Wednesday, 5 February 1986
Dáil Eireann Debate
Minister for Agriculture (Mr. Deasy): There will be no cutback in services under subhead B2. The reduction from £804,000 to £758,000 reflects mainly the transfer of certain pay provisions from that subhead to subhead A1.
Mr. Hilliard: asked the Minister for Agriculture the reason he has reduced F4, interest subsidy for farmers in severe financial difficulty, from £3.5 million in 1985 to £1.5 million in 1986; and if he will make a statement on the matter.
Minister for Agriculture (Mr. Deasy): The Exchequer contribution to interest relief under the scheme may be made by way of a direct cash subsidy or a tax credit. Payments made in 1985 covered the outstanding Exchequer contribution to interest relief by way of cash subsidy  over the three year period of the scheme. Payments made in 1986 will cover the residual cash subsidy due under the scheme in addition to those arising under the extended scheme.
Mr. Hilliard: asked the Minister for Agriculture the reason his Department has reduced F2, payment under exchange rate guarantee on loans for agriculture purposes, from £10.6 million in 1985 to £0.6 million in 1986; and the reason his Department has reduced F3, interest subsidy scheme for non-development farmers, from £120,000 in 1985 to £1 in 1986.
Minister for Agriculture (Mr. Deasy): The major portion of the losses under the Eurocurrency exchange guarantee scheme arose and was met in 1985; the provision of £0.6 million in 1986 is to cover any additional and residual losses that might arise this year under the exchange guarantee. The national interest subsidy scheme terminated on 31 December 1983. The amount included in the Estimates for 1986 (£1,000) is a token provision in respect of any residual payments that may arise.
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