asked the Minister for Finance if he would consider the introduction of certain restrictions on bank loans for land purchase, to ensure that qualified applicants get the loans and also to slow down the spiralling price of farm land.
Ceisteanna—Questions. Oral Answers. - Land Purchase Loans.
31.
Policy regarding bank credit is primarily a matter for the Central Bank. In its advice to the banks for some years now, the Central Bank has given priority to lending for productive investment. This includes lending to agriculture and is in line with national policy of encouraging agricultural development. Regarding land purchase in particular, I am advised by the Central Bank that applications to banks for loans for the purchase of land by farmers are likely to receive preferential treatment both as regards the proportion of the purchase price advanced and the period of repayment. Individual banks also have schemes to assist the purchase of land by smaller farmers and farmers' sons.
I understand that it is the practice of the Associated Banks to be more restrictive in providing land purchase loans to non-farmers. Some banks do not provide any credit for such purchases while others do so on stricter criteria than in the case of applications from farmers. These measures should help to avoid upward pressure on land prices arising from speculative activities.
Finally, the Deputy will be aware that the Minister for Agriculture has as recently as 26 April indicated to the House his intention to introduce legislation regarding land policy—with particular reference to price and speculation aspects—before the end of this year.
Is the Minister aware that Irish entrepreneurs are now buying agricultural land in Britain at less than half the price they would have to pay for it in Ireland and that this may be due to the lack of the kind of controls sought in the question.
I am not quite sure whether they are buying at less than half the price and neither am I sure that they are Irish entrepreneurs as the phrase is ordinarily understood. I understand Irish farmers are involved; maybe they are entrepreneurial farmers. I understand some Irish farmers have bought land in Great Britain cheaper than they can get it here. The comments of the Minister for Agriculture in this regard indicate the attitude of the Government that the price of agricultural land is, in our view, too high—I would say artificially high—and the Minister indicated his intention to introduce legislation to deal with land policy generally, but in particular, to deal with questions relating to the price of land and speculation in land.