Vol. 429 No. 4
1 Mr. Dukes asked the Minister for Agriculture, Food and Forestry when he expects to be in a position to announce the details of early retirement scheme for farmers, currently in preparation; if the scheme will include the condition that the successor to a retiring farmer's land must already be in beneficial control of farming land; and if he will make a statement on the matter.
5 Mr. Cullen asked the Minister for Agriculture, Food and Forestry if he will give details of eligibility criteria for the new farm retirement scheme; and if he will make a statement on the matter.
10 Mr. Flanagan asked the Minister for Agriculture, Food and Forestry when it is proposed to implement an early retirement scheme for farmers arising out of the Common Agricultural Policy reform measures; when he will give the details of this scheme; whether money has been allocated in the Book of Estimates for 1993 in this regard; and if he will make a statement on the matter.
55 Mr. Rabbitte asked the Minister for Agriculture, Food and Forestry if the Government intends to participate in the proposed EC funded retirement scheme due to begin in April 1993; if so, the basis on which it will participate; and when he will announce details of the scheme.
58 Miss Harney asked the Minister for Agriculture, Food and Forestry the measures, if any, he proposes to take to give effect to the commitment to develop an effective farm retirement scheme.
59 Mr. Timmins asked the Minister for Agriculture, Food and Forestry if he will give details of the EC retirement pension for farmers; and when this will come into operation.
97 Mr. J. O'Keeffe asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the fact that many family farm transfers are now being deferred because of the delay in the introduction of the farm retirement scheme; and if he will confirm that all such transfers completed after 1 March 1993 will come within the terms of the scheme when it is ultimately implemented.
99 Mr. Connor asked the Minister for Agriculture, Food and Forestry if he will make a statement on the present status of the proposed new EC farm retirement scheme; when the scheme will be operational in Ireland; the value of payments under the scheme; and the categories of farmers who will qualify.
110 Mr. Yates asked the Minister for Agriculture, Food and Forestry the detailed requirements for recipient farmers under the proposed farm retirement scheme in relation to the minimum period for which they must own land or have a leasehold interest in land; the conditions, if any, which attach to any such leasehold interest; and if he will put a maximum figure of around 20 acres for any holding rather than a percentage figure for which the young farmer must have had land previously.
120 Mr. Yates asked the Minister for Agriculture, Food and Forestry the minimum size of land holding required by transferees under the proposed farm retirement scheme; and whether there is any percentage restriction on the level of this prior ownership of land in relation to the overall holding to be transferred.
121 Mr. Yates asked the Minister for Agriculture, Food and Forestry if there is any proposed upper or lower age limit for transferees of land under the proposed farm retirement scheme.
122 Mr. Yates asked the Minister for Agriculture, Food and Forestry if there will be any restriction in the proposed early farm retirement scheme in relation to the length of time a young farmer will need to have owned or leased land before being entitled to take part in this scheme; and if so, the limit which is being considered.
123 Mr. Yates asked the Minister for Agriculture, Food and Forestry the proposed cost of establishing the early farm retirement scheme.
124 Mr. Yates asked the Minister for Agriculture, Food and Forestry if, where there is a joint ownership of land between spouses and one spouse only is under 65 years of age, they will be eligible under the proposed farm retirement scheme.
127 Mr. J. Bruton asked the Minister for Agriculture, Food and Forestry when the proposed farmers' retirement scheme will come into operation; and if it will operate retrospectively to 1 April 1993.
128 Mr. McGrath asked the Minister for Agriculture, Food and Forestry when he will give details of the promised farm retirement scheme; and when the scheme will come into operation.
129 Mr. Nealon asked the Minister for Agriculture, Food and Forestry the period of time for which farmers taking up released land must be in possession of land of their own by lease of ownership in connection with the EC aid scheme for early retirement from farming.
130 Mr. Nealon asked the Minister for Agriculture, Food and Forestry when the details of the scheme of EC aid for early retirement from farming will be available; when the scheme will come into operation; and whether transfers now being effected will be eligible for consideration.
I propose to take Questions Nos. 1, 5, 10, 55, 58, 59, 97, 99, 110, 120, 121, 122, 123, 124, 127, 128, 129 and 130 together.
I expect that the scheme for early retirement from farming under EC Regulation No. 2079/92 will be in operation here, following clearance by the EC Commission, by the end of the summer.
Details of the scheme which I will be introducing are at present being drawn up by my Department but I intend that it will provide attractive financial inducements to encourage farmers to consider early retirement.
