Owing to representations received from various parts of the country that there was a shortage of seeds for spring sowing, it was decided in the early part of 1932 to enable county councils to promote schemes for the supply of seeds to necessitous farmers seeking such facilities. Arrangements were also made on similar lines for the supply of fertilisers. These arrangements were validated by the Seeds and Fertilisers Supply Act, 1932. In the course of the debates in the Dáil suggestions were made that legislation of a permanent character might be advisable. On further consideration of these suggestions, while it is admitted that in times of agricultural emergency it would be desirable to have legislative machinery available, it is doubtful if it would be wise to establish such supplies on credit as a permanent feature of the legislation of the country. The absence of permanent legislation would not hinder in any way emergencies being met by special legislation as was done last year.
A condition of affairs similar to that existing in the spring of last year arose this year; and it was decided to authorise county councils to frame schemes on the same lines as those of last year. The present Bill is being introduced to validate this action.
The adoption of schemes is not compulsory, but left to the discretion of each county council, having regard to local circumstances. The method of supply is the same as last year. The councils which decided to provide supplies advertised the arrangements, which were to invite applications from persons in need, mentioning the names of the merchants who would supply the seeds and fertilisers. The applicants were required to give an undertaking to repay the full cost, including administrative expenses, either on harvesting or by the 31st December next.
Where applications were deemed satisfactory the councils ordered the supplies from the merchants for delivery to the applicants, and the councils then arranged to pay the merchants, the cost to be recovered later from the recipients. To provide for the possibility of failure on the part of any recipient to make repayment in full by December next provision is being made to assess such persons with the cost with their rates for next year.
The Bill is practically identical with the Act of last year but, as some councils may have been deterred through fear of ultimate loss from carrying out schemes, it was decided to indemnify councils generally to the extent of one-half of any such loss within a limit of £25,000, allocated county by county as shown in the Schedule to the Bill. This allocation was determined on the basis of the rural population.
The State guarantee is conditional upon recipients furnishing two sureties for repayment, who are not themselves recipients of supplies, and recoupment of a moiety of any loss ultimately ascertained will be dependent on it being shown to the satisfaction of my Department that such loss is in fact irrecoverable after all steps necessary to secure recovery have been taken. In view of these precautions to obviate loss, and to the fact that recipients who do not repay by the 31st December will be charged the full cost in their rates for next year, it is not anticipated that the State guarantee will be called upon to any great extent.
Information so far available shows that schemes are in progress in 14 counties—the other 13 councils did not consider them necessary. It may be of interest for the House to know the result of last year's scheme. Number of county councils who carried out schemes, 20; total cost, £21,174; number of recipients, 8,400; cash repayments, £4,500; balance being recovered by rate assessments this year, £16,674. The proportion of cash recovery was disappointing and this is a further reason against the introduction of permanent legislation for such schemes.