Vol. 487 No. 6
263 Cecilia Keaveney asked the Minister for Social, Community and Family Affairs if he will outline the improvements within the Social Welfare Bill for participants in the REP scheme; the average increase in income, if any, that these improvements will mean for farmers in County Donegal; and the numbers it will affect. [4968/98]
Under the existing arrangements farmers claiming unemployment assistance, pre-retirement allowance and the old age non-contributory pension can have the first £2,000 of REPS payments disregarded for means test purposes. In addition, any costs incurred by farmers in implementing the agri-environmental plan, as provided for under the rural environment protection scheme, REPS, are also offset against other income from farming activities in assessing means.
The recently published 1998 Social Welfare Bill provides for an extension of this disregard to the new scheme of compensation for compliance with special areas of conservation — SACs — conditions, which will be operated by the Department of Arts, Heritage, Gaeltacht and the Islands. I am pleased to let the Deputy know that the Government has agreed to an additional proposal to further ease the assessment of these compensation payments to farmers. Under the revised arrangements, the first £2,000 will continue to be disregarded, with the balance being assessed at 50 per cent, rather than on a full pound for pound basis as at present. This will be of particular importance in areas which contain SACs where farmers will receive higher REPS payments or compensation payments from the Department of Arts, Heritage, Gaeltacht and the Islands in recognition of measures taken to protect these important areas.
The improvements being made will apply to all farmers on smallholders unemployment assistance throughout the country who participate in REPS or claim compensation from the Department of Arts, Heritage, Gaeltacht and the Islands. It is not possible to estimate the number of farmers in County Donegal who will benefit under the revised arrangements. However, there are currently in the region of 1,200 recipients of smallholders unemployment assistance in County Donegal who could benefit if they opt to participate in REPS or claim compensation for compliance with SAC conditions.
The improved assessment arrangements will mean, for example, that a farmer on smallholders unemployment assistance who is already in receipt of a REPS payment of £4,000, will now be £1,000 better off. In addition, a farmer on smallholders unemployment assistance who opts to joint REPS and receives a REPS payment of £4,000 will be £3,000 better off in terms of his overall income position.
