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Dáil Éireann debate -
Tuesday, 18 Feb 1975

Vol. 278 No. 4

Ceisteanna-Questions. Oral Answers. - Farm Retirement Scheme.

52.

asked the Minister for Lands the number of applications received from County Offaly concerning the disposal of farms under the farm retirement scheme; and the number so far finally processed.

(Cavan): Twenty-two applications were received from farmers in County Offaly for the benefits of the farmers' retirement scheme, but one was later withdrawn.

To date, four applications have been processed; all of these applicants have been adjudged eligible. In three of these cases involving sales to the Land Commission, negotiations on price have been successfully concluded and possession will be taken as soon as title requirements have been dealt with. In the remaining case, the applicant proposes to lease his holding to a development farmer whose plan provides for additional land.

The necessary inquiries on the ground have been completed in five more cases and a decision will be reached on them shortly. The remaining cases are being investigated.

53.

asked the Minister for Lands the number of applications received from County Laois in connection with the disposal of farms under the farm retirement scheme; and the number so far finally processed.

(Cavan): Twenty-seven applications were received from farmers in County Laois for the benefits of the farmers' retirement scheme but one was later withdrawn.

To date ten applications have been processed; of these, five applicants have been adjudged eligible and five have been refused.

Of the five adjudged eligible, one has already sold his lands to the Land Commission and is now in receipt of the benefits; in three cases, also involving sales to the Land Commission, negotiations on price have been successfully concluded and possession will be taken as soon as title requirements have been dealt with. In the remaining case, the applicant proposes to lease his holding to a development farmer whose plan provides for additional land.

The necessary inquiries on the ground have been completed in seven more cases and a decision will be reached on them shortly.

The remaining cases are being investigated.

54.

asked the Minister for Lands the number of people who applied and qualified under farm retirement scheme Directive 160; and the number who qualified in the different age categories.

(Cavan): A total of 1,134 applications under the retirement scheme was received in the Land Commission in the period ended 31st January, 1975. The number of applicants approved in this period was 202. Of these, 11 were under 55, 144 in the 55 to 65 age group and 47 over 65.

From the Minister's reply it appears the vast majority are in the 55 to 65 age group and the number over 65 is pretty high also. It is the money end of this that I am worried about and I will deal with that when I hear the replies to my next two questions.

(Cavan): I have a feeling that the Deputy is surprised that the number in the age group over 65 years is so small.

I am not surprised that the number in the age group between 55 and 65 years is so big. There are only 11 people under 55.

(Cavan): It is reasonable to expect that the bulk would be in the 55 to 65 age group.

55.

asked the Minister for Lands the approximate amount of money required from the Exchequer to compensate qualified persons who have retired to date under Directive 160; and the amount which will be paid from EEC funds.

(Cavan): At 31st January, 1975, seven farmers had sold their holdings to the Land Commission and accepted the benefits of the farmers' retirement scheme. The total amount of the purchase moneys involved was £90,000. Premiums totalled £8,200 and the cost of annuities for the current year for these will be approximately £3,600. It is a condition of Community subvention of the annuity that the area released by a retiring farmer is allotted to a development farmer with a land requirement or for afforestation, recreational activities, public health or other public purposes. Where land is purchased by the Land Commission subvention will only arise when the lands have been allocated for one or other of these purposes.

Do I take it that £90,000 is the amount of money involved?

(Cavan): The market value of the seven holdings purchased by the Land Commission in which sales were completed to the 31st of January was £90,000.

Of that figure how much will the EEC and the National Exchequer contribute?

(Cavan): It is not possible to give that information at present because we will not know what cases the EEC will subvent until the land we have purchased is allocated. None of it has been allocated yet.

I thought the EEC contribution was made in accordance with the age category: if one was under 65 the percentage was higher with none whatsoever to those over 65?

(Cavan): That is correct but there are other factors as well as the age group. I should like to repeat that it is a condition of Community subvention of the annuity that the area released by a retiring farmer is allotted to a development farmer with a land requirement or for afforestation, recreational activities, public health or other public purposes. Where land is purchased by the Land Commission subvention will only arise when the lands have been allocated for one or other of these purposes. It follows from that that until the lands which we have purchased are allocated for one or other of those purposes it would be impossible to say whether or not we would get any subvention from the EEC.

