonstrated by reducing interest rates and providing more flexible terms for cash flow loans in the future. At a Departmental level, there is a close liaison with the banks on lending into the agriculture sector. I meet regularly with the CEOs of the main banks. Access to finance is discussed at both the Dairy and Beef Forums, with an exchange of views with the main banks now a part of the agenda at each meeting. Access to finance for the sector is also an issue identified by the Food Wise 2025 strategy and it is monitored at the High Level Implementation Committee.  

The Government has committed to assisting all viable small and medium enterprises operating in Ireland to support 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 Ombudsman with regard to consumer protection in the area of personal banking, the purchase of financial products and financial issues generally. It should be noted that in the context of recent high profile loan sales, the Minister for Finance has stated that the sale of loans from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the original contract. Where difficulties occur, active engagement by indebted borrowers with their lender is the key to achieving sustainable resolutions. The next step is engagement with MABS (the Money Advice and Budgeting Service, which the Government has recently strengthened) for an independent assessment of their situation and advice on available resolution options.   

My Department, in cooperation with all the other relevant State bodies, will continue to explore additional funding mechanisms for farmers, the agri-food sector and for SMEs generally. I will launch a new Brexit Loan Scheme with the Minister for Business, Enterprise and Innovation shortly, which will provide affordable, flexible financing to Irish businesses that are either currently impacted by Brexit or who will be in the future. The Scheme will make up to €300 million of working capital finance available to SMEs and mid-cap businesses. Given their unique exposure to the UK market, funding from my Department ensures that at least 40% of the fund will be available to food businesses (providing €9 million out of the total €23 million in public funding). The successful Agriculture Cashflow Loan Scheme has provided a template for such Schemes, including this one for businesses. I have also announced that I have secured funding of €25 million for my Department to facilitate the development of potential Brexit response loan schemes during 2018 for farmers, fishermen and for longer-term capital financing for food businesses. I will announce more details as they become available.