asked the Minister for Finance if he is aware that the Northern Ireland Ministry of Agriculture has authorised the local banks to issue loans to farmers, on promissory notes discounted at 5½ per cent. to be repaid by instalments ending 31st December, 1930, in order to buy seed and manures, and if he would be prepared to sanction similar loans to the farmers in the Saorstát.
Ceisteanna—Questions. Oral Answers. - Loans to Farmers.
I am aware that the Ministry of Finance in Northern Ireland has been empowered by recent legislation to guarantee the payment of the interest and principal of loans made by joint stock banks to occupiers of agricultural holdings in rural districts in Northern Ireland to enable such holders to purchase seeds or artificial manures for the cultivation of their holdings, provided that applications for loans are made on or before 31st December, 1929. I understand that the joint stock banks have agreed to issue the loans against promissory notes secured by two sureties at a rate of interest of 5½ per cent. per annum. In view of the fact that the State has already guaranteed the capital of the Agricultural Credit Corporation and will be giving its guarantee to an issue of certificates of charge designed to provide capital for the making of loans to the farming community and is empowered to guarantee certificates of charge to an aggregate amount of £7,500,000 there would appear to be no necessity for the setting up of a merely temporary system of State guaranteed loans similar to that in Northern Ireland.