asked the Minister for Agriculture and Fisheries (a) whether the EEC farm modernisation directive of 24th March makes provision for 65 per cent community assistance in backward regions as stated in the communiqué published by the Council of Ministers; and (b) whether this assistance extends to the administration of the proposed scheme by the Irish Government.
Ceisteanna—Questions. Oral Answers. - EEC Farm Modernisation Directive.
35.
There appears to be a contradiction between the EEC communiqué of 24th March and the terms of the directive on this point and clarification is being sought in Brussels. The EEC directive on encouragement to leave farming and allocation of land to improve structures clearly provides for a 65 per cent refund for handicapped areas and this would apply to any appropriate scheme operated here.
I am sorry I missed part of the Minister's reply, but it is important that this point be clarified. My understanding is that, although the statement issued in the communiqué in the Council of Ministers indicated that for backward regions a 65 per cent grant would be paid, in fact this was an error and, as a result of inquiries I made to Brussels, I understand, although I have not seen the text, that it has been corrected. Is the Minister not in a position to clarify this point at this stage?
No. As I stated, there is apparently a contradiction between the communiqué and the terms of the directive in relation to farm organisation, and clarification is being sought. I have also pointed out that in regard to the second directive concerning the encouragement to leave farming and allocation of land to improve structures, there is a clear provision of 65 per cent. However, in regard to the first one, there is a contradiction.
Would the Minister say if, in fact, this is only given on certain conditions which will rule out assistance to farms that are not considered to have a chance of being viable?
No. Is the Deputy referring to the first or the second of the directives now?
The first.
In that regard it would appear if the 65 per cent referred to were to apply that it would apply to most of this country but, as I have said, there is a contradiction in this regard between the communiqué and the directive and clarification is being sought. Definitive clarification has not yet been received.
That is not the question. Does it apply to all farms?
Deputy Tully will appreciate that, first of all, all of these matters are entirely voluntary and, therefore, they do not apply to all farms. They can only apply to those who wish to take part.
OK. Will it apply to all who wish to take part? It would. The Minister might as well say he knows.
Will the Minister agree with me that, in fact, it will apply to any farmer submitting a modernisation plan whose income is at present below that of the average non-agricultural worker in the area in which he lives or is threatened with falling below it and in the latter case the farmer will get only 80 per cent of the benefit; and that the only requirement is that he can put forward a plan that over a period of six years, or longer in certain regions, that could bring his income up to within 80 per cent of the average non-agricultural income and Irish conditions if the EEC applies to us should bring within the framework of the directive an average farm of 20 acres or upwards?
Not at all. That is the sort of nonsense being trotted out to farmers.
I would agree substantially with Deputy FitzGerald. I must add the qualification that taking the position to be as stated by Deputy FitzGerald, and I think his calculation is reasonably accurate, it could mean that some farms below that level could be excluded. This is true. But I want to make it quite clear that it does not matter what the size of the farm is, unless the owner is willing to participate, nobody is going to force him into this.
Does the Minister also agree that farms which do not fall within the scheme can still get State aid with interest rates subsidised down to 5 per cent, even if they do not come within the category eligible for grants?
From whom?
From our Government in this country.
That is correct, with assistance from the Community Fund.
I am not too sure, in those cases, with assistance from the Community Fund but our Government are entitled to give such aid to any farm under the directive rule.
This is true.
I should like to ask the Minister with regard to B, whether he has clarified this point about the administration of the proposed scheme, whether assistance for this comes from the fund or not. My own impression is that it does not. I thought it useful to clarify this.
Well, as I have stated——
I am not surprised at the Minister being hesitant.
Sorry. I was about to make another point. As I have stated, clarification is being sought in Brussels but my own impression at the moment is the same as Deputy FitzGerald's that administration would not be included.
Does the Minister agree that there is great merit in its being flexible and that this country can produce its own scheme in the general framework of financial assistance from the Community?
This is, in fact, the point that was being made by the Minister for Lands a few moments ago.
Yes, I heard that.
Question No. 36 postponed.