Vol. 438 No. 7
13 Mr. O'Malley asked the Minister for Agriculture, Food and Forestry the number of applications for deseasonalisation beef premium rejected by his Department; the number of animals involved; and the reasons for rejection.
56 Mr. Clohessy asked the Minister for Agriculture, Food and Forestry the total number of applications made to his Department for deseasonalisation beef premium in respect of the period 1 January 1993 to 30 April 1993; the number deemed eligible; the total sum involved; and the sum due, but still unpaid, to eligible applicants on 1 February 1994.
I propose taking Questions Nos. 13 and 56 together.
The total number of applications received under the deseasonalisation slaughter premium scheme in 1993 was 16,200. Close to 18,500 payments amounting to just short of £10 million have been made to date; some applicants have received more than one payment as the eligibility of certain groups of animals on their applications was established at different times.
The amount unpaid cannot be calculated until the farmers who have not yet been paid respond to inquiries made to them in order to determine eligibility. Some cases have been rejected because payment under the special beef premium scheme was not made in respect of the animals concerned. Others were rejected because of invalid or incorrect tag numbers. Statistics are not available in respect of the number of animals involved in these rejected applications.
What did the Minister mean when he said that some of these applications have been delayed because eligibility of different animals was established at different times? What Byzantine logic is behind that? If the Minister is not worried by the fact that some of these deseasonalisation applications were not successful because the special beef premium was not paid, does he agree it is wrong that an error or an ineligibility in one part of the scheme should be allowed to exclude applicants from other parts of the scheme?
As I stated, these are new and complex schemes involving a considerable amount of money. All premium payments are paid by the European Union who lay down the regulations. Since the commencement of the scheme we have refined the regulations in consultation with the Commission and will continue to do so. Animals which do not qualify for the special beef premium because of the application of the national quota or stocking density provision can qualify for the deseasonalisation premium. In order to qualify for the deseasonalisation slaughter premium a farmer must have the animal slaughtered in an approved meat export premises and submit the BTE cards for the animal to the veterinary staff at the plant.
And say three decades of the rosary.
They must receive from the plant of slaughter an invoice on headed paper giving the date of slaughter, the sex of the animal, the ear tag number and the kill number of the animal he intends to submit for premium. The farmer must also submit the invoices, BTE cards and a completed application form to his or her local office.
And his own birth certificate.
We would prefer if the conditions were simpler, but that is the position.
The Minister stated that 16,200 applications were received under this scheme and that £10 million has been paid out. What percentage of the applicants is represented in the £10 million payment? How many of the applicants are awaiting payment? This scheme was introduced on 1 January 1993 and ran until 30 April 1993. Why did it take at least six months to issue payment to eligible farmers? Will the Minister assure the House and farmers that there will not be such a delay this year?
Approximately 98 per cent of applicants received payment under the scheme. Only cases about which there are queries are outstanding. Payments could not be made until the scheme was completed. Therefore, payments could not be commenced until the autumn or midway through the year. Nevertheless, I assure the House that the speed with which payments are issued will improve this year and next year farmers will be paid within three months of application.
How do we compare with other countries in respect of payments?
Very badly.
We are top of the class.
The Minister stated that payments will be made within three months of application next year. Is that something he intended to do anyway or is he doing it only as a result of the Programme for Competitiveness and Work? Is there any reality about what was written in that programme as a victory or would this have happened anyway and the Minister pushed it out as a sop to save face?
Compensatory payments are in place because of an anticipated loss in farmers' incomes as a result of a reduction in livestock prices.
They are in place because of the disastrous CAP reform to which the Minister agreed and is now letting slip through his fingers.
However, 1993 was a good year in which livestock prices remained firm. Nevertheless, compensatory payments are due to farmers; they are entitled to them and it is my objective that they receive them on time. I succeeded in receiving £2.8 million from the Department of Finance in the Estimates last autumn to speed up those payments. I received a further £2 million in this year's budget. I received approximately £5 million last year plus additional resources and staff for the opening of a new office to deal with special beef premia in Portlaoise, opened recently by my colleague, Deputy Hyland.
What a coincidence.
That will ensure that applicants receive their payments on time.
That is not the location Deputy Connolly wanted.
I will not say that I will do great gaisce this year. We will need at least another 12 months to improve the payments system and we hope to meet the deadline in 1995.
In other words the PCW provision is just window dressing.
I want to make progress with other questions. I will hear brief questions from Deputies Crawford and Sheehan.
Does the Minister realise that while what he stated may be true as far as EC regulations are concerned, many farmers who qualified for the ten months premium and then qualified for the 22 months premium have been rejected for the slaughter premium? They have not yet been paid for a slaughter premium due to them last year. Those farmers who did not bother to apply for the slaughter premium and kept their cattle until May received payment equivalent to the slaughter premium immediately. Is the Minister aware that so many payments are outstanding that it is a nightmare for staff at local offices?
A total of 98 per cent of applicants for the deseasonalisation scheme have been paid, only those to which queries are attached remain to be paid. The European Union pay the premia, the cost of which was £377 million in direct livestock headage payments last year. The total will be more than £500 million this year and £600 million next year. The EU insist on tight control.
We accept that.
We would prefer if the matter could be dealt with in a more simple manner. The Department receives approximately 650,000 applications each year for the ten month premia, the 22 month premia, the deseasonalisation beef premium and so on. The task involved is not a simple one and we are doing a better job than any other member state in that regard. I have given a deadline in regard to payments next year and that should be sufficient.
Farmers are being asked for cards some ten months later.
Is the Minister aware that many farmers were refused beef premia because they sold some of their cattle before the two month waiting period had elapsed, but did not realise they were making a mistake in doing so? It was a technical error. Will the Minister accept applications from those who were denied beef premia on those grounds?
Some of Deputy Sheehan's clients attended my clinic in Bantry on Saturday.
I hope the Minister gave them absolution.
I told them that under the circumstances I would do what I could for them but, unfortunately, one of the conditions attaching relates to a retention period.
Will the Minister send them cheques in the post?
