asked the Minister for Finance if he will ensure that more credit at reasonable rates of interest will be available to farmers in County Donegal for the purchase of fertilisers and animal feedingstuffs.
Ceisteanna—Questions. Oral Answers. - Farmers' Credit Facilities.
15.
I am informed by the Agricultural Credit Corporation and the Associated Banks, the principal sources of credit for the purchase of fertilisers and animal feedstuffs, that they are meeting all reasonable demands for such credit at present. The rate of interest charged is 10 per cent to 13¼ per cent, depending on the type of loan, the most common rate being 12½ per cent. As these rates are reasonable in relation to interest rates generally, I do not propose to take any action in the matter.
Can the Minister state what action should be taken or if he or any Minister in the Government will take action in a situation where loan commitments are so high that present day farm prices are not able to meet these commitments? What action will the Government take in regard to the provision of loan facilities, the purchase of animal feeding stuffs for the coming winter, and the purchase of fertilisers for next spring?
As the House was informed on Tuesday last, the ACC and the Associated Banks have indicated that they are prepared to sympathetically deal with all applications which they receive, including applications for postponement of repayment wherever repayment at the present time may cause hardship.
I understand that the ACC give preference for loans to those who have money invested there?
Yes, people who have already saved naturally get preference. Is the Deputy suggesting that people who do not, as a matter of course, save with the ACC should get preference over those who do?
I am. I am suggesting that the people who need the money have not got money invested anywhere.
From the time that a man first lent money to another preference has been given to people who show a pattern of thrift.
(Interruptions.)