andMr. Begley asked the Minister for Finance if any constraints have been imposed recently on the Agricultural Credit Corporation in regard to the issue of loans.
Ceisteanna—Questions. Oral Answers. - ACC Loans.
9.
The answer is in the negative.
Is the Minister aware that it has been almost impossible for would-be purchasers of land to get money from the Agricultural Credit Corporation in recent months, indeed as late as in the past six weeks? Is the Minister aware of the serious effect this is having, particularly with the complete closedown of the Land Commission in the purchase and acquisition of land? Is he aware also that, because of the restrictions imposed by the Agricultural Credit Corporation and other lending agencies, land is getting into the wrong hands, so that only the immensely wealthy can purchase to the detriment of smallholders?
The matter of their day-to-day lending policy is one entirely for the Agricultural Credit Corporation. Nonetheless I should indicate to the Deputy that I have sanctioned recently an application from the Agricultural Credit Corporation to raise a further £25 million from the European Investment Bank under exchange risk arrangements that we have, and I presume that this will enable the Agricultural Credit Corporation to continue adequately their lending programmes.
When was that decision taken?
The end of last month.
Will the Minister say if the exchange risk will be accepted by the Government on the ACC loan——
That has been arranged already.
Will that be extended to other borrowers outside of this area?
That is a separate question, obviously. The Deputy will be aware that not only do separate issues arise but the conditions under which such could be administered would be very different indeed from those obtaining with the ACC and the ICC.
Obviously the ACC is easier but it could be extended to other private borrowers.
Is the Minister aware that many farmers obtain money from the ACC loans system who are not so entitled, farmers who have sufficient capital to carry out whatever objectives they may have in mind? Is the Minister not aware that, as a result, many creditworthy farmers cannot obtain loans from the agency? Is the Minister aware also that the main criterion of the ACC is that one is able to repay the loan? I am sure everybody in this House knows of farmers who have obtained money from the ACC who should not have.
Obviously the ACC are aware of the Government's concern and determination to ensure that the moneys being made available are being used to maximum productive effect by those who borrow from them. I am aware that the ACC take note of that in their lending policies.
Can the Minister say whether loans are available to farmers from the ACC at present as the understanding is that there has been a circular issued to their various offices that applications are not even to be lodged?
To the extent that I am aware, there is no basis for the understanding that the Deputy has suggested.
Have they money at present?
They have, of course. It would be helpful if the House did not try to convey a wrong impression based on rumour or speculation. The reality is the other way.
That was what I was endeavouring to establish.
I hope I have done that.
Is the situation that they have adequate funds at present?
Yes.
(Cavan-Monaghan): Is the Minister aware that at present the Agricultural Credit Corporation will not entertain applications for loans to purchase land from persons other than their existing clients?
As I have already indicated, day to day lending policy on any particular application is a matter for the ACC.
(Cavan-Monaghan): Is the Minister aware that the position is as I have outlined?
No, I am not so formally aware.
(Cavan-Monaghan): I suggest that the Minister should make inquiries.
In reply to a supplementary the Minister said that he was not aware of the existence of a circular—how far is he aware? Has he made sure that that circular is not there and that it did not issue to the different offices throughout the country?
I am quite satisfied that circular does not exist.