IFA expects Smith to produce package on farm waste grants
Mr Walshe said after five hours of talks, Mr Smith was left in no doubt about the devastation that hit over 17,000 farmers after the Government announced to phase the grant payments.
He said the minister undertook at the Wednesday meeting to make proposals to the Department of Finance regarding the interest on the outstanding payment to farmers as a result of the Government’s decision to renege on the grants payments.
Mr Walshe also drew attention to what he described as the unacceptable practice where some farmers are being called in by bank managers and told they will have to take out three-year loans to fund the Government shortfall.
The IFA leader warned the banks to lay off farmers until Mr Smith sorts out the payments.
Mr Smith, meanwhile, told the Dáil the phased payments of an estimated e550 million in waste management scheme grants to 17,000 farmers reflects the current state of the public finances.
Paying on a phased basis was a more equitable approach than paying only a portion of claimants in full, he said.
Mr Smith said this ensured that each claimant received a significant proportion of their payment in 2009 with 80% of the grant being paid within the next 10 months.
He said he had spoken already to the major banks and is to meet them during the course of this week.
Ireland East Fine Gael MEP Mairead McGuinness has, meanwhile, warned that farmers now face the burden of shouldering an unplanned-for debt of over e300m in 2009 because of the delays in paying the grants.
She said some farmers may not be in a position to negotiate the extension of credit, leaving them in a most vulnerable situation.
“This unplanned-for credit requirement could impact on their credit facilities for their normal farming operations in 2009,” Ms McGuinness said.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
