(Limerick West) asked the Minister for Agriculture if the reduced interest scheme for farmers in severe financial difficulty will be continued; and if he will make a statement on the matter.
Written Answers. - Rescue Package for Farmers.
786.
The reduced interest scheme for farmers in severe financial difficulty is due to end on 1 April 1985 (1 May 1985 in the case of borrowings from the Agricultural Credit Corporation) and there is no provision for its extension beyond those dates.
787.
asked the Minister for Agriculture if he plans to take special measures to deal with the situation that has arisen in regard to the rescue package for farmers in financial difficulty namely that almost one-fifth of the participants in the rescue package are in danger of being excluded from the scheme because they are unable to continue to meet the minimum 10.5 per cent interest rate on eligible borrowing.
It is a condition of the reduced interest scheme for farmers in severe financial difficulty that a participant who fails to meet his loan commitments (i.e. capital and reduced interest) under the scheme will have his participation in the scheme terminated. I do not propose to alter this requirement.
I have not been notified by the lending institutions which operate the scheme, of the exclusion from the scheme to date, of any participant because of failure to meet his loan commitments.
788.
asked the Minister for Agriculture in view of the repercussions that the super-levy is likely to have for the farmers already in serious financial difficulties to regain viability, if he feels it would be appropriate to extend the rescue package beyond the end of March 1985; and if he will make a statement on the matter.
The extension for a further period of the reduced interest scheme for farmers in severe financial difficulty would not solve the problems arising from the milk super-levy for participants in the scheme. These farmers are to be catered for under the rules for producers with special difficulties which have now been finalised and which are being notified to co-operatives and dairies.