asked the Minister for Finance if he will provide exchange risk guarantees for foreign loans negotiated by the Agricultural Credit Corporation to enable low interest loans to be provided for farmers in views of the current crisis in agriculture; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Exchange Risk Guarantees.
2.
The introduction of arrangements whereby low-cost Eurocurrency funds, for which the Exchequer would provide an exchange risk guarantee, could be made available to farmers for certain purposes is at present under active consideration in the Department of Agriculture and in my Department and is the subject of consultations between those Departments, the ACC and the associated banks.
Would the Minister not agree to proceed in a positive fashion with a view to establishing a permanent exchange risk guarantee for agricultural loans because of the position that has now obtained for some years past when these loans were available at the interest rates pertaining to the German mark; in view of the fact also that within the Community there is a facility whereby such loans can be obtained and, if obtained and backed by the Irish Government, entail very little risk as far as the Irish Exchequer is concerned?
It is wrong to suggest that there is no risk involved.
Very little risk.
Clearly currency movements are subject to forces quite beyond our control. Even the maintenance of the value of our currency is not necessarily sufficient if one borrows in currencies in respect of which the authorities of the countries concerned decide on another exchange rate policy. However, I would wish to be positive in this area and, as indicated in my reply, I am being positive because this matter is under active consideration.
Bearing in mind that we, as a Government, proposed the introduction of a scheme of this nature in 1982 just to increase his positivity in this direction perhaps the Minister would reply to me on the monitoring of such a scheme over the past four years when in fact no loss would have been incurred by the Exchequer?
That is a separate question which proceeds on an inaccurate supposition.