asked the Minister for Agriculture if he will outline the implications of the present phasing out of grants for farm improvements and buildings under Directive 159; and if he will make a statement on the matter.
19.
Ceisteanna — Questions. Oral Answers. - Development Grant Aid.
18.
asked the Minister for Agriculture the reason for the withdrawal of grant-aid to development; and when the grant-aid will be restored.
20.
asked the Minister for Agriculture if he will restore grant-aid to development farmers under the farm modernisation scheme as a matter of urgency; and if he will make a statement on the matter.
21.
asked the Minister for Agriculture, in view of the fact that the scheme providing for new farm plans and supplement rises for farmers in the development category of the farm modernisation scheme expired on 31 December in line with EC Directive 159, the reason that the farm advisory services were not instructed to this effect until after 27 January; and if he will confirm suggestions that in the case of farm plans or supplementaries to existing farm plans approved during the intervening period no grant will be paid.
I propose to take Questions Nos. 18 to 21 inclusive together.
When Directive 72/159/EEC, on which the farm modernisation scheme is based, expired on 31 December 1984, ACOT were allowed to continue approving new plans. This was in line with the practice adopted on two previous occasions when the directive expired. On each occasion the directive was subsequently extended with retroactive effect so that expenditure on plans approved in the interval between the expiry and the subsequent extension of the directive qualified for FEOGA reimbursement.
Towards the end of January 1985, the EC Commission advised member states that, as the directive had expired, there was no guarantee that expenditure by national authorities on new development plans would qualify for FEOGA reimbursement.
In the light of this unprecedented development, the position was reviewed and it was decided to suspend forthwith the approval by ACOT of new development plans, including supplementary plans. ACOT were notified to that effect on 28 January.
Grants under plans, including supplementaries, approved in the period from 1 January 1985 to the date of receipt by the local ACOT office of the notice of suspension may be approved and paid in the normal way, as may grant-aid to farmers whose development plans were approved before 1 January 1985. Investments by farmers in the "Commercial" and "Other" categories were not affected by the suspension.
The Council of Ministers recently decided to extend Directive 72/159 until 30 September 1985. ACOT were accordingly authorised to recommence, as from 1 April 1985, the approval of new development plans and of supplementary investment under existing plans.
Is the Minister of State yet in a position to tell me when farmers who have been denied grant-aid for development under Directive 72/159, because of the prior written approval clause, will be paid? The Minister said two weeks ago that he expected to make an announcement to that effect in a couple of weeks.
That is a separate question to the one put down by the Deputy.
If the Minister reads fairly closely the question that I have put down, this matter is covered.
I cannot comment except to say that what the Minister stated two weeks ago, the position is the same as the Deputy has said.
22.
(Limerick West) asked the Minister for Agriculture if he intends to initiate a review of the farm development service; if this review will be undertaken by an external body or by an internal committee within his Department; and if he will make a statement on the matter.
As proposed in Building on Reality, a review is being carried out on the role and functions of ACOT and the Farm Development Service in the operation of farm investment programmes to achieve the most effective use of the manpower available. This review is being carried out by officials of my Department who are in consultation with ACOT on some aspects.
The outcome of the review will be taken into account in the implementation of the new structural policy recently adopted by the EC Council of Ministers.
(Limerick West): Could the Minister indicate the difference between the review as between ACOT and AFT on one hand and the FDS on the other? In other words, one is an outside body and the other is an internal review. Why the difference?
As far as this review is concerned, every farmer would be aware, as has been stated in this House on more than one occasion over the years, that there was a cumbersome enough system of determining eligibility, on one hand by the advisory service and on the other the role of the FDS as being the agents for the financial involvement. That is something that I am deeply interested in and I am trying to get a system under the new national scheme, to be introduced later this year, to ensure that there will be less bureaucracy than was involved in the last scheme. That is basically what this is for.
(Limerick West): When does the Minister hope to have this internal review completed?
Very shortly. I would say within the next month or so.
23.
asked the Minister for Agriculture if he will consider introducing a reconstruction grant scheme for piggeries.
