Vol. 449 No. 3
9 Mr. H. Byrne asked the Minister for Agriculture, Food and Forestry if, on 14 December 1994, his Department wrote to Teagasc with the intention of implementing a revised farm improvement scheme; in view of his abolition of the scheme, the way in which he intends to assist land drainage, reclamation, grain storage and other matters not catered for by his Department; and if he will make a statement on the matter. [3435/95]
12 Mr. Killeen asked the Minister for Agriculture, Food and Forestry if he will introduce a scheme of grant-aid to enable farmers affected by recent flooding to undertake essential drainage works. [3376/95]
22 Mr. O'Malley asked the Minister for Agriculture, Food and Forestry when he intends to reintroduce the farm improvement scheme; the measures, if any, he proposes to take to ensure that the scheme is effective and meaningful; and if he will make a statement on the matter. [3504/95]
42 Mr. Cowen asked the Minister for Agriculture, Food and Forestry in view of the recent flooding problems nationwide, the proposals, if any, he has for grant-aiding land drainage to prevent re-occurrence in the future. [3478/95]
89 Mr. B. Smith asked the Minister for Agriculture, Food and Forestry the grant assistance, if any, that will be introduced for land drainage. [3542/95]
I propose to take Questions Nos. 9, 12, 22, 42 and 89 together.
The conditions applying to the farm improvement programme, FIP, were changed with effect from the approval of the operational programme for agriculture, rural development and forestry on 8 December 1994. It was necessary, therefore, to terminate operation of the old scheme and to prepare a revised scheme. Teagasc was written to accordingly.When I came into office, I found it necessary to review the funding allocations for the on-farm investment measures including FIP. In this regard I inherited a situation where the proposed allocation for 1995 and indeed for the whole period of the programme fell far short of actual requirements. There was, therefore, no option but to confine the scope of the new FIP to investment in horticulture, an area where capital investment is essential for expansion and which was not catered for elsewhere.The new FIP will be introduced shortly, subject to Commission approval.
As up to 95 per cent of all FIP investments is in pollution control measures new applicants can be catered for under the revised control of farm pollution scheme.
I am pleased to confirm that I have ensured that all outstanding commitments under the old FIP will be fully met. In this regard the 1995 budget provision for on-farm investment measures as a whole has been increased by 40 per cent compared to 1994.
As the operational programme has set out priorities including headage/premia, farm pollution control and improvement of dairy hygiene, it has not been possible to provide funds to cater for land drainage, reclamation, etc. Field drainage has not been eligible for grant aid since 1988. Arterial drainage is the responsibility of the Office of Public Works.
I am fully aware of the hardship caused by the recent flooding and in the budget a sum of £2 million has been made available for a scheme of compensation payments to farmers who have lost livestock and fodder in the floods. An inter-departmental committee has been established by the Government to co-ordinate a response to the effects of the bad weather. Details of the action to be taken will be announced as soon as possible and I will be in a position to make an announcement on the matter tomorrow.
In light of the recent flooding will the Minister accept that he has made a disastrous mistake? Does he realise he is in power and on his shoulders rests the interests of the farming community? Will the abolition of the farm improvement scheme hinder farm improvement and modernisation, particularly in his own constituency, unless he has waved a magic wand in Europe and succeeded in getting more of us into disadvantaged areas? How will farmers be assisted to drain lands and carry out other such improvements outside of the control of farm pollution which, in effect, does not put money into the farmer's pocket?
One of the horrors I inherited when I took up duty on 14 December was that in the Book of Estimates, signed off by my predecessor on 28 November, the amount of money in FIP was £2.87 million. This compared to a figure in 1994 of £22 million. There was not enough money to cover the existing approvals signed off by CAOs. After strenuous efforts with the Department of Finance I succeeded in having that raised to £12 million. I am also pleased to say that in the revised arrangements, once I receive approval from Brussels, new applicants for the 95 per cent of cases dealing with the control of pollution will get a 60 per cent grant under the CFP instead of a 30 per cent grant. I will arrange a top up of 25 per cent for eligible young farmers.
Grant aid for land drainage was abolished in 1988. No grants have been paid since then. As regards land reclamation my understanding is — Deputies can check this with their Leader and with the former Minister, Deputy Walsh — when the operational programme was agreed with the Commission it was agreed to move away from land reclamation under on-farm investment. That was understood by the Department and there is documentary evidence in the files to prove it. I secured a 60 per cent increase in money for on-farm investment.Last year there was £34 million and this year there is £56 million. This is part of the story of the shrinking billions. We all know the problems the previous Government had with Jacques Delors.
Where would the Minister be without it?
If you take CFP, FIP, the dairy hygiene and animal welfare, which are the four on-farm schemes, there is not sufficient money to cover the requirements. There is a massive shortfall and I do not wish to disguise that. I have made arrangements for this year which will be satisfactory to those who must carry out necessary work.
The time for Questions is all but exhausted. However, I wish to facilitate those Deputies who tabled the questions.
Does the Minister accept that although extensive land drainage was carried out in Cavan in the late 1970s and 1980s, due to the drumlin soil there is need to carry out land drainage and maintenance works and assistance should be provided?
Under the terms of the operational programme it is not possible to meet that request. The people of Cavan will be particularly pleased with my efforts on land reclassification.
I am glad the Minister has confirmed that his predecessor's submission to Brussels will be very satisfactorily capitalised.
Further to what has been said by my colleagues, is the Minister interested in bringing forward a land drainage maintenance grant?
I want to be quite clear about this.
Yes or no?
I will be quite clear. The answer is "no" for the simple reason——
That is fine, the Minister can leave it at that.
Deputy Cowen might not like to hear this but in 1988 Fianna Fáil in office abolished any grant-aid for land drainage.
The Minister is not giving any money for it. Will he bring in grant for land drainage?
When my predecessor, and the Deputy's Leader will be aware of this, signed off the operational programme after negotiations with the European Commission, not only was there no money for land drainage but there was no money for land reclamation.
Let us hear the Minister's reply.
I secured an extra £60 for on-farm investment to meet a particularly important need at farm level for 1995.
When the Minister makes his announcement tomorrow about flood relief, will he consider including relief for those affected by storms as well as floods? Will he also confirm that horticulturists are being considered under this proposal? If not, will he consider their inclusion?
I will be making an announcement about this tomorrow. The position is that anyone who has suffered losses of fodder, livestock, or of the nature to which the Deputy refers, should furnish validation to their FDS office immediately and, in the case of livestock losses, obtain a veterinary certificate.It is my hope that application forms for relief will be available within a week and that the scheme will be operational to meet farmers' emergency needs.
And horticulturists.
I would be sympathetic to them.
With regard to applications made under the farm improvement programme approved before the cut-off date of 8 December — carrying the investment threshold of £22,000 in the control of farmyard pollution — the old scheme provided that the provisions of that scheme could be implemented once the investment threshold had been passed. Will that still apply to applications approved before the cut-off date? Will residual approved applications under the farm improvement continue to be valid and eligible for grant-aid?
I want to make the position quite clear. The farm improvement programme will be fully honoured in the case of anybody with an approved plan. I reckon that two-thirds of people near the completion of their plan, will be able to transfer to the CFP and receive a 60 per cent grant rather than 30 per cent grant. I predict that one-third of farm improvement clients locked into the plan will have their plans fully honoured.As the House will be aware, the farm improvement programme for horticulture will be reintroduced shortly.
That concludes questions for today.
