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Dáil Éireann debate -
Tuesday, 7 Dec 1993

Vol. 436 No. 7

Ceisteanna-Questions. Oral Questions. - Headage and Premium Payments.

Seymour Crawford

Question:

12 Mr. Crawford asked the Minister for Agriculture, Food and Forestry the reason payments of slaughter premium, 1993 special beef premium and cattle and beef cow headage payments have been delayed; the steps, if any, he is taking to ensure that payments are made quickly on outstanding applications; and if he will make a statement on the matter.

Charles Flanagan

Question:

20 Mr. Flanagan asked the Minister for Agriculture, Food and Forestry the number of applicants for slaughter premium, 1993 special beef premium and cattle and beef cow headage payments that have not yet received payment; the total value that these unpaid applications amount to; and if he will make a statement on the matter.

John Bruton

Question:

21 Mr. J. Bruton asked the Minister for Agriculture, Food and Forestry the number of applicants for slaughter premium, 1993 special beef premium and cattle and beef cow headage payments that have not yet received payment; the total value that these unpaid applications amount to; and if he will make a statement on the matter.

Alan Shatter

Question:

40 Mr. Shatter asked the Minister for Agriculture, Food and Forestry the number of applicants for slaughter premium, 1993 special beef premium and cattle and beef cow headage payments that have not yet received payment; the total value that these unpaid applications amount to; and if he will make a statement on the matter.

Donal Carey

Question:

44 Mr. Carey asked the Minister for Agriculture, Food and Forestry the number of applicants for slaughter premium, 1993 special beef premium and cattle and beef cow headage payments that have not yet received payment; the total value that these unpaid applications amount to; and if he will make a statement on the matter.

Bernard J. Durkan

Question:

184 Mr. Durkan asked the Minister for Agriculture, Food and Forestry the proportion of headage payments he expects to have paid to farmers before 23 December 1993; and if he will make a statement on the matter.

I propose to take Questions Nos. 12, 20, 21, 40, 44 and 184 together.

The position is that to date in 1993, some £340 million has been paid to farmers in respect of various headage and premium payments. Total payments are at present £70 million ahead of the £270 million paid to farmers at the same date in 1992.

Payments under cattle headage and premium schemes do not normally commence until November. As well as that, EC rules now preclude any payments under special beef premium and suckler cow premium schemes before 1 November and even then limit payments to 60 per cent advances. Advances of 60 per cent are also being made under the cattle headage schemes.

Excluding the November application period for special beef and suckler cow schemes which closed on 30 November and for which I do not yet have figures, over 350,000 applications have been received in my Department under 1993 cattle headage and premium schemes. To date payments totalling £80 million have been made in respect of 160,000 applications.

While it is difficult to put a definite value on the outstanding payments, I estimate they are of the order of £50 million based on 60 per cent advances.

Payments are continuing and I expect that the majority of outstanding cases where there are no problems with the applications will be paid their advances before the end of the year.

I believe that the record level of headage and premium payments achieved to date in 1993 — £340 million — is evidence of my commitment to delivering the various headage and premium grants to farmers at the earliest opportunity. These payment levels are being achieved against the background of EC arrangements which, while extremely valuable to farmers, are complex for farmers and my own Department. In this, the first year of the new CAP arrangements, I am satisfied that the Department is coming to terms with complexities and the extra administrative burden of CAP reform. I will not, of course, be content until we have fully overcome all the problems involved and I am currently reviewing our arrangements in the light of this year's experience. My aim is to ensure that we have the systems in place which will result in all payments being made at the earliest possible date.

As I would also like to facilitate Deputy McManus I ask for brevity.

I would like to facilitate the many thousands of farmers who have not yet been paid. That is the reason I tabled this question. During the past few days I spoke to a number of Teagasc instructors who are trying to resolve the problems of farmers looking for maps; they are doing nothing else.

The Minister said the EU will not allow him to make these payments before 1 November. Why was the Department not ready to pay them on 1 November? It is now 7 December and some small producers are owed between £6,000 and £12,000 which is their total profits. In many cases they are owed more than that. Some are paying surcharges to the banks as a direct result of the non-payment of this money. I have a list of excuses from the Department but excuses are no substitute for payment. Possibly the setting up of the office in Portlaoise has meant a slowdown in making these payments.

They were ready last year when we had an election.

I do not want to make an issue of this.

We do. It is an issue for farmers all over the country.

I am concerned about the payments that have not been made. However, it is a huge operation to deal with the increased level of new applications coming on stream because of the reform of the Common Agricultural Policy. I do not intend to paper over the cracks and say there are no difficulties. We have made a considerable effort to advance the payments, with £270 million more having been paid in 1993 than was paid in 1992. I know that is no consolation to farmers still awaiting payment and I accept the sincerity of Deputy Crawford's concern about these payments.

Farmers would like to accept the money.

I acknowledge the problems. The Department is totally committed to ensuring that these grants are paid as quickly as possible. I hope that by the end of the current year, which is only a few weeks away, the majority of grants with which there are no problems will be paid. I share the concern of the Deputies opposite.

When will the remaining £40 million be paid?

The applicants who qualify will, I hope, be paid by the end of the year. Early in the New Year the balance will be paid.

I want to move on to Question No. 13, bearing in mind that the time for Priority Questions is exhausted.

This is very important.

The cheques arrived with the polling cards last year.

The Deputy knows that is not true.

The election promises were not fulfilled. The Government promised to pay everyone.

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