The EC Regulations governing the scheme requires a significant increase in the size of agricultural holding of the transferee to improve its economic viability before Community funding will be given. The precise percentage figure which will be regarded as a significant increase has yet to be agreed with the Community. A division of family holdings, however, at a time close to the date of transfer in order to meet the enlargement requirement at the time of transfer would not be acceptable to the Commission as meeting the restructuring objectives of the scheme.
The normal situation under EC schemes is that eligibility is confined to actions taken from the date the measure is put in place in a member state. I am, however, examining this and other aspects such as age requirements for transferees and the situation in relation to joint ownership in considering the detailed rules for the early retirement scheme as a whole.
An amount of £1 million has been allocated to the scheme in this year's Estimates but as the scheme becomes fully operational, significantly larger allocations will have to be made in future years.
Is the Minister of State not aware that the apparent target date for this scheme continues to slip back? Initially, we were told it would be in operation in the spring of this year; then we were told it would be early summer and now the Minister tells us it will be the end of the summer. Will he agree that it would be more realistic to say we will be lucky if the scheme is in operation this year? Will the Minister also agree that if the provisions for a significant increase in farming area are implemented as they are contemplated at present and if the Commission continues to take the same view in regard to restructuring, the scheme will be a dead letter here? Very few people will benefit from it and there will not be any restructuring.
I reject the Deputy's suggestion that there has been any delay in bringing this scheme to fruition. With the exception of France, no other member state of the European Community has finalised the details of the farm retirement scheme. Neither do I accept the Deputy's view that the scheme will not be of immense benefit to the farming community generally in terms of land restructuring. We intend to make the scheme as financially attractive as possible from the point of view of encouraging the maximum number of farmers to retire and benefit from it. At the other end of the scale, it is our intention that the requirements of the scheme will mean that young farmers in receipt of land will not be prevented from qualifying to the maximum extent for the benefits which can be derived under the scheme. This is a worthwhile scheme and should be supported by Members from all sides of the House.
The intention of the scheme has the support of Members on all sides of the House, but we are concerned that its details might make it a non-starter here. Is the Minister prepared to bet that by the time our scheme is in operation there will not be schemes in operation in most other member states? I am not impressed to hear that only France has put this scheme into operation. I would be prepared to bet that other member states will get this scheme up and running before we do. Has the Minister any leeway in the specification of this significant addition question? Is it true that the general guideline used is that 20 per cent of the final total of land on the part of the beneficiary should have been owned, leased or beneficially controlled by the beneficiary for a period of at least two years before the transfer takes place from the retiring farmer? In that connection, will the Minister agree it will seriously limit the number of people who will benefit from this scheme?
I indicated already to the Deputy that we will be taking steps to ensure that bureaucracy will not stand in the way of the maximum level of particiaption by the farmer wishing to retire and the young farmer inheriting the land. Specific guidelines are laid down by the Commission in relation to the scheme and, as late as last week, the Minister had discussions with EC officials in regard to the amount of land that the transferee should have in order to qualify for the scheme. Deputy Dukes correctly identified this problem. There will be further discussions in this regard and I hope we can modify that as far as possible in favour of young farmers receiving the land. We will also be anxious to ensure that the maximum degree of flexibility applies in relation to the timescale in which the young farmer should have the additional land which is required under the scheme. We should not lose sight of the fact that basically the scheme is a restructuring one. Therefore, the EC require that the additional land must be acquired by the young farmer inheriting the land from his parents or a relative. I assure the Deputy and the House that the Minister and I will endeavour to do everything possible to ensure that this scheme is as attractive as possible in terms of eligibility and qualification for the person leasing the land and the person transferring it.
Does the Minister intend that the proportion requirement will be less than 20 per cent and that the time requirement will be less than two years? Will he not agree that it would be an outrageous intrusion into the normal running of family affairs if the Commission said that this scheme could not apply in cases where there had been a family division some time previously?
I will not give any specific commitment in regard to the period of time or the amount of land. However, we will endeavour to negotiate the most attractive benefits possible both in terms of the time period and the amount of land the young farmer must have to benefit under the scheme.
The Deputy can take it from me that we are dealing with this matter in a very sincere way. I hope that we will be able to come up with a very attractive retirement scheme at the end of the day. I know that farmers are looking forward to such a scheme.
Faith is a virtue, but charity is an even greater one.
