asked the Minister for Agriculture if he is aware that because of the present restriction on credit many farmers are not able to take advantage of the Land Reclamation Act; and if he will accordingly reintroduce Section B of the Land Project or some other similar scheme by which the farmer's contribution can be added to his Land Commission annuity.
Ceisteanna—Questions. Oral Answers. - Land Reclamation.
32.
I do not propose to reintroduce Section B of the Land Project. I am not aware that difficulties are being experienced in obtaining credit for Land Project purposes. I understand that the commercial banks are giving priority to applications for loans for productive purposes. Moreover, the Agricultural Credit Corporation, Limited, welcome applications from farmers for credit for land improvement works and are making such credit available as freely as at any time in the past.
Does the Minister seriously suggest that the commercial banks at this stage would give the sort of long term credit necessary to fill the place of Section B? I think that suggestion is quite ridiculous.
All I said was that I understand that the commercial banks are giving priority to loans for productive purposes. I would certainly consider that a loan to a farmer to help him carry out a land project operation would be for productive purposes.
Surely the Minister realises that the commercial banks at present have of necessity to operate a credit squeeze and loans for this type of work, being of necessity long-term loans, would not be granted?
I do not accept that at all. I have already indicated that the Agricultural Credit Corporation welcome applications for this type of loan.
I did not mention them at all.
Is the Minister considering increasing the grant for land project operations? It now bears no relation to its original value.
Deputy Clinton is not as well informed on agricultural matters——
That is the second time the Minister has said that within a fortnight.
I have already announced publicly that the maximum grant will be increased.
Not in this House.
Deputy Clinton would be about 100 times as well informed as the Minister——
(Cavan): Is the Minister aware that managers of commercial banks, apparently as a matter of policy, have lost all discretion in the matter of granting loans and the smallest loan must now be referred to the directors?
The credit squeeze.
I am not responsible for matters of that sort.
It is evidence of a credit squeeze.
I am not aware that a position as outlined by the Deputy obtains. All that I am concerned with in this question is with making credit available for land project purposes and I am satisfied that it is freely available for these purposes.
(Cavan): I respectfully suggest that the Minister should make inquiries about the loss of discretion by local bank managers.
I am not responsible either for the discretion or the indiscretions of bank managers.
(Interruptions.)
The Minister is responsible for the farmers.
I have a very discreet bank manager myself.