Tánaiste, Leo Varadkar, has said that a letter sent to banking chiefs by Green Party MEP, Ciarán Cuffe, in which he expressed concern about banks’ lending policies to young farmers, does not reflect government policy.
“The MEP is entitled to his own opinion and to write whatever letters he sees fit, but I can absolutely confirm that this is not government policy, far from it,” he said.
Minister Varadkar made his comments in the Dáil this week in response to a question from his party colleague, deputy Bernard Durkan.
The Kildare North TD spoke of the devastating impact that such a policy would have on young farmers, as well as the impact on rural and urban Ireland and the continuity of food supplies to the entire country.
Continuing, the Tánaiste said it is “government policy that banks should lend to young farmers”.
“The government is encouraging banks to lend to young farmers and my department helps to run schemes that help to guarantee those loans, in fact.
“We want to encourage young people into agriculture and food production and we want them to invest in expanding their farms, in modernising their farms, particularly younger farmers.
“They understand the need to take climate action and they know that costs money and that requires investment. How are they going to do that without loans from the bank?” he said.
This week, MEP Cuffe said he was wrong to single out young farmers in his correspondence with the banks.
Almost two weeks ago, it emerged that he had issued a European Parliament-headed letter to banking CEOs stating his concern about large loans being approved for young farmers to increase their herd.
“I certainly shouldn’t have singled out agriculture when the entire economy needs to reduce its emissions,” he said.