asked the Minister for Agriculture if he intends to introduce a scheme by which farmers will be enabled to purchase tractors and other agricultural implements on hire-purchase terms at reasonable rates of interest; and if he will take steps to bring about a reduction in the prices charged for these implements.
Ceisteanna—Questions. Oral Answers. - Purchase of Agricultural Implements.
As regards the first part of his question, I would refer the Deputy to my reply to a similar question put by him on the 9th December last, to which I do not think I can profitably add anything. As regards the second part of his question, I am not in a position to bring about a reduction in the prices charged for agricultural implements.
Is the Minister aware that last summer—I have not got the exact reference at the moment—he gave a definite promise that he intended introducing a hire-purchase system for agricultural implements? I wonder does the Minister recall that promise and is he prepared to carry it out?
The Deputy will remember that, on the occasion referred to by him, I stated that it was my intention to examine the question as to whether a more advantageous arrangement. could be made by providing hire-purchase facilities. On 20th July last I told the Deputy, in answer to a question put down by him, that the matter was being examined and from the information then available it appeared that the loan facilities provided by the Agricultural Credit Corporation were more advantageous than any system of hire purchase could hope to be, because the loan system provided by the Agricultural Credit Corporation demanded no "down" payment, whereas any recognised form of hire-purchase agreement would require a farmer to put down up to 25 per cent. of the total cost and then pay, if he were to abide by the practice of existing hire-purchase firms, a rate of interest of from 13 to 15 per cent. The Agricultural Credit Corporation is prepared to advance money at 4½ per cent. and give five years to repay the loan. These terms appear to me to be more advantageous than any hire-purchase system.
Is the Minister aware that it is practically impossible to obtain a loan for the purchase of agricultural implements from the Agricultural Credit Corporation? In addition to that, I think the Minister will agree that, having regard to the life of tractors, five years is too short a term for repayment for a farmer. I think ten years should be the normal period.
If the Deputy will submit to me any case in which he feels that a potential borrower is unreasonably refused accommodation by the Agricultural Credit Corporation for this or any other purpose I will be very glad to have the matter examined and to request the board of the corporation to inform both the Deputy and myself of the circumstances under which it is impossible to grant the loan, in so far as that may be consistent with the due observance of the confidence which must govern the relations of borrowers with the Agricultural Credit Corporation. In regard to the term of years over which repayment is required, my advices are that nobody considers a loan for machinery of that character over a period longer than five years, but if the Deputy wishes to discuss the matter with the board or with myself and the board, I would be very glad to do so.