Dáil Éireann debate -
Tuesday, 7 Oct 1997

Vol. 481 No. 1

Written Answers. - Grant Payments.

Michael D. Higgins

Question:

47 Mr. M. Higgins asked the Minister for Agriculture and Food when he will review the suspension of the installation aid scheme announced by him on 7 August 1997; his views on whether the decision to suspend the scheme was a retrograde step in view of the difficulties in attracting sufficient young trained people into the industry and in view of the fact that the maximum grant was £5,600 per eligible applicant; and if he will make a statement on the matter. [15502/97]

Paul McGrath

Question:

100 Mr. McGrath asked the Minister for Agriculture and Food the reason he decided to abolish the installation grant aid scheme for young farmers; if his attention has been drawn to the fact that this decision will have serious financial consequences for many young farmers who were in the process of completing application requirements for this scheme; and if he will immediately reverse this decision. [15821/97]

Minister for Agriculture and Food (Mr. Walsh)

I propose to take Questions Nos. 47 and 100 together.

The scheme of installation aid for young farmers was one of the sub-measures operated under the Operational Programme for Agriculture, Rural Development and Forestry 1994-99. The programme had an indicative budget of £17 million for the scheme and was launched in December 1994. It was expected that about 3,000 young farmers would participate. Due to the high level of demand the scheme was suspended with effect from 7 August 1997 in respect of new applications.

By 1 October 1997 a total of some 3,240 young farmers had been paid about £18 million under the scheme. In addition there are about 600 other applications being processed currently with a potential grant commitment of about £3.5 million.

As part of the operational programme the independent analysis and evaluation unit carried out a detailed evaluation of the scheme. They indicated that the scheme should be terminated as it was not meeting the main objective of encouraging the earlier transfer of farms.

My Department as part of its submission to the mid-term review sought additional funds to enable the continuation of the scheme. This was additional to the funds sought in other areas where the level of applications had already exceeded the level of funds available — CFP and dairy hygiene. The mid-term review took on board the views of the independent evaluation report and a report prepared by consultants on the operation of the first half of the operational programme, both of which recommended the suspension of the scheme, and accordingly did not make any additional funds available for the continuation of the SIA scheme. The scheme was consequently suspended, as already indicated, on 7 August 1997.

It should be noted that there are currently in excess of 6,600 farmers participating in the scheme of early retirement from farming. While this money is not going directly to young farmers the benefits of the earlier transfers along with other national aids — tax reliefs — have greatly assisted in the improvement of their position.

In addition the Government in An Action Programme for the Millennium recognises the need to support young farmers by ensuring adequate provision for access to quota or production rights by qualified young farmers, and stamp duty exemption for young farmers taking over family holdings.

I am considering the matter and will be closely monitoring progress of other large-scale projects in the CSF as a whole in early 1998 to see if savings are likely to be identified in any area.