asked the Minister for Finance if he will state, in view of the agricultural subsidies accruing out of EEC entry, why it was considered necessary to seek a £15 million loan from the World Bank; and if he will outline the full terms of this loan with regard to term, interest rate and to whom this loan will be made available.
Ceisteanna—Questions. Oral Answers. - World Bank Loan.
35.
While under the EEC common agricultural and related policies our farmers will get the benefit of higher Community prices and other incentives, this will not in itself provide additional funds directly for the Irish Exchequer. Savings arising from the elimination of agricultural subsidies hitherto borne by the Exchequer will fall to be dealt with in the light of the overall position of the Exchequer on current account, regard being had, inter alia, to other current commitments in relation to agriculture, social welfare and other services.
The loan sought from the World Bank, which relates to long-term livestock development, is still under discussion with the Bank. I am not, therefore, in a position to give the particulars sought by the Deputy.
Do I take it from the Minister's reply that we shall not be getting any money directly when we enter the EEC?
No. I did not say that.
I thought the Minister said that we would only get indirect benefit.
No, I did not say that.
I am sorry I was not listening properly. Would the Minister clarify it, please?
Would the Minister tell me when the World Bank loan is likely to become available and what details are still being ironed out? If it has been possible to fix the amount, surely sufficient detail is available to enable the scheme to go ahead, and would the Minister also tell me how this World Bank livestock development project will fit in with the other livestock development projects which he announced in his budget speech in line with EEC directives? Will they be separate schemes or will there be any connection between them?
The amount of the loan has not been fixed.
The figure of £15 million was mentioned by the Minister or by his Department.
It has not been fixed. The completion of negotiations is unlikely to take place before the end of this year. With regard to the last part of the Deputy's supplementary question, I am not quite sure as to what scheme he is referring.
Is the Minister aware that he announced in his budget speech a livestock development project related to EEC directives to be made available to small farmers and could the Minister tell me now whether there is any relationship between this and the other livestock development project which is to be financed by the World Bank?
There is no relationship. They are separate.
Would the Minister be able to say approximately what will be the saving on agricultural subsidies in the next financial year?
For the next financial year it should be, in relation to the expenditure on agricultural subsidies this year, in the region of £25 million.
That is £25 million will have to be paid out next year.
Does the Minister agree that the Book of Estimates gives a figure of £35 million, which is £10 million higher than the figure now mentioned by the Minister?
It must be related to the actual savings that are made. All the subsidies paid are not going to be saved. The reason for the difference is that because of the increased prices for milk products and cattle, but primarily milk products, in the current year the amount of subsidies we will pay will be less than last year and the savings to be effected, therefore, as compared with this year will be approximately £25 million where previously we talked of £30 million.