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Dáil Éireann debate -
Friday, 5 Dec 1986

Vol. 370 No. 8

Supplementary Estimates, 1986. - Vote 40: Agriculture.

I move:

That a supplementary sum not exceeding £37,200,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1986, for the salaries and expenses of the Office of the Minister for Agriculture, including certain services administered by that Office, and of the Irish Land Commission, and for payment of certain subsidies and sundry grants-in-aid.

This Supplementary Estimate is for an additional gross sum of £52.26 million which is partly offset by savings on various subheads totalling £15.06 million. The net amount to be voted is therefore, £37.2 million.

The main items where additional expenditure arises are market intervention, exchange rate guarantees and disadvantaged areas schemes. The £14.071 million under subhead M.4 for market intervention and some £6.7 million under subhead F.2 for exchange rate guarantee are required to meet exchange losses which arose in those areas as a result of the autumn devaluation of the pound.

The purchase of products into intervention is financed by this country in the first instance, the capital losses when the products are eventually sold being met by the EEC. The finance for the purchases is raised by borrowings, the level of which in 1986 has averaged about £430 million. A high percentage of these borrowings is in foreign currencies. The EC pays a standard interest rate to all Member States in respect of intervention capital expenditure. This rate is currently 7 per cent which is appreciably below the rate at which money could be raised here. My Department in consultation with the Department of Finance have therefore, been borrowing abroad to finance intervention purchases. While the money is obtained at more attractive rates there is, of course, an exchange risk and it is to meet the exchange losses this year that the extra £14 million is now required. I should say that over the years since 1983 when my Department commenced borrowing abroad for intervention purchases we have gained appreciably on the interest element. Despite the recent exchange loss we are still well ahead and the Exchequer has saved considerably on what would have been the position if the funds had been raised domestically.

Under the exchange rate guarantee arrangements the State covers the exchange losses on foreign borrowings made by the financial institutions which are on-loaned to the farming sector. For 1986 some £300 million in foreign borrowings has been covered under the guarantee arrangement. The bulk of these borrowings was made available in 1986. £50 million in Eurocurrencies was made available to the ACC at the beginning of the year. In June two schemes were introduced covering short-term working capital requirements and new agricultural developments. The maximum borrowings covered by these schemes was £135 million. In October a further £100 million was made available giving a maximum of £200 million for loans to farmers and private peat producers in severe financial difficulty and £35 million for new agricultural developments. The additional sum of £6.675 million now sought under subhead F.2. is to cover the exchange losses which have arisen under the guarantee arrangement resulting from the devaluation of the pound.

The additional provision of £11 million under subhead M.3 is to cover this year's payments under the special weather aid package which I negotiated with the EC. The full package is worth £15 million and the balance of this will be paid to farmers early next year. The £15 million will, of course, be repaid to us by the EC in due course. The extra money will be utilised to assist farmers in the more severely handicapped areas as it is generally accepted that these areas were particularly affected by the bad weather. It must be also borne in mind that this year the headage rate on beef cows in the less severely handicapped areas has been more than doubled to £70 per livestock unit. This is a national measure which is designed to increase the beef herd but we will be able to recoup 50 per cent of this expenditure in 1987. By using the special EC weather aid, it has been possible to raise the basic rate per livestock unit in the more severely handicapped areas from £32 to £50 for the first eight livestock units. The subsequent 22 livestock units have had the rate increased from £28 to £44. The overall effect of this should be to raise average payments from £640 to £860 for some 68,000 herd owners.

The original provision of £19 million under subhead C.2 is insufficient to finance essential activities in relation to bovine TB this year and it is, therefore, necessary to provide an additional £1.3 million to meet the cost of fees to veterinary practitioners. The unpredictable nature of disease spread makes it difficult to foresee the amount of disease that may be uncovered over a given time span. The fact that the 1986 programme was a selective one concentrating on high risk herds added an extra element of uncertainty in predicting the volume of additional testing arising from reactor retests, contiguous herd tests and six-month check tests. The results of the programme to date suggest that it has been effective in keeping the disease situation under control and that the additional £1.3 million required for fees to practitioners will prove very cost-effective.

The depopulation fund provided for under subhead C.5 applies to both TB and brucellosis eradication and is used to provide additional compensation to herd owners who have had their herds depopulated in the interest of minimising disease spread. We have made a major attempt during 1986 to achieve the final breakthrough against brucellosis. Part of this strategy involved the depopulation of herds that did not offer a realistic prospect of going clear of disease in the foreseeable future. I am pleased to say that this strategy has been successful and has been a major element in the reduction of the number of brucellosis-infected herds to the current level of 70 for the whole country. Some of the depopulations involved large dairy herds and so were more costly than envisaged at the start of the programme. Depopulations due to bovine TB were also more extensive than planned originally. The overall result is that an additional £0.4 million is needed to meet commitments for depopulation and restocking grants in 1986.

An additional £0.835 million is being provided under subhead B.13 in respect of significant reductions in ACOT's non-Exchequer income. The bulk of the reduction relates to a shortfall in anticipated receipts from the European Social Fund arising from the impact of tighter eligibility criteria on ACOT training schemes.

Under subhead G.2 a sum of £1.079 million is required to cover liabilities in relation to the demise of the Pigs and Bacon Commission Limited. The company, run by the pigmeat industry, had taken over from the statutory Pigs and Bacon Commission in the spring of 1982 but they ceased trading at the end of 1984. When the new company was formed they took over certain assets of the old commission. The proceeds from disposal of these assets were to have been used to finally clear the deficit of the PBC but the company failed to do so. In addition, my Department had provided a guarantee on limited borrowings by the private company which they were obliged to honour to clear the debt incurred by that company in trading. While strenuous efforts have been made by my Department to recover the amounts owing from the pigmeat industry, these have so far proved unsuccessful. I wish to stress, however, that efforts to recover these debts amounting to almost £1 million through suitable arrangements negotiated with the pigmeat industry will continue. Some £120,000 of the additional provision relates to redundancy and pension payments for former employees of the statutory Pigs and Bacon Commission.

Expenditure this year under the interest subsidy scheme for farmers in severe financial difficulty, better know as the rescue package, is expected to be some £0.7 million more than provided for. This extra provision appears under subhead F.4 and is to cover interest subsidies to farmers who were admitted to the scheme at a late stage by the financial institutions. This could not have been foreseen at the time the original Estimates were drawn up.

