asked the Minister for Finance whether, in view of the depressed state of agriculture and the small remuneration for feeding cattle for the past two years, with the uncertainty of the coming season, steps can be taken to reduce the rate of interest proposed by the Agricultural Credit Corporation to five per cent.
CEISTEANNA—QUESTIONS. ORAL ANSWERS. - AGRICULTURAL CREDIT CORPORATION—RATE OF INTEREST.
The rate of interest to be charged for advances by the Agricultural Credit Corporation has been the subject of careful consideration by the Board. Having regard to all the circumstances, and particularly to the rate at which the Corporation can itself borrow, to the absence of any reserve against bad debts or other unfavourable contingencies, and to the administrative expenses to be covered on a relatively small working capital, it is clear that the Corporation could not lend at the rate of interest suggested by the Deputy.
Is the Minister aware that this rate of interest is causing a great amount of dissatisfaction and that the farmers generally are disappointed with the proposed rate?
Frankly the fact is that the Government cannot borrow it at anything less.
The farmers can borrow it from the banks as cheaply as they can from the Corporation.
Oh, no.
They can get it at 6½ per cent. without any compliment at all, and we were led to believe we were going to get a great concession.
Does the Minister allege the Government cannot borrow at 5 per cent.?
No.
What proportion do the administrative expenses bear to the capital?
I have not the faintest idea.
It is given as a reason in your answer.
I am answering for the Minister for Finance, and I think the Deputy had better put down a separate question.