asked the Minister for Agriculture if he is prepared to consider an extension of the time for the repayment of loans given to farmers who suffered losses in the number of their cattle because of the inclement winter of 1946-47.
Ceisteanna—Questions. Oral Answers. - Repayment of Farmers' Loans.
Each borrower under the special temporary scheme of loans for the purchase of cattle and sheep has, with two or more guarantors, entered into a specific contract with the Agricultural Credit Corporation, Ltd., for the repayment of the loan by instalments over a period of four years. It would be altogether impracticable to vary the terms of these contracts and, consequently, borrowers must adhere to the terms of their undertakings.
Does the Minister appreciate that the small farmer who suffered appreciable loss will not be able to rehabilitate himself in the industry within the short space of four years and, surely, a variation of the contract which is to the benefit of the small farmer will not put the Minister in any difficulty?
Is the Minister also aware that in the case of these loans a number of farmers who obtained the loans obtained them at a time when they were so impoverished that they now find it impossible to repay them and, by extending facilities, the corporation may be able to recover those loans?
May I remind Deputies that these loans were (1) interest free, and (2) that the first of four instalments did not fall due until 18 months after the loans were obtained; the second 30 months; the third 42 months after the loan was obtained, and the last instalment was payable four years from the date of the original loan, interest being levied at no stage of the transaction? Does the Deputy realise that where the terms of the contract are altered, the guarantors would be at once relieved from their liabilities because to amend the terms of a loan contract in respect of which a man stands guarantee would relieve the guarantor and, therefore, it is not possible, either on the grounds of equity or of expediency, to alter the terms on which these loans must be repaid?
May I put this to the Minister, that it would be quite possible for his Department to issue a general statement in respect of the contract? I do not see any difficulty whatsoever in doing what I suggest. The Minister appreciates the facts of these cases. Surely he has in his Department returns showing the losses in the number of their cattle that these people had during that inclement period?
I have great sympathy with them; they had a hard time.