asked the Minister for Agriculture and Fisheries if he will increase the grants under the farm buildings scheme in order to enable applicants to meet the recent increased costs of timber and corrugated iron.
Ceisteanna—Questions. Oral Answers. - Farm Buildings Scheme.
9.
Mr. Kitt
Farm buildings scheme grants are being reviewed in the light of recent increases in costs and in the context of the formulation of a farm modernisation scheme which, it is intended, will be submitted to the EEC Commission later this year and come into operation early next year.
Is the Minister aware that galvanised iron has increased since last year by 47 per cent, timber 70 per cent, cement 12 per cent and wages 15 per cent? In all, this represents approximately a 25 per cent increase in the cost of building since this time last year.
The Deputy is expanding the scope of the question.
I agree that the present value, as a percentage of the total cost, has diminished quite substantially. However, we have to comply with EEC regulations in the percentage assistance we give. That is confined in certain instances to 30 per cent and in other instances to a figure as low as 15 per cent.
Mr. Kitt
May I take it from what the Minister has said that there will be an increase to the farmers who have made application under the scheme?
The Deputy may not take it in that way. He cannot expect an increase before January, or perhaps February of next year when the new scheme comes into operation.
Mr. Kitt
Some of these farmers had these applications in before the 47 per cent went on corrugated iron and before the big increase in timber prices and even though there is an increase in the Minister's estimates for these buildings, he will find that money going back into the Department next year because the farmers will not be able to avail of it.
I can assure the Deputy that there is no question of money going back into the Exchequer next year. It is a question of whether there will be enough there to meet the demand.