asked the Minister for Agriculture whether existing schemes to enable farmers to purchase farm equipment on credit cover the purchase of tractors and tractor equipment, and, if not, whether he will arrange forthwith to have them extended for this purpose.
Ceisteanna—Questions. Oral Answers. - Credit for Purchase of Tractors.
The Department's schemes of loans for the purchase of farm implements provide for advances for implements costing up to £100. Tractor equipment such as cultivators, harrows and ploughs come within the compass of these schemes, but tractors themselves do not, as they cost more than £100. Tractors may, however, be purchased on credit terms through the Agricultural Credit Corporation, which body now charges the same rate of interest (5 per cent. per annum) for loans as does the Department. Persons inquiring about loans for the purchase of tractors are, therefore, referred to the Agricultural Credit Corporation, and in the circumstances there is no necessity to extend the scope of the Department's loan schemes so as to include such purchases.
Is the Minister not as well aware as I am that the machinery for getting loans from the Agricultural Credit Corporation is so cumbrous that it is quite impossible to get a loan to purchase a tractor in time for this year's tillage campaign: that there are about 200 extremely handy tractors of one particular type, and, doubtless, many of other types available: that there are hundreds of farmers anxious and willing to use them, that the only difficulty is to bridge the credit gap between suppliers and those who want to use them, and that the only way to do that is for the Department of Agriculture to do what it does in regard to mowing machines and spraying machines? Does the Minister realise that my proposal would involve no burden whatever on the Exchequer? I am not asking a grant or anything of the kind, but simply that the Department should facilitate the purchase of these tractors on the instalment plan. If purchasers fail to pay their instalments, the Government can take the tractors back, sell them and recoup themselves for any money outstanding.
The Deputy may not be aware of the particular type of loan this one is. The Agricultural Credit Corporation handle applications in the same way as the Department does under its scheme, and I think the Deputy will find that there will not be any undue delay. The applications will be handled in a few days if they get the information.
Is the Minister able to tell what security the Agricultural Credit Corporation demand?
The security is the same. If they get a reference they will advance up to three-fourths of the purchase price.
And there is no question of a mortgage, or documents of that character?
I cannot say definitely whether, when the amount in question exceeds £100, they might not expect a mortgage. I can assure the Deputy that they will not delay over that.
Does the Minister not realise that nothing I can say will persuade a farmer in rural Ireland to mortgage his holding for the purchase of a tractor, and that to prepare a mortgage document and get it approved by the legal adviser of the farmer, a thing which any prudent farmer would be bound to do, will in itself create a delay that will make it impossible to work the scheme this year; whereas, if you go to the Department and the Department decides that you are honest and solvent, it will give you a chit? You exchange it for the tractor, the mowing machine or the spraying machine, the Government in turn collecting the sum advanced from the farmer. If the Department is prepared to advance £100 in normal times, surely they should have no hesitation here. This is a question of advancing about £250 to a man who, ordinarily, would buy a tractor. Even supposing that 2 or 3 per cent. of those who get advances should default, what is that compared with the advantage secured by the 97 per cent. who will make a success of this by putting the tractors to work, not only on their own land but on contract work throughout the whole neighbourhood. Will the Minister consider that?
Certainly.