An additional grant-in-aid of £20,000 is being provided for Bord na gCapall under subhead I.1. This is to cover aid of £10,000 provided by the board towards the cost of the European Junior Showjumping Championships held in Ennis this year and a death gratuity in respect of an employee of the board.

The £3 million provided for under subhead M.7 is necessary to enable payment of that amount in variable premium on beef exports to the UK. It is balanced by corresponding higher receipts from the UK Government under subhead N.27.

The Supplementary Estimate also provides for a deficiency of over £13 million under subhead N for Appropriations-in-aid. This is a net sum which takes into account certain additional receipts under some headings. The main deficiencies arise in receipts from the EC in respect of market intervention and farm modernisation measures, including western measures. The drop in market intervention receipts is due to a significant cut made by the Commission early in the year in the rates of recoupment for interest charges and storage and handling costs. The reduction in the farm modernisation sector receipts arises from a number of factors including adjustments for excess recoupment in 1985 and sums due in 1986 being deferred into 1987. The offsetting additional receipts include the £3 million already referred to in respect of UK variable premium on beef exports, £0.6 million in disease levies due to a higher volume of slaughterings than anticipated, £0.95 million in EC receipts towards expenditure on disadvantaged areas in 1985 and £0.57 million in respect of forfeited deposits and securities under EC intervention, export refund arrangements and so on. For the latter, we had estimated receipts at £0.3 million. However, this is a very difficult item to estimate in that it is impossible to foresee the particular events or incidents that will arise justifying forfeiture of securities.

I commend the Supplementary Estimate to the House.

(Limerick West): This year has been one of the worst years in agriculture. In addition to the weather conditions things have been further complicated by a Minister who has no commitment to agriculture development. In introducing this Supplementary Estimate the Minister should have availed of the opportunity to give some guidelines to the agricultural community and to point the way ahead. The Government's abysmal failure is evidenced by their total lack of commitment to the agricultural industry. This has been obvious over the last four years but hopefully the time is not too far distant when we can see an end to this abysmal Government.

The Minister in his contribution referred to the Euroloan schemes. We all know that the Euroloan scheme is totally inadequate to meet the needs of modern agriculture. The Minister should be aware that what is required is long term borrowing and a fixed repayment rate over perhaps a ten year period. We require long term planning and guidelines for the future. Instead we have had a stop-go inconsistent approach to the provision of capital and an attitude from the Government which suggests that they will give farmers a sop here and there and that this will satisfy them. The Government have no long term strategy with regard to the provision of capital and assistance with loan repayments. This must be tackled in a way which will ensure that we have some confidence in the industry in the future.

We welcome the contribution by the Government, late as it may be, in regard to the increase in the headage grants on beef cows in the less severely handicapped areas. This should have been introduced long before now.

The Minister referred to the depopulation fund under subhead C5 where it applies to both TB and brucellosis eradication. I brought to the attention of the Department that all the technical advice available to the field workers and the veterinary profession recommended that certain herds in County Limerick, particularly should be totally depopulated. This was not possible because of inadequate funding for this scheme. In certain parts of County Limerick herds were not depopulated. Reactors were removed but the result was that in subsequent tests there were further outbreaks of the disease and herds contiguous to the affected herd had a break out of the disease. There was a snowball effect because the Minister and the Department were being penntwise and pound foolish. That is the sort of disease eradication scheme that is being promoted by the Government.

The Government in their programme Building on Reality indicated that certain sums were being allocated for disease eradication yet the following year the scheme had insufficient funding to carry out the programme outlined in Building on Reality. That was our approach to disease eradication. It is not good enough.

The TB eradication scheme has been stepped down. We know it is important that a full round of testing for the whole country should be carried out quickly. Even at this stage I hope the Minister will do something about that. During the four years in which they have been in office the Government have constantly proved their unwillingness to put money into agriculture. I am quite sure that the Minister would agree with my assessment, although he is unlikely to agree with me publicly. The great majority of farmers would also agree with me as would many other people who are interested in the development of this country.

I have referred to the bovine TB scheme for which the Minister is now asking an additional sum of £1.7 million. The sum required is not the largest in the Estimate but, more than anything else, it indicates the extent of the unwillingness of the Government to carry out their responsibilities with regard to agriculture. For a number of years we have been going backwards in regard to the eradication of bovine TB and its incidence is now higher than it was in the fifties. What is the reason for this? It is because the provision of moneys for the scheme has been insufficient? Testing has not been sufficiently frequent, consistent or extensive and the consequences are that the remaining vestiges of the disease persist. Unless immediate remedial action is taken, the situation may well worsen and that is the view of the veterinary profession and farmers who are suffering so much at present because of inadequate and insufficient testing. This is very regrettable, not just for the farmers involved who make large contributions to the cost of the eradication scheme, in excess of £14 million this year, but also for the economy. Apart from our soil and the people who live and work on the land, our greatest asset is the livestock herd. However, over the last four years the Government have not been prepared to carry out their responsibilities in regard to improving the health of the national herd.

The reasons for this are not too difficult to work out. Some of those in Government look upon agriculture as a burden which must be borne rather than the main national industry needing development. Money for the bovine tuberculosis scheme has been cut back without regard to the serious consequences which will accrue as a result. Since 1954, we have been endeavouring to rid ourselves of bovine TB. The total cost of the scheme, in current money terms, amounts to something in the region of £1,000 million. I do not propose to comment on why the scheme could not have been completed long ago but, compared with the high levels of the disease which existed in the fifties, very good progress has been made.

I wish to comment on the recently published report about the scheme by the Committee on Public Expenditure. I must criticise the neglect by the Government of bovine TB over the last four years. However, the report of the committee to which I referred give an inaccurate, bad and dangerous impression to anybody reading it who is not familiar with the progress made in relation to eradication over the last number of years. I refer in particular to the statements in the report that the scheme is there purely as a blind to convince importing countries that we have a scheme and, secondly, that known reactors are not always taken up and slaughtered when they should be. These are not the only faults in the report but I single them out for mention because it is imporant to do so. I cannot deal fully with the report now but perhaps I will have an opportunity to do so in the near future. While it may have merit in regard to drawing attention to the need to clear up bovine TB, it is damaging because of its major inaccurate statements of which I have examples.

