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Dáil Éireann debate -
Thursday, 8 Feb 1979

Vol. 311 No. 5

Ceisteanna—Questions. Oral Answers. - Farm Modernisation Scheme.

4.

asked the Minister for Agriculture when the current review of the farm modernisation scheme by the EEC will be completed; if there has been a delay; and if Ireland could introduce changes such as the abolition of the transitional category or the payment of performance grants on its own initiative.

Following on the rejection by member states of earlier proposals for the amendment of EEC Directive 72/159 the Commission has indicated in its recent price proposals that it will shortly present revised proposals for the amendment of the directive. Suitable modifications in our farm modernisation scheme will be considered in the light of these revised proposals.

In accordance with the decision announced in the White Paper on National Development, work on introducing performance related payments into the scheme is at present in progress.

Would the Minister agree that in the Fianna Fáil election manifesto it was stated that he would urgently seek the abolition of what were described as discriminatory transitional categories?

I have assiduously carried out that undertaking.

Would the Minister agree that the delay in the fulfilment of this promise has been considerable?

Yes, especially in view of the rejection last year by the Council of the amended scheme put up by the Commission. That scheme was referred back to the Commission who stated that it will be producing another scheme shortly. I do not know when "shortly" will be but I expect it will be in a period of a few months.

I should like to know if the Minister intends to make it a condition to his agreement of the price package that a decision on this matter be taken at the current price negotiations?

It has not been indicated by the Commission that they will produce it as part of the price package; it is a separate item.

Would the Minister agree that at the price negotiations the Minister has an opportunity, which he does not have at other periods in the year, to get a decision?

Would the Minister agree that the delay and uncertainty created in farmers' minds that the categories and method of payment of grants may be changed, inhibit the investment in farming because farmers do not know how they will be aided in respect of investment by this time next year?

I have never omitted to mention my dissatisfaction with the details of the present arrangements and my suggestions for their improvement. In relation to the second part of the Deputy's supplementary, if the Deputy drives through the country he will see that the investment in land improvement is unprecedented. I agree that the sooner it is formulated to out liking the better.

I hope the Minister will have more success than he has had so far.

From the preliminary discussions about the improvement of the modernisation scheme what sort of impression did the Minister get? Did he get the impression that it would be substantially improved within a reasonable time?

I accept seriously Commissioner Gundelach's undertaking to present shortly new proposals to the Council. My recollection of the rejection of the Commission's earlier proposals is that they were so multifarious that they were obviously unsatisfactory not alone to me but to practically all members of the Council, sometimes, admittedly, for opposite reasons. For instance, the United Kingdom's Minister objects to all investment in agriculture.

As usual.

5.

asked the Minister for Agriculture if it is proposed to introduce legislation to give a statutory basis to the farm modernisation scheme; and if at present (a) the expenditure of public funds (b) the distinction in levels of aid between different categories of farmers under the scheme, is based on any enactment of Oireachtas Éireann.

The farm modernisation scheme was brought into operation in 1974 without national legislation and I do not propose to introduce such legislation now.

With regard to the expenditure of public funds on the scheme, provision is made for this in the annual Estimate for my Department which is approved by Dáil Éireann. The distinction in levels of aid to different categories of farmers under the scheme is in accordance with the provisions of EEC Directive 72/159.

Would the Minister not agree that in the event of any farmer taking an action on the basis that there is discrimination between one farmer and another, the fact that there is no definitive legislation on the Statute Book would make a determination of a dispute of that nature very difficult?

I am satisfied that there would not be a basis for such litigation.

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