asked the Minister for Finance if he is aware that the Agricultural Credit Corporation have increased the loan charges for land purchased from 8½ per cent to 9½ per cent; and if, in view of the fact that this is out of all proportion to other EEC countries and applicants for entry to the EEC, he will take action to rectify the situation.
Ceisteanna—Questions. Oral Answers. - ACC Loan Charges.
27.
Loans advanced by the Agricultural Credit Corporation for land purchase are repaid at a fixed rate of interest over a period of up to 25 years.
The rate of interest charged is determined by the general level of interest rates on the Irish market and the availability of credit resources. The rate was recently increased by the corporation in the light of rates charged by other lending institutions and also by the need to devote as much as possible of the corporation's resources to more immediately productive purposes.
I am satisfied that the rate charged is appropriate in present conditions.
Could the Minister say if any comparison has been made with comparable interest rates in the EEC countries? Can he state if our rates are higher or lower for land purchase?
They are much lower in the EEC countries.
Precise comparisons with rates abroad are difficult in the precise circumstance mentioned in the question but the following are examples of long-term rates charged abroad, based on OECD and other publications —these are long-term rates which is what are involved in this question— Belgium, 9 per cent, France, over 9 per cent. Italy, 8½ per cent to 9 per cent on average, Germany, 7¾ to 9 per cent, plus commission and other fees, UK, 9 to 10 per cent but the Agricultural Mortgage Corporation charges 8½ per cent for land purchase, Denmark, 10 per cent, Norway, 7 per cent in a very tightly controlled capital market.
They are all lower.
No, some of them are higher.
They are all lower. than in this country, every one of them.
The Deputy is not stating a fact.
I am stating the truth. The Minister read them out to us. He will not shove a lie down my throat.
Would the Deputy listen again?
Yes, I will listen.
Denmark 10 per cent. The rate here has recently been raised to 9½ per cent. Now would the Deputy withdraw what he was saying?
I will not withdraw it.
No. Well, carry on in your ignorance.
A typical twist.