Dáil Éireann debate -
Wednesday, 26 Oct 1994

Vol. 446 No. 4

Adjournment Debate. - Headage Payment Regulations.

Mr. Sheehan

I thank the Chair for giving me the opportunity to raise this important matter. Without questioning the ability of the Minister of State at the Department of Agriculture, Food and Forestry, I am surprised my constituency colleague, the Minister, is not present to respond to the Debate. I am sure the Minister of State who is an excellent representative will convey my views to him.

The form, Schedule 5, states clearly that it is not obligatory for a farmer to produce an RSI or a tax reference number if his total headage payments do not exceed £500. They are only obliged to declare that their headage payments amount to £500 or less, sign the form and return it with their headage application to their local livestock office. This week to their dismay farmers received a letter which states that it is not good enough to state they do not have an RSI number, that if they do not have such a number they must obtain one from their tax office and that their grants amount to less than £500. In other words, the Minister for Agriculture, Food and Forestry has reneged on his promise given some time ago. I ask the Minister of State to reverse this U-turn by his Department.

The tens of thousands of farmers in the small farmer category are dismayed and bewildered by this U-turn in regard to the regulations governing the 1994 cattle headage scheme. If they are compelled to produce an RSI or a tax reference number, they will be forced to consult an accountant and, in many cases, the meagre income they derive from their small holdings will not meet their accountant's fees.

I ask the Minister to withdraw the circular sent to these farmers and adhere to the conditions specified on the back of the form, Schedule 5, that it is not necessary for a farmer whose headage payments amount to less than £500 to supply either an RSI or a tax reference number. It is all very fine for the Minister to ask farmers to apply for an RSI number but the moment the farmer does so he receives a batch of tax forms to fill in. Surely commonsense should prevail and the Minister in his wisdom should see fit to honour his promise and not make U-turns. This Government has made far too many U-turns in its policies.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. O'Shea)

I thank Deputy Sheehan for raising this important matter and giving me the opportunity to clarify the position in the House. The position is that following discussions between farm organisations and Government Ministers it was agreed in March 1992, that RSI numbers would not be required for disadvantaged areas headage payments until the beginning of January 1994. From January 1994 onwards, farmers applying for disadvantaged areas headage payments which in total amount to between £500 and £5,000 must state the following on their application form(s): the RSI number issued to them for tax purposes; the tax office dealing with their tax affairs and that to the best of their knowledge, their tax affairs are in order.

Farmers who are in receipt of a means-tested social welfare payment and who, accordingly, have no tax liability simply have to quote the RSI number associated with their means-tested social welfare payment.

In the rate event of applications for headage payments totalling £5,000 or more in any one calender year, farmers are required to supply a tax clearance certificate from the Collector-General with their headage applications.

My Department wrote to all farmers in the disadvantaged areas in December 1993 giving details of this new arrangement. I should also add that the requirement applies to all headage grants to which an applicant may be entitled and not just to cattle headage grants.

Local offices of my Department are fully aware of the conditions under which RSI number must be submitted. It is, however, possible that, in a very small number of cases, farmers whose full entitlement under all headage grants is under £500 may have inadvertently been requested to submit an RSI number.

Mr. Sheehan

I have 20 such letters with me.

Mr. O'Shea

I regret that this has happened and any farmer whose full entitlement under all headage grants is under £500 and who may have received such a request can ignore it. If I can provide help to the Deputy on any specific case I will be glad to do so.

Mr. Sheehan

I thank the Minister.