To get rid of bovine TB once and for all, we need a Government who are determined to invest sufficient money to have the job carried out quickly and efficiently. In the past year, I published a ten point plan for the eradication of bovine TB which, if followed, would give the desired results. A full round of testing needs to be carried out very quickly with special attention paid to problems as they arise and to problem areas as they show up. Earlier, I referred to a number of problem areas in my county and I am sure that the Minister and the Department know that these areas require attention. However, he has not been given the money to carry out the work and I reemphasise that every herd whould have one round of testing every year. Known reactors should be removed to ensure that there will not be a further spread of the disease. There should be adequate testing, research and funding and if these were put into operation the disease could be contained in manageable proportions within three years, probably down to 0.5 of 1 per cent. This is important because our livestock is vital to the economy. We have been shilly-shallying in regard to this disease over the last few years and it is time to make a breakthrough.

I can assure this House, and through the House the farmers of the country, that Fianna Fáil on return to office will make sufficient funding available to the bovine tuberculosis eradication scheme. We will push forward with vigour and determination so that in a short period of years we will be able to declare the country free of bovine tuberculosis, as we have already been able to declare the country free of brucellosis. Brucellosis was not as difficult a disease to eliminate. There were a number of factors which helped greatly, such as the comparative lack of movement of female cattle as against the movement of male cattle, the use of vaccination and the great interest of individual farmers in seeing to it that the disease was cleared up very often because of the sad and costly evidence before their eyes of the damage caused by the disease.

The farmers of this country fully realise that a rapid clearance of tuberculosis is equally important. I believe they have an interest and determination, given sufficient direction, control and effort by the Government, to get the job done. In recent days my colleague, Deputy J. Leonard, reported to me on a meeting he attended in Cavan where he represented this party. This meeting was attended by 600 farmers who gave very definite evidence — incidentally a meeting which the farmers were expecting the Minister to attend — of their anxiety and interest in having the scheme brought quickly to a successful conclusion.

I would now like to take up another item on the Supplementary Estimate under subhead M.4 where money is required for market intervention. What we are mainly talking about is the storage costs of butter, skimmed milk powder and beef. The intervention system is the means by which the Government, operating the rules of the European Communities, maintain the support price for milk and cattle. This brings me on to the quantities of milk produced in the Community which will be supported without penalty. In other words, I am talking about the milk super-levy and the dreaded milk quota. What is uppermost not only in the minds of the milk farmers who are immediately concerned but farmers generally is the further threat to quotas. Beef farmers, especially, are fearful as to the outcome of the discussions which are at present taking place in the Council of Ministers.

With regard to milk, the Commission have proposed further cuts in the quota. For Ireland, this will be in addition to the 3 per cent which the Government accepted in April of this year. We have seen the effects in recent months of the long delay which the Commission have imposed on payment for products taken into intervention which has resulted in severe cuts in the price of milk. This party never denied there is a problem with regard to the surplus of milk in Europe. What I cannot understand is the readiness with which the Government and certain farming interests have accepted that Ireland must readily submit to the same quota cuts as every other milk producing country. I cannot understand this attitude. I would be quite right to call it a defeatist attitude by comparison with the concessions — not that they were great concessions — which were hailed by the Government as a great triumph in 1984. Farmers cannot understand why the Minister is now accepting what he could not accept two years ago. Is it not still true that Ireland depends on milk more than any other country? Is it not still true that it is the basis of our whole agricultural economy? Why should this country be penalised in the same way as other countries which have built up huge surpluses of milk over the years with the use of imported feeding stuffs and the very high use of fertilisers?

The argument in our favour, which I am quite sure is well known to the Minister, is the one which I have spelled out. I can only refer briefly to it. Of course, it is all right for a farmer who has a sizeable quota to take the attitude that if his quota can be preserved or reduced by a certain amount he will accept it provided the price is kept up. That is all very well for those who have quotas but it can be a very shortsighted attitude. Are we to go on forever agreeing to quota reductions as long as the price is kept up? What about the farmers who have no quotas at all or who have very inadequate quotas for the milk which could be produced? What about the co-ops which need milk if they are to continue in business? What about the development of the Irish food industry? What about the employment potential in the co-operatives and in the processing industry? Is all this going to be under attack and threat? Are we going to have further redundancies and unemployment in that area?

Unfortunately, we are not receiving answers to those questions from the Government. We must not accept the present proposed cuts in the quota. The case we made in 1984 remains as valid today as it was then. Ireland has a greater interest than any other country in the EC in the development of a healthy milk market in the Community and on world markets. In a matter of major national importance such as the maintenance of at least our present supply of milk, we should not allow ourselves to be dealt with as if we were a country producing unmanageable quantities of milk on the basis of an artificial type of farming. The Minister should take account of that in the stance he is adopting in Brussels.

There is a question which I would now like to put to the Minister. At present the Council of Ministers are looking at milk quotas and a discussion is taking place about the support systems for beef. One never knows how these discussions may go or what may be the situation in the beef market in either six months or a year from now. The EC persists, not for the best reasons, in cutting back on money which should be made available for agricultural support. I do not wish to see it but we could have beef quotas. In relation to beef, if the Minister was to find himself in the position he maintains he is in in regard to milk what would he do in regard to beef quotas? He might address himself to that question in his reply. From his performance with regard to milk I must conclude that he would equally concede in regard to beef and accept quotas for Ireland. If the Minister does not agree with me perhaps he would explain to the House — taking into account his present stand on milk — what he would do in regard to beef? I would also like him to explain the relationship, as he sees it, between the stand which he is taking on milk and the possible stand which he would take on beef.

There is provision in subhead M3 of the Estimates for a sum of £11 million for aids to farmers in disadvantaged areas. This money is welcome and it goes a little way to make up to farmers who have suffered severe losses due to the Government's negative policies, as well as other factors such as the weather over the past two years.

Farmer confidence has never been at a lower ebb. Much more would be needed than this increase in headage payments in the disadvantaged areas to put right the damage this Government have caused.

If one single item is needed to prove the lack of farmer confidence, it is to be found in the huge saving of £9.5 million under subhead M1 — the subhead for farm modernisation. This huge sum was saved because farmers are too much in debt already and too doubtful about the future to invest.

I do not propose to elaborate further on this major lack of farmer confidence in a debate about a Supplementary Estimate. I am afraid the time available to me would not be sufficient for me to say what I feel about this Government's attitude to farming. I hope to have a more suitable opportunity to speak further on this when the Dáil discusses the motion to adjourn the House in two weeks time, that is, if the Government do not crumble and fall before the adjournment.

