Application forms and Explanatory Notes and Conditions of the scheme for the restoration of potato production potential in County Donegal were circulated in April and about 450 applications for aid have been received. The applications are now being examined in my Department and I expect that payments will commence within the next few weeks.
Expenditure under the EC-assisted scheme is estimated at £1.6 million (£1.2 million from FEOGA and £0.4 national funding). Producers who suffered losses in 1992 will be paid grants, in respect of 1993 plantings, of £900 per hectare of seed potatoes and £775 per hectare of ware potatoes. These amounts represent the cost of purchase of seed for the 1993 crop, the cost of clearing the ground of damaged 1992 crop and interest on working capital for six months. If the 1993 area planted exceeds the area in 1992, grants will be confined to latter area.
A grant of £335 per hectare of seed potatoes and of £345 per hectare of were potatoes will be paid in respect of the cost of clearance of damaged 1992 crops in cases where the producer is not growing potatoes in 1993.
The balance of the £1 million provided in the budget, i.e. about £0.6 million, will, subject to EC Commission approval, be used to supplement payments to seed growers. Details of this supplementary scheme are not yet finalised as the actual amount available will not be known until the amount used under the EC scheme has been determined.
