asked the Minister for Fisheries and Forestry the reason boats under 40 feet have been excluded from the new aid package; and if he will make a statement on the matter.
26.
Written Answers. - Aid Package for Fishermen.
25.
asked the Minister for Fisheries and Forestry if he will give details of the new rescue package announced by him recently which will prevent the respossession of 120 trawlers by An Bord Iascaigh Mhara because of arrears of payment; the categories of loan; the sources of loan that will qualify for the package; and when it will come into operation.
I propose to take Questions Nos. 25 and 26 together. The following are the arrangements in relation to loan repayments which have been included in the aid package for fishermen:
1. The subsidisation down to 9 per cent of the interest paid on loans under BIM's marine credit plan for the period from 1 July 1985 to 30 June 1988, subject to review in the light of interest rate movements generally.
2. The capitalisation of arrears and the re-casting of loans to provide for repayments to be made on the annuity rather than on the straight line basis.
3. The extension of the period for repayment of loans to 15 years from the date of re-structuring, subject to a maximum of twice the number of years outstanding and no loan period for any boat to exceed 20 years in total.
To qualify for inclusion in the scheme, borrowers must (a) have loans under BIM's marine credit plan, (b) have made repayments during 1984 amounting to at least 50 per cent of the revised instalments which would apply to them under the terms of the scheme, or make repayments in either of the 12 month periods ending 30 April 1985 or 31 December 1985 amounting to at least 50 per cent of such revised instalments, (c) to be considered capable of returning to viability as a result of their participation in the scheme and (d) make a statutory declaration of their assets and liabilities with a view to assessing whether their arrears could be eliminated or reduced through disposal of assets. Eligible borrowers whose existing repayments are fully up to date do not qualify for an extension of the loan repayment period but do not have to make the statutory declaration referred to and are eligible for the increased interest subsidy and for a transfer from the straight line basis of calculation of repayments to the annuity basis. Vessels under 40 feet in length are not excluded from the scheme. However borrowers whose annual repayments are less than £2,000 are eligible for the capitalisation of arrears and extension of the repayment period on the annuity basis but are not eligible for the increased interest subsidy.