I should like to comment on some of the other items in this supplementary Estimate. The first item on the list is the provision of money for ACOT. There is need for adequate funding for both ACOT and An Foras Talúntais. Here again the Government have chopped money giving scant regard to the need for development of the advisory and research services. With the growing restrictions on agriculture, there is an increasing need for specialised advisory and research services. There are many areas in which improvements can be made that would be of benefit to farmers, through reductions in farming costs and through the better development of the processing and marketing of farm produce.

This petty approach to education and research is the direct opposite to the approach of our European partners whose assistance in these areas continues to grow. Organisations such as ACOT and AFT represent hope for the future but by his action in the Estimates the Minister seemingly does not hold them in high regard.

ACOT have more than proved their worth. Their restructured service has enabled them to cope with the major growth in education and training to impart the most expert advice to farmers. The major developments in recent years have shown just how valuable ACOT are in the structure of agriculture here. Following the introduction of milk quotas last year they undertook a major analysis of alternative pathways for farm development. A detailed advisory casebook is being prepared to assist advisers in guiding farmers. The organisation are examining each enterprise to establish how they can provide the most effective service to farmes, bearing in mind market constraints.

ACOT played a major role in dealing with farmers in financial difficulty. A highly personalised service has been provided to more than 10,000 farmers in difficulty. The progress of more than 6,000 farmers who received assistance under the rescue package was closely monitored. In a major initiative with farming organisations ACOT helped to restore a further 2,000 farmers to viaiblity. These were farmers whose assets were under pressure but who were ineligible for the rescue package. This vital aspect of ACOT's service is very much in demand.

While major progress has been made the imposition of milk quotas continues to threaten the viability of many farmers. It is encouraging that ACOT have recorded a magnificent increase in the numbers taking part in their education and training courses. Almost 88 per cent of all new entrants to farming will have gone through a comprehensive training course. This contrasts with 33 per cent just five years ago and is encouraging for the future. The course for the certificate in farming which is known as the green cert has attracted almost 3,000 participants, exceeding ACOT's own expectations. Equally important is the development of alternative farming. I am anxious to mention the possibilities for improving the income of certain specialist farmers by State agencies such as, for example, Bord na gCapall for which we are also being asked to provide extra money.

With regard to the Pigs and Bacon Commission under heading G.2, I have recently supported a motion in this House to reduce the veterinary fees charged for pigs slaughtered under the control of veterinary officers of the Department of Agriculture. The pig industry has been going through a particularly rough time and much needs to be done if we are to guarantee the very important home market for bacon to Irish pig producers and pig processors. Equally important is it that we be in a position to develop our export trade in bacon and pork. Everyone must realise that if we do not look after the pig business in the future large quantities of our requirements of processed pigmeat could be supplied from sources outside the country, which would be regrettable.

I have already brought to the attention of the House my disappointment at finding a firm in my own county of Limerick, who had developed good possibilities of trade in pigmeat products with the United States, being prevented from trading because we do not have a single factory here which complies with the standards required by the United States. The firm considered importing pigmeat from Denmark to fill their order; that would be a sad situation altogether. From the reply given to my question of the Minister, I hope that the position will be put right very shortly. We can ill afford to lose such a potentially lucrative market.

There are many other areas to which I should like to refer, but this is a very limited debate to the extent that I can only make reference to the points raised in this Supplementary Estimate. I support this Estimate and hope that my wishes for the industry will bear fruit and will be accepted by the Minister as matters which require to be attended to and which need development. I hope that he will bring these matters to the attention of his Cabinet colleagues, for however long or short a period he is in that position.

I hope, even at this late stage, that the Minister will give to the industry the direction which he has failed to give in the past. That industry, above everything else, is now clamouring for leadership and guidance but it is my experience, going on the Government's record that that leadership and guidance will not be forthcoming until we have a change of Government.

It gives me great pleasure to have the opportunity of speaking to this Supplementary Estimate for Agriculture. I compliment the Minister in securing £261 million for his Department in this financial year. I have been listening to Deputy Noonan for the last 40 minutes and to his assumption that his party will be in Government in the near future. A farmer listening to him could not identify a single constructive proposal or suggestion in his long contribution. That is not very surprising, because we all know that the Minister has carried out his job with distinction and effectively and efficiently during his four years in office and at a time of major difficulty for that industry. One cannot but be impressed at the manner in which he handled the price negotiations over the last number of years in Brussels and also the delicate negotiations with regard to milk quotas which took place in 1984. He is to be complimented on securing Ireland's position and not alone retaining the levels of quotas but securing an increase.

It is appropriate that the Minister is moving this Estimate some days after a very historic and timely conference has taken place with regard to the future of agriculture. We are facing major changes in agriculture over the next number of years. Anyone can see, from the additional moneys being voted for the different intervention schemes, that there will be major pressures on us as a member of the EC to change the present system of purchase, not alone of milk but of beef. Everybody accepts that the present situation whereby the EC purchase vast quantities of butter to be put into cold storage and sold off at very low prices cannot continue. It is important that we be able to gear ourselves appropriately for whatever changes take place with regard to the purchase system of milk and beef.

I wish to refer also to one of the major changes which took place in the last 12 months and which will have major advantages for many farmers, that is the Minister's decision to reclassify 3.4 million acres from disadvantaged to severely handicapped regions. I welcome that positive, constructive decision. It should be our aim to reclassify as much of the country as possible, thus ensuring that farmers can gain maximum benefit from membership of the EC. This reclassification will ensure that many farmers who prior to this were deprived of the benefits of headage payments will be able to receive them from 1987 onwards. On discussing this issue and the implications for my own county with some senior Department officials, I was amazed to find that the changes envisaged for this year and next year will increase the amount of headage payments from approximately £1.8 million in 1985 to £6 million in 1987. Of course, there will be a substantial increase this year due, first, to an additional 90 farmers coming into the severely handicapped area and, secondly, the increase in the rate of headage payments in the west from £32 to £50 for the first eight livestock units and £28 to £44 for the next 22. That will undoubtedly help to improve the income of many farmers in the west who have suffered adversely over two very bad summers, indeed two extremely bad years.

The additional £15 million in income from headage payments should not be seen in the context of compensation for the last two years. Rather it should be seen as trying to increase the rates of headage payments. It should not be just for one year, our aim should be to pay this rate each year. Our aim should be to pay the full headage grants because it is in the country's best interests that we pay out the maximum under the headage scheme. I have no doubt that this would result in savings for the Government in other areas.