This is the kernel of the scheme. I understand that the Minister has brought in potential development farmers but will such a farmer qualify?

(Cavan): Any farmer with a plan from the advisory services requiring more land to reach the stage of development farmer would qualify. I should like to emphasise that until the land is allotted by the Land Commission it is not possible to say if any of it will qualify for EEC subvention.

A lot of people are confused about this. I thought that so long as a farmer was classified as a development or potential development farmer he qualified for certain grants but according to the Minister not until the land is allocated can he say what subvention will be obtained from the EEC.

(Cavan): I do not think anybody is confused. It is possible that the Deputy unintentionally is confusing them.

A lot more than I are confused.

(Cavan): In order to qualify for subvention from the EEC the land must be allocated for one or other of the purposes mentioned. As the Deputy will realise, the land was only acquired by the Land Commission a short time ago and none of it has been allocated yet. Therefore, it is not possible to say what, if any, part of it would qualify for subvention.

I am calling the next question. The Deputy has been allowed a lot of latitude on this matter.

I should like to ask a final supplementary. The directive says that a farmer must be a development farmer or potential development farmer. A farmer cannot acquire land under this retirement scheme unless he is one of those. For that reason the Minister should know what subvention will be coming from the EEC.

(Cavan): We are operating this retirement scheme on a liberal basis and we are not waiting to identify development farmers before we acquire the land because if we were to do that the scheme would not get off the ground. We have this area of land and until it is allotted I will not have the information the Deputy requires.

I presume that it is a matter of policy for the Land Commission not to split up a holding which has qualified as a development holding under the EEC scheme for the purpose of division among congests?

(Cavan): That is unthinkable.

I am glad the Minister has confirmed that because I heard some suggestions to the contrary.

(Cavan): I have heard so many inaccurate and unhelpful things about this scheme that I am not surprised at this rumour.

56.

asked the Minister for Lands the amount of money available for the operation of the farm retirement scheme in the current year.

(Cavan): The total amount available is £3,055,000.

Does the Minister consider that £3,055,000 is adequate considering the number of people in the age bracket between 55 and 65 who are retiring? In my view the sum is totally inadequate and it will mean that the scheme will not be a success.

(Cavan): I am satisfied that the sum will be more than adequate to deal with the cases that will be processed in 1975. I invite the Deputy to use all his energies to encourage as many applicants as possible to participate in the scheme. We will deal with them and pay them. There will be no shortage of money.

If this amount is all that is to be allocated, does the Minister consider that the scheme will be successful?

(Cavan): That sum is for 1975. I understand that on an average it would deal with very many cases. I have informed the Deputy that we have processed seven cases to date at a cost of £90,000 and if he is good at mathematics he can work out how many cases could be processed with the sum of £3,055,000.

Does the Minister consider that the fact that seven applications have been processed is an indication that the scheme has got off the ground well?

(Cavan): I feel that these questions are calculated to damage the scheme. When I say that seven cases have been processed, I mean that seven sales have been completed and annuities have been paid. In fact, when I looked at this a couple of days ago, I found that price has been agreed in 73 further cases. They are in the hands of solicitors for the purpose of concluding title requirements and the closing of the sales. I do not think that is bad.

57.

asked the Minister for Lands the number of applications received by the Land Commission under the farm retirement scheme in County Mayo; and the number sanctioned.

(Cavan): One hundred-and-three applications were received from farmers in County Mayo for the benefits of the farmers' retirement scheme but six were later withdrawn. To date 30 applications have been processed; of these 20 applications have been adjudged eligible and ten have been refused.

Of the 20 adjudged eligible, one has already sold his lands to the Land Commission and is now in receipt of the benefits. In eight cases, also involving sales to the Land Commission, negotiations on price have been successfully concluded and possession will be taken as soon as title requirements have been dealt with. Negotiations on price are in progress in another five cases and in one case negotiations were unsuccessful. In the remaining five cases the applicants propose to lease their holdings to development farmers whose plans provide for additional land.

The necessary inquiries on the ground have been completed in 21 more cases and a decision will be reached as soon as possible. The remaining cases are being investigated.

The remaining questions will appear on tomorrow's Order Paper.

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