asked the Minister for Agriculture if he will pay all outstanding grants to farmers under the farm modernisation scheme; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Farm Modernisation Scheme.
14.
Grants under the farm modernisation scheme are paid as soon as practicable after they mature for payment. There is no backlog of outstanding cases.
There is a backlog of outstanding cases. Is the Minister aware that at least 6,000 farmers were denied grant aid because of the introduction of a prior written approval clause on 9 February 1983? Will he now pay those farmers their due entitlements under the scheme?
Aid for farm buildings and equipment under the scheme was suspended in the budget of 9 February 1983. Applications on hand on 9 February 1983 where approval had not been issued were not further proceeded with. A revised farm modernisation scheme was introduced with effect from 3 January 1984. Farmers whose applications had not been processed when grants for buildings and fixed assets were suspended on 9 February 1983, and who did not proceed with the works during the suspension, qualify for grants under the revised scheme provided the works in question still qualify and provided the farmer remains eligible.
Investment aid under the farm modernisation scheme is paid only on works carried out with the prior written approval of the farm development service. Works undertaken during the suspension of the scheme, where written approval had not issued by 9 February, are therefore not eligible for grant aid. Representations have been made to have all applications lodged with the farm development service on 9 February 1983 processed. At that time it would have cost about £5.5 million. Information is not available as to the number of these farmers who have gone ahead with their projects since 9 February 1983. It is estimated, however, that grants represented by projects undertaken would be of the order of £3 million. The matter is being considered and that is all I can tell the Deputy.
Is the Minister of State aware of two recent statements by the Minister for Agriculture that he was about to make a statement about paying these unfortunate farmers their due entitlements? Has any progress been made in regard to payments for those farmers?
Progress has been made. A submission on the matter will be with the Government shortly.
(Limerick West): Would the Minister confirm a newspaper report that the farmers concerned will be paid prior to 20 June?
Far be it from me to preempt a Government decision.
(Limerick West): Can the Minister give us some hope? Does silence give consent?
Does the Minister agree that some of these farmers have been waiting for two years and three months? Many of them have very heavy overdrafts. Because they got verbal approval they proceeded with work and it is a bit sharp for the Department to bring in a new regulation or to enforce an existing regulation as rigidly as they did in this case.
I am in sympathy with those people. The matter will be considered by the Government very shortly.
Is the Minister aware that farmers are not getting their VAT refunds? The long delay is having a serious effect on several farmers in terms of their financial management. Can the Minister give a commitment that he will liaise with the Revenue Commissioners and with the Minister for Finance to ensure that refunds are paid quickly instead of payment being 12 months late?
I will convey the Deputy's views to the Minister.
Is the Minister aware that officers of the Department visited the farmers concerned, gave verbal approval and the go ahead for the project and that, therefore, the farmers are entitled to grant aid?
The officers would not have been entitled to do that.
In other words, they were drawing expenses under false pretences.
The remaining questions will appear on tomorrow's Order Paper.