Billy Timmins
Question:29 Mr. Timmins asked the Minister for Agriculture and Food the proposals, if any, there are to cap headage payments per farm unit in disadvantaged areas. [23340/97]
Written Answers. - Disadvantaged Areas Scheme.
It is intended that certain changes to the disadvantaged areas' headage schemes, which form part of the Partnership 2000 agreement will come into effect in 1998. The changes are as follows: A ceiling of £3,024 per applicant will apply; the eligibility criteria for receipt of the high (£84) rate of grant for beef cows under the cattle headage scheme in more severely handicapped areas and the beef cow scheme in less severely handicapped areas will be brought into line with the eligibility criteria for suckler cows under the suckler cow premium scheme. This change will lead to a streamlining and simplification of the scheme. Cross-compliance between the ewe premium rural world premium and sheep headage schemes and environment requirements will apply in certain areas. This means that sheep farmers with commonage land in areas classified as overgrazed including such commonages in areas designated by the Minister for Arts, Heritage, Gaeltacht and the Islands as special areas of conservation as required under the EU Habitats Directive, will be required to participate in an approved agri-environment programme to qualify for ewe premium rural world premium or sheep headage payments. The areas regarded as overgrazed are in commonages in some certain district electoral divisions in certain counties along the west coast. The application of these cross-compliance measures will be dependent upon the introducton of a new rural environment protection scheme (REPS) for the areas concerned in 1998. Negotiations on the introduction of this package are ongoing at present.
The disadvantaged areas' headage schemes are 65 per cent co-financed by the EU. Such co-funding cannot be made available in respect of farmers who are in receipt of a non-means tested pension. Certain farmers who have contributed to the PRSI scheme for the self-employed introduced by the Minister for Social, Community and Family Affairs in 1988, will qualify for a contributory old age pension if they reach 66 years by 1 January 1998. Headage payments to such farmers cannot be co-funded by the EU. While headage payments will continue to be made to such farmers it is necessary for my Department to identify all farmers, both under and over 66 years of age, who are in receipt of a pension other than a means tested pension in order that the payments made to them are not included for co-financing by the EU Commission.
It should also be noted that formal commitment to have compensatory headage payments independently evaluated was entered into by my Department as part of negotiations in 1994 on the Structural Funds leading up to the approval of the Operational Programme for Agriculture, Rural Development and Forestry (OPARDF). The EU Commission's attitude was that the funds allocated to the measures represented too high a percentage (62 per cent) of the overall allocation to the structural improvement and rural development element of the operational programme.
The consultants who carried out the evaluation came up with a number of broad recommendations and, following consideration of their report, the proposals as outlined by me earlier for amendment to the schemes were put to the EU Commission. Therefore, the changes made are part of that process.