It is estimated that the cost of extending the disadvantaged areas on a full-year basis will be £6.9 million, that the cost of reclassifying the disadvantaged areas will be £8.6 million on a full-year basis and that the cost of increasing and modulating payment rates in the enlarged areas will be £12 million in a full year. The total cost, therefore, of the extension, reclassification and changes in payment rates will be of the order of £27.5 million in a full year. Approximately 70 per cent of the payments to be made under the schemes of a particular year are normally made in that year and the remaining 30 per cent of payments are carried over to the following year.
The method of allocation of these moneys to the Department of Agriculture and Food is by way of the usual Estimates procedure. A sum of £82.5 million is being sought under the disadvantaged areas subhead for 1991 to enable the carry-forward from last year's schemes and 70 per cent of the cost of 1991 schemes after extension, reclassification and changes in payments rates to be paid in 1991.
