April 7th, 2009

Farm leader says the banks "who were rescued again today" must be forced to resume lending

The President of ICMSA, Jackie Cahill, said that, yet again, the budget had fallen on the farming sector in a manner that was both disproportionate and counterproductive. Mr Cahill pointed out that the Department of Agriculture, Fisheries and Food was suffering the biggest departmental cut in 2009 with substantial reductions in REPS and the abolition of the Fallen Animal Scheme, he also noted that despite the fact that Minister Lenihan had – on no fewer than five occasions during his speech - referenced the role that exports must play in the economic recovery of the state, there was nothing positive in the budget that acknowledged that reality. On the contrary, the hike in diesel excise will actually hinder the export-orientated sector. The doubling of the income levy would bear heavily on farmers who would pay that on their gross income with no allowance for capital investment. However, the most critical aspect of the budget, according to Mr Cahill, was that the banks, "who were rescued again today" must be ordered to make credit facilities available immediately to farms and the business sector.

"The state, which is now relieving the banks of their most dangerous liabilities, must absolutely insist that those institutions now open up lines of credit to the businesses which are our only chance of exporting our way out of the hole that the banks' recklessness has plunged us into", concluded Mr Cahill.

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