Some farmers with uneconomic holdings and who are forced to work in industrial employment and are deemed to have an off-farm income and are prevented from applying for headage payments. This is an area the Minister should examine to see what can be done to bring more of these farmers into line for headage payments. The important thing is to have as many farmers as possible in receipt of headage payments. That is why I welcome the extension of the scheme in 1986 and the extension envisaged for 1987. That is of crucial importance but we should do all we can to bring into the scheme those farmers who are in receipt of an off-farm income. I understand the cost in the first year would be in the region of £6 million but to bring those involved in sheep production into the scheme would cost substantially less, around £1 million.

The Minister should look specifically at farmers involved in sheep production because the EC is still not self-sufficient in sheepmeat. We should encourage our farmers to get involved in this industry and gain a higher proportion of the market because in three or four years time a quota system might be introduced, as has happened with milk and other products. It is important that we increase production and get our share of the market while the going is good. We should encourage sheep farmers to increase sheep numbers. Paying headage grants to farmers with off-farm incomes, especially those involved in sheep production, would be one way to do this.

The previous speaker referred to the bovine tuberculosis eradication scheme. I welcome the increase in expenditure under this heading but we all regret that it was not possible to carry out a complete round of testing this year. I understand the Minister is carrying out an internal departmental study on the operation of the tuberculosis eradication scheme and I welcome that. This is one area where we must examine the value the taxpayer is getting for his money.

I want to refer to a report by a subcommittee of this House which was quite critical of the expenditure under the tuberculosis eradication scheme. It is important to emphasise that it is not the farmers who gain financially from that scheme because the amount of that heading which goes into the farmers' pockets by way of compensation, is extremely small. The whole area of compensation needs to be looked at and I appeal to the Minister to do so. We will have to carry out a careful examination of expenditure on this programme and ensure that a greater proportion of the money will be spent carrying out tests and eliminating the disease at farm level. In the past I have been critical of the amount spent administering schemes. Here is a glaring example where the money spent on administration is much too high when compared with the amount spent on work carried out at farm level.

I ask the Minister to carefully examine the situation in County Longford where there is an extremely high level of disease at present. The only thing preventing the spread of that disease into my county is that river which caused a great deal of trouble on many occasions but which on this occasion is a blessing, and that is the Shannon. Farmers in my county are extremely worried lest there be a major outbreak in Roscommon. I ask the Minister to take whatever steps are necessary to ensure that the disease does not spread into County Roscommon. I want to raise another topic, that is, the tattooing of cattle rather than tagging. For quite some time I have held the view that this would contribute towards reducing the level of disease. This, too, is an area the Minister should examine. I appeal to him to make some funds available under the heading "research" to enable research to take place into tuberculosis, the outbreaks which take place and where they originate. The Agricultural Institute should be playing a much greater part in this area.

The Minister mentioned Euroloans in Euro currencies. At present the demand for this currency far exceeds the supply. I compliment the Minister for making the £200 million plus available at extremely low interest rates, but I appeal to him to examine what can be done to have this scheme extended because whether we like it or not for many years the majority of Irish farmers have been over borrowed. Many of them over borrowed because they were advised by the Department of Agriculture and their agencies to reclaim and drain land, build houses, increase stock numbers and so on, and this money was very often borrowed at 7 per cent or 8 per cent but within two or three years these farmers were paying interest rates of 18 per cent. No farm enterprise can carry that level of bank interest. I believe many of our lending institutions have squeezed the blood out of our farmers because of the criminal interest rates they are charging. I appreciate that the banks have to borrow on the world market and that they have to pay the going rate, but I often question the rates of interest charged on what should be production, such as agriculture on the one hand and domestic or personal borrowing on the other. I believe the banks could have played a much more important role in the agricultural sector.

Many questions remain to be answered about the handling of these Euroloans by the lending agencies. The lending agencies should spell out clearly what are the criteria for borrowing and granting those loans because many farmers cannot understand why they are not eligible. There seems to be great reluctance on the part of the lending institutions to restructure loans. I find it very difficult to understand their attitude to many of the applications made. The number of applications received for this Euroloan far exceeds the amount of money available but even allowing for that there is a slowness in releasing to farmers the money that is available.

During the coming months much discussion and negotation will take place with regard to our milk quota system. We all recognise that the present system may not continue. I appeal to the Minister to ensure when taking part in those negotiations, that careful consideration is given to the smaller producers. Every effort should be made to try to ensure that a producer of 30,000 gallons of milk or less will have an opportunity to make a living from Irish agriculture. That producer should not be penalised and driven out of milk production or out of farming. He should have the opportunity, if he has loans, to repay them. It is extremely important that all this be taken into account in those negotiations. I ask the Minister to try to protect the income of that type of farmer in particular.

Any change in the milk quota system will have implications for the beef farmer also. The raw material, the calf, will be much more expensive and there will be smaller numbers available. When one considers that on one hand and the interest rates on the other hand and also the banning of implants which will make it more difficult for farmers to have the type of carcase that will be up to grade, one realises the major problems there will be for the beef farmer. The one way that action can be taken to alleviate some of those problems is by giving farmers low interest long term loans. We must try to restructure the borrowings of farmers. They could make a contribution towards the cost of this money. It would be unfair to ask the Exchequer to account for all of it. I know that many farmers would agree to do that. This would reduce the present interest rates of 15 per cent, 16 per cent and 17 per cent to single figures. That is of vital importance if agriculture is to survive in this country.

There has been a major drop in farmers' incomes in the past two years. That has been weather related. There is no doubt that the weather has had a devastating effect on farm income in the past two years. Output is down by an estimated 10 per cent and costs have soared. One survey carried out recently suggested that the variable costs rose by 33 per cent as a result of the two extremely bad years and that 68 per cent of that was due to increased costs of feed. With regard to fixed costs there was a 20 per cent increase, again weather related, because of the increased borrowings of farmers and the high bank interest rates. As a result farm income was reduced by upwards of 50 per cent and many farmers found it extremely difficult to exist. Low interest loans would make a major contribution to increasing farm incomes for many of those farmers. In conclusion, I appeal again to the Minister to see what can be done to reduce bank interest rates and to get long term low interest rates for Irish farmers. That is of vital importance for the future of the agricultural industry.

The debate on the agricultural industry is being held against a background of the whole industry being at a cross roads. There has been a crisis in the industry for a number of years. The pig industry, beef production and tillage farming have been for some time disaster enterprises as far as agricultural production is concerned. I will deal with different aspects of the industry.

