asked the Minister for Finance if he will state why he has increased the rate of interest charged by the Agricultural Credit Corporation, Limited, to 5 per cent., and whether he is aware that such increased interest charge will prove an additional imposition on the agricultural community.
Ceisteanna—Questions. Oral Answers. - Rates of Interest on Agricultural Loans.
I have no function in regard to the lending rate of the Agricultural Credit Corporation which is a matter solely for the board of the corporation acting in pursuance of their statutory powers. I am informed, however, that the board's recent decision to increase the corporation's lending rate from 4½ per cent. to 5 per cent. applies only to new loans.
Is it not a fact that the Minister has a direct representative on the board of this corporation, and will he say whether its decision was in any way influenced by the previous similar decision of the British Chancellor of the Exchequer, or does the Minister suggest that we should fall in and follow Churchill?
The Deputy ought to talk sense some time.
Does the Minister advisedly inform this House that he has no say in the rate of interest charged on loans made by the Agricultural Credit Corporation when, to the common knowledge of every member of this Government and of the previous Government, the Minister for Finance is the only Minister who has an absolute right to determine that matter and habitually does determine it?
He is dodging the issue.
The Deputy had better listen to what I said:—
"I have no function in regard to the lending rate of the Agricultural Credit Corporation which is a matter solely for the board of the corporation acting in pursuance of their statutory powers"—
under the provisions of the Agricultural Credit Corporation Act, 1927-1947. Questions relating to the lending rate and other terms and conditions governing their loans are matters solely within the competence of the Board of the Agricultural Credit Corporation.
If Deputy Dillon, when a Minister, was in the habit of interfering with the discretion of the Board of the Agricultural Credit Corporation in these matters, I am not.
Is not the rate of interest paid by the corporation for the funds which they have lent to them by the Minister for Finance controlled by the Minister for Finance, and does he not raise or reduce these rates as he thinks fit, with the necessary corresponding adjustments?
I have not got anything to do with that except to ensure that the money is provided by me.
You raise the rate to them and they raise the rate to the public and you say that you have no responsibility?
I said that I have no function in the matter.
Will the Minister indicate to the board whether he thinks it is advisable to raise the rate of interest on loans to farmers?
I will not, by implication, interfere with the discretion of the board in this matter. This is not yet a totalitarian State.