Dáil Éireann debate -
Tuesday, 24 Oct 1995

Vol. 457 No. 4

Adjournment Debate. - Reclassification of Disadvantaged Areas.

Mr. Leonard

I wish to share my time with Deputy Kirk. There has been much discussion in the media in the last few years about extending and reclassifying disadvantaged areas. On coming into office this Government promised to deal with this matter. However, a member of a Government in my constituency went so far as to say that no submission for reclassification had been made to Brussels and that the application was lying in the Minister's office. I tabled a question and found out that the reclassification application had been in Brussels since 13 October 1994. Most of us hoped for a decision in time for the 1995 premia payments which are so essential to small producers.

I went as part of a British-Irish party to Brussels on 27 March and, together with a member of the European Parliament, we had a discussion with EU officials responsible for administering disadvantaged areas schemes. That official told us that if national governments were willing to put up the money there was no reason the reclassification could not go ahead. We were told also that there would not be additional money but that the funding would come from the original allocation.

Just over 60 per cent of Cavan and 40 per cent of Monaghan have been designated as severely handicapped. These two counties were so hard done by that I and a number of other members of the party carried out our own surveys in various district electoral divisions. We satisfied ourselves that the farm income was only half what the Department analysis showed. Unless there is a substantial increase in the area classified as disadvantaged, we will look for a system of appeal. I have insisted over the years that we have not been treated fairly and I discussed the matter with one of the assistant secretaries who has since retired. I will fight for a system of appeal. The stalling is an effort to avoid paying in 1995. It is regrettable that that should happen.

Mr. Kirk

I am grateful for the opportunity of adding my voice to the appeal for urgency in progressing the decision on the application for further extension of the disadvantaged areas. The Minister of State may think the county I represent does not need to be included. However, I would like to disabuse him of that idea because there are considerable areas of the county which would benefit substantially and, on the basis of the criteria, should automatically qualify for inclusion in the disadvantaged area.

A representative of the ESRI was interviewed on a news programme this evening, and during the interview there was a reference to the decline in the numbers employed in agriculture. It is expected that that decline will accelerate, but it is important, in a country with an unemployment problem, to retain as many as possible on the land. Disadvantaged area classification has been a lifeline to many small marginally economic holdings. The areas which were not included in the last round have brought a case to Brussels, but progress in bringing this to a finality has been very slow. The Minister of State should bring all the resources of his Department to bear on the Commission to have the matter expedited at that level, because if marginally economic holdings fall below the threshold of viability there will be even more people unemployed in the areas which it is hoped will be included when the decision is made.

Mr. Deenihan

I thank the two Deputies for raising this matter here. As part of its terms of reference the Disadvantaged Areas Appeals Panel was asked to examine the possibility of reclassifying areas from less severely handicapped to more severely handicapped status.

Appeals were invited from areas deserving reclassification, and these were examined in detail by the panel. Their recommendations were presented to my predecessor, and were forwarded to the EU Commissioner in October 1994.

The Commission raised a number of technical queries on the proposal, and these were dealt with at a meeting between officials of my Department and the Commission in June 1995.

The present position is that the proposal for reclassification, as originally submitted, will be discussed at the next meeting of the Agricultural Structures and Rural Development, STAR, Committee which will be held on Thursday, 26 October 1995. As soon as I receive official notification that the proposal has been accepted by the STAR Committee, a list of the areas for reclassification will be released. Farmers in these areas will be entitled to apply for the grants applicable to more severely handicapped status in 1996.

I hope a number of those areas mentioned by Deputy Leonard will be included in the reclassification and that the people in Cavan and in Louth will be happy following the announcement on Thursday evening.