I wish to share my time with Deputy McGinley.
Adjournment Debate. - Farm Electrification Scheme Funding.
Is that satisfactory? Agreed.
The objective of the ESB-Government subsidised electrification scheme is to aid rural electrification. This scheme replaced the EC-funded Western Package electrification scheme which was terminated in 1990 and covers those areas designated as less favoured or disadvantaged — the counties of Donegal, Cavan, Monaghan, Sligo, Longford, Leitrim, Roscommon, Galway, Mayo, Clare, Kerry and parts of all the remaining counties.
Under the scheme aid is provided for the following services in towns and villages where agriculture is the principal economic activity: the provision of a new electricity supply, increased supply and the provision of three-phase supply. Aid is also provided for the supply of electricity to firms and co-operatives engaged in the marketing and processing of farm products.
The scheme applies to farming in its wider sense such as mushroom growing, poultry, pig farming etc. The scheme is financed jointly by the ESB which provides 60 per cent, the Department of Energy which provides 20 per cent and the successful beneficiary who also provides 20 per cent. To date, over 1,600 applicants have benefited under the scheme at a cost of £3.76 million to the Exchequer.
I understand from inquiries that there is now serious doubt about the future of this scheme. Apparently the Department of Energy is not prepared to pay its share of the subsidy, i.e., 20 per cent. Over 300 applicants are waiting for clearance, 200 for payment and 100 for approval. Many of these are small farmers who are trying to upgrade their dairies because of EC hygiene regulations. Some are involved in developing alternative farm enterprises such as mushroom or poultry production, while others are in the process of installing an electricity supply for the first time. These people live mainly in remote parts of the west and can only now afford the luxury of an electricity supply. However, because of the action of the Department of Transport, Energy and Communications, and its apparent refusal to co-operate with the ESB in making financial provisions for this scheme, many small farmers will now be left in the dark. This is totally unacceptable in the Ireland of 1993. Many small farmers will be forced out of milk production. Several small on-farm enterprises will be put on hold pending clarification from the Department who process and adjudicate on the applications.
This scheme made a major contribution to rural Ireland. The Minister will be making a very short-sighted decision if he scraps the scheme which helps to brighten up the lives of so many people and helped to generate several small enterprises in the disadvantaged areas. I appeal to the Minister of State to ensure that this scheme is continued. Will he make a statement on the intention to continue with the scheme and the basis for doing so? Will he arrange an immediate meeting between the ESB and the Department to resolve the differences which, obviously, have arisen in order to ensure the immediate payment of grants to successful applicants and to guarantee the survival of this vital scheme to rural Ireland?
I support what my colleague, Deputy Deenihan, said. This scheme has been of immense benefit to rural Ireland and to my constituents.
If it is to be discontinued it will be another serious blow to the economic life of rural areas. I know, as I am sure the Minister of State, Deputy Noel Treacy does, of many families in our part of the country who would not have electricity only for this scheme. We know that people often have to pay between £4,000 and £6,000 to the ESB, which has the monopoly, for a connection They would not be able to afford this and, therefore, would not have the benefit of electricity on the farm or in their homes. I appeal to the Government not to discontinue the scheme and to continue its funding. I know there are applications in the pipeline from people in my constituency and I am sure every Deputy from the west can say the same thing. If this scheme were to be discontinued it would be a serious blow to rural Ireland, especially to those living in remote parts and to agricultural production. In my opinion it would also be a very serious blow to the west. I hope the Minister will confirm that there are absolutely no plans to discontinue this scheme.
The allegations being made by the Deputies that there is a crisis facing 300 farmers is a misrepresentation of the facts. At present the ESB is carrying out work to complete connections for farmers who have been approved for aid under the farm electrification grants scheme. As indicated to the House in a reply to a parliamentary question last week, details of the ESB's work programme, carried out under this special scheme is a day-to-day matter for the company, for which neither the Minister, Deputy Cowen nor myself have direct responsibility. We are informed that to end-March 1993, just over 90 jobs of work were completed under the scheme by the ESB. This compares favourably with the total of just under 500 connections, during 1992.
Aid has been provided towards the cost of upgrading electricity supply for many farms and assisting the connection of remote holdings for more than a decade, both under the former EC funded Feoga western aid programme and in its present special form. The reality is that, in the light of national and international developments in agricultural policy, the relevance of the scheme is constantly reducing. Last year, just under 500 farmers received aid for connection work carried out by the ESB. This represents about 5 per cent of the total rural connections carried out by the ESB, for the same period and almost all farms now have an electricity supply. I need hardly mention the influences that Common Agricultural Policy and GATT reform, have on the whole direction of the farming sector, not alone in the European Community but, more particularly, here at home.
A total of £150,000 has been allocated for our Department's special contribution to the scheme for 1993. The Department provides 20 per cent aid and the ESB provides a further 60 per cent towards the cost of connections, leaving the customer, with only 20 per cent to pay. The House may wish to note that in the normal course of events ESB customers traditionally contribute 50 per cent towards connection costs for their individual supply.
My colleague, the Minister for Transport, Energy and Communications, Deputy Cowen indicated to this House on a previous occasion, that the future of this scheme is under active consideration. He is in contact with his Cabinet colleague, Deputy Walsh, Minister for Agriculture, Food and Forestry about this matter and officials of our Department are in discussion with ESB. I would like to take this opportunity to assure those farmers who have been approved for aid under this scheme that these commitments will be honoured in due course and applications currently being received will be processed in due course.
The Dáil adjourned at 9.5 p.m. until 10.30 a.m. on Wednesday, 5 May 1993.