I thank the Ceann Comhairle for giving me the opportunity to raise this matter on the Adjournment. I wish to share my time with my party's spokesman on Agriculture, Deputy Ferris.
Adjournment Debate. - Sheep Farmers' Incomes.
Is that satisfactory? Agreed.
I thank the Minister of State for being present in the House to reply to the matter. At the outset I should say that there was an appreciation among sheep farmers generally at the decision to bring forward the headage payments by three weeks so as to ease the serious financial problems of some sheep farmers. However, there was total consternation at the decision to reduce the level of grant by 35-40 per cent in some cases. This reduction arose from a regulation which has recently been introduced.
People who had been paid a grant for a number of years were reasonably accurate in their estimation of the amount they should receive. When they made inquiries about the reduction they were advised that a new regulation had been introduced by the Department of Agriculture and Food. They were told that in the case of mountain ewe headage payments the acreage related exclusively to mountain grazing. This meant that small farmers with sheep in closed fields were excluded from availing of the grant. I am sure the Minister realises that farms in handicapped areas are small and uneconomic and that when we speak of mountain grazing we are referring to mountain farms. I understand that the people who had their grants so drastically reduced were told that the remainder of their farms were being treated as lowlands. One would find it very difficult to explain to a farmer who lives at the foot of mountain in Cahirciveen or Killorglin that fields which had been excavated and reclaimed over generations were being treated as lowlands.
I appeal to the Minister to urgently review this regulation with a view to restoring to these people the grants to which they are legitimately entitled. This reduction in the grant has inflicted much hardship on these people. As this is a Department of Agriculture and Food regulation the Minister has the power to remove it and restore the well deserved grants in respect of all ewes maintained by these farmers.
I thank Deputy Moynihan for sharing his valuable time with me. This anomaly has led to a reduction in the incomes of sheep farmers living in disadvantaged areas. It has added to the reduction in income already suffered by sheep farmers as a result of the schemes operated by the EC which have led to changes in the premium headage payment and the collapse in the market value of lambs. It is essential that the Minister of State acts with all speed to remove this anomaly. The Minister can fight to remove the other anomalities which we asked him to remove two weeks ago so that sheep farmers would not have to march to Dublin to make their case.
I thank Deputy Moynihan and Deputy Ferris for raising this very important matter with me. Payments of the 1992 headage grants to farmers in disadvantaged areas commenced in mid-October and some £60 million has now been paid. A further £2 million will be paid during the coming weeks. The position under the sheep headage scheme is that grants are payable on the following types of animals: (a) certain breeds of mountain breeding ewes which are substantially maintained on mountain grazings within the disadvantaged areas and (b) hogget ewes of all breeds, irrespective of whether they are maintained on mountain or lowland grazings within the disadvantaged areas.
However, there are restrictions on the amount which can be paid. No flock owner can be paid grants on more than 200 ewes or hogget ewes combined. No flock owner can be paid in grants more than 36.27p per forage acre of his holding. This allows for payment on a maximum of 3.627 ewes or hogget ewes per acre. The limit of three to the acre, which over the years has been applied to mountain grazings, is very reasonable considering that the maximum which can be applied to lowland grazing is 3.627.
Where flocks consist entirely of breeding ewes there is no reasonable case which can be made for extending the limit beyond three to the mountain acre. However, in the case of flocks made up of breeding or hogget ewes, I am delighted to be able to say that I am prepared to respond sympathetically to the possibility of accommodating on lowland grazings a surplus of hogget ewes which were excluded by the three to the acre restriction on the mountain grazings. I think that is what the Deputies are asking me to do here this evening.
While my Department will be looking at the situation of such flock owners during the coming weeks, it would help them if any flock owners who fall into the category were to bring their cases to the attention of the local office of the Department. As I said, genuine cases will be sympathetically examined. I acknowledged that the anomaly which both Deputies have brought to my attention deserves urgent and sympathetic consideration by my Department. I can assure them that this matter will receive immediate attention.