Agricultural Loans: to inform the Economic Development Assistant Minister for Agriculture on the current situation with regard to the loans.

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A decision made (19/02/2008) regarding: Agricultural Loans: to inform the Economic Development Assistant Minister for Agriculture on the current situation with regard to the loans.

Decision Reference: MD-E-2008-0033
Decision Summary Title :	Agricultural Loans – 31 December 2007 Report.			Date of Decision Summary:	15 February 2008
Decision Summary Author:	Dr Paul Le Mière Director of Environmental Management and Rural Economy			Decision Summary: Public or Exempt? (If Exempt state clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written			Person Giving Oral Report:
Written Report Title:	Agricultural Loans – 31 December 2007 Report			Date of Written Report:	31 January 2008
Written Report Author:	Dr Paul Le Mière Director of Environmental Management and Rural Economy			Written Report : Public or Exempt? (If Exempt State clauses from Code of Practice booklet)	Public

Subject: Agricultural Loans: to inform the Economic Development Assistant Minister for Agriculture on the current situation with regard to the loans.
Decision(s): The Assistant Minister noted the report and was informed of the current situation with regard to Agricultural Loans.
Reason(s) for decision: The position with regard to arrears has greatly improved in the last half year up to December 2007.
Resource Implications:
Action required: Director of Environmental Management and Rural Economy Section to send copies to the Finance Director and the Treasury and Resources Minister for noting.
Signature: Connetable G.W.Fisher		Position: Assistant Minister
Date Signed:			Date of Decision:

Agricultural Loans: to inform the Economic Development Assistant Minister for Agriculture on the current situation with regard to the loans.

ECONOMIC DEVELOPMENT

Date: 31 January 2008

AGRICULTURAL LOANS – 31 December 2007 Report

INTRODUCTION

This report is to inform the Economic Development Assistant Minister with responsibility of Agricultural Loans on the current situation with regard to Agricultural Loans.

DISCUSSION

Table 1 - Agricultural Loan statistics as at 31 December 2007:

	31/12/2007	31/12/2006	31/12/2005
Total number of ‘live’ loans	85	103	133
Total number of borrowers	52	60	69
Total amount outstanding	£3,942,647	£5,300,344	£6,715,797
Number of loans in arrears	14	27	33
Number of borrowers in arrears	10	16	16
Total amount of arrears	£217,318	£372,776	£520,539

Table 2 - Analysis of loans in arrears as at 31 December 2007:

Detail	No. of Borrowers	No. of loans	Amount of arrears
Cases with agreed way forward	8	11	£ 90,665
Cases still being processed	2	3	£ 26,653
TOTAL	10	14	£217,318

This shows a significant improvement on the same time last year, when there were 16 borrowers accounting for 27 loans in total arrears of £372,776. Cases with agreements means those now with standing order mandates, etc.

Small Business Loans

Under the 1993 policies there was a scheme to assist small businesses with the purchase of items such as machinery and equipment. The assistance was usually in the form of part grant and part loan. The Scheme was suspended in 2000 and at the time there were 38 loans, amounting to £115,000 outstanding. At the 31 December 2007 the amount outstanding was £10,646 compared with £15,563 at the end of 2006.

CONCLUSIONS AND RECOMMENDATIONS

The position with regard to arrears has greatly improved in the last quarter. Efforts are continuing to reduce the level further particularly with regard to the small number who have long outstanding arrears.

The Assistant Minister is invited to note the position.

Dr Paul Le Mière

Director of Environmental Management and Rural Economy