Aid is available under the farm modernisation scheme for the construction of new farm buildings including pig housing. Aid is also available for the conversion of existing buildings to certain other uses, such as pig housing, provided the structure is sound, warrants conversion and, with certain limited exceptions relating to cattle housing and silage storage, has not previously been aided under the scheme. Similarly, aid is available for converting existing piggeries to other uses, subject to the same requirements. Aid is not available for the improvement or maintenance of existing farm buildings.
Perhaps the Minister did not appreciate the thinking behind my question. He will appreciate that there is considerable maintenance cost on existing piggeries. The replacement of insulation, and wear and tear are very expensive. Having regard to the fact that the industry has gone through a very difficult period over the last 18 months, many in it feel that, with the change of design and improvement in production techniques and so forth, the cost involved in the internal renovation of many of these piggeries, built ten or 12 years ago, is too expensive. To improve the efficiency, a grant scheme to assist and encourage would be more than welcome and certainly very useful to the people in the industry.
Currently the improvements mentioned by the Deputy are not included. I quite appreciate the tremendous cost involved in pig housing. I shall take a look at this matter vis-à-vis the new scheme, to see if anything can be done but, as the Deputy is aware, this was not included under the old scheme.
24.
asked the Minister for Agriculture if he has any proposals to restore grant-aid to the "Other Low" category under the farm modernisation scheme.
While grant aid is not available generally for former "Other Low" farmers under the revised farm modernisation scheme, some farmers in the west of Ireland below the development level who follow an improvement plan designed to increase beef and sheep output, may be eligible for grant aid for buildings for livestock and fixed equipment. This aid is available under the orientation of production element of the Programme for Western Development. In view of the limited resources available it is not possible at this time to provide investment aid to "Other Low" farmers outside the west of Ireland.
The position of "Other Low" farmers is being reviewed in the context of the implementation of the new agricultural structures policy agreed at the Council of Ministers meeting on the 11 and 12 March 1985.
(Limerick West): Would the Minister consider in the new type farm modernisation scheme which he will be introducing later this year, some type of grant to farmers for low cost housing for the wintering of beef cattle?
I always appear to be at one with Deputy Noonan on that. I have a desire to see low cost housing being grant-aided, provided it stands up to certain specifications, for obvious reasons. I intend under the new scheme to launch a policy that will result in more of this country's cattle being housed during the winter, something we would all like to see.
25.
asked the Minister for Agriculture the reason a grant for the building of a cow byre was refused to a farmer (details supplied) in County Leitrim while a grant for the provision of other farmyard facilities was paid.
When an inspection visit was made on 15 January 1985 in response to an application received on 9 January, it was found that the cow byre for which application had been made had already been erected. It is a condition of the farm modernisation scheme that grant-aid is not payable for items of work carried out without the prior written approval of the Farm Development Service. Consequently, the cow byre is not eligible for aid.
Approval has been issued for the other items applied for, namely, a manure pit, cattle enclosure, including cattle crush, and concrete yard.
I appreciate the Minister's reply, but this is part of a very serious problem which has arisen in very recent years, particularly in the west. Would the Minister consider, where farm development is carried out in accordance with good farming practice, the work is properly done and is part of an overall farm development plan, for the sake of the completion of a small formality that the small farmer should not be denied grant assistance? Would he agree that this is a little harsh? I know that it has been happening in recent years, not just while the present Minister has been in office, but would it be too much that the Minister ask his civil servants to apply some discretion in this area and not enforce the letter of the law, with such serious consequences to small farmers?
While my sympathies go out to the Deputy concerned, it has been a feature of the farm modernisation scheme and many other on-farm schemes for many years now that prior approval must be obtained.
It was only since 9 February 1983. It was introduced to save a few pounds.
It has been there since 1982. The Deputy has a short memory. I can recount several episodes in the early seventies——
It was in February 1983.
The Deputy is being disorderly. That is not like him.
Deputy O'Kennedy should tell him about his latest conversion to Thatcherism.
The Minister for Finance is now being disorderly.
It has always been a feature that prior approval is necessary and the Deputy is aware of that.
The remaining questions will appear on next Tuesday's Order Paper.