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Dáil Éireann debate -
Thursday, 16 Nov 1995

Vol. 458 No. 4

Ceisteanna—Questions. - Farm Investment Schemes.

Brian Cowen

Question:

1 Mr. Cowen asked the Minister for Agriculture, Food and Forestry the steps, if any, he will take to ensure the current dismal rate of delivery of farm investment schemes is increased, particularly to small farmers who most need them. [17113/95]

As the Deputy will be aware during the past year the addition of a number of new schemes has resulted in a considerably increased demand on the operations of the local offices of the Department.

In the period to 31 October 1994 some 7,338 approvals issued under the various schemes representing a grant commitment of some £24.6 million. In the same period this year a total of 13,500 approvals issued representing a grant commitment of £86.83 million.

Claims for grant aid of some £36.57 million have been paid in the period to 31 October 1995 as against £24.769 million in the corresponding period last year.

New procedures I introduced recently will further improve the processing of applications under these schemes.

The Minister has given the number of approvals issued but what amount has been paid?

My understanding is that under the farmers' charter, once the certification is received the grant will be paid in the normal period. I thought the Deputy would refer to the position in Laoighis-Offaly which I acknowledge is a particular difficulty. I do not have the figure for actual payments. We now have the REPS, the dairy hygiene, the farm improvement programme and the control of farmyard pollution schemes whereas in 1994 we had only the farm improvement programme. These schemes are moving ahead but there is a problem in some counties due to a shortage of staff. For example, in the Deputy's constituency there are only two field staff where I acknowledge a minimum of four is required. In discussions with the unions I have been endeavouring to get some staff to move from the western seaboard where there are too many staff to the eastern seaboard.

In reply to a question I tabled on 11 October on the dairy hygiene scheme I was informed that the number of applications was 4,700, the number of approvals was 2,100 and the number who had been paid was 127 amounting to £620,000. The problem with the reply given by the Minister is that he is referring to approvals issued under the various schemes. Apart from the dairy hygiene scheme there is also control of farmyard pollution and REP schemes. There have been 9,000 applications for REPS, only 4,500 of which have been approved and few have been paid. Will the Minister agree it is vital, given the level of investment in farming which the IFA have been pointing out in their submission for the forthcoming budget, to address this issue? Given that the Minister is experiencing serious difficulty with the administration of these schemes will he consider identifying those farmers who could be given a write-off in respect of investment under these schemes so that he can release the grant money for those farmers who do not have a taxable income? If he does not have sufficient money and if too many apply for benefit under the scheme, which is the claim being made by the Department——

The question is overlong especially having regard to the time limit with which we must contend.

Will the Minister give serious consideration to consulting with the Minister for Finance about the need for tax write-offs for farmers who have taxable incomes and who have investments under these schemes so that he can release moneys for people who are not in the tax net?

The number of approvals is up on last year and there has been a huge increase in output from the staff of the farm development service, to whom I wish to pay tribute. The delay in converting approvals into grant payments is virtually in the hands of the farmers. Once they have gone through the approval process we carry out the inspection and the payment will issue. The payments issue from the Cavan office and there is no unnecessary delay. On the matter of tax, the Government is in the process of finalising the Estimates which will be published shortly. We will them move on to the tax provisions. I am happy to confirm that I will speak with my colleague, the Minister for Finance, on the question of capital allowances and have it examined in the context of the taxation measures in the budget.

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