Dáil Éireann debate -
Wednesday, 5 Nov 1997

Vol. 482 No. 4

Written Answers - Installation Aid Scheme.

Bernard Allen

Question:

85 Mr. Allen asked the Minister for Agriculture and Food if he will make funding available for the reopening of the installation aid scheme for young farmers, which has been in operation since 1987 and which has been availed of by nearly 6,000 young farmers. [18305/97]

Minister for Agriculture and Food (Mr. Walsh)

The Scheme of Installation Aid for Young Farmers was one of the sub-measures operated under the Operation 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 3,320 young farmers had been paid about £18.5 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, recognise 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.