The House will now hear two minute statements on matters appropriate to the Minister for Agriculture and Food. I propose to call on the Deputies I have selected in the following order: Deputy Michael Finucane, Deputy Ted Nealon and Deputy Jimmy Deenihan. Each Deputy is entitled to two minutes in respect of each matter and each statement will be followed immediately by a two minute reply by the Minister of State at the Department.
Adjournment Debate. - Agriculture and Food Matters.
I wish to raise the question of the delay in paying farm improvement grants and farm development grants in Cavan. I understand from the Department's office in Cavan that the delay is due to the following factors. During the summer period farmers carry out the work and there is probably an excessive number of applications awaiting payment at this time of the year. The office in Cavan naturally have to structure their finances according to the sum allowed them by the Department. In other years a Supplementary Estimate was possibly pushed through before Christmas in order to expedite payments. I understand the payment period is from three to six months at present.
Farmers have to wait an excessive period to have their work inspected at local level, getting the application processed and cleared and getting payment from the Department in Cavan, and most of them can ill afford it. They make their commitments to projects of that nature and because of the delicate cash flow position, many of them are increasingly frustrated with the excessive delay. As a public representative I am frequently approached by these people to see if there is any way of expediting payment. I understand from the office in Cavan that they are equally frustrated because they can only pay the grants as the finance is made available to them. I would very much appreciate if the Minister would do something to expedite the payments to ensure that farmers are reasonably happy with the level of service provided by the Department.
The sum of £45.6 million which has been provided under Subhead L1 to pay grant aid to farmers for on-farm investments during 1991 is among the highest ever allocated for that purpose. However, the level of up-take under the various schemes has been so high that the funds are coming under severe pressure. To date £43 million has been spent leaving a balance of £2.6 million for the remainder of the year. This will not be adequate to meet demand. As a result it is likely that there will be a carry-over of £5 million to next year.
Claims are processed strictly in order of receipt and, therefore, the period between receipt of a particular claim and its payment is affected by the overall volume of claims to be processed at the time in question and the position in regard to budgetary resources. Having regard to the level of claims currently on hands and the limited funds available, it may be up to two months before some of these grants can be paid.
Almost all areas of agriculture are in crisis of some sort but for the store and weanling producers the crisis is major and it is immediate. Many of these producers are in my constituency of Sligo-Leitrim, many are in Mayo and Roscommon, indeed they are all over the west, following a traditional pattern of farming. These farmers are now, in their own words, in extreme financial hardship and that is no wonder, considering the fall in prices over the past two years. Weanling prices have fallen by £120 a head since 1989 while single suckler producers face a drop of £75 a head on average this year. Store prices, of paramount importance in my area, have fallen on average by £70 to £80 a head since 1989, but costs are rising all the time. Producers' income for weanlings and store cattle have been cut by half over the past two years, leaving them now in their worst crisis since the seventies.
I know the Minister is familiar with these figures but it is important to acquaint the House of what is happening behind the farm gate to these producers. Imagine the position one would find oneself in if any powerful grouping of wage or salary earners had their incomes cut by half in two years.
Part of the problem for these producers is the lack of access to traditional markets. In this respect I was glad to hear the Minister talk today of the possible opening up of the Libyan market, which could absorb 150,000 head of live animals. This kind of development would immediately lift prices. Will the Minister say just how confident he is of the revival of the Libyan market and when he thinks it may happen? Are there any plans for Ministers to visit the area? What is the position as regards the resumption of the cattle trade to Iran? Have we satisfied these countries on BSE?
Whatever happens, however, it will not remove the financial crisis of many of these small producers. He will have to take remedial action himself. The farming organisations seek an annoucement regarding payment of increased headage premiums, up to £80 per livestock unit, and the speeding up of all premium and headage payments. I know the problems, but the Minister should ask that the Department of Agriculture and Food make a supreme effort to have all headage payments out for Christmas. There should also be a substantial heifer premium and an increase in the suckler cow premium in view of the crisis.
Also, I ask the Minister of State, I know he has an interest in this matter, to seek the co-operation of his colleague, the Minister for Social Welfare to ensure that farm incomes for social welfare purposes are based on the present prices and not on historical incomes from the good times.
In so far as the store trade itself is concerned, prices for forward stores are holding at levels similar to last year. This is a reflection of the stability resulting from the revision to the arrangements for processors' margins for intervention beef which the Minister for Agriculture and Food, Deputy O'Kennedy, negotiated last August. There is obviously a wide variation in prices depending on quality, with the good quality stores doing better.
I am concerned that store heifers and weanlings are making somewhat lower prices than last year. In this context I was pleased to support the recent Commission proposal to increase the suckler cow premium this year by up to 20 ECU, £17.58. I am satisfied that this move will improve confidence and provide important income support for producers in the current year.
On the question of developing new markets or reviving markets that have not been buoyant in recent times, let me say that the Minister for Agriculture and Food is always keeping an eye on the potential in this regard and the necessary initiatives will be taken.
Under the conditions laid down in Commission Regulation 2944/91, measures will be taken in Ireland for the provision and installation, upgrading and testing of all on-farm milk-holding facilities and milking equipment; also for the setting up of milk collection centres, if necessary with refrigeration facilities, and advice to individual milk producers directed in particular towards obtaining milk and its treatment. There will be advice on the collection and transport of raw milk. Finally, there will be measures for the improvement of water on farms. Work undertaken in relation to the measures referred to by me will be eligible for grant assistance only if the work had begun after 17 June 1991.
A large number of farmers was forced to go ahead and improve standards before 17 June 1991. As a result they invested large amounts of money on refrigeration equipment and in some cases they have had to borrow from the bank to do this. For example, a portable refrigerated tank to service a farmer with a 15,000 gallon output would cost in the region of £4,000.
I ask the Minister to make a special case to the Commission, if possible, to have the grants for refrigeration equipment made retrospective to 1 January 1990.
As part of the 1991-92 prices package, a sum of £4.3 million was secured by Ireland to fund measures for the improvement of Irish milk quality standards to bring them into line with the proposed EC standard on milk quality. It was agreed that these measures would be financed from the savings accruing to the EAGGF budget as a result of the elimination of the higher intervention buying in price for butter purchased in Ireland. As the higher buying in price was eliminated with effect from 17 June 1991, the EC Commission provided in the rules governing milk quality improvements that only measures begun after that date will be eligible for financing. It will therefore, not be possible to provide grants in respect of work carried out prior to that date.
The Dáil adjourned at 9.5 p.m. until 10.30 a.m. on Wednesday, 6 November 1991.