asked the Minister for Agriculture why the Agricultural Credit Corporation have refused credit for pig housing to pig fattening co-operatives which were established in various parts of the country with the help of the Irish Agricultural Organisation Society.
Ceisteanna—Questions. Oral Answers. - Credit for Pig Housing.
28.
I am not aware that the corporation has refused credit for any reasonable project, that is, where a reasonable financial contribution was made by the co-operative society and the project otherwise appeared to be a sound one. I do not believe that a lending institution would be wise in lending indiscriminately the vast bulk of the money required for co-operative fattening projects, especially where such projects are not associated with existing creameries.
Did the Department of Agriculture refuse to guarantee loans to these co-operatives?
The answer which I have given really covers this. Where there is a reasonable financial interest on the part of the co-operatives, there should be no question of a guarantee from my Department. It should not be sought, in fact. The loan facilities would be available without it. In my reply, I expressed the opinion that it is necessary to have that reasonable financial interest on the part of the promoting society.
What does the Minister consider a reasonable financial interest?
I should like it to be more but I certainly think it should not be less than about 25 per cent.