We should look at the structural problems that have affected the agricultural industry for so long. By and large we have small uneconomic holdings. Unfortunately, the subsistent farming mentality has prevailed for far too long. The opportunity that membership of the EC presented to us was not realised, people were not in a position to avail of it and to set the machinery of development and progress in motion in time. Small-holdings by their very nature are simply unable to generate the resources that will allow the capital investment and intensification which will in time help them to gain the necessary viability. The sort of farmyard enterprises we have in mind, pig and poultry production and, in some cases, the protected horticultural crop sector, offered the ideal way to intensify and in many cases to absorb the surplus labour capacity that existed on many farms. Unfortunately, the capital requirement for the development of many of these enterprises is huge. Small farmers cannot develop these enterprises unless they have finance from some other source.

Given the policies pursued by the Coalition Government in the past four years it would appear that the sort of structural reform that is badly needed in Irish agriculture will only come about by the pressure of the dire economic circumstances at the time. People at the lower end of the scale will be forced out of the industry. If a sufficiently attractive retirement scheme for farmers had been introduced years ago the whole agricultural industry would be a different proposition today.

It is inevitable in any of these debates that we consult Building on Reality to see what it forecast for agriculture. It is stated in that document that “Despite the national and international difficulties, the prospects for Irish agricultural trade remain promising.” Those who are struggling in the pig industry, those who rear weanlings, those who fatten cattle and those who grow barely must wonder what exactly that projection meant for their future. In every industry consideration of the scale of the economy is very important. In the agricultural industry at present it is the vital ingredient for many farmers to survive. If they have adequate input and purchasing power, adequate storage facilities and adequate cashflow and are in a position to fully utilise the equipment, to get the full benefit from investment in farm equipment and if they have freedom from the over dependence on single enterprise farming they will be the one sector that will survive. Unfortunately, because of the farm structure there are not sufficient numbers under that heading.

We joined the EC in the early seventies and it was all milk and honey for a few years. Everybody benefited. The sort of resources that were undreamed of previously were available for development and for the expansion of production. Unfortunately that was followed by what I can only describe as a period of insanity with regard to land prices in the mid-and late seventies.

I must remind the Deputy this is not a general debate on agriculture. I have had controversy today with speakers on this matter. A debate on a Supplementary Estimate is very restricted and is confined to certain subheads. The Deputy has not wandered too much but I anticipate he is about to do so.

It is difficult to deal with agriculture in a debate on a Supplementary Estimate.

I am asking the Deputy to bear in mind that this is not a debate on the general Estimate.

I shall try to get back on the rails soon. In those years land prices went through the roof. Farmers at auctions and sales were outbidding each other in grossly inflated prices. At that time the phrase, "they are making no land", was coined for the first time. Prices paid for land in those years are an albatross around the necks of many farmers today. In the early eighties the storm clouds gathered. Dairy and meat surpluses became an obsession with those who matter, the decision-makers in Brussels. The surpluses in the dairy area were a direct result of the factory-type farming practised on mainland Europe. Substitute cereals grown outside the Community were used by those running such farms. In the early eighties the super-levy became a fact of life and, unfortunately, the Coalition have allowed the full impact of it to be visited on Irish farmers.

Will the Deputy return to the Supplementary Estimate?

The bad weather in recent years has been the only reason why there has not been a transfer of resources from the industry out of the country in the form of super-levy payments. Meanwhile the factory type farming continues on the Continent. One wonders about the principle of having concern for the underdeveloped areas of the EC. We are at a disadvantage being on the periphery of Europe because of the cost of transport to markets on the Continent. As a result our primary producers are suffering. The Minister for Agriculture has failed dismally in his efforts to convince the bureaucrats in Brussels of the serious plight of the agricultural industry here. He has not succeeded in getting his message across.

It appears that the Chair has not succeeded in getting his message across to the Deputy.

I will return to the Supplementary Estimate shortly. We have not succeeded in getting the derogation to which we are entitled. Our beef industry is in a serious state. I not there is a provision in the Supplementary Estimate to cover the cost of putting produce into intervention. The capital investment in beef production is considerable but, unfortunately, the return on it has not been what it should be. Many farmers who invested heavily in modern facilities are in serious financial trouble mainly due to the high interest rates that have been with us for far too long. Our spokesman, Deputy Noonan, referred to the importance of the beef industry for the future of our economy. Our exports in that area are invaluable but farmers engaged in that enterprise have not received much assistance from the Department.

I should like to refer to the serious crisis in the pig industry. Pig production by its nature is labour and capital intensive. The capital commitment demands that there should be a reasonable return on the investment. Traditionally, that industry blows hot and cold. For a period producers obtain reasonable margins, they suffer for a time and then they must cope with over-production. Many people operate at a loss. I accept there has been a major rationalisation at the primary production end of pig breeding and it is safe to say that our pig producers are among the best in Europe. There is a greater concentration on management techniques but, unfortunately, the type of rationalisation needed at the slaughtering, processing and marketing stages has not materialised. It is difficult to pinpoint why that has happened and unless it is rectified very soon we will not have a pig industry for very long. Pig production has been identified as having great potential in the future but we must get the marketing and processing right. I hope the Minister for Agriculture will give a commitment to that industry for the remainder of his time in office — all the indications are that the general election will be held early next year. I hope rationalisation is accelerated and that the industry will have a brighter future in 1987.

In recent years the media have focused on the volume of fruit and vegetable imports. Grossly exaggerated statistics have been quoted from time to time on the possibility of import substitution this year. Undoubtedly, there is potential for import substitution and for exports.

The Deputy should confine his remarks to the Supplementary Estimate.

The industry needs a radical overhaul. Our plan charters the road ahead for the industry. It is unfortunate that this debate is so restricted because a lot could be said about the serious contraction and stagnation in the industry. One cannot deal with all aspects of agriculture in 15 minutes. As far as agriculture is concerned, contraction and stagnation is the order of the day. The implications of the super-levy and further restrictions on milk production will have a serious impact on output. I have always subscribed to the view that in order to make progress in any industry we must concentrate on the area of research, advice and education. Unfortunately, the Government have seen fit to make serious cutbacks in this respect and though this has had an immediate impact it will not be fully felt for another two years because young farmers who should have had an opportunity now to engage in education and research do not have the facilities to do so. That will be reflected in management standards and general input in the industry.

We had a publication recently on the number of part time farmers in the EC. All indications are that we will have a steady increase in those numbers. Given the economic climate that prevails in Irish agriculture, I suggest that the movement towards part time farming will be accelerated. One must ask where are the suitable off-farm jobs to supplement incomes from part time farming. This week we had a publication on the most recent studies on farm incomes. Indications are that there are 100,000 family farms with incomes of less than £4,480 per annum. This shows the stupidity and the folly of those who have pontificated on farm fortunes over the years. The most recent figures reflect the economic disability of farmers in recent years.

