Vol. 443 No. 7
19 Mr. Connor asked the Minister for Social Welfare if he will undertake not to look on new premia payments made to small farmers who are in receipt of small farmer's assistance as additional income leading to reassessment of their means and a reduction in their social welfare entitlements.
Income from farming is assessed as means for unemployment assistance under Rule 1 (3) of the Third Schedule to the Social Welfare (Consolidation) Act, 1993 as the yearly value accruing from the use of property.
The procedure is to take account of all receipts associated with the farm and deduct the expenses necessarily incurred. Sources of income taken into account include the sale of livestock, crops, milk, receipt of grants, headage payments, calf premiums, hiring out of machinery and the letting of land, as appropriate in each case.
Expenses allowed include items such as rent of land, stock replacements, fertiliser, crop sprays, seeds, veterinary expenses, the cost of feeding stuffs, repairs to farm buildings, the cost of electricity and petrol used for farm purposes, depreciation of farm machinery, the cost of non-family hired labour and the interest on borrowings for farm purposes.
The legislation relating to unemployment assistance is designed to ensure that the means assessment reflects the actual position taking account of all income and expenses associated with the farm. I am concerned to ensure, however, that smallholders, and other people in receipt of unemployment payments, are given the incentive to improve their situation and get back to employment. In this connection the back-to-work allowance which I introduced in 1993 is also available to smallholders. The question of further incentives for enterprise activity by smallholders, including the exemption for means test purposes of certain EU premia for environmental protection is also being examined and I hope to bring forward proposals in this area in the near future.
