asked the Minister for Agriculture and Food the way in which Irish agriculture will benefit from the doubling of the structural fund; and if the will make a statement on the matter.
Written Answers. - Structural Fund.
13.
The main benefit to Irish agriculture will come from the increase in the FEOGA guidance fund, which finances such measures as on-farm investment, headage payments and aid for projects related to the marketing and processing of agricultural products. As well as the increase in the actual amount of the fund, however, there is the fact that Ireland is included among the least prosperous areas of the Community (called "Objective No. 1 Regions") for which a special effort will be undertaken. In these regions the resources of the Regional Fund and Social Fund will be utilised in a cohesive way, as part of an operational programme, to promote the development of the region. Agriculture will, of course, also benefit from increases in the Regional and Social Funds, albeit indirectly in many instances.
As the Deputy will be aware, I recently negotiated a 70 per cent reimbursement for most items under the revised Western Package. This is an approach I will be pursuing for integrated rural development and in the negotiations for income aids for farmers.
We have been quite successful in obtaining increased funding for the processing and marketing of agricultural products. The level of grants received from FEOGA has increased from £12 million in 1984 to over £20 million in 1987 and it is to be hoped that returns from this scheme will continue to increase.
This country secured a special allocation of 20 million ECUs under this scheme over the period 1987 to 1989 to enable all Irish pigmeat projects qualify for a 50 per cent rate of grant from FEOGA. This enhanced rate of grant should facilitate the rationalisation programme for the sector developed by my Department and the IDA.