The sort of forward planning for agriculture that should have been going on has not been a priority with the Coalition. They have not given it the attention that it deserves as an area in which national wealth can be created. The pursuance of that attitude and policy can only have detrimental effects on the overall common good. Expenditure on lime and fertiliser usage on Irish farms is very important. The same applies to cattle breeding. They are all very important and the State from time to time has assisted in this. The return on expenditure on these items has given as good, if not better, returns as State expenditure in any other area.

This brings me to the AI subsidy which was discontinued in recent years resulting in the fees going through the roof. We have had a dramatic change in the breeding programmes on Irish farms and before long we will find that the continuing genetic improvements will be abandoned. People on smaller farms have been finding themselves unable to pay the fees that are being demanded. The Government should have another look at this because the short term and long term implications are very serious. By its very nature, farming deserves long term planning with properly co-ordinated breeding programmes. The decisions taken in regard to these matters today will be felt in three or four years in the value of our exports and the quality of our produce finding its way into the food chain to the butchers, to the meat factories and ultimately our exports.

The Minister referred to the fact that allocations for intervention, disease eradication and the farm modernisation scheme were not being fully taken up. This makes one realise the state agriculture is in at present. He referred to additional money amounting to £14.7 million for market intervention and for fluctuations in exchange rates. When you look at that sum and relate it to prices prevailing before and immediately after the devaluation of the green £ you are surprised because the fact is that the primary producer, the person entitled to any additional money that is available, is not getting it. Immediately after the green £ devaluation there was complete disruption of cattle sales in part of the country because additional cattle were offered. There was disruption at many meat plants. It is sad that after 13 years in the EC the supply still governs the price of cattle — it is not the quality or the demand that matter. If a slaughtering or processing plant gets a few extra lorry loads of cattle it pulls down prices, and through that system prices go up and down. At the end of a year when people want to take cattle off grass they have no option but to take them to the plants or to the marts. Such farmers did not get the benefit they expected from the devaluation.

Before and after the devaluation there was a serious drop in the price of cows. The price of heifers not for intervention showed a considerable increase. In June heifers made £2.08 per kilo, but in October they were making only £1.99. It is very hard to understand fluctuations of that kind. This is one of the most important parts of a farmer's production now that milk production is being reduced.

The Minister said that there will be additional money under the disadvantaged areas scheme. In Cavan-Monaghan we have a particular interest in this because only 24 per cent of Monaghan and 36 per cent of Cavan have been declared severely handicapped, thereby qualifying for additional money in cattle headage. Aspiring politicians supporting the Government have been out in the past month pleading for the entire two counties to be declared severely handicapped areas. The Taoiseach came down to the constituency and, in fairness to him, he kicked for touch, but he kicked far out. I am sorry the Minister is not here now but he gave a fairly strong commitment in regard to that matter. The area is entitled to be and needs to be included and the Minister should make the decision to do it so that we do not have this insecurity. In the past month or so small farmers have come to me asking if they should hold on to stock — which they need to sell since they do not have the feed to keep them through the winter — for another few weeks to get this headage grant. I ask the Minister to give them their money as quickly as possible.

The Minister said the reduction in the farm organisation sector receipts arise from a number of factors including adjustments for excess equipment in 1985 and sums due in 1986 being deferred to 1987. With the withdrawal of the grants in 1983 this area has been of serious concern because farmers who had programmes drawn up by their ACOT advisers had not got approval. About 4,600 farmers were denied aid. Since then the Minister decided to pay those whose applications were with the farm development service office and about 2,000 were paid something like £2 million. When the grant was reintroduced last year another 1,000 were able to qualify for it. However, there are still 1,500 people who had their plans drawn up with the aid and the advice of an agricultural adviser and I believe that £1 million would be enough to pay them. There are many such people in my own constituency. I met a man last Tuesday night who owes the bank £40,000 on a 52 acre farm and he is owed £10,000 under the farm modernisation scheme. Many of these cases are tragic, some will be put out of farming entirely because they did not get the grant aid to which they would have been entitled. Admittedly they had not got approval from the farm development office but it should be sufficient if ACOT have approved it. The Minister should look at this area again and allow these people the grant aid which is theirs by right.

The Minister also mentioned disease eradication. How can the Government justify the withdrawal of £4.5 million from the allocation this year? I attended a meeting last Tuesday night and there was strong condemnation of the fact that the Minister and the Department of Agriculture officials were not there to explain to the people why they are facing an increase in the incidence of TB when there should have been a substantial reduction as there is in other areas. The areas covered were Cavan, Leitrim, Longford, Meath, Westmeath and Monaghan. Let the Minister compare the incidence of disease in 1986 as against that in 1981 in those counties. In Cavan there was an increase of 133 per cent over that period, from 1.73 per cent to 4.03 per cent; in Leitrim, where they had the disease almost under control there was an increase of 528 per cent, that is from 0.043 per cent to 2.70 per cent; in Longford the increase was 86 per cent, that is from 3.04 per cent to 5.66 per cent — this may not be an up-to-date return because according to some reports it could be twice that figure; in Meath there is a 22 per cent increase from 2.60 per cent to 3.16 per cent; in Westmeath there is an increase of 86 per cent from 3.49 per cent to 6.49 per cent; in Monaghan, the only county with a reduction there was a reduction of 0.6 per cent from 2.30 per cent to 2.17 per cent.

Apart from last year, there was as low a rate as 45 per cent in the testing of herds. It is no wonder the people at that meeting are so annoyed and concerned. They feel there is not as much being done for them as should be, taking into account the importance of disease-free herds. It is not an easy problem to handle, but we must realise it is something we have to do since, along with Italy, we are at the bottom of the league. Our statistics, compared with those of other countries, are startling. The cost of the scheme in 1985 under various headings was as follows: £14.7 million for administration, £11.2 million for veterinary fees, £7.7 million for reactor compensation; other expenses £3.6 million and in the depopulation fund and stock replacement £1.7 million. It was paid for by way of levies, a contribution made by the people. Why not use the money obtained by way of direct levies to pay the veterinary surgeons, leaving £2 million to spare for administration. It is ridiculous that almost £40 million provided from levies is used in this way. What did the Government do? They took £4.5 million or approximately 12 per cent, off the total amount even though it may have been almost matched by levies. It is a ridiculous situation. I do not know how any Department can justify that type of withdrawal of funding from an area where it is so necessary.

