Vol. 458 No. 4
7 Kathleen Lynch asked the Minister for Agriculture, Food and Forestry the average amount in national and EU direct payments drawn down by farmers in the most recent year for which figures are available; the total amount in national and agricultural direct payments estimated for 1995; the plans, if any, he has to review the operation of the relevant programmes on a national basis; and if he will make a statement on the matter. [16984/95]
Direct payments to approximately 160,000 farmers from national and EU funds amounted to £669.7 million in 1994 and are expected to reach £750 million this year. In 1994 the average payments to farmers amounted to £4,186 in 1994 and are forecast to amount to £4,688 in 1995. These payments represent a significant source of family farm income and premia payments. Since CAP reform, they have represented an increasing proportion of direct payments to farmers.
Payments to farmers which are cofinanced by the Structural Funds, such as headage payments, are provided for in the Operational Programme. A monitoring committee comprised of the European Commission, relevant Government Departments and the Social Partners meets twice a year to review the operation of the programme and recommend any necessary changes. An analysis and evaluation unit has recently been set up in the Department to ensure effective monitoring and overall evaluation of the programme. A midterm review of all aspects of the programme is due to take place in 1996.
Will the Minister outline the formula used in calculating the average payments to farmers? Does it include farmers who would not in the normal way receive payments under the various schemes operated by his Department and part-time farmers who spend more than 50 per cent of their time outside the farming industry?
The statistics are compiled by the Department's information systems division and the total amount is divided into the 160,000 live herd numbers. This is the same basis on which they were calculated previously. The preliminary figures will be published by the CSO in December. The indications are that 1995, my first year as Minister, will be an extraordinarily successful one for agriculture and net farm incomes will exceed the £2 billion mark. This will be the best year ever for farmers.
To what does the Minister attribute this success? Does he think the good times started on 16 December 1994 or does he attach some importance to the CAP reform on which negotiations took place during the previous four years?
Let us not stray from the subject matter of the question.
This success can be attributed to many factors, not least the firm direction of my policies since last December.
Dynamic leadership.
What new policies did the Minister have?
He is the greatest Minister for Agriculture since Deputy Austin Deacy.
He tried to prohibit quotas.
I acknowledge the fantastic work the Minister has done in ensuring speedy and prompt payment to farmers. Does he foresee any change in the system of direct payments over the next year?
That is a separate question.
The Carney report will not be published.
Deputies are straying very far from the subject matter of the question. The Deputy has raised a separate question which should be put down accordingly.
The payments are broadly assured until the year 2000, the period covered by the CAP reform. The likely negative pressures are budgetary commitments, GATT commitments in terms of reducing the volume and value of export refunds which will put pressure on market prices in future years and enlargement. There is a real prospect of overheating, land and quota prices which might not be sustained in the long-term. I would be sanguine about that type of projection.
Will the Minister confirm that all headage payments were paid by 31 October?
I am pleased to inform the Deputy that under the charter my Department has made the speediest and largest payments ever to farmers. On the question of headage, my predecessor made an advance and final payment. I abolished that system so that farmers are now paid their full entitlement during the year of entitlement.
Were they all paid before 31 October?
Obviously there were administrative difficulties in processing forms which had been incorrectly filled in. I am determined to rectify these problems——
The Minister is two weeks late having regard to his own date. He drew up the charter.
It is widely acknowledged that all those entitled to payment and whose documentation is in order——
Will be paid eventually.
——have been paid.
The Minister is misleading the House.
In regard to the charter of farmers' rights, is the Minister aware that a large number of people have not received payment and may not do so because of minor errors in their application forms? We were promised an appeals procedure. With the introduction of the farmers' charter of rights, we thought farmers would get an opportunity to state their case to a tribunal or some such body.
I am delighted to inform the Deputy that I have set up an appeals unit and appeals forms are available for people who are dissatisfied. This is the first time this has been done in the Department and I am glad to have this in place.
The Deputy asked what would happen when farmers make errors in tag numbers and incorrect breeds of cow sucklers or fail to send in area aid forms. These problems, unfortunately, are the fault of applicants who for one reason or another make mistakes. I am trying to smooth out some of the problems with the Commission and in some specific areas I am seeking to have a reinterpretation of rules that will allow people who are ineligible to be paid. Things are moving rather satisfactorily in connection with arable aid, beef cow, suckler cow and other headage payments.
