Vol. 498 No. 5
7 Mr. Penrose asked the Minister for Agriculture and Food the criteria, if any, to be used to determine the eligibility of applicants to participate in the new control of farm aid pollution and dairy hygiene schemes; and if he will make a statement on the matter. [27873/98]
Under the current Operational Programme for Agriculture, Rural Development and Forestry £133 million was made available for the control of farm pollution and dairy hygiene schemes. However, due to the extremely high level of demand, it was necessary to suspend the acceptance of new applications for the control of farm pollution scheme on 27 April 1995 and the dairy hygiene scheme on 4 October 1996. Since taking office I have secured an additional £44 million for these schemes.
An additional £25 million, all from the Exchequer, was provided from the on-farm investment schemes in my Department's Estimate for 1999. This brings to £36.5 million in total funding available for these measures next year. This funding will allow my Department to meet all outstanding commitments and will allow the introduction of the nationally funded schemes for the control of farm pollution and the improvement of dairy hygiene schemes in a more focused form, better targeted towards farmers most in need of assistance in line with the Government's commitment in An Action Programme for the Millennium. The introduction of these schemes will also facilitate some farmers to gain access to the REP scheme.
The new schemes for the control of farm pollution and improvement in dairy hygiene standards, as nationally funded schemes, are regarded as State aids and will have to be approved by the European Commission before they can come into operation. Before submitting plans to the Commission, my Department has had discussions during the past week with the main farming organisations to enable their views to be taken into account in the drawing up of the terms and conditions of the new scheme. The organisations concerned have promised to forward detailed written submissions on the preliminary proposals discussed and these submissions are expected later this week.
The terms of the new schemes will then have to be finalised for submission to the Commission. Notwithstanding the requirement to clear the schemes with the Commission, I hope to be able to launch both schemes in the first quarter of 1999.
I thank the Minister for his reply but we are still no nearer a starting date. This reminds me of the installation aid scheme. Will we go down the same road in relation to the introduction of these schemes? Some people have said to me it could be mid-summer before these schemes are introduced. Is the Minister satisfied that the money provided will make a meaningful contribution towards them? I welcome the fact he has secured an extra £36 million for the introduction of those schemes. Will the rate of grant be reduced from 60 per cent to 40 per cent? Will there be limits in relation to off farm income activity? Is the Minister satisfied the amount of money provided is adequate?
We had 18,500 applicants for the old control of farm pollution scheme so the number availing of any new scheme could be about 30,000. It is unlikely that more than 2,500 will qualify for the new scheme; likewise with the dairy hygiene scheme whereby almost 8,000 applied. How many people does the Minister anticipate will participate in those schemes once announced? I know he is in the midst of negotiation with the farm organisations. Realistically, will those schemes be introduced in March or April?
It is impossible to say exactly when they will be introduced because I do not have that within my gift. The Deputy mentioned the installation aid scheme for younger farmers. That scheme was held up and I and the Department would have been much happier had it been introduced more quickly. The Deputy knows the reason it was held up. The Commission did not want to consider applications in the pipeline but eventually we succeeded in that regard.
On the control of farm pollution and the dairy hygiene schemes, we are having consultations with the farming organisations at present. We hope to reach agreement and the farming organisations are expected to send in detailed proposals by Friday of this week. I hope to be in a position to send the proposed new schemes to Brussels before Christmas. Approval will be needed from Brussels because they are regarded as direct aids and taxpayers' money will fund them. I hope they will be established as early as possible in the new year because, from spring on, farmers will want to carry out improvement works. I would give a firm commitment were I able to but it is subject to Commission approval.
An upper limit will apply to the schemes and I suggest a 40 per cent rate with account being taken of all farm income. We want to focus on people who are most in need. Members will recall that there was front loading on the control of farmyard pollution scheme, dairy hygiene scheme and scheme of installation aid. I was responsible for that as much as anyone else because I was Minister in the early 1990s. The result was that money ran out and the schemes now rely on Exchequer funding. With more focused schemes agreed with farming organisations and the £30,000 expenses limit of the Department of Finance for farmers in the tax net, I envisage almost all farmers receiving some degree of assistance under these schemes.
