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Dáil Éireann debate -
Thursday, 7 May 1998

Vol. 490 No. 6

Adjournment Debate. - Installation Aid Scheme.

I wish to share my time with Deputy Bradford.

Is that agreed? Agreed.

I am grateful for the opportunity to raise this matter. Installation aid is important to young farmers throughout the country. In many cases, it has served as a lifeline in keeping young farmers on the land. Farming is becoming less and less attractive as a source of income so it is of the utmost importance to encourage young farmers to remain on the land. Depopulation of rural areas will be a further attack on the rural lifestyle as we know it.

When installation aid was suspended there was widespread concern among young farmers' groups. Macra na Feirme put installation aid at the top of its list in its last two pre-budget submissions. Before the introduction of the last budget, the Minister for Agriculture and Food kindly met my Independent colleagues, Deputies Blaney and Healy-Rae, and me and we discussed this matter at length. In the budget an allowance of £3.5 million was allocated to clear the many files which were, at that stage, in limbo. Many of them were with Teagasc. That allocation was most welcome.

The Minister for Agriculture and Food also announced that the Department of Agriculture and Food and the Department of Finance would meet to discuss a more tightly focused scheme to target young farmers who needed aid. Many such farmers have been in contact with my office in the meantime to find out the details of any such scheme. They would benefit greatly from the scheme and are in genuine need of such aid to deal with the legal fees involved in the transfer of farms under the early retirement scheme.

Has any progress been made on the scheme announced last December to replace the installation aid scheme? It is five months since the announcement of the more tightly focused scheme and young farmers are worried that it will be put on the long finger. I hope the Minister will outline the plans he has in train to replace the installation aid scheme and when we can expect a favourable announcement.

I thank Deputy Fox for giving me the opportunity to speak in support of her request for the early reintroduction of the farm installation grant scheme.

The most disappointing decision which resulted from the change of Government last year, from the point of view of the farming community, was the summary decision by the Minister for Agriculture and Food to scrap the scheme. The Minister, Deputy Walsh, in Opposition had stated his strong support for the retention of the scheme and it was a shock, surprise and bitter disappointment to farmers, particularly young farmers, that in one of his first acts as Minister, Deputy Walsh scrapped it.

Another scheme has been promised and we await the Minister's efforts in this regard with interest and anticipation. He indicated both to the House and in writing to Members following individual representations that he hoped to establish a new scheme at an early date.

The urgency of the matter is apparent to rural representatives who, on a weekly basis, come in contact with young members of the farming community who wish to remain in farming but cannot afford to do so. An installation aid grant of £5,600 would make the difference between their remaining in farming and leaving the land. To keep young farmers in farming and agriculture alive, we advocate the reintroduction of the installation aid scheme.

The Minister has stated in the House and in correspondence with many Deputies that a revised scheme will be put in place. We welcome this commitment but are fearful of what it will entail. There are rumours that it will be restricted. Those who have contacted us at our clinics want it to be as broadly based as possible.

We have to look at the alternatives available to the person who wishes to obtain an installation aid grant. We should contrast the sum involved, £5,600 per annum, with the cost of creating an industrial job, which, according to the IDA, varies between £10,000 and £20,000. It would be much better, from an economic and social perspective, to spend £5,600 to ensure a young person remains in farming.

The statistics show that the numbers involved in farming have been reducing gradually over the past 20 years, while the population of urban areas has increased. This has led to the creation of huge housing estates with the attendant problems. It is in all our interests, therefore, to keep rural areas alive and farmers and their sons and daughters on the land. We can ensure this by reintroducing the installation aid scheme. I hope the Minister will live up to the commitments he has given at an early date.

I thank Deputies Fox and Bradford for raising this important matter. The installation aid scheme for young farmers has been a successful instrument in assisting many young farmers embarking on their careers. Some 6,400 young farmers were paid installation aid grant up to the end of last year. Under the current Operational Programme for Agriculture, Rural Development and Forestry £17 million was set aside for the scheme. Due to the high level of demand, it was necessary to suspend the measure in August last year when funds ran out. At that stage almost 4,000 young farmers had been paid under the scheme, representing a total public contribution of approximately £22 million. Recognising the importance attached to the scheme by young farmers, I am committed not only to meeting all existing valid applications but also to re-introducing the scheme.

I have obtained the agreement of the Minister for Finance to draw up a new, more tightly focused scheme to be targeted at smaller farmers. My aim will be to ensure the new scheme results in resources being concentrated on those young farmers most in need of help. Discussions have been held with the various farm organisations on the nature of the new scheme, the terms of which are being finalised within the Department.

One aspect receiving particular attention is the need to accommodate qualified young farmers who failed to make an application under the existing scheme before its suspension. Detailed discussions are taking place with Macra na Feirme which represents younger farmers specifically.

The new scheme will be 100 per cent financed by the Exchequer. In the current financial year the necessary financial resources will have to be found from within the Department. EU approval will be required before the new scheme can come into operation.

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