I put a question to the Minister here on 18 March which read:

To ask the Minister for Agriculture if a herdowner who did not have a TB test within the previous 12 months, and who applies to his Department to have a complete test of his herd carried out will he be facilitated, and if he will make a statement on the matter.

The Minister's reply read:

In the case of scheme testing any application from a herdowner to have a test carried out on his herd in advance of the period in which the Department plans to have that herd tested will be favourably considered only where such a test would be compatible with the Department's programme of testing for the area in question or where the herd is considered to be specifically at risk. Any herdowner who applies to have a herd test carried out privately will be facilitated unless an official test is imminent.

There was no word at all about the herdowner who may be seriously concerned about the value of his stock, about the danger of the incidence of TB in those counties I mentioned where there has been a substantial increase. I believe such herdowners have a right to seek and be given a complete test of herd irrespective of whether it is compatible with the Department's programme of testing for the area. They are entitled to it and should receive it.

In most of the areas of cattle production and dairying where there are surpluses one might ask: what are the Department doing to devise some other system, what areas are they examining. Statistical information available in recent weeks shows that a total of 35,171 tonnes of potato chips were imported in 1985. That is the position in recent years even though the Minister of State present was involved in an examination of how imports could be reduced so that what we produced at home would substitute such imports. We have heard nothing about it. In fact, in 1985 there was an increase in imports of potatoes from 12,000 tonnes to 15,000 tonnes.

On 12 March, 1985 I put a question down to the Taoiseach asking him the quantity of yoghurt exported and imported in 1984 when he replied as follows:

The available information relates to (a) natural yogurt, kephir, curdled milk, whey, buttermilk and other fermented or acidified milk, and (b) prepared yogurt. The following table gives the information for the period January to October 1984, the latest period for which such data is available.

Imports and Exports of Yogurt

January to October 1984

Description

Imports

Exports

Tonnes

£000's

Tonnes

£000's

(a) Natural yogurt, kephir, curdled milk, whey, buttermilk and other fermented or acidified milk

64,255

424

125

144

(b) Prepared yogurt

1,089

1,024

1,673

1,709

The table shows that we imported approximately 64,000 tonnes in that year valued at £144 million. After all of that we are still importing 35,000 tonnes, this in the current year, two years after we were told of all the efforts being made. Those import levels have not been reduced to the extent we had expected. The same position obtains in many other areas. For example, the latest statistical returns in respect of cattle herds shows there has been a substantial reduction over the past ten years of a couple of hundred thousand head of cattle. The Minister should examine and ascertain new areas of production where he foresees a serious curtailment.

The Minister must examine the milk cessation scheme as it pertains to the Connacht-Ulster region where there is a substantial number of applications, far in excess of the national average. That is one area in which the Minister should ensure a continuance of milk production and co-operatives.

Any other Deputies offering? Then I call on the Minister.

I should like to thank all Members for their contributions. It has been quite a constructive debate. It is a pity we had not more time because I think there were a number of other Members interested in contributing.

Deputy Kirk pinpointed the basic difficulty we encounter in this country with regard to agriculture, that is, farm size and quality of soil, particularly in the western half of the country. At the best of times these prove to be inhibiting factors in the development of agriculture and where farm incomes are concerned. Then when we experience a year like 1985 and another similar one, as we have this year to date, it really aggravates an already very difficult situation. We have encountered tremendous problems over the past two years. People have had a difficult time, there is no doubt about that. There is no point in trying to deny it and, as a result, farm incomes have suffered. That is a fact of life. However, we have tried as best we can to assist. For example, last year we initiated a feed voucher scheme which was of considerable benefit to people. Unfortunately, when we thought we had succeeded in overcoming the vagaries of the weather, that awful summer of 1985 was followed by probably the most severe spring of all time in early 1986 which caused further extensive difficulties. All in all, we provided £22 million last year in aid by way of the feed and interest subsidy schemes.

This year we have been fortunate in that we have obtained £15 million from the EC to help farmers in the seriously disadvantaged areas which will be of tremendous value. Deputy J. Leonard requested that the money be paid out as quickly as possible. We are endeavouring to do that. The passing of this Supplementary Estimate will be of considerable help. I am giving an approximate date but we hope to have about two-thirds of the money paid before Christmas and the remaining one-third early in the New Year. That is as fast as we can do it. Therefore, the House will see that we are doing it with considerable haste. On average it will mean something in excess of approximately £300 extra per head — some people will get very little, depending on the number of their stock, and others considerably more. It will be very beneficial. I should say that the headage payments this year have increased enormously because of Exchequer assistance, particularly for beef cows in the moderately handicapped areas and because of the assistance we received from the EC in the seriously handicapped areas. I think it is appreciated that money is going to farmers in these weeks and the balance immediately after Christmas.

Deputy Noonan asked me about my strategy in the talks in Brussels. I would be a very poor negotiater were I to divulge my strategy. The Deputy can be assured that where milk quotas are concerned I will be fighting, as always, to ensure that the interests of our farmers are safeguarded, particularly small farmers. I would not be so dismissive of the importance of prices for milk in Brussels. It is devastating what the Commission can do irrespective of the opinions or views of Ministers. They have these executive powers which are rather frightening at times. The House should remember that this year we have had two green currency devaluations which have meant that the price of milk increased in this country by 8p a gallon but because of the delay in payments for products going into intervention, particularly dairy products, the price of milk has been reduced by 6p a gallon. They have mechanisms by which they can reduce further the price of milk. We must bear that in mind. My primary concern is to maintain farm incomes.

Reference was made to the Euroloan. Some people contend it is inadequate. I was asked by the farming organisations just over a year ago to provide £100 million by way of Euroloans. To date I have provided £235 million. I would love to give more — there is a need for more — but it is an awful lot of money and it is of considerable benefit when you are getting money at 5.5 per cent instead of 17 per cent. I am not totally happy with the lending by the banks in this connection. Farmers should impress upon their banks if they are not getting the loan through the Euro scheme we are operating, that the banks have the facility to lend their money at Euro rates. They can do it individually. Farmers who have serious problems and are not getting funds through our Euroloan scheme should insist that the banks raise the money for them.

Acting Chairman

I must ask you to conclude.

I am sorry I have not had an opportunity to deal with all the points that have been raised in the debate. Again, I think everybody who took part in the debate.

Vote put and agreed to.
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