Dáil Éireann díospóireacht -
Tuesday, 22 Jun 1999

Vol. 506 No. 5

Written Answers. - Land Purchase Annuities.

Willie Penrose

Ceist:

116 Mr. Penrose asked the Minister for Agriculture and Food the amount outstanding from farmers in land purchase annuities; the number of farmers in arrears; and if he will introduce a special buy out scheme similar to the 1993 scheme in view of the adverse financial circumstances which farmers, particularly in the drystock sector, are experiencing. [15708/99]

Minister for Agriculture and Food (Mr. Walsh)

At present some 5,500 farmers are in arrears with their annuities and they owe £4.19 million excluding the half-yearly instalments that were due on 1 May and 1 June 1999.

I have no proposals to introduce a buy-out scheme like the one in 1993 whereby farmers could buy out their annuities at a discount of 50 per cent on the outstanding capital provided any arrears of repayments were also paid.

My Department has been and still is visiting farmers who have arrears with a view to assessing the reasons for non-payment. If it is found that the annuity is excessive relative to the earning capacity of the farm and the family circumstances, it is intended to capitalise the arrears and to reduce the repayments to a more reasonable level which will result in an extension of the repayment period.

On the other hand, if it is found that there is no good reason for non-payment of annuities my Department will take whatever action is necessary including legal action to secure due payments.