asked the Minister for Agriculture and Food if he will give details of his present approach to withdrawal of the Exchequer subsidy for many farmers, who availed of the 1982 reduced interest scheme for farmers in financial difficulties; the number of farmers affected by the latest decision; and the total amount of subsidy being clawed back as a consequence
Written Answers. - Withdrawal of Exchequer Subsidy for Farmers.
74.
The reduced interest scheme for farmers in severe financial difficulty was introduced by the Minister for Agriculture on 1 April, 1982 and the conditions of the scheme were drawn up at that time. There is no "latest decision" as the Deputy's question implies. Under the scheme conditions, responsibility for assessing the eligibility of individual applicants was assigned to the Associated Banks and the ACC.
The claim by the lending institutions for payment of the Exchequer contribution towards the cost of the subsidies given are, of course, subject to audit by my Department. In the course of the audit, a number of cases were found to be partly or totally ineligible and the claims by the lending institutions for the Exchequer contribution in respect of these applicants were disallowed.
If these claims were to be accepted contrary to the original conditions it would cost the Exchequer approximately £1.4 million. I have no information on the amount of subsidy reclaimed by the lending institutions from the farmers concerned since this is solely a matter for the lending institutions.