Co Galway farmers should set up new bank accounts in anticipation of their single farm premium this autumn according to Fine Gael senator Fidelma Healy Eames.
Sen Healy Eames is advising this course of action arising from the revelation of a little known loophole revealed on RTÉ news last week, that banks can confiscate people’s money on arrival into their account against money owing in other accounts.
“This is potentially catastrophic for farmers who are so dependent on the single farm premium for their annual budgetary needs,” she said. “Farmers receive one annual single farm premium cheque which they must use to budget for their needs for the whole year.”
According to Sen Healy Eames this money may be already committed in many different directions.
“If a bank has the authority to withdraw funds owing to them without seeking prior agreement,” she said, “it leaves the whole family and farm budget at the mercy of the bank, putting once again banks, instead of the citizen, back in control.”
Sen Healy Eames said she is not condoning non-payment of debts, but she is adamant that “the farmer must remain in control of his/her financial destiny” and retain the “ability to self-regulate their finances”.
She accused the banks of forcing businesses and farmers to convert overdrafts into term loans, effectively closing down all credit routes.
“If they also manage to have first call on money arriving into accounts through the compulsory electronic transfer system, then businesses and families won’t be able to function at all. Many will be left destitute,” she said.
Sen Healy Eames said the only way around this in the short-term is to open a new bank account in a different brand bank and to inform the Department of Agriculture in the payment section in Cavan of this intention.
The Department will comply once given this instruction,” she said. “However, opening a new bank account can take some time so it is best to move on this without delay.”
