Dáil Éireann debate -
Thursday, 16 Dec 1993

Vol. 437 No. 4

Adjournment Debate. - Grant Payments.

Mr. Sheehan

I thank you most sincerely, a Cheann Comhairle for allowing me to raise this important matter on the Adjournment.

The Minister is well aware that hundreds, if not thousands, of farmers in Cork south west and other disadvantaged areas, are very annoyed at the haphazard way the Department of Agriculture, Food and Forestry is dealing with the payment of the cattle headage, suckler cow and sheep headage grants this year. Despite modern technology, computerisation, etc., this year farmers have received only a token payment of the cattle headage, a suckler cow and sheep headage payments they received in previous years. Nonsensical statements in the letters accompanying the payments such as (a) "Grant Restriction", (b) "Insufficient fodder acreage"— even though maps were lodged with the Department six months ago indicating that they have ample fodder acreage — and (c) "Advance Payments without Prejudice" are mindboggling and misleading for farmers.

It is obvious that the Department is not competent to process the cattle headage, suckler cow and sheep headage payment application forms and is incapable of issuing the full payment to farmers. Alternatively, this may be an easy way out for the Department — it may be an excuse for withholding the full payments to cash starved small farmers.

The Minister should let common sense prevail in regard to this matter and use his influence, as master of his Department, to ensure that all outstanding cattle headage, sheep headage and suckler cow grants are paid immediately to farmers who, incidentally, are penalised to the tune of 10 per cent if they are in arrears with their income tax payments.

The Minister should say if his Department will compensate farmers by paying them 10 per cent extra on all overdue headage payments. Will the Minister state publicly why his Department cannot pay farmers the full rate of grant? The levels of payments made range from 60 per cent to as low as 20 per cent. Indeed in some cases no payment has been made.

Is it a fact that the money from Brussels for such payments is withheld by the Department of Finance in Dublin? Is the EC Commission aware of the present situation appertaining to headage payments in Ireland? Is it aware that only a token payment has been made on those schemes this year? The time has come for the Minister to come clean with regard to this problem which is causing such anxiety to Irish farmers.

This year the Minister or the Minister of State opened a new office of the Department of Agriculture, Food and Forestry in Portlaoise to deal with all applications for beef premiums, both ten months and 22 month. Farmers throughout the country must now wait until the end of January or perhaps February for the return of their cards, which they submitted for punching to the Department with their respective application forms at the end of November. Why did the Minister not allow each county veterinary office deal with such beef scheme applications, as was the case in previous years when all the cards were punched and returned within a week? In fact, the cards were punched on presentation at the counter and returned to farmers immediately.

Farmers cannot travel to Portlaoise from Mizen Head, Dursey Head or Malin Head. They cannot get to Portlaoise to hand in their cards personally. Farmers cannot dispose of their bullocks until February or perhaps March and the majority of them will be forced to borrow money to purchase feeding stuffs to rear their animals throughout the winter months. It would be interesting to know if Government Ministers would wait several months for their salary cheques. It is already obvious that the Government has decided it can always leave the farmers without their money as they do not constitute any threat to the Government. Those on social welfare, civil servants and many others must get priority. If they do not get paid on time there is an outcry. Cows cannot be switched off like taps. Cattle must be sold at a specific time and crops must be harvested when ripe.

Surely in this season of peace and goodwill the Minister will see fit to ensure that all outstanding headage grants are paid to farmers before Christmas if at all possible.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. Hyland)

Deputy Sheehan, as usual, is putting in an excellent pre-Christmas performance but nonetheless I share his concern in relation to the payment of livestock grants to farmers. However, I must bring to the Deputy's attention the actual facts in relation to the payment of grants.

Payment to farmers in 1993 under the various premia and headage schemes have already exceeded the record levels achieved in 1992. To date in 1993 over £350 million has been paid out to farmers under these schemes. At mid-December, 1992, the figure for payments stood at £275 million, so this year's payment figure is some 27 per cent up on that of a year earlier. Payments are continuing under all the schemes and Deputy Sheehan and other Members of the House will be pleased to learn that I expect a further amount of £30 million to be paid out by the end of this year. In effect, that amount of money will be paid in the coming week. By any standards, that is an indication of the Department's concern to ensure that the maximum amount of money is paid to qualified farmers within the shortest possible time.

Mr. Sheehan

Why not pay out 100 per cent?

Mr. Hyland

Taking into account other direct payments to farmers in 1993, the total for the year could in fact be of the order of £440 million.

With CAP reform there has been a considerable increase in the number of applications for the various livestock schemes. It is important to note that applications in 1993 are of the order of 640,000 as compared with 370,000 in 1992. These two figures will give Members some idea of the huge volume of work which must be dealt with in the Department as a result of our success in relation to the reform of the Common Agricultural Policy, the various new livestock schemes which have been brought onstream and the number of farmers qualifying for theses schemes. The Deputy will appreciate that many of the schemes are highly complex both from the farmers' point of view — and Deputy Sheehan raised that point on a number of occasions in this House — but also from the Department's point of view in relation to their administration.

To meet the various additional demands, the administration of the special beef premium schemes was, as the Deputy has identified, centralised in Portlaoise and some 80 additional staff have been allocated to that office. The relocation to Portlaoise will be one of the main factors in streamlining the administration of all the schemes on which the farmers are dependent in terms of grants.

My objective is to secure the maximum level of payments to farmers during 1993 and to ensure that these payments are made at the earliest possible opportunity. I believe this objective is being achieved. The record payment levels in 1993 are being achieved notwithstanding the fact that EU regulations preclude payments under the special beef and suckler cow premium schemes before 1 November. Deputy Sheehan must understand, from his knowledge of the scheme, that that is the case. Payments could not commence before 1 November and even then there is a limit on payment to 60 per cent advances — 100 per cent payments had previously been the norm. Most disadvantaged areas headage payments are normally on the basis of advances and this is also in practice in 1993.

The CAP reform arrangements are, as I have already said, quite complex. My Department is coming to terms with the new requirements but I will not be satisfied until we have mastered all of the problems involved. I am, therefore, currently reviewing all our systems in the interest of further improvements for the 1994 schemes.

In conclusion, I would not accept that there have been delays in the overwhelming majority of cases in the return of cattle identity cards submitted with the ten month and 22 months special beef premium applications in June and July 1993. As a general rule, such cards are returned within the two months retention period applicable under those schemes so as to allow the applicants concerned to sell the male cattle listed on their applications as soon as that retention period expires.

I expect that the special beef premium unit will continue to cope well with the cattle identity cards submitted with the November applications under this scheme.

Finally, I would like to apologise for the absence of the Minister, Deputy Joe Walsh. Everybody in this House is aware of the important business in which he is involved, namely, the GATT negotiations in Brussels.