asked the Minister for Agriculture the reason he has discontinued the rescue package for farmers in severe financial difficulty.
2.
Ceisteanna—Questions. Oral Answers. - Farmers' Rescue Package.
1.
asked the Minister for Agriculture if he is concerned about the serious effects of the abolition of the rescue package scheme which will result in many farmers going out of business and if he will make a statement on the matter.
3.
asked the Minister for Agriculture the number of farmers participating in the rescue scheme for farmers in severe financial difficulty; and the number who will be forced out of business as a result of the decision to discontinue the scheme.
4.
asked the Minister for Agriculture the present situation with regard to an extension of the rescue package, given that at least 3,000 farmers have serious financial problems which in many cases have been exacerbated by the super-levy.
I propose to take Questions Nos. 1 to 4, inclusive, together. The reduced interest scheme for farmers in severe financial difficulty ended on 1 April 1985; 1 May 1985 in the case of borrowings from the Agricultural Credit Corporation. I am at present considering the position of those participants in the scheme who may not have achieved viability.
Up to 31 December 1984, 6,277 applicants for the scheme had been accepted in principle by the lending institutions, subject to certain conditions being fulfilled. Of these 5,418 have been granted interest relief.
(Limerick West): In view of the fact that something in the region of £11 million of the previous allocation is not spent, could the Minister of State indicate if it will be made available towards the new scheme, if any, that will be provided by the Minister in due course? Further, will he indicate to the House now what the indications are from the financial institutions with regard to the continuation of this scheme?
With regard to the £10 million——
(Limerick West): It is £11 million.
——that is mainly by way of tax credits, so that sum of money is not just sitting there. We have had discussions with the banks standing committee on the whole business of renewing the scheme which were generally favourable, but at this stage I am not in a position to disclose anything further to the House because the Minister is having further discussions with the banks standing committee and then with the Government.
(Limerick West): Will this be subject to Cabinet decision?
I would imagine so.
I think it has been generally accepted that this has been a worthwhile scheme. As it ended on 31 March and it is now 14 May, is time for consideration not over? Why not make a decision on the continuation particularly when the banks are favourably disposed towards its continuation?
That is a fair point.
Are small farmers who have found themselves in a serious financial situation to be left forgotten by the Minister? The three year rescue package has ceased. Are these farmers now to sit back and wait until the Minister makes a decision? Has he any intention of assisting them?
When the scheme was first introduced it was estimated that it would benefit up to 10,000 farmers to the tune of £51 million over three years of which some £37 million would be contributed by the Exchequer. As it happened, only 6,200 farmers were expected to qualify and that would be about £20 million from the Exchequer. At present about 50 per cent of participants can be made viable without further assistance and about 15 per cent of participants are unlikely to recover viability even if the scheme is extended.
Let me point out to the Minister of State that some of these farmers, who have complied with the plans put before them by the agriculture advisers and have worked very hard to maintain the schedule set down, through no fault of their own find themselves in serious financial difficulties. Is the Minister of State saying now that no further assistance is to be given to these people?
I said nothing of the sort. I said that the Minister is currently looking at the position and will be having discussions with his Cabinet colleagues in the very near future.
When does the Minister feel that these negotiations will be concluded, or will the farmers have to wait another 12 months before any decision is made? These farmers cannot wait another one month or two months. They want an immediate decision from the Minister as to what is going to happen.
I hope it will come quickly.
The Minister of State has indicated he has had discussions with various bodies, financial and otherwise and that of the 6,177 applicants only 50 per cent have now been established as viable. What does he propose to do about the remaining 50 per cent? Like other Members I am very concerned about the time the Minister is taking to make up his mind. Would he tell the people who are depending on the continuation on this rescue package clearly, unequivocally and unambiguously when he proposes to reintroduce this scheme?
I never said when. There is an "if" in this too——
I want to know when.
It has not been agreed yet.
Is the Minister saying there is no hope for the 50 per cent of the applicants who have not yet become viable?
I am not saying that.
Give them some hope.
Would the Minister agree that only about two-thirds of the applicants qualified for this scheme——
Try to confine yourself to the question.
Was there any record kept showing how the one-third who did not qualify for the scheme got out of their difficulties?
You are discussing the scheme and that is not appropriate at Question Time.
This was a very crucial number. In our opinion many of these people should have been included but they did not qualify because of the time limit on their borrowings when the scheme was introduced.
I do not have that information——
Would the Minister agree that the 35 per cent who are still in financial difficulties are negotiating with the banks and the Department to ensure that this rescue package is continued over the next year or two so that they will follow along the lines of the 50 per cent who have been helped?
That is right.
(Limerick West): Can the Minister report any progress on negotiations for low interest Euro-currency loans for farmers in financial difficulties?