asked the Minister for Agriculture and Food the reason many farmers who have qualified for farm improvement grants have failed to be paid in the past three months; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Farm Improvement Grants.
3.
Claims maturing for payment in 1987 under the investment aid schemes operated by my Department are in excess of the amount allocated for these schemes in this year's Estimates. Accordingly, it is necessary to phase payments and, as a result, there is some delay in making grant payments. Claims under each scheme are dealt with strictly in order of receipt.
Is the Minister aware that there are delays of up to six months in the payment of some of the grants which have been deemed to be payable? Does the Minister not realise this is causing undue hardship to farmers who have had to borrow money to complete the various projects for which they were grant-aided?
Such claims are paid strictly in order of receipt. Claims under the various farm projects are, on average, four months awaiting payment.
Is it not true that the budget for 1987 for improvement grants has been exhausted and none will now be paid unless they were accepted for payment before the beginning of September?
I covered that in my original reply.
Will the Minister assure us that the amounts which are now awaiting payment will be paid out of the 1988 allocation in January?
The claims carried over to 1988 will have first claim on the £20 million allocated for the schemes in 1988.
Will they be paid immediately?
By how much is the provision short for 1987? Is the Minister satisfied that adequate provision has been made in the 1988 Estimates to cover both the carry-over and those whose grants become due for payment in 1988?
The shortfall in 1987 is approximately £9.5 million. The allocation for 1988 is calculated, bearing in mind the anticipated demand for payment under the various headings.
Is the Minister satisfied that that will cover both the carry-over plus those whose grants will become due for payment in 1988?
I hope that the sum involved will cover that.
I am anxious to dispose of as many questions as possible today. I require your co-operation if you wish your questions to be reached.
Since there is a £9.5 million shortfall in the current year, can the Minister indicate to the House whether adequate provision has been made in the Estimates for 1988? Has the same criterion been applied which could ultimately leave a shortfall in 1988 also?
I indicated in reply to previous supplementaries that there would be about £20 million available in 1988, and we are hopeful that that figure will be adequate to meet the anticipated demand.
(Interruptions.)
Given that the Government must have known the number of applications being processed when they were allocating money for the Estimates, was this shortfall deliberate?
Applications for grant-aid under the various headings are covered under subhead M.1 of the Vote for Agriculture and Food. There is the original application, the question of approval, inspection, and approval for payment when the work is completed. I am sure the Deputy will appreciate there are variable factors which are difficult to anticipate in advance.
The Government were wrong by 50 per cent.