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Dáil Éireann debate -
Thursday, 5 Feb 1998

Vol. 486 No. 5

Written Answers. - Cattle Headage Payments.

Michael Creed

Question:

62 Mr. Creed asked the Minister for Agriculture and Food if his Department intends to proceed with the recommendations of Kearney and Associates to reduce cattle headage payments to an overall maximum of £3,000; if he will enter into negotiations with the farming organisations on this matter; and if he will make a statement on the matter. [2939/98]

A formal commitment to have compensatory headage payments independently evaluated was entered into by the Department of Agriculture and Food as part of the negotiations in 1994 with the European Commission on the Structural Funds leading up to the approval of the Operational Programme for Agriculture, Rural Development and Forestry. The Commission's attitude was that the funds allocated to this measure 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 recommendations and following consideration of their report, certain proposals were put to the European Commission to provide for amendments to the headage schemes, including the implementation of a £3,024 limit to individual farmers.

It was agreed in the Partnership 2000 negotiations that these amendments would not come into effect until the beginning of 1998. However, following further consideration of the matter, I announced on 2 February 1998 that the ceiling for individual payments would be increased to £4,000. The change now being put in place ensures that all but a very small number of farmers are unaffected, about 1,200 herdowners representing 1.3 per cent of all headage recipients. This group of applicants received an average premium payment of £15,213 in 1996 and applying headage payments ceiling at £4,000 would result in an average combined headage-premia payment in excess of £19,000 for these applicants.

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